H. Lundbeck A/s Class A · OMXCOP:HLUN_A
H. Lundbeck A/s Class A — H1 2004 Earnings Presentation
33 slides from H. Lundbeck A/s Class A's earnings presentation, Aug 27, 2004
Slide 1: He sesssiess
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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 2004 and the following years naturally involve uncertainties, and consequent
Slide 3: 1H 2004 highlights
1H 2004 highlights 27/08/2004 3
Slide 4: 1H 2004 - Highlights
1H 2004 - Highlights DKKm DKK CER growth growth Revenue 5,219 5%* 17%* - Cipralex® 750 284% - Lexapro® 1,135 38% - Ebixa® 313 304% - Cipramil® 1,517 -35% - Celexa® 607 -40% - Other revenue 897 79% EBIT 1,672 41% Finance income, net 8 124% Net profit 1,132 46% Free cash flow 1,375 885%** EPS 4.84 46%
Slide 5: Financial Outlook 2004
Financial Outlook 2004 EBIT Approximately DKK 2.5 bill. incl. the gaboxadol initial payment Cash flow Free cash flow of more than DKK 1.6 billion 27/08/2004 5
Slide 6: Revenue development – new products accounts for 46% of revenue
Revenue development – new products accounts for 46% of revenue (excl. gaboxadol) 5.2 3% 5.0 10% Other revenue Cipramil/Celexa 41% Ebixa 68% Cipralex/Lexapro 6% Mature 36% 2% 20% 7% 7% 1H 2003 1H 2004 27/08/2004 6
Slide 7: 71% of total revenue generated on the largest CNS markets
71% of total revenue (excl. gaboxadol) generated on the 8 largest CNS markets in the world 1H 2003 1H 2004 UK Canada Canada France 7% 6% UK 8% 7% France Germany 5% 9% 3% Spain Germany 3% 4% US Spain 37% Italy 4% 4% US 38% Italy Rest of 6% Europe 23% Rest of Europe RoW RoW 21% 7% 8% 27/08/2004 7
Slide 8: Escitalopram/citalopram revenue on the largest markets for antidepressants
Escitalopram/citalopram revenue on the 7 largest markets for antidepressants DKKm 1H 2004 1H 2003 Change UK 172.0 286.5 -40% - Cipralex® 133,2 67,7 97% - Cipramil® 38,8 218,8 -82% France 302.3 330.5 -9% - Cipramil® 302.3 330.5 -9% Germany 93.1 62.0 50% - Cipralex® 46.3 0.0 - Cipramil® 46.8 62.0 -25%
Slide 9: Lost citalopram sales in Europe compensated by new products
Lost citalopram sales in Europe compensated by new products Dkkm 2500 Cipralex & Ebixa Cipramil 2000 1500 1000 500 0 1H 2003 1H 2004 27/08/2004 9
Slide 10: Increased efficiency
Increased efficiency Operating costs Workforce (DKKm and as percentage of revenue ex. gaboxadol) 1,400 FTE 25% 26% 5600 1,200 5500 1,000 19% 18% 5400 18% 17% 800 5300 14% 13% 5200 600 5100 400 5000 200 4900 0 4800 Production Distribution Admin R&D Q1 Q2 Q3 Q4 Q1 Q2 2003 2003 2003 2003 2004 2004 1H 2
Slide 11: Cost split in 1H 2004 – and Group targets
Cost split in 1H 2004 – and Group targets 2005 2006+ 1H 2003 1H 2004 1H 2004* FY 2003** target target On level COGS 885 816 17.0% 1,759 17-20% with 2003 On level SG&A 1,945 1,874 39.1% 3,815 32-35% with 2003 R&D 932 868 18.1% 1,933 20% 20% Other 3 -12 -0.3% 15 -- -- Total 3,765 3,546 73.9% 7,522 --
Slide 12: Business Update
Business Update 27/08/2004 12
Slide 13: Cipralex now launched in almost 60 countries
Cipralex® now launched in almost 60 countries Cipralex® Launched Launch 2004 Asian countries New Zealand Asian countries Australia Middle East countries Canada Austria Norway Russia Belgium Portugal France Denmark South America Middle East countries Eastern Europe Sweden Finland Switzerland Germany
