H. Lundbeck A/s Class A · OMXCOP:HLUN_A
H. Lundbeck A/s Class A — Lundbeck — 9M 2021 Earnings Presentation
79 slides from H. Lundbeck A/s Class A's earnings presentation, Nov 10, 2021
Slide 1: Financial results & business update 9M 2021
Financial results & business update 9M 2021 10 NOVEMBER, 2021
Slide 2: Company Disclaimer
COMPANY DISCLAIMER This presentation contains forward-looking statements that provide our expectations or forecasts of future events such as new product introductions, product approvals and financial performance. Forward looking statements include, without limitation, any statement that may predict,
Slide 3: CEO opening remarks
CEO opening remarks Dr. Deborah Dunsire President and CEO 3 10 November, 2021
Slide 4: Robust financial results for 9M 2021
9M 2021: HIGHLIGHTS Robust financial results for 9M 2021 • Continued strong momentum of strategic brands - up 17% 9M 2021 • Core EBIT reached DKK 3bn and Core EBIT margin reached 24.3% • Net debt reduced to DKK 3.2bn from DKK 4.2bn in Q2 2021 • Vyepti: DELIVER trial met primary endpoint of reduction
Slide 5: Commercial update
Commercial update Dr. Deborah Dunsire President and CEO 5 10 November, 2021
Slide 6: Strategic brands are major revenue contributors, continuing double-digit growth
9M 2021: PRODUCT PERFORMANCE Strategic brands are major revenue contributors, continuing double-digit growth Strategic brands* revenue • All four strategic brands showed double-digit (Quarterly - DKKm) growth in Q3 2021 (+26% in L.C.) 2,500 +25% +6% • Strategic brands reached DKK 6.8bn in 9M 2,000 +
Slide 7: Vyepti shows continued strong momentum in demand
9M 2021: PRODUCT PERFORMANCE Vyepti shows continued strong momentum in demand • Grew 731% in L.C. to DKK 328 Vyepti sales per region Vyepti sales million in 9M 2021 (Quarterly - DKKm) (9M - DKKm) • Grew 450% in L.C. to DKK 151 200 North America 600 North America million in Q3 2021 Other regions Othe
Slide 8: Global roll-out continues with Vyepti
9M 2021: PRODUCT PERFORMANCE Global roll-out continues with Vyepti • Plans for more than 15 launches in 2021 and 2022 including Canada, EU and Australia • DELIVER confirms the powerful effect of Vyepti in patients with migraine and prior preventive treatment failures • Vyepti is different from the o
Slide 9: Continued strong performance by the three largest, established strategic brands
9M 2021: PRODUCT PERFORMANCE Continued strong performance by the three largest, established strategic brands Brintellix/Trintellix Rexulti/Rxulti Abilify Maintena (9M - DKKm) (9M - DKKm) (9M - DKKm) Europe North America Europe North America Europe North America International Markets International Ma
Slide 10: R&D Update
R&D Update Dr. Johan Luthman EVP and Head of R&D 10 10 November, 2021
Slide 11: Steady progress in R&D
9M 2021: RESEARCH & DEVELOPMENT UPDATE Steady progress in R&D Vyepti • Regulatory review in EU and 13 other markets; EU CHMP opinion expected in November 2021 • The DELIVER phase IIIb study reported positive results in migraine patients with prior preventive treatment failures • ALLEVIATE study in e
Slide 12: Vyepti: DELIVER phase IIIb study, headline results
9M 2021: RESEARCH & DEVELOPMENT UPDATE Vyepti: DELIVER phase IIIb study, headline results New hope also for patients suffering from migraine with prior preventive treatment failures Study details: • Efficacy and safety of Vyepti for the prevention of migraine in patients with unsuccessful prior prev
Slide 13: Lu AF82422 enters phase II for Multiple System Atrophy
9M 2021: RESEARCH & DEVELOPMENT UPDATE Lu AF82422 (anti alpha-synuclein mAb) enters phase II for the devastating disease Multiple System Atrophy (MSA) MSA – a rare, aggressive, Mechanism of Action Innovative and adaptive development program disease with a high unmet medical need1 • Phase II biomarke
