H. Lundbeck A/s Class A · OMXCOP:HLUN_A
H. Lundbeck A/s Class A — FY2009 Earnings Presentation
95 slides from H. Lundbeck A/s Class A's earnings presentation, Nov 28, 2010
Slide 1: Investor Presentation – FY 2009
H. LUNDBECK A/S Investor Presentation – FY 2009
Slide 2: Company disclaimer
Company disclaimer 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 inaccurate assu
Slide 3: Lundbeck – Continued solid performance
Lundbeck – Continued solid performance Y/Y growth* DKK million 2008 2009 CER** 2009 guidance Total revenue 11,572 13,747 19% 22% Revenue DKK 13.1-13.6bn ® Cipralex 4,829 5,320 10% 12% Lexapro® 2,464 2,451 (1%) 9% EBITDA DKK 3.5-3.7bn Ebixa® 1,878 2,162 15% 17% EBIT DKK 2.8-3.0bn Azilect® 553 769 39%
Slide 4: Guidance
Guidance Actual Guidance 2009 2010 Revenue DKK 13,747m DKK 14.3-14.8bn EBITDA DKK 3,728m DKK 3.9-4.3bn EBIT DKK 2,858m DKK 3.0-3.4bn Tax rate 24.7% 24-25% R&D ratio 23.2% ~21% 4
Slide 5: Update on recent events
Update on recent events Strategic Commercial rights to Azilect® acquired in six Asian countries Decisions Now process ongoing Financials Continued growth in all key products and regions Circadin® write down of DKK 157 million Change in accounting policy regarding Azilect® revenue Pipeline progressio
Slide 6: The CNS market – USD 121.7 billion (+8%)
The CNS market – USD 121.7 billion (+8%) The largest pharmaceutical category Lundbeck current focus areas (Share of total CNS market and growth) The CNS market represents 17% of the Antipsychotics total pharmaceutical 19% (+10%) market Lundbeck is also present within Huntington’s disease with Xenazi
Slide 7: CNS comprises many disease areas and diseases
CNS comprises many disease areas and diseases Providing opportunity for diversification with different risk and investment profiles Psychiatry Neurology Multiple sub-classifications Multiple sub-classifications Mood Disorders Anxiety Disorders Psychotic Disorders Movement Disorders Dementias Cerebro
Slide 8: CNS diseases have many mechanistic entries
CNS diseases have many mechanistic entries …. and is treated by many different physicians Multiple mechanistic entries Treating physicians Each provide avenues into multiple CNS diseases Neuroinflammation Psychiatrists Neurotransmission Neurologists Neurodegeneration General Practitioners Signal tra
Slide 9: Lundbeck is involved in indications costly to society and with high unmet medical needs
Lundbeck is involved in indications costly to society and with high unmet medical needs Rank* Disease 1 Cancer 2 Unipolar depressive disorder and anxiety Lundbeck’s focus areas rank high 3 Ischaemic heart disease in terms of burden to society 4 Cerebrovascular disease These conditions are often of a
Slide 10: Lundbeck’s aspirations based on solid financials
Lundbeck’s aspirations based on solid financials Lundbeck opportunities Solid business platform established by focus on the CNS disease category Strong growth in existing markets Substantial opportunities in emerging markets Broad pipeline, potentially providing 5-6 new products before 2014 Producti
Slide 11: Engines of growth
Engines of growth ”The best CNS company!” Decisions Now Business development Pipeline Accelerate commercial Lundbeck Inc Large unmet medical success Strategic partnerships needs Co-development and Multiple therapeutic Maximize value of late modalities within CNS co-commercialisation stage projects I
Slide 12: Several growth opportunities to help offset escitalopram patent expiry
Several growth opportunities to help offset escitalopram patent expiry Revenue Lexapro® patent will DKKm 20,000 Sabril®/Xenazine®/Azilect® expire in 2012 Expansion in emerging markets … and Cipralex® will follow in 2014 16,000 Lu AA21004 A string of future growth drivers are at Nalmefene hand 12,000
Slide 13: Successful conversion from Cipramil to Cipralex/Lexapro
