H. Lundbeck A/S (Lundbeck) reports first quarter revenue of DKK 3,849 million
growing 15% in constant exchange rates compared to the first quarter results of
2009. Profit from operations was DKK 1,254 million, an increase of 32% compared
to the same period last year. The EBIT margin for the quarter increased to
32.6% up from 28.6% in 2009.
* Cipralex(®) revenue was DKK 1,454 million, an increase of 5% compared to
last year. Cipralex(®) revenue in Europe was up 10% for the quarter.
* Ebixa(®) and Azilect(®) continue to show solid growth, increasing 17% and
46% respectively.
* US sales were DKK 1,044 million, an increase of 53%. Lexapro(®) revenue
increased 9%.
* Sabril(®) revenue for the quarter was DKK 34 million.
* Operating profit before depreciation and amortisation (EBITDA) was DKK
1,478 million corresponding to an EBITDA margin of 38.4% compared to an
EBITDA margin of 32.6% in the first quarter of 2009.
* Financial guidance for the full year is maintained. Lundbeck expects revenue
of DKK 14.3-14.8 billion, EBITDA of DKK 3.9-4.3 billion and EBIT of DKK
3.0-3.4 billion for 2010.
+-----------------------+-------+-------+------+-------+
| |Q1 2010|Q1 2009| | Growth|
|Distribution of revenue+-------+-------+------+-------+
| | DKKm| DKKm|Growth|at CER*|
+-----------------------+-------+-------+------+-------+
|Cipralex(®) | 1,454| 1,363| 7%| 5%|
+-----------------------+-------+-------+------+-------+
|Lexapro(®) | 727| 626| 16%| 9%|
+-----------------------+-------+-------+------+-------+
|Ebixa(®) | 611| 526| 16%| 17%|
+-----------------------+-------+-------+------+-------+
|Azilect(®) | 240| 164| 47%| 46%|
+-----------------------+-------+-------+------+-------+
|Xenazine(®) | 119| 12| -| -|
+-----------------------+-------+-------+------+-------+
|Sabril(®) | 34| -| -| -|
+-----------------------+-------+-------+------+-------+
+-----------------------+-------+-------+------+-------+
|Europe | 1,982| 1,753| 13%| 12%|
+-----------------------+-------+-------+------+-------+
|USA | 1,044| 687| 52%| 53%|
+-----------------------+-------+-------+------+-------+
|International Markets | 734| 716| 3%| 1%|
+-----------------------+-------+-------+------+-------+
+-----------------------+-------+-------+------+-------+
|Total revenue | 3,849| 3,312| 16%| 15%|
+-----------------------+-------+-------+------+-------+
* Constant exchange rates
In connection with the first quarter report, Lundbeck's President and CEO Ulf
Wiinberg said:
"The first quarter of 2010 has been very strong for Lundbeck, and revenue and
profits continue to show firm growth. All key products are delivering good
results and Cipralex(®) continues to show solid growth across Europe and in most
of our International Markets. With the results for the quarter we are off to a
good start to deliver on our financial guidance."
Management review
Financial highlights and key figures
+-------------------------------------------------------+------+-------+-------+
| | 2010| 2009| 2009|
+-------------------------------------------------------+------+-------+-------+
| | Q1| Q1| FY|
+-------------------------------------------------------+------+-------+-------+
+-------------------------------------------------------+------+-------+-------+
|FINANCIAL HIGHLIGHTS (DKKm) | | | |
+-------------------------------------------------------+------+-------+-------+
|Revenue | 3,849| 3,312| 13,747|
+-------------------------------------------------------+------+-------+-------+
|Operating profit before depreciation and amortisation | 1,478| 1,079| 3,728|
|(EBITDA) | | | |
+-------------------------------------------------------+------+-------+-------+
|Profit from operations (EBIT) | 1,254| 947| 2,858|
+-------------------------------------------------------+------+-------+-------+
|Net financials | (11)| 20| (192)|
+-------------------------------------------------------+------+-------+-------+
|Profit before tax | 1,243| 968| 2,666|
+-------------------------------------------------------+------+-------+-------+
|Tax | 298| 271| 659|
+-------------------------------------------------------+------+-------+-------+
|Profit for the period | 945| 697| 2,007|
+-------------------------------------------------------+------+-------+-------+
| | | | |
+-------------------------------------------------------+------+-------+-------+
|Equity | 9,977| 8,115| 8,803|
+-------------------------------------------------------+------+-------+-------+
|Assets |16,874| 16,000| 17,127|
+-------------------------------------------------------+------+-------+-------+
| | | | |
+-------------------------------------------------------+------+-------+-------+
|Cash flows from operating and investing activities | 864|(1,802)|(2,040)|
+-------------------------------------------------------+------+-------+-------+
|Property, plant and equipment investments, gross | 38| 41| 258|
+-------------------------------------------------------+------+-------+-------+
+-------------------------------------------------------+------+-------+-------+
|KEY FIGURES | | | |
+-------------------------------------------------------+------+-------+-------+
|EBIT margin (%) | 32.6| 28.6| 20.8|
+-------------------------------------------------------+------+-------+-------+
|Return on capital employed (%) | 11.1| 11.5| 28.0|
+-------------------------------------------------------+------+-------+-------+
|Research and development ratio (%) | 16.3| 21.7| 23.2|
+-------------------------------------------------------+------+-------+-------+
|Return on equity (%) | 10.1| 8.9| 24.6|
+-------------------------------------------------------+------+-------+-------+
|Solvency ratio (%) | 59.1| 50.7| 51.4|
+-------------------------------------------------------+------+-------+-------+
|Capital employed (DKKm) |11,945| 10,056| 12,278|
+-------------------------------------------------------+------+-------+-------+
+-------------------------------------------------------+------+-------+-------+
|SHARE DATA | | | |
+-------------------------------------------------------+------+-------+-------+
|Number of shares for the calculation of EPS (million) | 196.1| 196.1| 196.1|
+-------------------------------------------------------+------+-------+-------+
|Number of shares for the calculation of DEPS (million) | 196.1| 196.1| 196.1|
+-------------------------------------------------------+------+-------+-------+
|Earnings per share (EPS) (DKK) | 4.82| 3.55| 10.24|
+-------------------------------------------------------+------+-------+-------+
|Diluted earnings per share (DEPS) (DKK) | 4.82| 3.55| 10.24|
+-------------------------------------------------------+------+-------+-------+
|Cash flow per share (DKK) | 4.67| 3.01| 15.47|
+-------------------------------------------------------+------+-------+-------+
|Net asset value per share (DKK) | 50.87| 41.38| 44.89|
+-------------------------------------------------------+------+-------+-------+
|Market capitalisation (DKKm) |20,377| 18,809| 18,582|
+-------------------------------------------------------+------+-------+-------+
|Share price end of period (DKK) |103.90| 95.53| 94.75|
+-------------------------------------------------------+------+-------+-------+
+-------------------------------------------------------+------+-------+-------+
|OTHER | | | |
+-------------------------------------------------------+------+-------+-------+
|Number of employees | 5,708| 5,686| 5,733|
+-------------------------------------------------------+------+-------+-------+
1)( )Definitions according to the Danish Society of Financial Analysts'
Recommendations & Financial Ratios 2005.