Slide 14: Our four prioritized biological clusters have strong potential to deliver innovative therapies
9M 2021: RESEARCH & DEVELOPMENT UPDATE Our four prioritized biological clusters have strong potential to deliver innovative therapies Circuitry / neuronal Protein aggregation, biology folding and clearance Targeting neurotransmission / synaptic dysfunction to restore Targeting neurodegenerative brai
Slide 15: Partnership with AprilBio provides a phase I-ready asset
9M 2021: RESEARCH & DEVELOPMENT UPDATE Partnership with AprilBio provides a phase I-ready asset and accelerates the Lundbeck R&D strategy in Neuroimmunology Neuroinflammation / The CD40/40L biology pathway is a central mechanism in neuroimmunology regulating autoimmunity Targeting brain function thr
Slide 16: R&D – Investing for a premier neuroscience pipeline
9M 2021: RESEARCH & DEVELOPMENT UPDATE R&D – Investing for a premier neuroscience pipeline Project Biology Area Phase I Phase II Phase III Filing Eptinezumab (anti-CGRP mAb) Migraine prevention Eptinezumab (anti-CGRP mAb) Hormonal / neuropeptide Episodic cluster headache signaling Lu AG09222 (anti-P
Slide 17: Finance update
Finance update Anders Götzsche EVP and CFO 17 10 November, 2021
Slide 18: Robust financial performance in 9M 2021
9M 2021: FINANCIAL PERFORMANCE Robust financial performance in 9M 2021 Revenue DKKm 9M 2021 Δ% y/y Q3 2021 Δ% y/y • Excluding Northera, revenue up by 1.5% in Revenue 12,246 -9% 4,013 -10% 9M 2021 and 3% in Q3 2021 Gross margin 78.4% +2pp 78.8% +7pp • Strong performance from strategic brands – Operat
Slide 19: Solid financial foundation from which to execute on our strategy
9M 2021: FINANCIAL PERFORMANCE Solid financial foundation from which to execute on our strategy Net debt and Net debt/EBITDA* (9M - DKKm) 6,000 1.2 • Net debt expected to reach DKK 3 - 3.5bn by 5,356 end-2021 and Net debt/EBITDA expected to stay 4,024 unchanged from 2020 at ~1 4,000 0.8 2,208 • Lund
Slide 20: 2021 financial guidance maintained
9M 2021: FINANCIAL PERFORMANCE 2021 financial guidance maintained FY 2021 financial guidance FY 2021 considerations Revenue DKKm FY 2020 Actual 2021 Guidance • Continued solid growth of Abilify Maintena, Brintellix/Trintellix and Rexulti Revenue 17,672 16.3 ̶ 16.6bn • Strong momentum for Vyepti to c
Slide 21: CEO closing remarks
CEO closing remarks Dr. Deborah Dunsire President and CEO 21 10 November, 2021
Slide 22: Lundbeck: Focused on delivering growth today and tomorrow
9M 2021: SUM-UP Lundbeck: Focused on delivering growth today and tomorrow Maximizing current growth drivers Good growth visibility the next 6-8 years • Driving growth through our strategic • Current product portfolio grows strongly brands and new innovative brands • Resilient mature base business Vy
Slide 23: Q&A
Q&A
Slide 24: Lundbeck has good growth visibility the next 6-8 years
9M 2021: CORPORATE STRATEGY Lundbeck has good growth visibility the next 6-8 years – we aim to deliver long-term profitable growth Short to mid-term targets • Revenue: Mid-single digit growth next 6 - 8 years • EBIT margin: From 2024 EBIT margin of at least 25% and Core EBIT margin exceeding 30% Lon
Slide 25: Lundbeck has generated solid growth via organic and external opportunities
9M 2021: CORPORATE STRATEGY Lundbeck has through its history generated solid growth via both organic and external opportunities Lundbeck revenue 1999 – 2021e (FY - DKKm) 2001 2006 2011 2016 2021e (mid- point) 25 Lundbeck
Slide 26: Prudent capital allocation into internal R&D and business development
9M 2021: CORPORATE STRATEGY Our strength today is founded on prudent capital allocation into internal R&D and business development Internally developed In-licensed Acquired 2020 revenue 40% 25% 35% contribution Strategic products and - Rexulti, - Brintellix/Trintellix - Vyepti growth drivers - Abili
