H. Lundbeck A/s Class A · OMXCOP:HLUN_A
H. Lundbeck A/s Class A — 9M 2003 Earnings Presentation
36 slides from H. Lundbeck A/s Class A's earnings presentation, Nov 5, 2003
Slide 1: H. Lundbeck A/S 9M-2003
H. Lundbeck A/S 9M-2003
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 2003 and the following years naturally involve uncertainties, and consequent
Slide 3: 9M 2003 - Highlights
9M 2003 - Highlights • Revenue amounts to DKK 7,456 million compared to DKK 7,073 for 9M 2002 • Sales of Cipralex® amounts to DKK 375 million • Sales of Cipramil® decreased 14% to DKK 3,414 million • Sales of Ebixa® amounts to DKK 164 million • Income from Celexa™ sales in the USA decreased from DKK
Slide 4: Short-term Challenges & Financial Outlook
Short-term Challenges & Financial Outlook Challenges Financial Outlook 2003 • Cipralex®/Lexapro®launch • Approx 5% revenue growth • Ebixa® launch • Marginally higher EBIT compared to 2002 before DKK 300 mio. • Intensified generic impact on provision citalopram franchise • Approx 10% EBIT decline inc
Slide 5: New guidance for 2003
New guidance for 2003 Revenue according to previous guidance (DKKm) approx 10,437 • lower income from sales of Celexa™ • slower than forecast penetration of Cipralex® in Sweden 475 • delays in the launch of Cipralex® in a number of markets Revenue according to new guidance (DKKm) approx 9,962 EBIT a
Slide 6: Revenue growth development
Revenue growth development Revenue growth (CAGR) 1998 - 2002: 31% Other turnover Antipsychotics Other antidepressants 9.5 Cipralex/Lexapro 24% 5% DKK billion Cipramil/Celexa 36% 7.7 7.1 7.5 41% 5.6 25% 4.0 3.2 1998 1999 2000 2001 2002 9M-2002 9M-2003 6, Wednesday, 05 November 2003
Slide 7: Revenue from the largest antidepressant markets
70% of total revenue from the 7 largest antidepressant markets in the world 5% 9M - 9M - RoW UK RoW UK France Canada 7% 10% France Canada 7% 7% 8% 6% 7% 8% Germany Germany 4% 3% Spain Spain 3% 3% Italy 4% US Italy 33% 4% Rest of Rest of US Europe Europe 37% 23% 26% 7, Wednesday, 05 November 2003
Slide 8: Citalopram/escitalopram sales on the largest markets
Citalopram/escitalopram sales on the 7 largest markets for antidepressants Sales DKKm 9M 2003 9M 2002 Change UK 426.5 599.7 -29% - Cipramil 312.3 588.6 -47% - Cipralex 114.2 11,1 929% France 497.9 488.0 2% Germany 95.9 170.4 -44% - Cipramil 93.9 170.4 -45% - Cipralex 2.0 Spain 209.5 195.6 7% Italy 2
Slide 9: Cost structure & operating margin development
Cost structure & operating margin development Operating Costs Operating Margin % 8 30 EBIT growth (CAGR) 1998 - 2002: 61% R&D 18.9% 7 S,G&A 38.2% 25,1% 6 COGS 17.6% 25 5 DKK Billion 4 20 3 2 15 1 0 10 1998 1999 2000 2001 2002 9M-2003 1998 1999 2000 2001 2002 9M 9M 2002 2003 9, Wednesday, 05 November
Slide 10: Sensitivity to generic competition on Cipramil
Sensitivity to generic competition on Cipramil® Potential loss of sales > 50% 25% - 50% < 25% 10, Wednesday, 05 November 2003
Slide 11: Cipralex launch – getting access to the markets
Cipralex® launch – getting access to the markets 20% 14% % of total N6A market (value) 15% 10% 5% 0% Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Source: IMS, 2002 Lundbeck markets: 25% of total N6A market US: 73% of total N6A market Japan: 2% of total N6A market 11, Wednesday, 05
Slide 12: Cipralex launch schedule
Cipralex® launch schedule Cipralex Launched Launch Q4 2003 Launch 2004 Austria Lebanon Asian Region France Belgium Lithuania Central Europe Australia Bulgaria Mexico Eastern Europe South Africa Czech Republic New Zealand Middle East Region Canada Denmark Norway Pakistan Russia Estonia Portugal Spain
Slide 13: Cipralex total market share, value