Successful conversion from Cipramil® to Cipralex®/Lexapro® DKKm 14,000 Patent expiry not a new situation to Lundbeck 12,000 Today, Lundbeck is less dependent on the revenue from 10,000 a single product In 2009, Cipralex®/Lexapro® are 57% of total revenue vs. 80% for 8,000 Total revenue Cipramil® in
Slide 14: Marketed products
; . Lexapro" AZILECT’ rasagiline -Cipralex escitalopram =Sabril a “ vigabatrn Ebixa _—XKenazine (tetrabenazine) 12.5 and 25 mg Tablets 14
Slide 15: Revenue – product/region split
Revenue – product/region split Revenue distribution 19% DKKm 16,000 Lundbeck total revenue 54% 14,000 O t he r re v e nue 12,000 O t he r 27% P ha rm a c e ut ic a ls X e na zine ® 10,000 Europe US A zile c t ® Int. Markets 8,000 E bixa ® 2% 6,000 Le xa pro ® 18% C ipra le x® 38% 4,000 2% 6% 2,000 0
Slide 16: Continued solid performance in major products
Continued solid performance in major products Cipralex®/Lexapro® Continuously better understanding of Cipralex® as a leading antidepressant Venlafaxine patent expiration Market share Market share (Dec. 2008) (Dec. 2009) Changes in health care system in Turkey Reimbursement received in China Europe C
Slide 17: Europe
Europe 125m people in Europe suffers from a CNS disorder - approx 25% of the total European population* CNS disorders costs the European society USD 480bn in 2004* European CNS market worth some USD 35bn, up 10% in 2008 Presence in all European countries with a combined revenue of approx DKK 7.5bn M
Slide 18: Cipralex/Lexapro – ranking by probability for efficacy
Cipralex®/Lexapro® (escitalopram) - top of the class anti-depressant Cipralex® is an ASRI* with a The Cipriani study: Lancet 2009** unique mode of action, serotonin Ranking of antidepressants by efficacy/acceptability dual-action Ranking by probability for efficacy 1 Mirtazapine … and has demonstrat
Slide 19: Azilect – ADAGIO study, mean UPDRS change
Azilect® is the only drug that shows slowdown of disease progression in Parkinson’s Results from ADAGIO study – Change in UPDRS score ® in early and delayed start of treatment with Azilect Azilect® is a potent, selective, second 9 months 9 months generation, irreversible monoamine Delayed-start oxid
Slide 20: Ebixa – efficacious even in severe Alzheimer’s disease
Ebixa® – efficacious even in severe Alzheimer’s disease Ebixa® is the only NMDA* receptor antagonist approved for the treatment of Alzheimer’s disease A very efficacious, well-tolerated and safe treatment with placebo- like side effects Only therapy licensed for the treatment of moderate to severe A
Slide 21: Continued high growth within all key products
Continued high growth within all key products European market shares (value) Antidepressant market – USD 5.3bn 25.0% (value growth: +7%; volume growth: +6%)* Cipralex® Continuously better understanding of Cipralex® Ebixa® Azilect® as a leading antidepressant 20.0% 19.9% Venlafaxine patent expiration
Slide 22: International Markets
International Markets International Markets consists of all markets outside Europe and the US CNS market worth more than USD 20bn (+10%) Lundbeck had revenue of DKK 2.6bn in 2009 in the region Subsidiaries through out the region with more than 1,000 sales reps Launched products: Cipralex®, Ebixa®, A
Slide 23: Promising growth prospects in the region
Promising growth prospects in the region Int. Markets market shares (value) Antidepressant market – USD 3.0bn (value growth: +15%; volume growth: +13%)* 14.0% Continuously better understanding of Cipralex® 12.0% 11.1% as a leading antidepressant 10.5% Reimbursement in Ontario and British Colombia 10
Slide 24: Emerging markets – providing promising opportunities
Emerging markets – providing promising opportunities CNS in has shown promising growth USDm 16,000 Strong growth in the pharmaceutical sector in emerging Latin America +20% 14,000 Asia, Africa and Australia 12,000 +13% +4% +14% markets 10,000 High GDP growth 8,000 6,000 +13% Expanding health care 4,