Lundbeck's development portfolio
Lundbeck is developing a number of new and promising pharmaceuticals in its
existing fields of specialty such as depression, anxiety and mental health
disorders - as well as in new areas such as epilepsy, stroke and alcohol
dependence. Lundbeck's pipeline includes:
One compound in the FDA regulatory process
Five compounds in clinical phase III
Five compounds in clinical phase II
Two compounds in clinical phase I
Seven compounds in Lundbeck's pipeline have shown proof of concept, and two of
the five compounds in phase II are expected to enter clinical phase III later in
2010.
Pipeline development is summarised as follows:
Clinical phase III
The programme for Lu AA21004 will consist of four clinical phase III studies.
The studies will include approximately 2,000 patients with moderate to severe
depression. In order to explore the full potential of Lu AA21004, the planned
doses are 10 mg, 15 mg and 20 mg.
Following the initial top-line MDD (Major Depressive Disorder) results from
previous phase III studies with Lu AA21004 in June 2009, additional data from
the full programme was received and analysed in the first quarter of 2010. This
data showed strong results for Lu AA21004 in terms of both efficacy and
tolerability. Data received towards the end of 2009 from a primarily
Europe-based clinical phase III MDD programme with 560 patients showed
statistical significance in terms of the primary efficacy endpoint across all
tested doses of Lu AA21004 compared to placebo. Also, an MDD relapse prevention
study involving 639 patients showed statistically significant results in terms
of maintenance of efficacy in the treatment of MDD. New trials are in the final
stages of planning and the first patients are expected to enrol during May 2010.
The phase III programme studying the use of nalmefene in alcohol dependence is
progressing as planned and two of the three studies are ahead of schedule and
have finished recruiting patients. Data from the clinical programme is expected
around year-end 2010. Filing in Europe is expected in the second half of 2011.
The phase III programme for desmoteplase in both DIAS-3 and DIAS-4 has
experienced slow initial patient recruitment. Some centres in the US have
experienced delays, but are now recruiting patients. Additional centres will be
opened over the next six months and other initiatives are ongoing in order to
speed up recruitment. No significant impact is expected on the previously
communicated timelines. Desmoteplase could be eligible for priority review by
the FDA.
Recruitment and follow up in the clobazam clinical phase III programme for
patients with Lennox-Gastaut Syndrome (LGS) have been completed. Data is
expected during the second quarter of 2010 and the company intends to submit an
NDA in early 2011. LGS, or childhood epileptic encephalopathy, is a devastating
paediatric epilepsy syndrome that accounts for 1-4% of all incidences of
childhood epilepsy. The syndrome is characterised by multiple types of seizures
and developmental delays or regression. Clobazam is a 1,5-benzodiazepine that
possesses potent anticonvulsant properties. The anti-epileptic activity of
clobazam has been demonstrated in multiple pharmacology studies with various
animal models. Data from more than 300 patients in 20 studies worldwide have
contributed to an understanding of the clinical effectiveness of clobazam in the
treatment of LGS.
Clinical phase II
Lundbeck is finalising the plans for additional clinical work with zicronapine,
including plans for the pivotal programme, which is expected to start in late
2010.
Lu AA24530 is progressing according to the plan. Based on the solid clinical
phase II data reported in July 2009, a pivotal phase III programme is set to
start in late 2010. The programme will begin with four individual phase III
studies, including a long-term study and a relapse prevention study. The plan is
to investigate doses of 10 mg and 20 mg on approximately 2,000 patients.
Selected trials will include an active reference compound.
Lu AA24493 is in clinical phase II in the treatment of Friedreich's ataxia and
in clinical phase I in the treatment of ischaemic stroke. Both programmes are
expected to be concluded in the second half of 2010.
Lundbeck has evaluated Lu AE58054, a selective 5-HT(6) antagonist, as
augmentation therapy to risperidone in a clinical phase II study of 124 patients
suffering from schizophrenia. The study lasted 12 weeks and explored the
efficacy within schizophrenia by means of the Positive And Negative Syndrome
Scale (PANSS). The compound was well tolerated in the study, but the overall
phase II efficacy results in this trial did not support further development in
general schizophrenia. The clinical phase II study in Alzheimer's disease will
continue as planned. This is supported by the fact that other clinical studies
support the use of 5-HT(6) antagonists in this setting.
Clinical phase I
Lu AE04621 is a novel agent that acts on the areas of the brain affected by
Parkinson's disease. Its net effect is similar to that of Lu 02-750, which
entered phase I in November 2009. In animal models, the compound has
demonstrated convincing effects when compared to conventional treatments. The
compound is being developed to offer Parkinson's patients a new and higher level
of disease control.
In April 2010 a clinical phase I study with Lu AE04621 was initiated in order to
investigate the safety, tolerability and pharmacokinetic profile of the drug in
humans. The placebo-controlled study is expected to enrol around 100 healthy
individuals.
Financial guidance 2010 and forward-looking statements
During the first quarter a health care reform bill was passed in the US.
Lundbeck assesses that the reform will have only a marginal impact on the
company's operations in 2010 and going forward.
Financial guidance for the full year remains unchanged and reflects the guidance
that was reported in the annual report 2009.
+-----------------------------+------+---------+
| | 2009| 2010|
|Lundbeck's financial guidance| | guidance|
| | DKKm| DKKbn|
+-----------------------------+------+---------+
|Revenue |13,747|14.3-14.8|
+-----------------------------+------+---------+
|EBITDA | 3,728| 3.9-4.3|
+-----------------------------+------+---------+
|EBIT | 2,858| 3.0-3.4|
+-----------------------------+------+---------+
|Tax rate | 24.7%| 24-25%|
+-----------------------------+------+---------+
|R&D ratio | 23.2%| ~ 21%|
+-----------------------------+------+---------+
This announcement contains forward-looking statements that provide current
expectations or forecasts for events such as new product launches, product
approvals and financial performance.