Cipralex® total market share, value From launch with reimbursement 14% 12% A 10% % of N6A market TR IRL USA 8% B DK N CH 6% MEX UK S 4% 2% 0% 0 +1 +2 +3 +4 +5 +6 +7 +8 +9 +10 +11 +12 +13 +14 +15 +16 +17 +18 Months after Cipralex®/Lexapro™ launch CH S UK DK A IRL USA MEX B N TR 13, Wednesday, 05 Nove
Slide 14: Cipralex ratio of Lundbeck's SSRI franchise
Cipralex® ratio of Lundbeck’s SSRI franchise Country Months after launch Ratio Sweden +18 38% UK +15 29% Switzerland +15 24% Denmark +13 25% Austria +11 39% Ireland +10 28% Mexico +7 41% Belgium +5 34% Norway +3 26% Turkey +2 27% 14, Wednesday, 05 November 2003
Slide 15: New Rx Market Share in USA
New Rx Market Share in USA Lexapro™, 24 October 2003 – 15.16% 27.0% 24.0% 21.0% 18.0% 15.0% 12.0% 9.0% 6.0% 3.0% 0.0% Week 35 Week 38 Week 41 Week 44 Week 47 Week 50 Week 1 Week 4 Week 7 Week 10 Week 13 Week 16 Week 19 Week 22 Week 25 Week 28 Week 31 Week 34 Week 37 Week 40 Week 43 CELEXA™ LEXAPRO™
Slide 16: Ebixa launch – getting access to the markets
Ebixa® launch – getting access to the markets % of total N7D1 market (value) . 30% 22% 25% 20% 15% 10% 5% 0% Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Source: IMS, 2002 Lundbeck markets: 31% of total N7D1 market US: 60% of total N7D1 market Japan: 9% of total N7D1 market 16, Wednesday,
Slide 17: Ebixa launch
Ebixa® launch Ebixa Launched Launch Q4 2003 Launch 2004 Austria Australia Asia France Belgium Italy Germany Central Europe Latin America Greece Eastern Europe Middle East Holland Hungary South Africa Ireland Lebanon Mexico Pakistan Scandinavia Portugal Slovenia Switzerland Spain Turkey UK 17, Wednes
Slide 18: Ebixa market share, value
Ebixa® market share, value From launch with/without reimbursement Mexico: Month 14 -> 19,5 % Hungary: Month 14 -> 34,2 % 12% GER 10% F DK A % of N7D1 market FIN NL 8% S ESP 6% N UK 4% GR 2% 0% 0 +1 +2 +3 +4 +5 +6 +7 +8 +9 +10 +11 +12 +13 +14 Months after Ebixa launch GER UK S N DK FIN NL A GR ESP F
Slide 19: Existing late-stage pipeline
Existing late-stage pipeline Compound Activity Indication 2003 2004 2005 2005+ Escitalopram SSRI SAD NDA Launch Rasagiline MAO-B Parkinson’s NDA Launch Alzheimer’s Memantine NMDA antagonist III NDA Launch Mild to Moderate Sertindole D2-5HT2 Schizophrenia PMS Launch Bifeprunox Dopamine/serotonin Schi
Slide 20: More information please contact Investor Relations & Corporate Reporting
More information please contact Investor Relations & Corporate Reporting Steen Juul Jensen Jacob Tolstrup Anette Kirkeby Divisional Director Investor Relations Officer Event Coordinator Investor Relations & Investor Relations & Investor Relations & Corporate Reporting Corporate Reporting Corporate R
Slide 21: Appendix
H. Lundbeck A/S Appendix
Slide 22: About H. Lundbeck A/S
About H. Lundbeck A/S • A unique fully-integrated pharmaceutical company focusing solely on the treatment of diseases of the central nervous system • Founded 1915 • Into pharmaceuticals 1920s • Own research established 1940s • First generation of antidepressants and anti-psychotics 1950-1960s • Deve
Slide 23: Business and R&D focus areas
Business and R&D focus areas • Psychiatry • Neurology • Depression • Dementia/Alzheimer’s Disease • Schizophrenia • Parkinson’s Disease • Anxiety • Epilepsy More information: www.lundbeck.com Trading codes: Reuters LUN.CO, Bloomberg LUN DC 23, Wednesday, 05 November 2003
Slide 24: Geographical Expansion
Geographical Expansion 1992 2002 Local sales organisation Global sales organisation Lundbeck subsidiaries Lundbeck partner alliance 24, Wednesday, 05 November 2003
Slide 25: Key figures
Key figures 9M 2003 9M 2002 Earnings per share – EPS (DKK) 5.27 4.85 Cash flow per share – CFPS (DKK) 6.66 4.61 Operating margin (%) 25.1 31.3 Return on net assets (%) 29.4 42.4 Return on equity (%) 19.6 21.9 Solvency ratio (%) 64.0 65.9 Net asset value per share (DKK) 28.81 24.08 25, Wednesday, 05