Slide 25: Lundbeck is well positioned in the region
Lundbeck is well positioned in the region Share of Lundbeck revenue in the region 14% 14% of Lundbeck current revenue is generated in Emerging Markets Emerging markets* … growing 13% compared to 2008 Other markets Latin America up 19% Subsidiaries in all major markets in 86% Latin America (90% of ma
Slide 26: USA
USA US CNS market worth USD 64bn – more than 50% of world market Lundbeck Inc. (formerly Ovation) was integrated in 2009 – located in Chicago Total US revenue of DKK 3.6bn in 2009 Around 100 sales reps Launched products: Lexapro®, Xenazine®, Sabril® and others R&D units in New Jersey and Chicago 26
Slide 27: Continued high growth within all indications
Continued high growth within all indications US market shares (value) 30.0% Antidepressant market – USD 11.3bn (value growth: -1%; volume growth: +2%)* Lexapro® 25.0% US market experiencing limited growth – revenue 23.3% pressured by generic competition 20.0% Lexapro up 10% in local currency compare
Slide 28: Sabril – addressing highly unmet needs
Sabril® – addressing highly unmet needs Sabril® Unique method of action as a selective and irreversible inhibitor of GABA-transaminase Approved for refractory complex partial seizures Only FDA-approved drug for infantile spasms Aside from risk of critical vision Infantile spasms (IS): damage (~ 30%
Slide 29: Launched in September 2009 for two devastating epilepsy indications
Launched in September 2009 for two devastating epilepsy indications Adjunct therapy in adults with Clinical highlights in the treatment uncontrolled Complex Partial Seizures of Infantile Spasms Patients experienced significantly more More than 50% of infants receiving seizure-free days per month wit
Slide 30: Xenazine – only drug approved for Huntington’s chorea in the US
Xenazine® – only drug approved for Huntington’s chorea in the US Xenazine Selectively inhibiting vesicular monoamine transporter enzyme (VMAT)-2, thereby depleting pre- synaptic dopamine Approved for chorea associated with Huntington’s disease Addresses high unmet medical Chorea associated with Hunt
Slide 31: Xenazine delivers on expectations
Xenazine® delivers on expectations Revenue for the full year 2009 was 2,400 DKK 298 million Active patients Xenazine® has been well received 2,000 Approx 2,300 patients initiated Xenazine® treatment by the end of 1,600 January 2010 Another ~400 patients were 1,200 awaiting to commence treatment Enro
Slide 32: Pipeline
Pipeline 32
Slide 33: Lundbeck pipeline – psychiatry
Lundbeck pipeline – psychiatry Regulatory Compound Indication Activity Phase I Phase II Phase III filing Serdolect® - US Schizophrenia Dopamine/serotonin Specific opioid receptor Nalmefene Alcohol dependence 2011 antagonist 5HT3, 5HT7, 5HT1B antagonist, Lu AA21004 Depression + GAD 2012 5H1a agonist
Slide 34: Lundbeck pipeline – neurology, stroke and other CNS
Lundbeck pipeline – neurology, stroke and other CNS Regulatory Compound Indication Activity Phase I Phase II Phase III filing Lennox-Gastaut Clobazam GABA enhancer 2011 syndrome I.V. Epilepsy Sodium channel blocker 2012 Carbamazepine Desmoteplase Stroke Plasminogen activator 2012 Lu AA24493 Stroke/n
Slide 35: Unmet medical needs in MDD support new innovative drugs
Unmet medical needs in MDD support new innovative drugs Current treatments offers room for Lu AA21004 offers improvement Lu AA21004 is the first anti-depressant in a Only 50-60% respond to current therapy new class - pharmacological profile different from current anti-depressants Unsatisfying onset
Slide 36: New data strengthens the clinical profile of Lu AA21004
New data strengthens the clinical profile of Lu AA21004 Positive clinical studies for Lu AA21004 European based study shows statistical significance on the primary efficacy Adverse effects observed in phase II (Lu AA21004) endpoint across all tested doses 560 patients Placebo 5 mg 10 mg 225 mg Lu AA