Forward-looking statements are subject to risks, uncertainties and inaccurate
assumptions. Actual results may differ from expected results. Factors that may
affect future results include fluctuations in interest rates and exchange rates,
a delay in or failure of development projects, production problems, unexpected
contract breaches or terminations, government-mandated or market-driven price
decreases for Lundbeck's products, introduction of a competing product,
Lundbeck's ability to successfully market both new and existing products,
exposure to product liability and other lawsuits, changes in reimbursement rules
and governmental laws and related interpretation thereof and unexpected growth
in costs and expenses.
Revenue
Lundbeck recorded first quarter revenue of DKK 3,849 million growing 15% in
constant exchange rates compared to the first quarter last year.
+---------------------+-------+-------+------+------+-------+
| |Q1 2010|Q1 2009| |Growth|Q4 2009|
|Total revenue +-------+-------+------+------+-------+
| | DKKm| DKKm|Growth|at CER| DKKm|
+---------------------+-------+-------+------+------+-------+
|Cipralex(®) | 1,454| 1,363| 7%| 5%| 1,354|
+---------------------+-------+-------+------+------+-------+
|Lexapro(®) | 727| 626| 16%| 9%| 600|
+---------------------+-------+-------+------+------+-------+
|Ebixa(®) | 611| 526| 16%| 17%| 548|
+---------------------+-------+-------+------+------+-------+
|Azilect(®) | 240| 164| 47%| 46%| 225|
+---------------------+-------+-------+------+------+-------+
|Xenazine(®) | 119| 12| -| -| 116|
+---------------------+-------+-------+------+------+-------+
|Sabril(®) | 34| -| -| -| -|
+---------------------+-------+-------+------+------+-------+
|Other pharmaceuticals| 575| 466| 23%| 26%| 620|
+---------------------+-------+-------+------+------+-------+
|Other revenue | 89| 155| (43%)| (42%)| 78|
+---------------------+-------+-------+------+------+-------+
|Total revenue | 3,849| 3,312| 16%| 15%| 3,540|
+---------------------+-------+-------+------+------+-------+
Revenue from Cipralex(®) (escitalopram) for the treatment of depression and
anxiety rose to DKK 1,454 million, an increase of 7% or 5% in constant exchange
rates. Revenue from Lexapro(®), escitalopram marketed in the US by Forest
Laboratories, Inc. (Forest), was DKK 727 million for the quarter. This was an
increase of 16%, or 9% in constant exchange rates compared to the same period
last year.
Ebixa(®) (memantine), for the treatment of Alzheimer's disease, generated first
quarter revenue of DKK 611 million, an increase of 16% compared to the same
period last year. The increase corresponds to 17% growth in constant exchange
rates. Lundbeck has the marketing rights to Ebixa(® )in most of the world except
Japan and the US.
Revenue from Azilect(®) (rasagiline) for the treatment of Parkinson's disease
rose 47% during the period to DKK 240 million (46% in constant exchange rates).
Lundbeck has commercial rights to Azilect(®) in Europe (in co-promotion with
Teva Pharmaceutical Industries Inc. in France, Germany and the UK) and some
markets outside Europe, including six Asian countries.
Xenazine(® )((1)) (tetrabenazine), for the treatment of chorea associated with
Huntington's disease, generated revenue of DKK 119 million in the first quarter.
Xenazine(®) was launched in November 2008 in the US, but only contributed for
approximately two weeks to Q1 revenue in 2009 following the acquisition of
Ovation Pharmaceuticals, Inc. (Ovation), now Lundbeck Inc.
Sabril(®) (vigabatrin), for the treatment of refractory complex partial seizures
(rCPS) and infantile spasms (IS), generated first quarter revenue of DKK 34
million. Sabril(®) was launched in the US in September 2009.
Other pharmaceuticals, which comprises Lundbeck's mature pharmaceuticals and
revenue from Lundbeck Inc. (excluding Xenazine(® )and Sabril(®)), rose 23% to
DKK 575 million. Other pharmaceuticals includes revenue of DKK 176 million from
Lundbeck Inc. Excluding Lundbeck Inc., revenue from other pharmaceuticals was
DKK 399 million, a decrease of 4% compared to the first quarter of 2009.
Other revenue was DKK 89 million, compared to DKK 155 million for the first
quarter of 2009. However, other revenue from the first quarter of 2009 included
DKK 124 million from the divestment of interests in the Danish biotech company
LifeCycle Pharma A/S.
Europe
Revenue in Europe rose 12% at constant exchange rates to DKK 1,982 million. The
increase was driven by double digit growth in all key products. Revenue from
other pharmaceuticals was DKK 243 million, a decline of 8% at constant exchange
rates.
+---------------------+-------+-------+------+------+-------+
| |Q1 2010|Q1 2009| |Growth|Q4 2009|
|Revenue Europe +-------+-------+------+------+-------+
| | DKKm| DKKm|Growth|at CER| DKKm|
+---------------------+-------+-------+------+------+-------+
|Cipralex(®) | 1,007| 913| 10%| 10%| 972|
+---------------------+-------+-------+------+------+-------+
|Ebixa(®) | 514| 431| 19%| 19%| 465|
+---------------------+-------+-------+------+------+-------+
|Azilect(®) | 218| 148| 47%| 46%| 204|
+---------------------+-------+-------+------+------+-------+
|Other pharmaceuticals| 243| 260| (7%)| (8%)| 247|
+---------------------+-------+-------+------+------+-------+
|Total revenue | 1,982| 1,753| 13%| 12%| 1,889|
+---------------------+-------+-------+------+------+-------+
Cipralex(®) generated first quarter revenue of DKK 1,007 million in Europe and
continues to gain market shares and enforce its leading position in the European
antidepressant market. At the end of February 2010, Cipralex(®) held a market
share in value of 20.2% of the European antidepressant market, compared with a
market share of 17.8% a year earlier. The growth in market share continues to be
driven by an increasing understanding of Cipralex(®) as a leading antidepressant
and the patent expiry on venlafaxine, which also resulted in flat to negative
growth in the antidepressant market as a whole measured in value.
Revenue from Ebixa(®) rose to DKK 514 million during the period, and at the end
of February 2010 the product held 17.6% of the European Alzheimer's market,
compared to a market share of 16.1% at the same time in 2009. In Italy, Ebixa(®
)continues to experience very positive growth since the product obtained
reimbursement in April 2009. Ebixa(®) has a market share of 21.1% in the Italian
Alzheimer's market (February 2010) compared to a market share of 13.8% one year
ago. The launch of the Ebixa(®) Once Daily formulation in Italy in April 2010
should support sales even further. Memantine, the active ingredient in Ebixa(®),
is the second-most prescribed pharmaceutical in Europe for the treatment of
Alzheimer's disease.
