H. Lundbeck A/S Class A · OMXCOP:HLUN_A
H. Lundbeck A/S Class A — Q2 2006 Earnings Presentation
37 slides from H. Lundbeck A/S Class A's earnings presentation, 2006
Slide 1: Investor Presentation Q2 2006 Financial Results
Investor Presentation Q2 2006 Financial Results
Slide 2: Safe Harbour Statement
Page 2 Safe Harbour Statement 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. Such forward-looking statements are subject to risks, uncertainties and inac
Slide 3: Lundbeck in CNS
Lundbeck in CNS
Slide 4: About H. Lundbeck A/S - Quick facts
Page 4 About H. Lundbeck A/S - Quick facts History Share information • 1915 - Founded by Hans Lundbeck Trading code: • 1920s - Into pharmaceuticals • Reuters (LUN.CO) / Bloomberg (LUN DC) • ISIN Number DK0010287234 • 1940s - Own research established • Unsponsored ADR programme with Bank of • 1950-19
Slide 5: CNS: world's biggest niche (17% of world pharmaceutical sales)
Page 5 CNS: world’s biggest niche (17% of world pharmaceutical sales) - Lundbeck involved in high potential segments Saroten® - 1961 Cipramil® - 1989/ 2005 CNS market Celexa® - 1998 USDbn 93.8 (+5%) Depression, N6A Cipralex® - 2002/ Lexapro® - 2002 Truxal® - 1959 21% Psychosis, N5A Serdolect® - 1996
Slide 6: Niche strategy – CNS is our focus and our strength
Page 6 Niche strategy – CNS is our focus and our strength Why 100% CNS? • CNS is the largest and fastest growing pharmaceutical market in the world • Underlying conditions trends towards continued growth R&D strength • 50 years of experience – with own innovations and licensing agreements • Core com
Slide 7: Lundbeck strategic challenges
Page 7 Lundbeck strategic challenges Infrastructure Key challenges: World-wide sales • Optimise existing product infrastructure assets Except in US and Japan – two • Expand to increase top line important markets growth (new geographic markets and new areas within CNS) Profitability in European • Lau
Slide 8: Current position and mid-term issues
Current position and mid-term issues
Slide 9: Financial figures Q2 2006
Page 9 Financial figures Q2 2006 3% Growth Cipralex® (+31%) DKKm Q2 06 to Q2 05 23% Lexapro® (-34%) Revenue 2,198 -4% 38% Ebixa® (+27%) R&D (22.2% 488 15% of revenue) 1% Azilect® (-) EBIT 269 -47% Other (-23%) 15% pharmaceuticals EBIT margin 12% Other revenue (-14%) 20% Capex 207 111% 3% 14% Europe
Slide 10: Financial guidance and targets
Page 10 Financial guidance and targets 2005 2006 guidance 2007 target Approximately 2,170 EBIT DKKbn 1.6* 23.9% EBIT margin 25%** * In 2006 Forest will reduce its internal escitalopram inventory level. This will have an one-time material adverse impact on Lundbeck’s revenue, profit from operations a
Slide 11: Strengthening key product position – Cipralex®/Lexapro®
Page 11 Strengthening key product position – Cipralex®/Lexapro® Europe – Antidepressant market Market development 20% 15% Combined 16.1% • Cipralex® now covers 10% Cipralex® 11.7% all major anxiety 5% Citalopram 4.4% conditions 0% jun-03 jun-04 jun-05 jun-06 • Positive data on OCD C ipralex® C ombin
Slide 12: US market development – Lexapro®
Page 12 US market development – Lexapro® US – Antidepressant market, value Market development 25% 20% Combined 17.6% • Second most 15% Lexapro® 17.2% prescribed Anti- 10% 5% depressant in the US Citalopram 0.4% 0% jun-03 jun-04 jun-05 jun-06 • Zoloft gone generic Lexapro® C ombined C italopram • Val
Slide 13: Strengthening key product position – Ebixa®
Page 13 Strengthening key product position – Ebixa® Europe – Anti-Alzheimers market Market development 25% Combined 21.4% • Second most 20% 15% Ebixa® 14.7% prescribed Anti- 10% Other 6.7% Alzheimer compound 5% 0% in Europe jun-03 jun-04 jun-05 jun-06 Ebixa® C ombined Other memantine • Expansion of
Slide 14: Launch of new compound – Azilect®