Slide 37: Lu AA24530 – Clinical phase III programme to start by the end of 2010
Lu AA24530 – Clinical phase III programme to start by the end of 2010 Headline phase II data on Lu AA24530: Lu AA24530… 652 patients A multi-modal enhancer Moderate to severe depression Reuptake inhibition at monoamine transporters 6 weeks treatment Antagonist activity at 5-HT3 and 5-HT2c Several do
Slide 38: Lennox-Gastaut syndrome (LGS) – clear unmet medical needs
Lennox-Gastaut syndrome (LGS) – clear unmet medical needs Lennox-Gastaut syndrome (LGS) A catastrophic childhood epilepsy characterized by multiple types of seizures and developmental delay Usually occurs between 3 and 10 years of age Approximately 3-10% of children with epilepsy have LGS Prevalence
Slide 39: Clobazam – orphan drug status granted
Clobazam – orphan drug status granted Percentage of treatment responders Clobazam in weekly drop seizures Clobazam is the only non-1,4-benzodiazepine used 100% in the treatment of epilepsy, which… Low -dose clobazam P = 0.0025 (n=32) May produce less somnolence 90% P = 0.0001 High-dose clobazam May
Slide 40: Alcohol dependence market is potentially vast, but is grossly underdeveloped
Alcohol dependence market is potentially vast, but is grossly underdeveloped 60-70% of the population over age 15 drink The vicious circle of addiction alcohol Over 58m Europeans have an Reward alcohol consumption level that, according to the WHO, is harmful or hazardous The tangible annual costs to
Slide 41: Nalmefene treatment opportunity – WHO category downward shift
Nalmefene treatment opportunity - WHO category downward shift – EMEA scientific advice Very high-risk consumption, 3–5% (>60/100 g alcohol daily The ‘category downward shift’ efficacy parameter in the clinical phase III programme is agreed with females/males) EMEA and supports the alcohol reduction
Slide 42: Nalmefene – a potential new treatment paradigm
Nalmefene – a potential new treatment paradigm Nalmefene In clinical trials Nalmefene reduces Heavy Drinking Days* per month Heavy drinking days 15 Total consumption Nalmefene can leverage on Lundbeck’s existing European GP and specialist sales force 10 Co-morbidity to other psychiatric disorders Cl
Slide 43: Stroke constitutes a large unmet medical need
Stroke constitutes a large unmet medical need – medical treatment options are limited Arrival time among diagnosed acute ischaemic stroke (AIS) patients AIS is the third most common cause of death in the 0-3h industrialised world 21% >24h or tim e of arrival Incidence of 300-500 per unknow n 100,000
Slide 44: Desmoteplase – a possible improvement of existing stroke therapy
Desmoteplase – a possible improvement of existing stroke therapy Desmoteplase profile Nine hour time window increases utility in the market Potential to decrease bleeding complications Potential to improve neurological outcome Post-hoc analysis of DIAS-2 supports continued clinical development The m
Slide 45: Desmoteplase – a post-hoc analysis of the DIAS programme
Desmoteplase – a post-hoc analysis of the DIAS programme Percent of patients with clinical response Compared to DIAS and DEDAS, patients in 70 DIAS-2 had less severe strokes and smaller mismatch volumes 60 Placebo 90 m cg/kg Differences in baseline characteristics can 125 m cg/kg explain findings su
Slide 46: Zicronapine shows strong clinical phase II data in schizophrenia
Zicronapine shows strong clinical phase II data in schizophrenia Double-blinded 12 weeks study comparing Zicronapine with Olanzapine Zicronapine Unique multi-receptorial profile Screening 5 mg 5 or 7 mg Zicronapine (n=60) Affinity to monoaminergic receptors Potent in vivo antagonistic effects at D1,
Slide 47: Lu AE58054 – in phase II for cognitive impairment