First quarter revenue from Azilect(®) amounted to DKK 218 million, an increase
of 46% in constant exchange rates. Azilect(®) now holds a market share in value
of 9.0% of the total European Parkinson's market (February 2010). This compares
to a market share of 7.1% at the same time in 2009. Azilect(® )continues to gain
market shares in Europe, as it is increasingly recognised as an effective and
easy-to-administer medication.
In the beginning of January 2010, Azilect(®) received public reimbursement in
France. The product is already experiencing a promising uptake, and at the end
of February 2010 Azilect(®) had a market share in value of 4.3% in France. The
Parkinson's disease market in France generates annual sales of more than DKK
750 million.
USA
Lundbeck's first quarter revenue in the US rose to DKK 1,044 million, growing
52% or 53% in constant exchange rates.
+---------------------+-------+-------+------+------+-------+
| |Q1 2010|Q1 2009| |Growth|Q4 2009|
|Revenue USA +-------+-------+------+------+-------+
| | DKKm| DKKm|Growth|at CER| DKKm|
+---------------------+-------+-------+------+------+-------+
|Lexapro(®) | 727| 626| 16%| 9%| 600|
+---------------------+-------+-------+------+------+-------+
|Xenazine(®) | 107| 12| -| -| 110|
+---------------------+-------+-------+------+------+-------+
|Sabril(®) | 34| -| -| -| -|
+---------------------+-------+-------+------+------+-------+
|Other pharmaceuticals| 176| 49| 259%| 286%| 251|
+---------------------+-------+-------+------+------+-------+
|Total revenue | 1,044| 687| 52%| 53%| 961|
+---------------------+-------+-------+------+------+-------+
Revenue from Lexapro(®) was DKK 727 million, an increase of 16% compared to the
same quarter last year and growing 9% at constant exchange rate. Lexapro(®)
revenue was positively affected by quarterly fluctuations in sales as well as
higher prices compared to the same quarter last year. At the end of February
2010, Lexapro(®) held a market share in value of 24.2% of the US aggregate
market for antidepressants compared to a market share of 24.7% in February 2009.
Prepayments from Forest, recorded in Lundbeck's balance sheet as the difference
between the invoiced price and the minimum price of Forest's inventories, was
DKK 718 million as of 31 March 2010. This compares to DKK 545 million as of 31
March 2009. Excluding related hedging contracts, prepayments from Forest would
be roughly unchanged. At the end of the first quarter, the inventory levels
corresponded to approximately seven months of commercial supply.
Sales from Lundbeck Inc. reached DKK 317 million in the first quarter. Revenue
from Xenazine(®) was DKK 107 million for the quarter. Sales were marginally down
compared to the fourth quarter 2009, primarily impacted by destocking at
wholesalers during the beginning of the year due to some inventory build up at
the end of 2009. The destocking effect was partly offset by an increase in
volumes during the first quarter.
Sabril(®) revenue for the first quarter was DKK 34 million. Sabril(® )is the
first treatment approved by the FDA for the treatment of IS, and an important
new adjunctive therapeutic option for the approximately 30-36% of adults with
CPS whose seizures remain uncontrolled in spite of receiving many of the
antiepileptic therapies already available. The primary focus in the early launch
phase is to enrol prescribing physicians in the Risk Evaluation and Mitigation
Strategy programme (REMS) and increase the awareness of the new treatment among
patients and caregivers.
International Markets
Revenue in International Markets, which comprises all of Lundbeck's markets
outside Europe and the US, was up 1% in constant exchange rates to DKK 734
million. Cipralex(®) sales decreased 5% in constant exchange rates, while
Ebixa(®) sales increased 7% during the quarter. Azilect(®) continues to only be
marketed by Lundbeck in a few markets in the region and consequently contributes
with a relatively small share.
Revenue from other pharmaceuticals was DKK 168 million, an increase of 8%
compared to the first quarter last year.
+---------------------+-------+-------+------+------+-------+
|Revenue |Q1 2010|Q1 2009| |Growth|Q4 2009|
|International Markets+-------+-------+------+------+-------+
| | DKKm| DKKm|Growth|at CER| DKKm|
+---------------------+-------+-------+------+------+-------+
|Cipralex(®) | 447| 450| (1%)| (5%)| 381|
+---------------------+-------+-------+------+------+-------+
|Ebixa(®) | 97| 95| 2%| 7%| 84|
+---------------------+-------+-------+------+------+-------+
|Azilect(®) | 22| 15| 49%| 43%| 20|
+---------------------+-------+-------+------+------+-------+
|Other pharmaceuticals| 168| 156| 8%| 8%| 126|
+---------------------+-------+-------+------+------+-------+
|Total revenue | 734| 716| 3%| 1%| 612|
+---------------------+-------+-------+------+------+-------+
Cipralex(®) generated revenue of DKK 447 million in International Markets, a
decrease of 1% compared to same quarter last year, and a decrease of 5% in
constant exchange rates. Cipralex(®) sales were experiencing continued growth in
most International Markets, but were negatively affected by price reductions in
Turkey at the end of 2009 and the entrance of generic versions of escitalopram
in the Australian market during 2009. Cipralex(®) holds a market share in terms
of value of 11.0% of the aggregate market for antidepressants in International
Markets (Q4 2009), compared to a market share of 10.8% in Q4 2008.
The reimbursement of Cipralex(®) in Canada continues to support revenue growth
in the country and the brand now holds a market share in terms of value of
10.7% in Canada (February 2010) compared to 8.1% at the same time last year.
Ebixa(®) generated first quarter revenue of DKK 97 million, growing 7% in
constant exchange rates. Ebixa(®) revenue was negatively affected by the launch
of generic versions of memantine in Canada as well as lower prices in the
Turkish market. Ebixa(®) held 10.4% of the total market in terms of value of
pharmaceuticals for the treatment of Alzheimer's disease in International
Markets (Q4 2009). This compares to a market share of 10.9% in Q4 2008. Ebixa(®)
continues to hold a steady market share in International Markets despite generic
competition in most markets. International Markets continues to maintain
significant underlying volume growth as a result of the increasing maturity of
the medical sector in most of the region.
Expenses
Total costs at Lundbeck grew DKK 230 million compared to first quarter last
year. The main reason for the increase in costs was the acquisition of Lundbeck
Inc. Costs related to Lundbeck Inc. were only included in Lundbeck's books for
the last two weeks of the first quarter in 2009, as the acquisition took place
in March 2009.
Excluding costs related to Lundbeck Inc. and LifeHealth Limited, costs for the
first quarter were DKK 2,222 million, a decrease of 2% compared to the first
quarter last year.
Total expenses for the period were DKK 2,595 million, an increase of 10%
compared to the first quarter last year.
