H. Lundbeck A/S Class A · OMXCOP:HLUN_A
H. Lundbeck A/S Class A — FY2001 Earnings Presentation
30 slides from H. Lundbeck A/S Class A's earnings presentation, Mar 5, 2002
Slide 1: Financial Result 2001
Financial Result 2001 H. Lundbeck A/S, March 2002
Slide 2: Safe Harbour Statement
Safe Harbour Statement This presentation contains forward-looking statements that reflect the Management’s current views with respect to certain future events and financial performance. Statements containing the outlook for 2002 and the following years naturally involve uncertainties, and consequent
Slide 3: Highlights
Highlights • Continuos strong growth fuelled by Cipramil/Celexa for treatment of depression - insignificant impact from generic competition in Europe • Next generation antidepressant (Cipralex/Lexapro) approved in Sweden, Switzerland and granted approvable letter by the FDA in US - expected “global”
Slide 4: Full year 2001
Full year 2001 • Revenue increased by 36% to DKK 7,656 million • Sales of Cipramil increased by 31% to DKK 4,539 million • Income from Celexa sales in the USA increased from DKK 1,152 million to DKK 1,657 million • Income from Lexapro shipments to Forest Labs. DKK 259 million • Profit from operation
Slide 5: Strong revenue growth
Strong revenue growth CAGR 1997 - 2001: 31% 7.7 Other turnover 36% Antipsychotics Other antidepressants 41% 5.6 DKK billion Cipralex/Lexapro Cipramil/Celexa 4.0 3.2 2.6 1997 1998 1999 2000 2001 5, 5 March 2002
Slide 6: Cost structure & operating margin
Cost structure & operating margin Operating Costs Operating Margin 7 % R&D 20% 35 S,G&A 38% 6 COGS 18% 30 5 23.9% 25 DKK Billion 4 20 3 15 2 10 1 5 0 0 1997 1998 1999 2000 2001 1997 1998 1999 2000 2001 6, 5 March 2002
Slide 7: Cash flow
Cash flow (DKK million) 2001 2000 Cash flow from operating 1,704 1,153 activities Cash flow from investing -2,045 -983 activities Cash flow from operating and -341 170 investing activities, net Cash flow from financing -119 -120 activities Increase in cash and cash -460 50 equivalents 7, 5 March 200
Slide 8: H. Lundbeck world-wide
H. Lundbeck world- wide 1990 2002 Local sales organisation Global sales organisation Lundbeck subsidiaries Lundbeck partner alliance 8, 5 March 2002
Slide 9: Geographical distribution of revenue
Geographical distribution of revenue Growth 36% 2000 2001 RoW UK RoW UK Canada 7% 10% 9% 9% 4% Canada France France 6% 7% 8% Germany Germany 5% US 21% 8% Spain 3% Spain Italy 3% 3% Italy US 3% 26% Rest of Europe Rest of 32% Europe 36% 9, 5 March 2002
Slide 10: Detailing effort in the Antidepressant molecules
Detailing effort in the Antidepressant molecules Top 5 Antidepressant molecules USA Major 5 Europe* 700 700 600 600 Full time Rep. equvalents Full time Rep. equvalents 500 500 400 400 300 300 200 200 100 100 0 0 CITALOPRAM PAROXETINE FLUOXETINE SERTRALINE - VENLAFAXINE CITALOPRAM PAROXETINE VENLAFAX
Slide 11: Citalopram growth by markets
Citalopram growth by markets Citalopram sales DKKm 2001 2000 Change UK 566.7 453.5 25% France 517.4 418.8 24% Germany 261.2 209.7 25% Spain 197.0 134.5 46% Italy 228.8 151.6 51% Canada 437.6 217.5 101% Australia 175.8 123.0 43% 7 big counties 2,384.5 1,708.6 40% Other markets 2,154.5 1,746.3 23% Lic
Slide 12: Total Rx Market Share
Total Rx Market Share Week Ended February 22, 2002 - 16.8% 18,0% 16,0% 14,0% 12,0% 10,0% 8,0% 6,0% Generic 4,0% Prozac launch 2,0% 0,0% 01 0 8 99 00 8 9 1 9 1 0 0 2 9 1 g-0 v-9 g-9 g-9 g-0 v-9 v-0 v-0 b-0 b-0 b-9 b-0 aj- aj- aj- -no -au -no -no -au -au -au -no -fe -fe -fe -fe -m -m -m 18 15 19 16 20
Slide 13: Generic Prozac
Generic Prozac • Celexa share gains uninterrupted • Managed care organizations will not limit class to a single SSRI • Eli Lilly has eliminated sampling and promotion of Prozac • Celexa’s promotional activity to physicians can have more impact in the new market dynamics • Generic Prozac already Tier
Slide 14: SSRI Detailing Dollars in US
SSRI Detailing Dollars in US ($000’s) CELEXA PROZAC PAXIL ZOLOFT EFFEXOR/XR 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 8 9 0 8 9 0 1 -98 -99 -00 -01 8 9 0 1 8 9 0 1 9 0 1 r-9 r-9 r-0 r-0 c-9 c-9 c-0 t-9 t-9 t-0 t-0 g-9 b-9 b-0 b-0 g-9 g-0 g-0 Jun Jun Jun Jun Ap Ap Ap Ap Oc Oc Oc Oc De De De A
Slide 15: Building on the success of Cipramil/Celexa
Building on the success of Cipramil/Celexa... in the Largest and Fastest Growing Therapeutic Categories... 70 2000 60 2005 50 USD Bill. 40 30 20 10 0 Cardiovascular CNS Alimentary Respiratory Anti-Infective Genito-Urinay Musculoskeletal Blood CAGR 8% 11% 8% 9% 8% 13% 10% 15% Source: IMS Pharma forec
Slide 16: Being active within the most profitable and fastest growing segments