Slide 14: Market share in value (N6A): launches in major European markets
Launches of Cipralex® in major markets in Europe From launch with reimbursement 10% I 9% Market share in value (N6A) 8% 7% 6% UK 5% 4% ESP GER 3% 2% 1% 0% 0 +2 +4 +6 +8 +10 +12 +14 +16 +18 +20 +22 +24 Months after Cipralex®/Lexapro® launch I GER ESP UK Source: IMS, N6A, June 27/08/2004 14
Slide 15: Market share in value (N6A): other larger European markets
Launches of Cipralex® in other larger European markets From launch with reimbursement 16% A TR 14% B Market share in value (N6A) 12% 10% CH 8% P S 6% 4% 2% 0% 0 +2 +4 +6 +8 +10 +12 +14 +16 +18 +20 +22 +24 +26 +28 Months after Cipralex®/Lexapro® launch S TR P B CH A Source: IMS, N6A, June 27/08/2004
Slide 16: Market share in value (N6A): launches of Lexapro outside Europe
Significant launches of Lexapro® outside Europe 12% *) USA month 22 : 12,3% USA* 10% Market share in value (N6A) MEX 8% ARG 6% BRA AUS CHL 4% 2% 0% 0 +1 +2 +3 +4 +5 +6 +7 +8 +9 +10 +11 +12 +13 +14 +15 +16 +17 Months after Lexapro® launch MEX AUS BRA ARG CHL USA Source: IMS, N6A, June 27/08/2004 16
Slide 17: Cipralex/Lexapro market position
Cipralex®/Lexapro® market position 16% Cipralex® market share 14% Market share in value (N6A) 12% 10% 8% 6% 4% 2% 0% A N TR B USA IRL FIN I CH DK S P UK AUS ESP GER %-growth in market share 6 months 15 37 23 12 19 10 98 20 67 9 13 44 16 NA NA 40 Source: IMS, N6A, June 27/08/2004 17
Slide 18: Ebixa now launched in almost 30 countries
Ebixa® now launched in almost 30 countries Ebixa® Launched Launch 2004 Argentina Greece Asian countries Australia* Holland Middle East countries Austria Ireland Canada Brazil Mexico India Belgium Scandinavia Italy Chile Singapore Czech Republic Spain Eastern Europe Switzerland France Turkey Germany
Slide 19: Market share in value (N7D): Ebixa in major European markets
Launches of Ebixa® in the 3 major European Alzheimer's markets From launch with reimbursement Total memantine market share F GER: 37% 18% ESP: 20% Market share in value (N7D) 15% GER 12% 9% ESP 6% 3% 0% 0 +2 +4 +6 +8 +10 +12 +14 +16 +18 +20 +22 ® Months after Ebixa launch ESP F GER Source: IMS, N7D,
Slide 20: Ebixa market position
Ebixa® market position 35% Ebixa® market share Market share in value (N7D) 30% 25% 20% 15% 10% 5% 0% H MEX TR FIN F P DK A GER S N ESP NL IRL GR UK %-growth in market share 6 months 9 11 290 41 20 22 10 22 3 9 19 10 -1 38 23 -5 Source: IMS, N7D, June 27/08/2004 20
Slide 21: Pipeline
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Slide 22: Pipeline
Pipeline Compound Activity Indication Dev. stage 2004 2005 2006 2006+ Rasagiline MAO-B Parkinson’s NDA Launch Generalised anxiety Escitalopram SSRI III NDA Launch disorder NMDA Mild to moderate Memantine III NDA Launch antagonist Alzheimer’s Sertindole D2-5HT2 Schizophrenia PMS Launch Dopamine/ Bife
Slide 23: More information please contact Investor Relations
More information please contact Investor Relations Steen Juul Jensen Jacob Tolstrup Niels Christian Hobolt Vice President Investor Relations Investor Relations Manager Officer Corporate Reporting Investor Relations Investor Relations Tel: + 45 36 43 30 06 Tel: + 45 36 43 30 79 Tel: + 45 36 43 21 38