+----------------------+-------+-------+------+-------+
| |Q1 2010|Q1 2009| |Q4 2009|
|Distribution of costs +-------+-------+------+-------+
| | DKKm| DKKm|Growth| DKKm|
+----------------------+-------+-------+------+-------+
|Cost of sales | 698| 573| 22%| 740|
+----------------------+-------+-------+------+-------+
|Distribution | 820| 673| 22%| 989|
+----------------------+-------+-------+------+-------+
|Administration | 448| 401| 12%| 519|
+----------------------+-------+-------+------+-------+
|Research & Development| 629| 718| (12%)| 884|
+----------------------+-------+-------+------+-------+
|Total costs | 2,595| 2,365| 10%| 3,132|
+----------------------+-------+-------+------+-------+
Total cost of sales rose 22% to DKK 698 million. This accounted for 18% of
Lundbeck's total revenue, compared with 17% in the first quarter of 2009. Cost
of sales for the period was affected by higher cost of goods sold due to
increasing revenue of in-licensed products (i.e. Xenazine(®), Azilect(®) and
Ebixa(®)).
Distribution costs were DKK 820 million, corresponding to 21% of revenue and an
increase of 22% compared to the first quarter last year. The increase is mainly
due to the inclusion of Lundbeck Inc., amortisations of rights in relation to
the acquisition of Lundbeck Inc. and LifeHealth and spending on the promotion of
Azilect(®). Administrative expenses increased by 12% to DKK 448 million, which
accounted for 12% of the total revenue. This figure is on level with the first
quarter of 2009. SG&A costs were DKK 1,268 million, compared to DKK 1,074
million in the same period in the previous year.
R&D costs for the quarter were DKK 629 million, a decrease of 12% compared to
the same period last year. The decrease was driven by a difference in the timing
of costs over the quarters, primarily due to development costs related to Lu
AA21004, Lu AA24530 and zicronapine. At the same time, clinical development
costs for clobazam have decreased during the quarter as the development
programme is coming to an end. R&D costs for the period accounted for 16% of
total revenue, compared to 22% in the same period the previous year. For the
full year, Lundbeck continues to expect R&D costs to amount to approximately
21% of revenue.
Operating profit before depreciation and amortisation (EBITDA)
EBITDA was DKK 1,478 million compared to DKK 1,079 million for the first quarter
of 2009. EBITDA margin for the period was 38.4%, up from 32.6% in the same
quarter last year.
Depreciation, amortisation and impairment charges
Depreciation, amortisation and impairment charges, which are included in the
individual expense categories, amounted to DKK 224 million.
+-----------------------------------------------+-------+-------+------+-------+
|Depreciation, amortisation and impairment |Q1 2010|Q1 2009| |Q4 2009|
|charges per expense category +-------+-------+------+-------+
| | DKKm| DKKm|Growth| DKKm|
+-----------------------------------------------+-------+-------+------+-------+
|Cost of sales | 53| 48| 10%| 60|
+-----------------------------------------------+-------+-------+------+-------+
|Distribution | 85| 9| 810%| 243|
+-----------------------------------------------+-------+-------+------+-------+
|Administration | 20| 16| 23%| 18|
+-----------------------------------------------+-------+-------+------+-------+
|Research & Development | 66| 58| 12%| 71|
+-----------------------------------------------+-------+-------+------+-------+
|Total depreciation, amortisation and impairment| | | | |
|charges | 224| 132| 69%| 392|
+-----------------------------------------------+-------+-------+------+-------+
The large increase in depreciation and amortisation included in distribution
costs compared to the same period last year is primarily due to amortisation on
product rights acquired in connection with the acquisition of Ovation (Lundbeck
Inc.) and LifeHealth.
Depreciation and amortisation included in distribution costs for the fourth
quarter 2009 includes Circadin(®) write down of DKK 157 million.
Profit from operations (EBIT)
EBIT for the first quarter of 2010 amounted to DKK 1,254 million, corresponding
to an increase of 32% compared to the same period in 2009 (DKK 947 million). The
increase was primarily due to an increase in revenue, as well as reduced R&D
spending.
The EBIT margin for the period was 32.6%, compared to 28.6% in the same period
the year before.
Net financials
Lundbeck generated a net financial expense of DKK 11 million in the first
quarter, compared with a net income of DKK 20 million in the first quarter of
2009.
+------------------------------------------------------+-------+-------+-------+
| |Q1 2010|Q1 2009|Q4 2009|
|Net financials +-------+-------+-------+
| | DKKm| DKKm| DKKm|
+------------------------------------------------------+-------+-------+-------+
|Net items relating to trading | -| (4)| (2)|
+------------------------------------------------------+-------+-------+-------+
|Accounting translation of currency items | 23| 6| 12|
+------------------------------------------------------+-------+-------+-------+
|Net currency items relating to financial items | 23| 2| 10|
+------------------------------------------------------+-------+-------+-------+
|Realised and unrealised gains concerning other | | | |
|investments excl. exchange rate adjustments | -| -| (21)|
+------------------------------------------------------+-------+-------+-------+
|Net interest income | (34)| 18| (62)|
+------------------------------------------------------+-------+-------+-------+
|Net financials | (11)| 20| (73)|
+------------------------------------------------------+-------+-------+-------+
Accounting translation of currency items was a gain of DKK 23 million for the
quarter, primarily due to a an increase in the USD/DKK exchange rate.
Net interest income, including realised and unrealised gains and losses on the
bond portfolio, amounted to a net expense of DKK 34 million, as compared to a
net income of DKK 18 million in the same period in 2009. Net interests,
including interests paid on loans related to the acquisition of Ovation
(Lundbeck Inc.), were negatively affected by a lower cash position compared to
the same quarter in 2009.
Tax
The income tax expense for the period was DKK 298 million, as compared to DKK
271 million in the same period last year. The tax rate was 24%, down from 28% in
the first quarter of last year.
Profit for the period
Profit after tax for the first quarter of 2010 was DKK 945 million compared to
DKK 697 million in the same period last year.
Cash flows
Lundbeck had a cash outflow during the quarter of DKK 647 million, compared to
an outflow of DKK 1,802 million in the same period last year.
