Revenue and earnings
Exclusive of non-recurring items:
§ Revenue: DKK 10,565 million (+17%)
§ Profit from operations (EBIT): DKK 2,657 million (+63%)
§ EBIT margin: 25.1%
Including non-recurring items:
§ Revenue: DKK 10,985 million (+19%)
§ Profit from operations (EBIT): DKK 2,695 million (+51%)
§ EBIT margin: 24.5%
Revenue by regions and products
§ Europe: DKK 5,501 million (+7%)
§ International Markets: DKK 2,194 million (+22%)
§ USA: DKK 2,599 million (+35%)
§ Cipralex®: DKK 4,094 million (+17%)
§ Lexapro®: DKK 2,594 million (+35%)
§ Ebixa®: DKK 1,655 million (+22%)
§ Azilect®: DKK 168 million (+136%)
Comments on the financial statements
Claus Bræstrup, Lundbeck's President and CEO, comments on the annual
report:"The financial performance for 2007 is very satisfactory and is
Lundbeck's best ever financial results. Lundbeck recorded growth in
all areas - for new marketed pharmaceuticals and in all regions. This
satisfactory performance provides a strong foundation for continuing
the development of our broad research and development pipeline of
pharmaceutical candidates."
Non-recurring items
Non-recurring items include two payments from Takeda Pharmaceutical
Company Limited totalling DKK 420 million, and a DKK 381 million
impairment writedown of the Group's manufacturing unit in Seal Sands,
UK. Overall, non-recurring items had a DKK 39 million favourable
impact on consolidated profit from operations.
The development of an optimised production process for one of
Lundbeck's pharmaceuticals has enabled the Group to consolidate its
in-house production of active pharmaceutical ingredients at two
factories instead of three. As a result, Lundbeck is considering
whether the Seal Sands manufacturing unit will continue to be a part
of the Group's production of pharmaceuticals in the long run.
Lundbeck is investigating the opportunities for divesting the
facility in an attempt to keep production at the Seal Sands site. If
these attempts are not successful, a closedown of the facility may
become a reality during 2008.
Dividends
The Supervisory Board proposes to pay dividend for 2007 of 30% of the
net profit for the year to shareholders of the parent company,
corresponding to DKK 2.56 per share.
Financial forecast for 2008
2007 actual 2008
DKKm* Forecast
10,565 Revenue DKK 11 - 11.5bn
2,657 Profit from operations DKK 2.8 - 2.9bn
739 Investments Approx. DKK 500m
* Exclusive of non-recurring items
The financial forecast for 2008 sustains the EBIT margin at
approximately 25%, while Lundbeck in 2008 expects to spend more than
20% of its revenue on research and development.
Changes to the Supervisory Board
Employee representative William Watson will be replaced by Jørn
Mayntzhusen as a new board member. Jørn Mayntzhusen is also elected
by the employees.
New members appointed to Lundbeck's Executive Management
Lundbeck's Executive Management will be expanded to include Anders
Gersel Pedersen and Peter Høngaard Andersen.
The Executive Management will subsequently consist of the following
members:
§ Claus Bræstrup, President and CEO
§ Lars Bang, Executive Vice President, Supply Operations &
Engineering
§ Anders Gersel Pedersen, Executive Vice President,
Development
§ Anders Götzsche, Executive Vice President, Corporate
Finance & IT
§ Peter Høngaard Andersen, Executive Vice President, Research
§ Stig Løkke Pedersen, Executive Vice President, Commercial
Operations
Lundbeck's pipeline of pharmaceuticals in clinical development
During Q4 2007, Lundbeck further consolidated its pipeline of
pharmaceuticals in clinical development.
The compound Lu AA21004 showed highly significant results in the
treatment of depression in Phase II clinical trials in October 2007,
and the compound advanced into Phase III clinical trials in December.
Lu AA24530 for the treatment of mood and anxiety disorders entered
into clinical Phase II in October, and in October and November
respectively Lundbeck initiated the first clinical trials of the
compounds Lu AA24493 for the treatment of diseases with neuronal
damage and Lu AA47070 for the treatment of neurological diseases,
including Parkinson's disease.