Lu AE58054 – in phase II for cognitive impairment in schizophrenia and Alzheimer’s Lu AE58054 Clinical phase II (schizophrenia) Lu AE58054 is a a potent, selective The study is designed to show pro-cognitive 5-HT6 antagonist efficacy, cognitive properties and safety after 12 weeks of treatment A num
Slide 48: Lu AA24493 in phase II in Friedreich’s ataxia
Lu AA24493 in phase II in Friedreich’s ataxia Lu AA24493 Friedreich's ataxia A novel carbamoylated form of human A genetic, neuromuscular degenerative erythropoietin (EPO) disorder that results in the progressive The modification results in complete breakdown of nervous tissue in the spinal loss of
Slide 49: Financials
Financials ANNUAL REPORT 2009 LUNDBECK MAGAZINE J ndbe ‘I 49
Slide 50: Financial figures – distribution of revenue for FY 2009
Financial figures – distribution of revenue for FY 2009 Revenue per region DKKm 8,000 11% growth (12% growth in local currency) Lundbeck’s revenue was DKK 13,747m and 7,216 2008 grew 22% in constant exchange rates 6,000 6,480 2009 compared to 2008 47% 4,000 (58%) 8% US sales were up 58% (CER) driven
Slide 51: Financial figures – distribution of costs for 2009
Financial figures – distribution of costs for 2009 Costs in % of total revenue and total costs DKKm 12,000 Costs increased 18% for the year driven 10,889 by the inclusion of Lundbeck Inc. 10,000 9,218 SG&A 37% 8,000 COGS … and a write down of Circadin® rights of R&D 6,000 35% DKK 157 million 19% 4,0
Slide 52: P&L statement
P&L statement (DKKm) 2009 2008 Y/Y growth Revenue 13,747 11,572 19% COGS 2,655 2,127 25% - as % of revenue 19.3% 18.4% SG&A costs 5,038 4,101 23% - as % of revenue 36.6% 35.4% R&D costs 3,196 2,990 7% - as % of revenue 23.2% 25.8% EBIT 2,858 2,354 21% - margin 20.8% 20.3% Net financials (192) (28) P
Slide 53: Key deliverables the next 12 months
Key deliverables the next 12 months Financials Provide financial outlook for 2012 Existing products Further enhance Xenazine® market position Continued roll out of Sabril® in the US for refractory complex partial seizures (rCPS) and infantile spasms (IS) Continued strengthening of Azilect® market po
Slide 54: For more information please contact Investor Relations
For more information please contact Investor Relations Jacob Tolstrup Palle Holm Olesen Magnus Thorstholm Jensen Vice president, IR and Comm. Chief Specialist; Investor Relations Investor Relations Officer Tel: +45 36 43 30 79 Tel: +45 36 43 24 26 Tel: +45 36 43 38 16 Fax: +45 36 43 82 62 Fax: +45 3
Slide 55: Appendix
H. LUNDBECK A/S Appendix
Slide 56: About Lundbeck
About Lundbeck A fully integrated, pharmaceutical company focusing on treatment of the many diseases in the central nervous system Lundbeck is a leading company in CNS with a strong competitive profile – especially within depression, anxiety and Alzheimer’s Lundbeck has historically been in the fore
Slide 57: Lundbeck expands its commercial and scientific reach through partnerships
Lundbeck expands its commercial and scientific reach through partnerships, networking etc. Business Out-licensing: In-licensing: development: • Forest • Teva Pharm. Lundbeck continues Laboratories Industries pursuing licensing • Mochida • Merz opportunities, Pharmaceuticals Pharmaceuticals bolt-on p
Slide 58: Appendix
Appendix Unmet medical needs Projects in development Marketed products Financial figures Therapeutic categories in CNS The global IP position The Lundbeck share 58
Slide 59: Alzheimer’s disease – dire need for disease modifying compounds
Alzheimer’s disease – dire need for disease modifying compounds In 2009, Datamonitor estimates that there are Disease modifying treatments 4.1 million people suffering from dementia in Importance the US, 2.8 million of which are suffering from Disease slowing agents Alzheimer’s disease. Across the m
Slide 60: Alcohol misuse – still substantial unmet medical needs in therapy