+--------------------------------------------------+-------+-------+-------+
| |Q1 2010|Q1 2009|Q4 2009|
|Cash flows +-------+-------+-------+
| | DKKm| DKKm| DKKm|
+--------------------------------------------------+-------+-------+-------+
|Cash flows from operating activities | 915| 591| 634|
+--------------------------------------------------+-------+-------+-------+
|Cash flows from investing activities | (51)|(2,393)| (268)|
+--------------------------------------------------+-------+-------+-------+
|Cash flows from operating and investing activities| 864|(1,802)| 366|
+--------------------------------------------------+-------+-------+-------+
|Cash flows from financing activities |(1,511)| -| (965)|
+--------------------------------------------------+-------+-------+-------+
|Change in cash | (647)|(1,802)| (598)|
+--------------------------------------------------+-------+-------+-------+
+--------------------------------------------------+-------+-------+-------+
|Cash at beginning of period | 1,960| 2,921| 2,554|
+--------------------------------------------------+-------+-------+-------+
|Unrealised gains/losses | 17| 4| 4|
+--------------------------------------------------+-------+-------+-------+
|Cash at end of period | 1,330| 1,123| 1,960|
+--------------------------------------------------+-------+-------+-------+
Operating activities generated first quarter cash inflow of DKK 915 million,
compared to DKK 591 million in the same period last year. Cash flows from
investing activities represented an outflow of DKK 51 million, compared to an
outflow of DKK 2,393 million in the same period in 2009. This period was
affected by the acquisition of Ovation (Lundbeck Inc.).
Cash flows from financing activities came to an outflow of DKK 1,511 million.
This was due to the repayment of loans surrounding the acquisition of Ovation
(Lundbeck Inc.).
Cash as of 31 March 2010 was DKK 1,330 million. This compares to DKK 1,123
million at the end of March 2009 and DKK 1,960 million at 31 December 2009. At
the end of the period, Lundbeck had an interest-bearing net debt of DKK 585
million compared to net debt of DKK 766 million at the end of March 2009.
Balance sheet
As of 31 March 2010, Lundbeck had total assets of DKK 16,874 million, compared
to DKK 16,000 million at the end of the first quarter of 2009.
As of 31 March 2010, Lundbeck's equity amounted to DKK 9,977 million,
corresponding to a solvency ratio of 59.1%, compared to 50.7% at the end of
March 2009.
Lundbeck has finalised the purchase price allocation related to the acquisition
of Ovation (Lundbeck Inc.). As a consequence immaterial reclassifications have
been made within intangible assets.
Hedging
Lundbeck hedges income from its products using currency hedging. As a result of
Lundbeck's currency hedging policy, foreign exchange losses and gains on hedging
transactions are allocated directly to the hedged transaction. Hedging had a
positive effect on profit of DKK 58 million in the first quarter of 2010,
compared with a situation where the income is not hedged and included at the
current rates of exchange during the period. The effect was a DKK 80 million
gain in the year-earlier period. The currency with the most impact financially
in the first quarter of 2010 was the US dollar and of the total effect DKK 67
million stems from the hedging of the US dollar. This compares to DKK 68 million
in the first quarter of 2009.
Lundbeck hedges cash flow in US dollar on a rolling basis approximately 12
months in advance. The average rate for 2010 for the existing US dollar hedging
contracts is approximately USD/DKK 541. The corresponding rate for 2009 was
approximately USD/DKK 536. For the next 12 months the average rate for the
existing US dollar hedging contracts is approximately USD/DKK 530.
Accounting policies
The interim report is presented in accordance with IAS 34 "Interim Financial
Reporting" as adopted by the EU.
Accounting policies are unchanged compared to the annual report 2009, which
contains a more detailed description of the Group's accounting policies.
Protection of patents and other intellectual property rights
The respect of intellectual property rights is a prerequisite for Lundbeck's
continued investments in innovative pharmaceuticals. As the Lundbeck Group's
intellectual property rights are valid and therefore enforceable, it is
Lundbeck's policy to enforce its intellectual property rights wherever they may
be violated. In terms of escitalopram Lundbeck is involved in pending patent
trials in Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany,
Hungary, Lithuania, The Netherlands, Norway, Portugal, Rumania, Slovenia, Spain
and UK.
Decisions in key patent cases
Denmark
In April, a city court in Elsinore, Denmark ruled in favour of Lundbeck in a
preliminary injunction case. The decision means that generic versions of
escitalopram in Denmark must be removed from the market. The decision can be
appealed by the other side.
Spain
Recently, the Commercial Court of Barcelona ruled against Lundbeck in an
injunction case regarding infringement of the escitalopram patent in Spain. The
Court decided to lift the ex parte injunction made against companies preparing
to market a generic version of escitalopram. Lundbeck does not agree with the
court ruling and will appeal the decision.
As a result of the ruling, Lundbeck expects generic versions of escitalopram to
be available in Spain within a short period of time. The entrance of generic
versions into the market is expected to have a moderate impact on Cipralex(®)
sales on the Spanish market in 2010.
Risk factors
Lundbeck's overall risk exposure is unchanged and reflects the risk factors
described in the annual report 2009.
Conference call
Today at 2.00 pm (CET), Lundbeck will be hosting a conference call for the
financial community. You can listen to the call online atwww.lundbeck.com
<http://www.lundbeck.com/> under the section "Investors - Presentations".
Income statement
+--------------------------------------------+-----+-----+------+
| | 2010| 2009| 2009|
+--------------------------------------------+-----+-----+------+
| | Q1| Q1| FY|
+--------------------------------------------+-----+-----+------+
| | DKKm| DKKm| DKKm|
+--------------------------------------------+-----+-----+------+
+--------------------------------------------+-----+-----+------+
|Revenue |3,849|3,312|13,747|
+--------------------------------------------+-----+-----+------+
|Cost of sales | 698| 573| 2,655|
+--------------------------------------------+-----+-----+------+
|Distribution costs | 820| 673| 3,174|
+--------------------------------------------+-----+-----+------+
|Administrative expenses | 448| 401| 1,864|
+--------------------------------------------+-----+-----+------+
|Profit before research and development costs|1,883|1,665| 6,054|
+--------------------------------------------+-----+-----+------+
| | | | |
+--------------------------------------------+-----+-----+------+
|Research and development costs | 629| 718| 3,196|
+--------------------------------------------+-----+-----+------+
|Profit from operations (EBIT) |1,254| 947| 2,858|
+--------------------------------------------+-----+-----+------+
| | | | |
+--------------------------------------------+-----+-----+------+
|Income from investments in associates | -| 1| -|
+--------------------------------------------+-----+-----+------+
|Net financials | (11)| 20| (192)|
+--------------------------------------------+-----+-----+------+
|Profit before tax |1,243| 968| 2,666|
+--------------------------------------------+-----+-----+------+
| | | | |
+--------------------------------------------+-----+-----+------+
|Tax on profit for the period | 298| 271| 659|