Slide 27: Achieving our long-term ambition to be #1 in Brain Health
9M 2021: CORPORATE STRATEGY Achieving our long-term ambition to be ”#1 in Brain Health”: Requires both internal and external innovation within our refined operating space • Internal innovation focused on four clusters of promising biologies • Business development priorities: • Late-stage opportuniti
Slide 28: Progress on all five strategic imperatives of 'Expand and Invest to Grow'
9M 2021: CORPORATE STRATEGY Since 2019, significant progress on all five strategic imperatives of the ‘Expand and Invest to Grow’ strategy… Expand operating space and rebuild pipeline Maximize existing brands • Expansion into new areas • Strong existing portfolio • Strengthening and expand internal
Slide 29: Second half of 2021 and beyond
9M 2021: CORPORATE STRATEGY Second half of 2021 and beyond… 2030 Mid-term Providing transformative outcomes to patients in the highly attractive commercial areas of niche and rare disease neurology and niche psychiatry • Recognized as #1 in Brain Health by patients and other stakeholders globally •
Slide 30: Migraine prevention represents a large and under served market
9M 2021: APPENDIX – VYEPTI (EPTINEZUMAB) Migraine prevention represents a large and under served market Migraine is divided into two major categories, episodic Addressable population and chronic depending on the frequency of headaches (major countries) ~135m – Migraine prevalence 1-14 headache days
Slide 31: Share of patients diagnosed and treated is increasing
9M 2021: APPENDIX – VYEPTI (EPTINEZUMAB) Share of patients that are diagnosed and treated is increasing – from 27% to 39% since September 2019 Migraine prevention market: 13.9m1, 2 Diagnosed, Untreated; Diagnosed, 47% untreated Breakout of 39% treated group Untreated, Preventive Treatment % of Use u
Slide 32: Two large pivotal studies demonstrated sustained efficacy and good tolerability
9M 2021: APPENDIX – VYEPTI (EPTINEZUMAB) Two large pivotal studies including ~2,000 patients demonstrated sustained efficacy and good tolerability PROMISE 1 PROMISE 2 Powerful ≥50%, ≥75% and in episodic migraine patients in chronic migraine patients 100% reductions in migraine days (N=888) (N=1,072;
Slide 33: PROMISE 1: Phase III study in frequent episodic migraine
9M 2021: APPENDIX – VYEPTI (EPTINEZUMAB) PROMISE 1: A phase III study to evaluate the efficacy and safety of Vyepti for prevention of frequent episodic migraine • Vyepti reaching statistical significance for the primary and all key secondary endpoints • Migraine day prevalence dropped over 50% on Da
Slide 34: Vyepti reductions in migraine activity: PROMISE 2 results
9M 2021: APPENDIX – VYEPTI (EPTINEZUMAB) Vyepti achieved meaningful reductions in migraine activity as early as Day 1 that were sustained through Week 12: results from PROMISE 2 phase III trial in chronic migraine Day 1 Reductions from baseline in ≥75% Migraine Responder Rates (RR) • In subjects wit
Slide 35: PROMISE-2 sub-group analysis in medication-overuse headache
9M 2021: APPENDIX – VYEPTI (EPTINEZUMAB) Vyepti: Data from sub-group analysis of PROMISE-2 in patients with medication-overuse headache presented at AHS 2020 Vyepti reduced mean days of acute headache medication use - including triptans specifically - by ~50% over Weeks 1–12 in patients with chronic
Slide 36: Positive headline results from the Vyepti RELIEF study
9M 2021: APPENDIX – VYEPTI (EPTINEZUMAB) Positive headline results from the Vyepti RELIEF study* Vyepti demonstrated… • statistical significance on the co-primary endpoints • all secondary endpoints were also statistically significant, including: • proportion of patients with pain freedom, and… • pr
Slide 37: Vyepti: Phase III study for cluster headache