Alcohol misuse – still substantial unmet medical needs in therapy Alcohol exerts an influence on the glutamine, Greater resources - the number of treatment gamma-aminobutyric acid (GABA) dopamine, and Importance facilities and trained physicians is inadequate endogenous opioid systems the release of
Slide 61: Depression and anxiety – efficacy and onset of action needs improvement
Depression and anxiety – efficacy and onset of action needs improvement Treatment for non-responders - only some 150m people suffer from depression globally 50-60% of patients respond to therapy according to WHO Importance (higher for escitalopram) The world-market for anti-depressants is a USD 20bn
Slide 62: Epilepsy – still substantial unmet medical needs in therapy
Epilepsy – still substantial unmet medical needs in therapy Prevalence of epilepsy: 1% to 2% of New and better treatment for population Importance refractory seizures 30% live with seizures uncontrolled by existing More choices of drugs, especially therapies with different mechanisms of Current ther
Slide 63: Parkinson’s disease – room for improvement
Parkinson’s disease – room for improvement Therapies that provide neuroprotection PD represents a USD 4bn opportunity Estimates suggest that there are 8-9 cases of Importance and/or neurorestoration PD per 1,000 population in the major pharmaceutical markets An optimal trial design for demonstrating
Slide 64: Psychosis – still substantial unmet medical needs in therapy
Psychosis – still substantial unmet medical needs in therapy The global market for anti-psychotics Improved treatment of constitutes USD 23bn Importance cognitive dysfunction In 2008 the US market grew by 10% Improved treatment of The European market grew by 6% Negative symptoms 50-60% of total schi
Slide 65: Stroke – still substantial unmet medical needs in therapy
Stroke – still substantial unmet medical needs in therapy The global market for anti-psychotics Thrombolytics with a longer Acute Ischaemic stroke (AIS) accounts for 67- Importance treatment window 85% of all strokes AIS is a leading cause of death in the major pharmaceutical markets and the leading
Slide 66: Appendix
Appendix Unmet medical needs Projects in development Marketed products Financial figures Therapeutic categories in CNS The global IP position The Lundbeck share 66
Slide 67: Lu AA21004 – receptor profil
Lu AA21004 – receptor profil SSRI Lu AA21004 offers Pharmacological profile different from current 5-HTT antidepressants Serotonin Increases multiple neuro-transmitters Occupancy rate: 80% 5-HT3 antagonist, 5-HT1A agonist and 5-HT enhancer Increases 5-HT levels at low 5-HT transporter occupancy Lu A
Slide 68: Lu AA21004 - Phase II: MADRS total scores from baseline to Week 6
Lu AA21004 - Phase II: MADRS* total scores from baseline to Week 6 Conclusions At week six, Lu AA21004 were statistically significant to placebo in mean change from baseline in MADRS* total score A mean treatment difference to placebo of 5.9 points (5mg) and 5.7 points (10 mg). The mean MADRS total
Slide 69: Lu AA21004 - Phase II: Well-tolerated with drop-out at placebo level
Lu AA21004 - Phase II: Well-tolerated with drop- out at placebo level and no sexual dysfunction Placebo Lu AA21004 5mg Lu AA21004 10mg Venlafaxine 225mg Preferred term n=105 n=108 n=100 n=113 Withdrawals from study 4% 3% 7% 14% Patients with AEs 64 (61.0%) 73 (67.6%) 74 (74.0%) 85 (75.2%) Nausea 10
Slide 70: Appendix
Appendix Unmet medical needs Projects in development Marketed products Financial figures Therapeutic categories in CNS The global IP position The Lundbeck share 70
Slide 71: Revenue – by product / by region (quarterly)
Revenue – by product / by region (quarterly) International Total Europe USA Markets Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 DKKm 2009 2008 2009 2008 2009 2008 2009 2008 Total revenue 3,540 2,741 1,889 1,646 961 509 612 536 Growth 29% 15% 89% 14% Cipralex® 1,354 1,151 972 830 - - 381 321 Growth 18% 17% - 19% Lexapro
Slide 72: Revenue – by product / by region (yearly)