...being active within the most profitable and fastest growing segments... Share of World audited CNS sales (USD 48.4 billions) Rest 6% TRANQUILLISERS ANTIDEPRESSANTS 6% 29% HYPNOTICS & SEDATIVES 4% ANTI-EPILEPTICS 10% ANTIPSYCHOTICS 12% ANTI-PARKINSON PRODUCTS ANALGESICS 3% 20% ANTI-ALZHEIMER PRODU
Slide 17: Market size 2000 - selected CNS indications
Market size 2000 - selected CNS indications The CNS market USD Bn Growth % Central nervous system 48.4 14 Antidepressants 13.4 18 Antipsychotics 6.0 22 Anti-parkinson products 1.5 9 Anti-epileptics 4.9 24 Anti-alzheimer products 0.9 48 Anti-migraine products 2.1 12 Source: IMS World Review 2001 17,
Slide 18: Expanding the depression franchise and establishing Lundbeck in Alzheimer's and Schizophrenia
...expanding the depression franchise and establishing Lundbeck in Alzheimer’s and Schizophrenia • Supporting continuous growth with three major launches within the next two years: • Cipralex/Lexapro - next generation antidepressant - Global launch 2002 • Ebixa - first ever approved treatment of mod
Slide 19: Cipralex/Lexapro
Cipralex/Lexapro • Patented S-isomer of Cipramil/Celexa • Next generation antidepressant (Cipralex/Lexapro) approved in Sweden, Switzerland and granted approvable letter from FDA in US - expected “global” launch by approx. 4,000 reps in mid 2002 • USP’s: - Consistent early onset of action - 10 mg as
Slide 20: Efficacy in placebo-controlled trials of escitalopram and citalopram
Efficacy in placebo-controlled trials of escitalopram and citalopram MADRS Treatment Week 1 2 4 6 8 LOCF 0 placebo -4 citalopram escitalopram Baseline Change from * -8 * -12 ** ** * * p < .05 ** ** ** p < .001 ** -16 ** Gorman, APA 2001 20, 5 March 2002
Slide 21: Ebixa
Ebixa • Licensed from Merz + Co in June 2000 • Approved by CPMP for treatment of moderately severe to severe Alzheimer’s disease • European Launch second half 2002 • USP’s: – First drug ever to be approved for treatment of moderately severe to severe Alzheimer’s disease – Benefit is evident in cogni
Slide 22: Serdolect
Serdolect • Second generation antipsycotic developed by Lundbeck • Suspension of Serdolect for treatment of schizophrenia lifted by CPMP • PMS studies to start in 2002, European launch late 2003 • USP’s: – Efficacy against positive symptoms – Efficacy against negative symptoms – Low weight gain – As
Slide 23: Existing late-stage pipeline
Existing late-stage pipeline Depression Development pipeline per 5. March 2002 Alzheimer's disease Compound Activity Indication 2002 2003 2004 2004+ Schizophrenia Escitalopram SSRI Depression Launch Multiple Sclerosis Memantine NMDA-antagonist Alzheimer's disease Launch Parkinson's disease Sertindol
Slide 24: In-licensed projects since June 1999
In-licensed projects since June 1999 Compound Company Indication Gaboxadol Gaboxadol Max Max Planck Planck Institute, Institute, Munich Munich Sleep Sleep disorder disorder CEP CEP 1347 1347 Cephalon Cephalon Inc. Inc. Parkinson’s Parkinson’sdisease+ disease+ Lu Lu 02-659 02-659 Neurochem Neurochem
Slide 25: Focused in-licensing will continue
Focused in-licensing will continue... < Pipeline support < Technology access < Resource access < Know-how expansion < Risk reduction < Globalisation 25, 5 March 2002
Slide 26: Enhancing pipeline through licensing
Enhancing pipeline through licensing Registr./Phase III Phase II Phase I + Preclinic Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 Depression Escitalopram Lu 36-274 Schizophrenia Serdolect DU127090 Lu 35-138 Lu 31-130 Anxiety Parkinson Etilevodopa CEP-1347 Rasagiline Dementia Memantine Sleep Dis
Slide 27: What makes Lundbeck an attractive partner
What makes Lundbeck an attractive partner • CNS heritage with proven track record • Top management commitment to partnerships • Dedicated and strong European sales force • Opinion leader network • Flexible - Commercially - R&D • Focus and priority to licensed projects 27, 5 March 2002
Slide 28: H. Lundbeck A/S Q&A
H. Lundbeck A/S Specialist in psychiatry, pioneers in neurology Q&A
Slide 29: About H. Lundbeck
About H. Lundbeck • H. Lundbeck A/S is... • a unique pharmaceutical company focusing solely on the treatment of diseases of the central nervous system • the third largest pharmaceutical company in Western Europe within antidepressants and sixth largest company within sales of antipsychotics (IMS Hea
Slide 30: Key figures
Key figures 2001 2000 Earnings per share – EPS (DKK) 5.63 4.22 Cash flow per share – CFPS (DKK) 7.31 4.95 Operating margin (%) 23.9 17.9 Return on net assets (%) 47.8 43.0 Return on equity (%) 30.9 29.5 Solvency ratio (%) 59.5 55.4 Net asset value per share (DKK) 20.34 16.12 30, 5 March 2002