+--------------------------------------------+-----+-----+------+
|Profit for the period | 945| 697| 2,007|
+--------------------------------------------+-----+-----+------+
+--------------------------------------------+-----+-----+------+
+--------------------------------------------+-----+-----+------+
|Earnings per share (EPS) (DKK) | 4.82| 3.55| 10.24|
+--------------------------------------------+-----+-----+------+
|Diluted earnings per share (DEPS) (DKK) | 4.82| 3.55| 10.24|
+--------------------------------------------+-----+-----+------+
Statement of comprehensive income
+------------------------------------------------------------+-----+-----+-----+
| | 2010| 2009| 2009|
+------------------------------------------------------------+-----+-----+-----+
| | Q1| Q1| FY|
+------------------------------------------------------------+-----+-----+-----+
| | DKKm| DKKm| DKKm|
+------------------------------------------------------------+-----+-----+-----+
+------------------------------------------------------------+-----+-----+-----+
|Profit for the period | 945| 697|2,007|
+------------------------------------------------------------+-----+-----+-----+
| | | | |
+------------------------------------------------------------+-----+-----+-----+
|Currency translation, foreign subsidiaries | 213| 39| (25)|
+------------------------------------------------------------+-----+-----+-----+
|Currency translation concerning additions to net investments| 190|(148)|(396)|
|in foreign subsidiaries | | | |
+------------------------------------------------------------+-----+-----+-----+
|Adjustment, deferred gains/losses, hedging |(132)| (89)| 7|
+------------------------------------------------------------+-----+-----+-----+
|Realised gains/losses, hedging | (32)| 57| (1)|
+------------------------------------------------------------+-----+-----+-----+
|Realised gains/losses, trading (transferred from hedging) | -| -| 22|
+------------------------------------------------------------+-----+-----+-----+
|Fair value adjustment of available-for-sale financial assets| 3| 1| 27|
+------------------------------------------------------------+-----+-----+-----+
|Tax on other comprehensive income | (16)| 46| 93|
+------------------------------------------------------------+-----+-----+-----+
|Other comprehensive income | 226| (94)|(273)|
+------------------------------------------------------------+-----+-----+-----+
| | | | |
+------------------------------------------------------------+-----+-----+-----+
|Comprehensive income |1,171| 603|1,734|
+------------------------------------------------------------+-----+-----+-----+
Balance sheet
+-----------------------------+----------+----------+----------+
+-----------------------------+----------+----------+----------+
| |31.03.2010|31.03.2009|31.12.2009|
+-----------------------------+----------+----------+----------+
| | DKKm| DKKm| DKKm|
+-----------------------------+----------+----------+----------+
|Assets | | | |
+-----------------------------+----------+----------+----------+
|Intangible assets | 7,977| 7,552| 7,724|
+-----------------------------+----------+----------+----------+
|Property, plant and equipment| 3,003| 3,123| 3,049|
+-----------------------------+----------+----------+----------+
|Financial assets | 192| 257| 199|
+-----------------------------+----------+----------+----------+
|Non-current assets | 11,172| 10,932| 10,972|
+-----------------------------+----------+----------+----------+
| | | | |
+-----------------------------+----------+----------+----------+
|Inventories | 1,357| 1,347| 1,481|
+-----------------------------+----------+----------+----------+
|Receivables | 2,962| 2,545| 2,655|
+-----------------------------+----------+----------+----------+
|Securities | 53| 53| 59|
+-----------------------------+----------+----------+----------+
|Cash | 1,330| 1,123| 1,960|
+-----------------------------+----------+----------+----------+
|Current assets | 5,702| 5,068| 6,155|
+-----------------------------+----------+----------+----------+
| | | | |
+-----------------------------+----------+----------+----------+
|Assets | 16,874| 16,000| 17,127|
+-----------------------------+----------+----------+----------+
+-----------------------------+----------+----------+----------+
|Equity and liabilities | | | |
+-----------------------------+----------+----------+----------+
|Share capital | 980| 984| 980|
+-----------------------------+----------+----------+----------+
|Share premium | 224| 224| 224|
+-----------------------------+----------+----------+----------+
|Currency translation reserve | (454)| (545)| (857)|
+-----------------------------+----------+----------+----------+
|Retained earnings | 9,227| 7,452| 8,456|
+-----------------------------+----------+----------+----------+
|Equity | 9,977| 8,115| 8,803|
+-----------------------------+----------+----------+----------+
| | | | |
+-----------------------------+----------+----------+----------+
|Provisions | 1,110| 1,310| 1,116|
+-----------------------------+----------+----------+----------+
|Debt | 1,915| 1,930| 2,671|
+-----------------------------+----------+----------+----------+
|Non-current liabilities | 3,025| 3,240| 3,787|
+-----------------------------+----------+----------+----------+
| | | | |
+-----------------------------+----------+----------+----------+
|Provisions | 198| 17| 186|
+-----------------------------+----------+----------+----------+
|Bank and mortgage debt | 53| 12| 804|
+-----------------------------+----------+----------+----------+
|Trade payables | 805| 682| 997|
+-----------------------------+----------+----------+----------+
|Other payables | 2,098| 3,389| 1,857|
+-----------------------------+----------+----------+----------+
|Prepayments from Forest | 718| 545| 693|
+-----------------------------+----------+----------+----------+
|Current liabilities | 3,872| 4,645| 4,537|
+-----------------------------+----------+----------+----------+
| | | | |
+-----------------------------+----------+----------+----------+
|Liabilities | 6,897| 7,885| 8,324|
+-----------------------------+----------+----------+----------+
| | | | |
+-----------------------------+----------+----------+----------+
|Equity and liabilities | 16,874| 16,000| 17,127|
+-----------------------------+----------+----------+----------+
Statement of changes in equity at 31 March 2010
+----------------------------------+-------+-------+-----------+--------+------+
| | | | Currency| | |
+----------------------------------+-------+-------+-----------+--------+------+
| | Share| Share|translation|Retained| |
+----------------------------------+-------+-------+-----------+--------+------+
| |capital|premium| reserve|earnings|Equity|
+----------------------------------+-------+-------+-----------+--------+------+
| | DKKm| DKKm| DKKm| DKKm| DKKm|
+----------------------------------+-------+-------+-----------+--------+------+
|2010 | | | | | |
+----------------------------------+-------+-------+-----------+--------+------+
|Equity at 01.01.2010 | 980| 224| (857)| 8,456| 8,803|
+----------------------------------+-------+-------+-----------+--------+------+
+----------------------------------+-------+-------+-----------+--------+------+
|Comprehensive income | -| -| 403| 768| 1,171|
+----------------------------------+-------+-------+-----------+--------+------+
+----------------------------------+-------+-------+-----------+--------+------+
|Incentive programmes | -| -| -| 3| 3|
+----------------------------------+-------+-------+-----------+--------+------+
|Other transactions | -| -| -| 3| 3|
+----------------------------------+-------+-------+-----------+--------+------+
+----------------------------------+-------+-------+-----------+--------+------+