Revenue – by product / by region (yearly) International Total Europe USA Markets DKKm 2009 2008 2009 2008 2009 2008 2009 2008 Total revenue 13,747 11,572 7,216 6,480 3,632 2,464 2,621 2,433 Growth 19% 11% 47% 8% Cipralex® 5,320 4,829 3,720 3,355 - - 1,600 1,474 Growth 10% 11% - 9% Lexapro® 2,451 2,4
Slide 73: Revenue, quarterly figures
Revenue, quarterly figures Revenue, DKK million Growth, Y/Y, % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2009 2009 2009 2009 2009 2009 2009 Total revenue 3,312 3,529 3,367 3,540 13% 17% 17% 29% Cipralex® 1,363 1,345 1,258 1,354 12% 9% 2% 18% Lexapro® 626 625 600 600 (5%) (10%) (0%) 18% Ebixa® 526 539 548 548 15%
Slide 74: Revenue, yearly figures
Revenue, yearly figures Revenue, DKK million Growth, Y/Y, % 2005 2006 2007 2008 2009 2006 2007 2008 2009 Total revenue 9,076 9,300 11,171 11,572 13,747 2% 20% 4% 19% Cipralex® 2,625 3,508 4,094 4,829 5,320 34% 17% 18% 10% Lexapro® 2,552 1,923 2,594 2,464 2,451 (25%) 35% (5%) (1%) Ebixa® 1,105 1,361
Slide 75: Costs, quarterly figures
Costs, quarterly figures DKK million Growth, Y/Y, % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2009 2009 2009 2009 2009 2009 2009 Revenue 3,312 3,529 3,367 3,540 13% 17% 17% 29% Production costs 573 720 622 740 7% 34% 23% 35% Distribution costs 673 799 712 989 19% 26% 25% 44% Administrative expenses 401 464 480 5
Slide 76: Costs, yearly figures
Costs, yearly figures DKK million Growth, Y/Y, % 2005 2006 2007 2008 2009 2006 2007 2008 2009 Revenue 9,076 9,300 11,171 11,572 13,747 2% 20% 4% 19% Production costs 1,489 1,721 2,384 2,127 2,655 16% 38% (11%) 25% Distribution costs 2,337 2,419 2,409 2,459 3,174 4% 0% 2% 29% Administrative exp. 1,29
Slide 77: Balance sheet and cash position
Balance sheet and cash position (DKKm) 31.12.2008 30.06.2009 31.12.2009 Intangible assets 2,016 7,219 7,724 Other non-current assets 3,370 3,283 3,248 Current assets 7,140 6,482 6,155 Assets 12,526 16,984 17,127 Equity 7,511 8,101 8,803 Non current liabilities 2,594 3,242 3,787 Current liabilities 2
Slide 78: Cash flow
Cash flow (DKKm) Q4 2009 FY 2008 FY 2009 Cash flow from operating activities 634 2,780 3,034 Cash flow from investing activities (268) (587) (5,074) Cash flow from operating and investing activities 366 2,193 (2,040) Cash flow from financing activities (965) (1,016) 1,065 Change in cash (598) 1,177
Slide 79: Average US$ hedging rates for 2010
Average US$ hedging rates of USD/DKK 5.41 (cash) and USD/DKK 5.62 (reporting) for 2010 Actual rates (USD/DKK) Forward rates (USD/DKK) 7 6.5 6 5.83 5.75 5.73 5.63 5.59 5.73 5.5 5.36 5.31 5.36 5.30 5.21 5.30 5 5.13 4.5 Quarterly figures 4 '07 '08 '09 Q1 Q2 Q3 Q4 '10 '10 '10 '10 Average USD exchange ra
Slide 80: Appendix
Appendix Unmet medical needs Projects in development Marketed products Financial figures Therapeutic categories in CNS The global IP position The Lundbeck share 80
Slide 81: CNS market size - overview
CNS market size - overview Total market North America Europe Int. Markets Value (USDbn) Growth Share Growth Share Growth Share Growth Total pharma 725.5 8% 43% 1% 31% 17% 26% 12% Total CNS 121.2 8% 55% 6% 29% 17% 16% 10% Alcohol 0.2 8% 36% 5% 53% 10% 11% 12% Anti-Alzheimer’s 6.7 19% 52% 15% 30% 17%
Slide 82: Worldwide Pharmaceutical Market 2008 – USD 725.5 billion (+8%)
Worldwide Pharmaceutical Market 2008 – USD 725.5 billion (+8%) According to IMS Health, the value of the global 8%(+12%) 17%(+8%) pharmaceutical market in 2010 3%(+9%) is expected to grow 4% - 6% 5%(+10%) (N) CNS exceeding $825 billion, driven by (C) Cardiovascular 5%(+9%) stronger near-term growt
Slide 83: Worldwide CNS Market 2008 – USD 121.2 billion (+8%)
Worldwide CNS Market 2008 – USD 121.2 billion (+8%) 15%(+11%) 19%(+10%) 0.2%(+8%) N5A Antipsychotics 3%(+11%) N6A Antidepressants N3A Anti-Epileptics 4%(-12%) N2B Non-Narcotic Analgesics 4%(+15%) N2A Narcotic Analgesics N7D Anti-Alzheimers 17%(3%) N6B Psychostimulants 6%(+19%) N5B Hypnotics & Sedati