Slide 24: Appendix
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Slide 25: 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 Business and R&D focus areas Psychiatry Neurology • Depression • Dementia/Alzheimer’s Disease • Schizophrenia • Parkinson’s Disease • Anxiety • Epilepsy M
Slide 26: H. Lundbeck A/S in a historical perspective
H. Lundbeck A/S in a historical perspective • Founded 1915 • Into pharmaceuticals 1920s • Own research established 1940s • First generation of antidepressants and anti-psychotics 1950-1960s • Development of SSRI 1970s • Development of atypical anti-psychotic 1980s • Strategic decision to focus on CN
Slide 27: Worldwide pharmaceutical market 2003
Worldwide pharmaceutical market 2003 USD 466,3 billion, (+9%) Other (D) Dermatologicals 8% (N) CNS 3% (+5%) 17% (+13%) (G) G.U.& Sex Hormones 5% (+5%) (M) Muscolo-Skeletal 6% (+13%) (C) Cardiovascular (B) Blood 16% (+8%) 6% (+15%) (L) A+Immun 7% (+16%) (R) Respiratory 8% (+3%) (A) Alimentary (J) Ant
Slide 28: Worldwide CNS market 2003
Worldwide CNS market 2003 USD 77,0 billion, (+13%) N5A Antipsychotics 16% (+20%) N3A Anti-Epileptics 12% (+22%) N6A Antidepressants 25% (+10%) N2B Non-Narcotic Analgesics 10% (+2%) Other CNS drugs N2A Narcotic 8% Analgesics 9% (+19%) N7D1 Anti-Alz Prod N5B Hypnotics & Chol Inhib Sedatives 3% (+27%)
Slide 29: Depression (N6A-2003) – 19.5 bill. USD
Depression (N6A-2003) – 19.5 bill. USD (+10%) Value Market shares of N6A Europe Q4 2003 Mirtazapine Rest of North USA Q4 2003 world America Fluoxetine 8% 71% Venlafaxine Citalopram/Escitalopram Sertraline Paroxetine Europe 21% 0% 5% 10% 15% 20% 25% Leading product Marketing Corporation Sales 2003 (U
Slide 30: Alzheimer's (N7D-2003) – 2.3 bill. USD
Alzheimer’s (N7D-2003) – 2.3 bill. USD (+30%) North Value Market Shares of N7D Rest of America Europe Q4 2003 world 53% Memantine USA Q4 2003 15% Galantamine Rivastigmine Donepezil 0% 20% 40% 60% 80% Europe 32% Leading product Marketing Corporation Sales 2003 (USDm) Growth in % Aricept® Eisai 1,453
Slide 31: Antipsychotics (N5A-2003) – 12.2 bill. USD
Antipsychotics (N5A-2003) – 12.2 bill. USD (+20%) North America Value Market Shares of N5A Rest of % Europe Q4 2003 world 67% Aripiprazole USA Q4 2003 10% Risperidone Olanzapine Amisulpride Clozapine Ziprasidone Europe% Quetiapine 23% 0% 10% 20% 30% 40% 50% Leading product Marketing Corporation Sale
Slide 32: Anti-Parkinson's (N4A - 2003) – 2.2 bill. USD
Anti-Parkinson’s (N4A - 2003) – 2.2 bill. USD (+9%) Value Market Shares of N4A - Europe Europe Q4 2003 North NMDA America MAOI 33% Anticholinergics Europe COMT 41% Levodopa Dopamine agonists Rest of world 0% 10% 20% 30% 40% 50% 60% 26% Value Market shares of N4A - USA USA Q4 2003 NMDA MAOI Anticholi
Slide 33: Worldwide sales of hypnotics (N5B - 2003) – 3.3 bill. USD
Worldwide sales of hypnotics (N5B - 2003) – 3.3 bill. USD (+11%) Value Market Shares of N5B North Europe America Europe Q4 2003 27% 53% USA Q4 2003 Zaleplon Zopiclone Zolpidem Rest of world 20% 0% 20% 40% 60% 80% 100% Leading product Marketing Corporation Sales 2003 (USDm) Growth in % Ambien® Sanofi