9M 2021: APPENDIX – VYEPTI (EPTINEZUMAB) Vyepti: Phase III study for treatment of cluster headache, a crippling pain with few effective medications currently available Cluster headache affects approximately one in 1,000 ALLEVIATE phase III study to evaluate Vyepti in people across the world episodic
Slide 38: RECONNECT: Vortioxetine in MDD with comorbid GAD
9M 2021: APPENDIX – RESEARCH & DEVELOPMENT RECONNECT: Vortioxetine improves depressive and anxiety symptoms in MDD with comorbid GAD patients Demographic and baseline characteristics 100 Mean age: Working Mean MADRS total score: 29.5 Inadequate Female: patients 42.2 years patients: 65% Mean HAM-A to
Slide 39: RELIEVE: Vortioxetine improves overall functioning in real world study
9M 2021: APPENDIX – RESEARCH & DEVELOPMENT RELIEVE: Vortioxetine significantly improves patients overall functioning in global real world study Demographic and baseline characteristics 994 patients Mean age: Female: Working Mean MDD Patients w/ comorbid enrolled 49.3 years 64% patients: 56% duration
Slide 40: Rexulti 2 mg/day potential treatment for AAD
9M 2021: APPENDIX – RESEARCH & DEVELOPMENT Data from the two studies suggest that Rexulti 2 mg/day has the potential to be an efficacious, safe and well-tolerated treatment for AAD Study 283: Fixed dose study Study 284: Flexible dose study (post hoc) Fast Track designation granted February Mean chan
Slide 41: Agitation affects some 50% of patients with dementia
9M 2021: APPENDIX – RESEARCH & DEVELOPMENT Agitation affects some 50% of patients with dementia and is an important predictor of institutionalization Delusions, hallucinations, aggression, and agitation ~80% of AAD** patients are in the community setting, affect ≥50% of patients with Alzheimer’s dis
Slide 42: Aripiprazole 2-Month formulation
9M 2021: APPENDIX – RESEARCH & DEVELOPMENT Aripiprazole 2-Month formulation: Potential to further maximize the franchise Aripiprazole 2-Month formulation: • PK-based bridging approach to establish similar exposure between aripiprazole 2- Month Ready to Use (RTU) formulation and Abilify Maintena • Pa
Slide 43: PTSD offers an opportunity for Rexulti
9M 2021: APPENDIX – RESEARCH & DEVELOPMENT PTSD offers an exciting opportunity for Rexulti PTSD PoC study* Post-traumatic Stress Disorder (PTSD) epidemiology Rexulti (with placebo) as monotherapy ~8.6m U.S. adults affected, but or combination therapy in adults with >8m – U.S. prevalence ~80% estimat
Slide 44: Both studies in Rexulti pivotal program in PTSD ongoing
9M 2021: APPENDIX – RESEARCH & DEVELOPMENT Both studies in Rexulti pivotal program in PTSD ongoing Two studies initiated in the pivotal programme (phase III) Study objective1 Rexulti (fixed 2, 3mg and flexible dose up to 3mg) in combination To evaluate the efficacy, safety, and with sertraline toler
Slide 45: Lu AG09222: Potential migraine franchise with PACAP inhibitor mAb
9M 2021: RESEARCH & DEVELOPMENT UPDATE Lu AG09222: Potential to build a migraine franchise in the future with early-stage PACAP2 inhibitor mAb A differentiated approach to migraine Phase I study4: prevention • Determine the safety, tolerability and pharmacokinetics of Lu • Highly potent and selectiv
Slide 46: Lundbeck La Jolla biology platform exploring serine hydrolases
9M 2021: APPENDIX – RESEARCH & DEVELOPMENT Lundbeck La Jolla has access to an exciting biology platform exploring serine hydrolases starting with the endocannabinoid system Access to world class MAG-lipase development candidates to bolster our portfolio “Pipeline in a drug” – many potential indicati
Slide 47: Broad MAGLipase program initiated
9M 2021: APPENDIX – RESEARCH & DEVELOPMENT Broad MAGLipase program initiated Lu AG06466 Lu AG06479 • Inhibitor of the monoacylglycerol lipase • CNS penetrant (MAGL) and selective modulator of the endocannabinoid system • Phase I study initiated in July 20205) • CNS penetrant Ongoing phase Ib studies