Finally, the portfolio was strengthened further in December, when
Lundbeck signed an extended agreement with PAION AG concerning the
compound desmoteplase in clinical phase III for the treatment of
stroke, to which Lundbeck now holds global rights.
At the beginning of 2008, Lundbeck launched Phase I clinical studies
with Lu AA37096 for the treatment of mood disorders, and at the same
time discontinued the further development of Lu AA44608. In February
2008, Lundbeck announced that the compound Lu AA34893 had moved into
clinical Phase II.
Lundbeck's pipeline of pharmaceuticals in clinical development as per
4 March 2008
Indication Mechanism of action Phase Registration Expected
Compound application launch
Schizophrenia Dopamine/serotonin 2008 2009
Serdolect® - USA
Schizophrenia Dopamine/serotonin III 2010+
Bifeprunox
Stroke Plasminogen activator III 2010+
Desmoteplase
Alcohol dependence Specific opioid III 2010+
Nalmefene receptor antagonist
Depression Serotonin modulator & III 2010 2010+
Lu AA21004 stimulator
Psychosis Monoaminergic II 2010+
Lu 31-130
Depression Multiple target II 2010+
Lu AA24530
Depression Multiple target II 2010+
Lu AA34893
Psychosis/bipolar Ion channel modulator I 2010+
disorder
Lu AA39959
Stroke/neuronal Tissue protecting I 2010+
damage cytokine
Lu AA24493
Neurological Adenosine receptor I 2010+
diseases Lu AA47070 antagonist
Mood disorders Multiple target I 2010+
Lu AA37096
Financial highlights 2007
Including non-recurring Exclusive of
items non-recurring items
DKKm 2007 Growth* Q4 2007 Growth* Q4
2007 2007
Revenue 10,985 19% 2,830 10,565 17% 2,628
- Cipralex® 4,094 17% 1,031 4,094 17% 1,031
- Lexapro® 2,594 35% 626 2,594 35% 626
- Ebixa® 1,655 22% 422 1,655 22% 422
- Azilect® 168 136% 48 168 136% 48
- Serdolect® 34 250% 8 34 250% 8
- Other 1,750 -11% 409 1,750 -11% 409
pharmaceuticals
- Other revenue 690 84% 286 271 23% 84
Costs 8,290 11% 2,563 7,909 6% 2,182
- Cost of sales 2,198 34% 846 1,817 10% 465
- Distribution and 3,923 2% 1,053 3,923 2% 1,053
administration
- Research and 2,187 12% 681 2,187 12% 681
development
- Other operating (18) - (16) (18) - (16)
expenses, net
Profit from operations 2,695 51% 267 2,657 63% 446
EBIT margin 24.5% 27% 9% 25.1% 39% 17%
Net financials (50) -
Net profit for the 1,770 60%
year
Cash flows from
operating and 1,610 -1%
investing activities
Earnings per share 8.63 65%
(EPS) (DKK)
Proposed dividend per 2.56 63%
share (DKK)
*) Growth relative to 2006
Further information
An electronic version of the annual report for 2007 and further
information about Lundbeck is available from the company's website
www.lundbeck.com. The print version of the annual report for 2007
will be available on 28 March 2008.
Lundbeck contacts
Investors: Media:
Jacob Tolstrup Anders Schroll
Director Head of Communication
+45 36 43 30 79 +45 36 43 20 81
Palle Holm Olesen
Head of Investor Relations
+45 36 43 24 26
Stock Exchange Release No 326 - 4 March 2008
About Lundbeck
H. Lundbeck A/S is an international pharmaceutical company engaged in
the research and development, production, marketing and sale of drugs
for the treatment of psychiatric and neurological disorders. In 2007,
the company's revenue was DKK 11 billion (approximately EUR 1.5
billion or USD 2.0 billion). The number of employees is approximately
5,300 globally. For further information, please visit
www.lundbeck.com