Page 14 Launch of new compound – Azilect® • Azilect® (rasagiline) ”simply effective”: • Once daily treatment for Parkinsons Disease • as monotherapy • and as adjunct therapy with levodopa treatment • Azilect® is developed in partnership with Teva Pharmaceuticals Market share, value In addition 10% •
Slide 15: Launch of new compound – Serdolect®
Page 15 Launch of new compound – Serdolect® • Serdolect® (sertindole) for the treatment of schizophrenia – Lundbeck’s first atypical antipsychotic • Serdolect® is developed by Lundbeck and the company holds world-wide rights • First launch in January 2006 – re-entrance after eight years Value conver
Slide 16: Expansion to the US market – first steps to establish own sales force
Page 16 Expansion to the US market – first steps to establish own sales force in important US market Importance of US market CNS market, • Largest pharmaceutical market in the world 2004 (value) USA • Important contribution to Lundbeck long term 16% Europe growth International • Possibilities within
Slide 17: Expansion to the Japanese market – three development projects
Page 17 Expansion to the Japanese market – three development projects in the second largest market in the world Importance of Japanese market CNS market, • Second largest pharmaceutical market in the 2004 (value) world – in total as well as in CNS 11% 5% • CNS only covers 8% of the total market USA
Slide 18: Innovation & development of new pharmaceuticals
Innovation & development of new pharmaceuticals
Slide 19: Pharmaceuticals in clinical development
Page 19 Pharmaceuticals in clinical development Indication Development step Registration Expected Compound Activity Phase I Phase II Phase III application launch Obsessive Compulsive Disorder (OCD) Escitalopram ASRI Filed 2007 Selective Extra- Insomnia synaptic GABA Gaboxadol agonist 2007 2008 Schiz
Slide 20: Late stage pipeline – Gaboxadol (phase III) for insomnia
Page 20 Late stage pipeline – Gaboxadol (phase III) for the treatment of insomnia • Gaboxadol is the first in a new class of Prevalence in US: treatments for sleep disorders +60 mio people • Outlicensed to Merck on co-development and 19% co-promoting terms in the US and in Japan Strategic fit: Treat
Slide 21: Late stage pipeline – Bifeprunox (phase III) for schizophrenia
Page 21 Late stage pipeline – Bifeprunox (phase III) for the treatment of schizophrenia • Bifeprunox is a latest generation atypical antipsychotic • Inlicensed from Solvay in Belgium and is jointly developed with Solvay and Wyeth (North American rights) Strategic fit: - Fits well into Lundbeck’s pos
Slide 22: Late stage pipeline – Desmoteplase (phase III) for ischaemic stroke
Page 22 Late stage pipeline - Desmoteplase (phase III) for the treatment of ischaemic stroke • Potentially first compound to treat Prevalence patients within an up to 9 hours Stroke patients, mio. treatment window 0,9 0,6 0,6 0,6 • Inlicensed from PAION, Germany 0,3 0,2 0,0 • Lundbeck holds world wi
Slide 23: Contact info
Contact info
Slide 24: More information please contact Investor Relations
Page 24 More information please contact Investor Relations Steen Juul Jensen Jacob Tolstrup Mads Bjerregaard VP Corporate Finance Investor Relations Manager Investor Relations Officer Corporate Reporting Corporate Reporting Corporate Reporting Tel: + 45 36 43 30 06 Tel: + 45 36 43 30 79 Tel: + 45 36
Slide 25: Financial figures and market data
Financial figures and market data
Slide 26: Revenue – Key figures
Page 26 Revenue – Key figures Growth Growth DKKm Q2-06 Q2-05 Growth in CER Q1-06 Q2-Q1 Revenue 2,198 2,285 -4% -2% 2,232 -2% - Cipralex® 856 653 31% 32% 837 2% - Income from Lexapro® 435 654 -34% -26% 484 -10% - Ebixa® 337 265 27% 27% 311 8% - Azilect® 17 0 - - 8 121% - Serdolect® 2 - - - 1 51% - Ot
Slide 27: Key figures