Slide 48: Lu AF28996: A potentially new oral treatment for Parkinson's
9M 2021: APPENDIX – RESEARCH & DEVELOPMENT Lu AF28996: A potentially new oral treatment for Parkinson’s patients experiencing motor fluctuations D1/D2-type agonists Lu AF28996 Phase I studies: • Single- and sequential- Known to be highly efficacious A highly potent agonist at the D1- ascending-dose
Slide 49: Alzheimer's project with new MoAs in clinical development
9M 2021: APPENDIX – RESEARCH & DEVELOPMENT Alzheimer’s project with new MoAs in clinical development Lu AF87908 • Tau mAb • Binding to and inhibition of pathological seeding form of Tau • Specific and pathology directed mAb • Retaining the capacity to mediate active clearance of Tau Ongoing phase I
Slide 50: Sustainability update
9M 2021: APPENDIX – ESG UPDATE Sustainability update • Lundbeck has significantly improved its ESG ratings in 2020 • New reporting format to increase our disclosure of relevant sustainability information for investors • Task Force on Climate-related Financial Disclosures (TCFD) Reference Index Key p
Slide 51: Acting with respect and integrity in everything we do
9M 2021: APPENDIX – ESG UPDATE Acting with respect and integrity in everything we do ESG update Lundbeck pursues its business purpose guided by our Code of Conduct and Compliance Program that are fundamental elements in our Sustainability Strategy • A complete and concise description of the Complian
Slide 52: The four strategic brands grew 17% in local currencies in 9M 2021
9M 2021: APPENDIX – PRODUCT PERFORMANCE The four strategic brands grew 17% in local currencies in 9M 2021 Key brand revenue (9M 2021 – DKKm and L.C. growth) • Strategic brands*: Up 17% in L.C. to DKK 6,815 million (up 12% reported) • Brintellix/Trintellix: Up 16% in L.C. to Brintellix/Trintellix +16
Slide 53: Robust performance across all three regions
9M 2021: REGIONAL PERFORMANCE Robust performance across all three regions considering impact from pandemic and currency headwind North America revenue International Markets revenue Europe revenue (9M - DKKm) (9M - DKKm) (9M - DKKm) 8,000 3,500 +1% 3,000 -17% +4% 3,000 2,500 6,000 2,500 Other product
Slide 54: Diverse portfolio across products and regions
9M 2021: APPENDIX – FINANCIAL PERFORMANCE Diverse portfolio across products and regions with geographical footprint well aligned to global CNS market Lundbeck product diversity Lundbeck geographic split* Global CNS market split** Sales by product (9M 2021) Sales by region (9M 2021) Sales by region (
Slide 55: Product distribution of revenue – 9M 2021 and FY 2020
9M 2021: APPENDIX – PRODUCT PERFORMANCE Product distribution of revenue – 9M 2021 and FY 2020 DKKm FY 2020 FY 2019 9M 2021 9M 2020 Growth Growth in local % of total currencies TOTAL: Abilify Maintena 2,271 1,961 1,810 1,729 5% 7% 15% Brintellix/Trintellix 3,102 2,826 2,565 2,308 11% 16% 21% Cipralex
Slide 56: Continued excellence in commercial execution for the strategic brands
9M 2021: APPENDIX – PRODUCT PERFORMANCE Continued excellence in commercial execution for the strategic brands; impact from COVID-19 and FX +24% +20% 1,000 800 +4% North America +1% North America 800 Europe+Int. Markets Europe+Int. Markets 600 600 400 400 200 200 0 0 Q3.18 Q3.19 Q3.20 Q3.21 Q3.18 Q3.
Slide 57: Volume growth in the U.S. impacted by the pandemic (TRx Count)
9M 2021: APPENDIX – PRODUCT PERFORMANCE Volume growth in the U.S. impacted by the pandemic (TRx Count) 125,000 +8% 800,000 +7% +22% +1% -2% +17% 100,000 600,000 75,000 400,000 50,000 200,000 25,000 0 0 Q3.18 Q3.19 Q3.20 Q3.21 Q3.18 Q3.19 Q3.20 Q3.21 300,000 +7% 180 +7% +22% +109% 200,000 120 100,000
Slide 58: Volume growth in the U.S. impacted by the pandemic (NRx Count)