Slide 26: Cash flow
Cash flow (DKK million) 9M 2003 9M 2002 Cash flow from operating 1,557 1,077 activities Cash flow from investing -1,124 -553 activities Cash flow from operating and 434 524 investing activities, net Cash flow from financing -2 -247 activities Increase in cash and cash -431 -277 equivalents 26, Wedne
Slide 27: Depression – 15.9 bill. USD
Depression – 15.9 bill. USD 28% 72% Rest of Europe Q2 2002 Fluvoxamine world USA Q2 2002 North 7% Fluoxetine America 75% Citalopram Sertraline Europe Paroxetine 18% 0% 10% 20% 30% 40% Leading product Marketing Corporation Sales 2001 (USDm) Growth in % Seroxat®/Paxil® GlaxoSmithKline 2,848 18 Zoloft®
Slide 28: Mature but still growing – healthy growth
Mature but still growing – healthy growth Euro Mill. 20000 70% MAT Q2 02 Sales 18000 Growth 60% 16000 14000 50% 12000 40% 10000 30% 8000 6000 20% 4000 10% 2000 0 0% Anaesthetics Narcotic Anti-Migraine Anti- Anti- Anti- Hypnotics & Anti- Anti- General Analgesics Preps Epileptics Parkinson psychotics
Slide 29: Depression – still many untreated
Depression – still many untreated Treatment: Index 100 Treatment Diagnosed Prevalence 0 100 200 300 400 Source: Decision Resources, November 2002, major 7 pharmaceutical markets 29, Wednesday, 05 November 2003
Slide 30: Alzheimer's – 1.2 bill. USD
Alzheimer’s – 1.2 bill. USD 2% 98% Rest of world Europe Q2 2002 North Tacrine 13% USA Q2 2002 America 63% Galantamine Rivastigmine Europe Donepezil 24% 0% 20% 40% 60% 80% Leading product Marketing Corporation Sales 2001 (USDm) Growth in % Aricept® Pfizer 923 26 Exelon® Novartis 228 119 Reminyl® John
Slide 31: Alzheimer's - high growth market
Alzheimer’s - high growth market Euro Mill. 20000 70% MAT Q2 02 Sales 18000 Growth 60% 16000 14000 50% 12000 40% 10000 30% 8000 6000 20% 4000 10% 2000 0 0% Anaesthetics Narcotic Anti-Migraine Anti- Anti- Anti- Hypnotics & Anti- Anti- General Analgesics Preps Epileptics Parkinson psychotics Sedatives
Slide 32: A market being created – 46% growth within Alzheimer's
A market being created – 46% growth within Alzheimer’s in 2002 Treatment: Index 100 Treatment Diagnosed Prevalence 0 100 200 300 400 500 600 700 32, Wednesday, 05 November 2003
Slide 33: Antipsychotics – 7.7 bill. USD
Antipsychotics – 7.7 bill. USD 14% 86% North Amisulpride Europe Q2 2002 Rest of America% USA Q2 2002 Clozapine world 69% 11% Ziprasidone Quetiapine Risperidone Olanzapine Europe% 0% 10% 20% 30% 40% 50% 20% Leading product Marketing Corporation Sales 2001 (USDm) Growth in % Zyprexa® Eli Lilly 3,226 3
Slide 34: Antipsychotics - Major value conversion
Antipsychotics - Major value conversion Euro Mill. 20000 70% 18000 MAT Q2 02 Sales 60% Growth 16000 14000 50% 12000 40% 10000 30% 8000 6000 20% 4000 10% 2000 0 0% Anaesthetics Narcotic Anti-Migraine Anti- Anti- Anti- Hypnotics & Anti- Anti- General Analgesics Preps Epileptics Parkinson psychotics Se
Slide 35: Parkinson's – 1.7 bill. USD
Parkinson’s – 1.7 bill. USD 3% 97% North Cabergolin Europe Q2 2002 America 37% Benserazid/Levodopa Pergolid Europe Pramipexol 34% Carbidopa/Levodopa Rest of world 0% 5% 10% 15% 20% 25% 30% 35% 40% 29% Pergolid USA Q2 2002 Entacapon Ropinirol Pramipexol Carbidopa/Levodopa 0% 5% 10% 15% 20% 25% 30% 35
Slide 36: Parkinson's - A mature & relatively stable market
Parkinson’s - A mature & relatively stable market Euro Mill. 20000 70% MAT Q2 02 Sales 18000 Growth 60% 16000 14000 50% 12000 40% 10000 30% 8000 6000 20% 4000 10% 2000 0 0% Anaesthetics Narcotic Anti-Migraine Anti- Anti- Anti- Hypnotics & Anti- Anti- General Analgesics Preps Epileptics Parkinson psy