Page 27 Key figures Growth DKKm Q2-06 Q2-05 Growth Q1-06 Q2-Q1 Costs 1,930 1,776 9% 1,782 8% - Cost of sales 437 399 10% 420 4% - Distribution and administration 1,004 955 5% 907 11% - Research and development 488 425 15% 455 7% - Other operating expenses, net 1 -2 - 0 - Profit from operations 269 5
Slide 28: Lundbeck hedges the USD on a rolling basis up to 18 months ahead
Page 28 Lundbeck hedge the USD on a rolling basis up to 18 months ahead – 2006 USD hedge rate of 5.88 Realised rates Forward rates 10 9 8 7.90 7 6.68 6 6.00 6.02 5.89 5.96 5.82 5.85 5.87 5 Quarterly figures 4 '03 '04 '05 Q1 Q2 Q3 Q4 Q1 Q2 06 06 06 06 07 07 Average US$ exchange rate Average hedging U
Slide 29: Lundbeck recognition of income from Forest
Page 29 Lundbeck recognition of income from Forest Settlement to full royalty P&L Expected sales price Balance P&L (prepayment at USD spot at bulk delivery) Minimum price P&L* At bulk delivery At US sales * Hedging effect at bulk delivery recognised on P&L: Gain/loss from difference in delivery at e
Slide 30: Global IP position
Page 30 Global IP position Europe Bifeprunox: Compound patent in majority of countries to Feb. 2022 Escitalopram: Compound patent in majority of countries to May-June 2014. Process patent in majority of countries to June 2014 Gaboxadol: Use patent in majority of countries to July 2021 Memantine: Dat
Slide 31: Worldwide pharmaceutical market 2005
Page 31 Worldwide pharmaceutical market 2005 USD 568,4 billion*, (+7%) 8% 17% (+5%) 3% (+4%) 5% (+6%) (N) CNS 5% (-2%) (C) Cardiovascular (A) Alimentary (J) Anti-Infectives 6% (+9%) 16% (+6%) (R) Respiratory (L) A+Immun (B) Blood (M) Muscolo-Skeletal 8% (+16%) (G) G.U.& Sex Hormones (D) Dermatologic
Slide 32: Worldwide CNS market 2005
Page 32 Worldwide CNS market 2005 USD 93,8 billion, (+5%) 10% 21% (-4%) 3% (+12%) N6A Antidepressants 3% (+6%) N5A Antipsychotics 3% (+10%) N3A Anti-Epileptics 3% (+2%) N2B Non-Narcotic Analgesics N2A Narcotic Analgesics 3% (+3%) N5B Hypnotics & Sedatives N2C Anti-Migraine Preps 5% (+19%) N5C Tranqu
Slide 33: Alzheimer's (N7D-2005) – 4.0 bill. USD
Page 33 Alzheimer’s (N7D-2005) – 4,0 bill. USD (+19%) Value Market Shares of N7D Rest of Europe M6 2006 world Rivastigmine USA M6 2006 15% North America 55% Memantine Galantamine Europe Donepezil 30% 0% 10% 20% 30% 40% 50% 60% Source: IMS Health, June 2006, retail Leading product Marketing Corporati
Slide 34: Depression (N6A-2005) – 19.9 bill. USD
Page 34 Depression (N6A-2005) – 19,9 bill. USD (-4%) North Value Market shares of N6A Source: IMS Health, June 2006, retail only. America Rest of 66% Venlafaxine world 11% Sertraline Paroxetine Europe M6 2006 Mirtazapine USA M6 2006 Fluoxetine Escitalopram Duloxetine Europe Citalopram 23% 0% 5% 10%
Slide 35: Anti-Parkinson's (N4A - 2005) – 2.8 bill. USD
Page 35 Anti-Parkinson’s (N4A - 2005) – 2,8 bill. USD (+10%) Value Market Shares of N4A - Europe Europe M6 2006 Stalevo® North NMDA Europe America 44% MAOI 31% Antic holinergic s COMT Inhibitors Levodopa ex Stalevo® Dopamine agonists Rest of 0% 10% 20% 30% 40% 50% 60% world 25% Value Market shares o
Slide 36: Antipsychotics (N5A-2005) – 16.3 bill. USD
Page 36 Antipsychotics (N5A-2005) – 16,3 bill. USD (+11%) Value Market Shares of N5A North America Europe M6 2006 Rest of 65% Aripiprazole USA M6 2006 world Risperidone 11% Olanzapine Amisulpride Clozapine Ziprasidone Europe 25% Quetiapine 0% 5% 10% 15% 20% 25% 30% 35% 40% Source: IMS Health, June 2
Slide 37: Worldwide sales of hypnotics (N5B - 2005) – 4.6 bill. USD
Page 37 Worldwide sales of hypnotics (N5B - 2005) – 4,6 bill. USD (+19%) Value Market Shares of N5B North Europe Q1 2006 America Eszopic lone USA Q1 2006 61% Europe Ramelton 21% Zaleplon Zopic lone Rest of world Zolpidem 18% 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: IMS Health, June 2006, retail Le