9M 2021: APPENDIX – PRODUCT PERFORMANCE Volume growth in the U.S. impacted by the pandemic (NRx Count) 50,000 +8% 400,000 +6% +21% 0% +1% +21% 25,000 200,000 0 0 Q3.18 Q3.19 Q3.20 Q3.21 Q3.18 Q3.19 Q3.20 Q3.21 200,000 120 +102% +8% +6% +20% 100,000 60 0 0 Q3.18 Q3.19 Q3.20 Q3.21 Apr Jun Aug Oct Dec
Slide 59: Total molecule sales (gross) - USDm
9M 2021: APPENDIX – PRODUCT PERFORMANCE Total molecule sales (gross) - USDm 1.250 1.600 1.000 +35% 1.200 750 +56% 800 500 250 400 0 0 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 • Abilify Maintena: U.S. approval (Feb. 2013); EU approval (Nov. 1.600 2013) 1.200 • Brintellix/
Slide 60: Europe: Limited impact from COVID-19
9M 2021: APPENDIX – PRODUCT PERFORMANCE Europe: Limited impact from COVID-19 Abilify Maintena Brintellix Rexulti (Monthly - Volume) (Monthly - volume) (Monthly - Volume) 1,800,000 18,000,000 90,000 1,750,000 17,000,000 80,000 1,700,000 1,650,000 16,000,000 70,000 1,600,000 60,000 1,550,000 15,000,00
Slide 61: International Markets: Strong growth for strategic brands
9M 2021: APPENDIX – PRODUCT PERFORMANCE International Markets: Strong growth for strategic brands Abilify Maintena Brintellix/Trintellix Rexulti (Monthly - Volume) (Monthly - volume) (Monthly - Volume) 950,000 9,500,000 2,400,000 900,000 2,200,000 9,000,000 2,000,000 850,000 8,500,000 1,800,000 800,
Slide 62: Brintellix/Trintellix: Solid underlying performance
9M 2021: APPENDIX – PRODUCT PERFORMANCE Brintellix/Trintellix: Solid underlying performance driven by strong clinical profile • Grew 16% (L.C.) to DKK 2,565 Brintellix/Trintellix sales per region Brintellix/Trintellix (Quarterly - DKKm) (9M – DKKm) million in 9M 2021 and 24% in Q3 2021 1,000 Europe
Slide 63: Rexulti: Growing 13%
9M 2021: APPENDIX – PRODUCT PERFORMANCE Rexulti: Growing 13% – an effective drug that is meeting patient needs in several new markets Rexulti sales per region** Rexulti sales** • Grew 13% in L.C. to DKK 2,112 (Quarterly - DKKm) (9M - DKKm) million in 9M 2021 • Continued solid traction in market 800
Slide 64: Abilify Maintena: Growing 7%
9M 2021: APPENDIX – PRODUCT PERFORMANCE Abilify Maintena: Growing 7% • Grew 7% (L.C.) to DKK 1.8bn in 9M Abilify Maintena sales per region** Abilify Maintena 2021 and 11% in Q3 2021 (Quarterly - DKKm) (9M – DKKm) • Global LAI market up 9% to USD 4.5bn (9M 2021)* 800 2,500 Europe • Continued robust t
Slide 65: Cipralex/Lexapro: Adjusted for FX, sales grew 2%
9M 2021: APPENDIX – PRODUCT PERFORMANCE Cipralex/Lexapro: Adjusted for FX, sales grew 2% • Declined 3% (up 2% in L.C.) to Cipralex/Lexapro Cipralex/Lexapro DKK 1,835 million in 9M 2021 (Quarterly - DKKm) (9M – DKKm) • Biggest markets are Brazil, 900 2,500 North America Canada, China, Italy, Japan, S
Slide 66: Northera: Sales impacted by generic erosion
9M 2021: APPENDIX – PRODUCT PERFORMANCE Northera: Sales impacted by generic erosion from February 2021 • Declined 71% (69% in L.C.) to Northera sales Northera sales (Quarterly - DKKm) (9M – DKKm) DKK 536 million in 9M 2021 • Declined 85% (85% in L.C.) to 900 2,000 -71% DKK 97 million in Q3 2021 -85%
Slide 67: Sabril: Sales impacted by generic erosion
9M 2021: APPENDIX – PRODUCT PERFORMANCE Sabril: Sales impacted by generic erosion from Q3 2017 • Declined 17% (10% in L.C.) to Sabril sales Sabril sales (Quarterly - DKKm) (9M – DKKm) DKK 487 million in 9M 2021 • Declined 21% (19% in L.C.) to 300 1,000 DKK 151 million in Q3 2021 -21% -17% 150 500 0
Slide 68: Onfi: Sales impacted by generic erosion
9M 2021: APPENDIX – PRODUCT PERFORMANCE Onfi: Sales impacted by generic erosion from October 2018 • Declined 21% (15% in L.C.) to Onfi sales Onfi sales (Quarterly - DKKm) (9M – DKKm) DKK 382 million in 9M 2021 • Declined 49% (47% in L.C.) to 400 1,000 DKK 97 million in Q3 2021 300 -21% 200 -49% 500
