H. Lundbeck A/S Class A · OMXCOP:HLUN_A
H. Lundbeck A/S Class A — Q1 2002 Earnings Presentation
28 slides from H. Lundbeck A/S Class A's earnings presentation, May 13, 2002
Slide 1: Q1-2002 Results
Q1-2002 Results
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: 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 4: H. Lundbeck world-wide
H. Lundbeck world- wide 1990 2002 Local sales organisation Global sales organisation Lundbeck subsidiaries Lundbeck partner alliance 4, 13 May 2002
Slide 5: Strong revenue growth
Strong revenue growth Other turnover CAGR 1997 - 2001: 31% Antipsychotics 7.7 36% Other antidepressants Cipralex/Lexapro 41% 5.6 Cipramil/Celexa DKK billion 4.0 3.2 2.6 43% 2.4 1.7 1997 1998 1999 2000 2001 Q1-2001 Q1-2002 5, 13 May 2002
Slide 6: Cost structure & operating margin
Cost structure & operating margin Operating Costs Operating Margin % 35 7 R&D 15.4% 32.6% S,G&A 31.6% 30 6 COGS 20.4% 5 25 DKK Billion 4 20 3 15 2 10 1 5 0 0 1997 1998 1999 2000 2001 Q1- Q1- 1997 1998 1999 2000 2001 Q1-2002 2001 2002 6, 13 May 2002
Slide 7: Geographical distribution of revenue
Geographical distribution of revenue Growth 43% Q1-2001 Q1-2002 RoW UK RoW 9% UK Canada 13% Canada 6% 11% 6% 6% France France 7% 9% US Germany 16% Germany 5% 5% Spain 3% Spain Italy 3% US 3% Italy 32% 3% Rest of Europe 27% Rest of Europe 36% 7, 13 May 2002
Slide 8: 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 9: Citalopram growth by markets
Citalopram growth by markets Citalopram sales DKKm Q1-2002 Q1-2001 Change UK 229.9 182.7 26% France 171.0 138.2 24% Germany 84.3 57.6 46% Spain 65.5 39.4 66% Italy 66.9 39.6 69% Canada 133.5 91.0 47% Australia 32.6 36.3 -10% 7 big countries 783.7 584.8 34% Other markets 596.9 508.5 17% License sales
Slide 10: Total Rx Market Share
Total Rx Market Share Week Ended April 26, 2002 - 17.2% 18,0% 16,0% 14,0% 12,0% 10,0% 8,0% 6,0% Generic 4,0% Prozac launch 2,0% 0,0% 1 8 1 1 99 00 8 0 2 9 2 9 1 9 0 t-0 v-9 r-0 l-0 g-9 n-0 n-0 c-9 r-0 n-9 n-0 p-9 p-0 ar- ar- -ju -ok -ap -ap -de -no -au -ju -ja -ju -ja -se -se -m -m 12 16 20 07 23 01
Slide 11: 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 12: 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 13: Being active within the most profitable segments
...being active within the most profitable and… 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 PRODUCTS ANAESTHETICS 2% 4% ANTI
Slide 14: Fastest growing segments: The CNS market
… fastest growing segments... 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. Market size 2000
Slide 15: 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 16: Cipralex/Lexapro
Cipralex/Lexapro • Patented S-isomer of Cipramil/Celexa • Next generation antidepressant (Cipralex/Lexapro) approved in 12 countries in Europe 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
Slide 17: 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 17, 13 May 2002
Slide 18: 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 19: 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 20: Existing late-stage pipeline
Existing late-stage pipeline late-stage Compound Activity Indication 2002 2002 2003 2003 2004 2004 2004+ 2004+ Escitalopram Escitalopram SSRI SSRI Depression Depression Launch Memantine Memantine NMDA-antagonist NMDA-antagonist Alzheimer’s Alzheimer’s Launch Sertindole Sertindole D D22-5HT -5HT22 Sc
Slide 21: 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 22: Focused in-licensing will continue
Focused in-licensing will continue... < Pipeline support < Technology access < Resource access < Know-how expansion < Risk reduction < Globalisation 22, 13 May 2002
Slide 23: 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 23, 13 May 2002
Slide 24: H. Lundbeck A/S Q&A
H. Lundbeck A/S Specialist in psychiatry, pioneers in neurology Q&A
Slide 25: Q1 2002 - Highlights
Q1 2002 - Highlights • Revenue increased by 43% to DKK 2,378 million • Sales of Cipramil increased by 26% to DKK 1,381 million • Income from Celexa sales in the USA increased from DKK 257 million to DKK 484 million • Income from Lexapro shipments to Forest Labs. reached DKK 259 million • Profit from
Slide 26: Financial Results
Financial Results (DKK Million) Q1-2002 Q1-2001 % change Net turnover 2,378 1,657 43 Operating profit 776 483 61 Profit before tax 663 403 65 Net profit 446 253 76 26, 13 May 2002
Slide 27: Cash flow
Cash flow (DKK million) Q1-2002 Q1-2001 Cash flow from operating 72 -12 activities Cash flow from investing -164 -1,051 activities Cash flow from operating and -92 -1,062 investing activities, net Cash flow from financing 281 362 activities Increase in cash and cash 189 -700 equivalents 27, 13 May 2
Slide 28: Key figures
Key figures Q1-2002 Q1-2001 Earnings per share – EPS (DKK) 1.91 1.09 Cash flow per share – CFPS (DKK) 0.31 -0.05 Operating margin (%) 32.6 29.1 Return on net assets (%) 15.2 9.9 Return on equity (%) 9.1 6.7 Solvency ratio (%) 59.3 53.8 Net asset value per share (DKK) 21.79 16.36 28, 13 May 2002