Slide 84: Alcohol (N7E-2008)
Alcohol (N7E-2008) – USD 189 million (+8%) International markets 11% (12%) North America 36% (+5%) Europe 53% (+10%) Leading product Marketing Corporation Sales 2007 (USDm) Growth in % Campral® Merck 76 4 Antabuse® Barr/Sanofi-Aventis 28 12 Vivitrol® Cephalon 15 -2 Nemexin® Bristol-Myers Squibb 11 -
Slide 85: Anti-Alzheimer’s (N7D-2008) – USD 6.7 billion (+19%)
Anti-Alzheimer’s (N7D-2008) – USD 6.7 billion (+19%) International markets Value Market Shares of N7D 18% (+35%) Europe M12 2008 Rivastigmine USA M12 2008 Memantine North Galantamine Europe America 30% (+17%) 52% (+15%) Donepezil 0% 10% 20% 30% 40% 50% 60% Source: IMS Health, May 2009, retail only L
Slide 86: Anti-depressants (N6A-2008) – USD 20.3 billion (3%)
Anti-depressants (N6A-2008) – USD 20.3 billion (3%) International Value Market shares of N6A markets SERTRALINE 15% (+15%) BUPROPION North PAROXETINE Europe M12 2008 America USA M12 2008 59% (-1%) ESCITALOPRAM Europe 26% (+7%) DULOXETINE VENLAFAXINE 0% 5% 10% 15% 20% 25% 30% Source: IMS Health, May
Slide 87: Anti-epileptics (N3A - 2008) – USD 16.9 billion (+11%)
Anti-epileptics (N3A - 2008) – USD 16.9 billion (+11%) International markets 12% (+13%) Europe North America 22% (+16%) 66% (+9%) Leading product Marketing Corporation Sales 2008 (USDm) Growth in % Topamax® Johnson & Johnson 2824 14 Lyrica® Pfizer 2612 38 Lamictal® GSK 2116 (13) Keppra® UCB 1964 32
Slide 88: Anti-Parkinson’s (N4A - 2008) – USD 4.1 billion (+11%)
Anti-Parkinson’s (N4A - 2008) – USD 4.1 billion (+11%) Value Market Shares of N4A - Europe Europe M12 2008 Stalevo NMDA antagonists MAOI North International America Levodopa derivate markets 19% (+16%) 32% (+0%) Dopamine Agonists COMT Inhibitors Anticholinergics 0% 10% 20% 30% 40% 50% 60% Value Mark
Slide 89: Anti-psychotics (N5A-2008) – USD 22.8 billion (+10%)
Anti-psychotics (N5A-2008) – USD 22.8 billion (+10%) International Value Market Shares of N5A Europe M12 2008 markets PALIPERIDONE USA M12 2008 12% (+19%) ZIPRASIDONE ARIPIPRAZOLE North RISPERIDONE America Europe 64% (+10%) OLANZAPINE 25% (+6%) QUETIAPINE 0% 5% 10% 15% 20% 25% 30% 35% Source: IMS He
Slide 90: Stroke, Fibrinolytics (B1D-2008) – USD 796 million (+8%)
Stroke, Fibrinolytics (B1D-2008) – USD 796 million (+8%) International markets 18% (+7%) North America 49% (+8%) Europe 31% (+8%) Leading product Marketing Corporation Sales 2008 (USDm) Growth in % Activase®/Actilyse® Roche/Boehringer 427 18 Metalyse®/Tnkase® Roche/Boehringer 160 (1) Retavase®/Rapil
Slide 91: Appendix
Appendix Unmet medical needs Projects in development Marketed products Financial figures Therapeutic categories in CNS The global IP position The Lundbeck share 91
Slide 92: Global IP position
Global IP position USA Europe International Markets Escitalopram: Compound patent to Escitalopram: Compound patent in Escitalopram: Compound patent in March 2012 (incl. extension) majority of countries to May-June 2014. major markets to 2009, excl. Process patent in majority of countries to extensio
Slide 93: Appendix
Appendix Unmet medical needs Projects in development Marketed products Financial figures Therapeutic categories in CNS The global IP position The Lundbeck share 93
Slide 94: The Lundbeck Foundation
The Lundbeck Foundation The Lundbeck Foundation is a commercial The Foundation's equity in terms of market foundation established in 1954 by Grete value amounted to DKK 27.6bn at the end of Lundbeck, widow of the founder of H. Lundbeck 2008 A/S Free resources of DKK 10.8bn The main objective of the
Slide 95: Lundbeck share
Lundbeck share Share information Trading code Free float (approximately 60m Reuters (LUN.CO) / Bloomberg (LUN DC) shares) is traded 1.5+ time over ISIN Number DK0010287234 annually (daily trade of Unsponsored ADR programmes approximately 0.4m) HLUKY, CUSIP 40422M107 Index examples OMXC20, Dow Jones