Slide 69: Other pharmaceuticals
9M 2021: APPENDIX – PRODUCT PERFORMANCE Other pharmaceuticals • Declined 13% (11% in L.C.) to Other pharmaceuticals Other pharmaceuticals DKK 1,902 million in 9M 2021 (Quarterly - DKKm) (9M – DKKm) • Around 15 mature products 900 2,700 included -13% -13% • Biggest products are Azilect, Cipramil, Cis
Slide 70: Other revenue
9M 2021: APPENDIX – PRODUCT PERFORMANCE Other revenue • Declined 41% (42% in L.C.) to Other revenue Other revenue DKK 211 million in 9M 2021 (Quarterly - DKKm) (9M – DKKm) • Mostly contract manufacturing to 300 500 utilize excess capacity -41% 150 -58% 250 0 0 Q3.19 Q3.20 Q3.21 9M.19 9M.20 9M.21 70
Slide 71: Regional performance impacted by FX headwinds and generic erosion
9M 2021: APPENDIX – REGIONAL PERFORMANCE Regional performance impacted by FX headwinds and generic erosion Regional growth Sales by region* • North America still impacted by generic erosion and impact from (9M 2021 – DKKm and in L.C. %) (9M 2021) COVID-19 • International Markets shows North America
Slide 72: Core operating profit maintained at robust level
9M 2021: APPENDIX – FINANCIAL PERFORMANCE Core operating profit maintained at robust level 9M 2021 9M 2021 core EBIT reconciliation (DKKm) 2,973 0 0 • Core EBIT reached DKK 2,973 million in 9M 969 2021 2,004 • Amortizations decreased from DKK 1,132 million to DKK 969 million due to Northera Reported
Slide 73: Cash flow impacted by debt repayment
9M 2021: APPENDIX – FINANCIAL PERFORMANCE Cash flow impacted by debt repayment, but solid cash generation still provides flexibility Net cash flow • FY 2021: Cash flow negatively (Quarterly - DKKm) impacted by: 1,800 • Repayment of term loan in February 1,200 • Lower revenue base due to Northera 600
Slide 74: Cash position, funding and debt maturity
9M 2021: APPENDIX – FINANCIAL PERFORMANCE Cash position, funding and debt maturity • A diversified and long term balanced debt portfolio is a priority to Debt maturity profile Lundbeck (EURm equivalent) • This includes access to various funding sources as well as a 1,500 balanced maturity profile to
Slide 75: 2021 impacted by depreciation of main currencies
9M 2021: APPENDIX – FINANCIAL PERFORMANCE 2021 impacted by depreciation of main currencies 9M 2021 sales by currency Main currencies** Spot Lundbeck’s Avg. Avg. Avg. Avg. (January 1, 2020 = index 100) Oct. 26, 2021 hedging rate H1 2020 H2 2020 H1 2021 H2 2021 YTD EUR 109 Other* USD 640.21 638 677.47
Slide 76: Cash generation
9M 2021: APPENDIX – FINANCIAL PERFORMANCEE Cash generation DKKm 9M 2021 9M 2020 FY 2020 FY 2019 FY 2018 Cash flows from operating activities 1,889 2,777 3,837 2,609 5,981 Cash flows from investing activities (332) (256) (467) (7,755) (2,907) Cash flows from operating and investing 1,557 2,521 3,370
Slide 77: Financial position and dividend
9M 2021: APPENDIX – FINANCIAL PERFORMANCE Financial position and dividend DKKm 30.09.2021 31.12.2020 Dividend (DKK) Intangible assets 22,725 22,738 15 5% Other non-current assets 3,262 3,186 Dividend 12 4% Current assets 9,132 10,105 Yield (r.h.s.) 9 3% Assets 35,119 36,029 Equity 18,083 16,973 6 2%
Slide 78: Costs – Full year figures
9M 2021: APPENDIX – FINANCIAL PERFORMANCE Costs – Full year figures DKKm 2020 2019 2018 2020 (∆%) 2019 (∆%) Revenue 17,672 17,036 18,117 4% (6%) Cost of sales 4,166 3,840 3,911 8% (2%) Sales & Distribution costs 5,946 5,514 5,277 8% 4% Administrative expenses 966 899 762 7% 18% R&D costs 4,545 3,116
Slide 79: For more information, please contact Investor Relations
INVESTOR RELATIONS For more information, please contact Investor Relations IR contact • Listed on the Copenhagen Stock Number of shares1 199,148,222 Exchange since June 18, 1999 Treasury shares1 449,896 (0.23%) Palle Holm Olesen Insider holdings1 137,878 (0.07%) VP; Head of Investor Relations • Deut