|Equity at 31.03.2010 | 980| 224| (454)| 9,227| 9,977|
+----------------------------------+-------+-------+-----------+--------+------+
+----------------------------------+-------+-------+-----------+--------+------+
|2009 | | | | | |
+----------------------------------+-------+-------+-----------+--------+------+
|Equity at 31.12.2008 | 984| 224| -| 6,384| 7,592|
+----------------------------------+-------+-------+-----------+--------+------+
|Change in accounting policies: | | | | | |
+----------------------------------+-------+-------+-----------+--------+------+
|Currency translation, foreign | -| -| (436)| 355| (81)|
|subsidiaries | | | | | |
+----------------------------------+-------+-------+-----------+--------+------+
|Equity at 01.01.2009 | 984| 224| (436)| 6,739| 7,511|
+----------------------------------+-------+-------+-----------+--------+------+
| | | | | | |
+----------------------------------+-------+-------+-----------+--------+------+
|Comprehensive income | -| -| (109)| 712| 603|
+----------------------------------+-------+-------+-----------+--------+------+
+----------------------------------+-------+-------+-----------+--------+------+
|Incentive programmes | -| -| -| 1| 1|
+----------------------------------+-------+-------+-----------+--------+------+
|Other transactions | -| -| -| 1| 1|
+----------------------------------+-------+-------+-----------+--------+------+
| | | | | | |
+----------------------------------+-------+-------+-----------+--------+------+
|Equity at 31.03.2009 | 984| 224| (545)| 7,452| 8,115|
+----------------------------------+-------+-------+-----------+--------+------+
Cash flow statement
+------------------------------------------------------+-------+-------+-------+
| | 2010| 2009| 2009|
+------------------------------------------------------+-------+-------+-------+
| | Q1| Q1| FY|
+------------------------------------------------------+-------+-------+-------+
| | DKKm| DKKm| DKKm|
+------------------------------------------------------+-------+-------+-------+
+------------------------------------------------------+-------+-------+-------+
|Profit from operations (EBIT) | 1,254| 947| 2,858|
+------------------------------------------------------+-------+-------+-------+
| | | | |
+------------------------------------------------------+-------+-------+-------+
|Adjustments | 252| (19)| 699|
+------------------------------------------------------+-------+-------+-------+
|Working capital changes | (467)| (289)| 312|
+------------------------------------------------------+-------+-------+-------+
|Cash flows from operations before financial receipts | 1,039| 639| 3,869|
|and payments | | | |
+------------------------------------------------------+-------+-------+-------+
| | | | |
+------------------------------------------------------+-------+-------+-------+
|Financial receipts and payments | (21)| 70| (110)|
+------------------------------------------------------+-------+-------+-------+
|Cash flows from ordinary activities | 1,018| 709| 3,759|
+------------------------------------------------------+-------+-------+-------+
| | | | |
+------------------------------------------------------+-------+-------+-------+
|Income tax paid | (103)| (118)| (725)|
+------------------------------------------------------+-------+-------+-------+
|Cash flows from operating activities | 915| 591| 3,034|
+------------------------------------------------------+-------+-------+-------+
| | | | |
+------------------------------------------------------+-------+-------+-------+
|Company acquisition | -|(3,535)|(5,110)|
+------------------------------------------------------+-------+-------+-------+
|Investments in and sale of bonds | 9| 941| 1,270|
+------------------------------------------------------+-------+-------+-------+
|Investments in and sale of intangible assets, | | | |
|property, plant and equipment and other financial | (60)| 201|(1,234)|
|assets | | | |
+------------------------------------------------------+-------+-------+-------+
|Cash flows from investing activities | (51)|(2,393)|(5,074)|
+------------------------------------------------------+-------+-------+-------+
| | | | |
+------------------------------------------------------+-------+-------+-------+
|Cash flows from operating and investing activities | 864|(1,802)|(2,040)|
+------------------------------------------------------+-------+-------+-------+
| | | | |
+------------------------------------------------------+-------+-------+-------+
|Cash flows from financing activities |(1,511)| -| 1,065|
+------------------------------------------------------+-------+-------+-------+
| | | | |
+------------------------------------------------------+-------+-------+-------+
|Change in cash | (647)|(1,802)| (975)|
+------------------------------------------------------+-------+-------+-------+
| | | | |
+------------------------------------------------------+-------+-------+-------+
|Cash at beginning of period | 1,960| 2,921| 2,921|
+------------------------------------------------------+-------+-------+-------+
|Unrealised exchange differences for the period | 17| 4| 14|
+------------------------------------------------------+-------+-------+-------+
|Change for the period | (647)|(1,802)| (975)|
+------------------------------------------------------+-------+-------+-------+
|Cash at end of period | 1,330| 1,123| 1,960|
+------------------------------------------------------+-------+-------+-------+
+------------------------------------------------------+-------+-------+-------+
+------------------------------------------------------+-------+-------+-------+
|Interest-bearing net cash and cash equivalents is | | | |
|composed as follows | | | |
+------------------------------------------------------+-------+-------+-------+
|Cash | 1,330| 1,123| 1,960|
+------------------------------------------------------+-------+-------+-------+
|Securities | 53| 53| 59|
+------------------------------------------------------+-------+-------+-------+
|Interest-bearing debt |(1,968)|(1,942)|(3,475)|
+------------------------------------------------------+-------+-------+-------+
|Interest-bearing net cash and cash equivalents, end of| (585)| (766)|(1,456)|
|period | | | |
+------------------------------------------------------+-------+-------+-------+
Management statement
The Supervisory Board and the Executive Management have discussed and adopted
the interim report of H. Lundbeck A/S for the period 1 January - 31 March,
2010. The interim report is presented in accordance with IAS 34 "Interim
financial reporting", as adopted by the EU and additional Danish disclosure
requirements for the interim reports of listed companies.
We consider the accounting policies applied to be appropriate. Accordingly, the
interim report gives a true and fair view of the Group's assets, liabilities and
financial position as of 31 March, 2010 and of the results of the Group's
operations and cash flows for the first quarter of 2010, which ended on 31 March
2010.
In our opinion, the Management's report gives a true and fair view of activity
developments, the Group's general financial position and the results for the
period. It also gives a fair account of the significant risks and uncertainty
factors that may affect the Group.
The interim report is unaudited.
Valby, 6 May 2010
Executive Management
Ulf Wiinberg Peter Høngaard Andersen Lars Bang
President and CEO Executive Vice President Executive Vice President
Anders Götzsche Anders Gersel Pedersen Stig Løkke Pedersen
Executive Vice President, CFO Executive Vice President Executive Vice President
Supervisory Board
Per Wold-Olsen Thorleif Krarup Egil Bodd
Chairman Deputy Chairman
Kim Rosenville Christensen Mona Elizabeth Elster Peter Kürstein
Jørn Mayntzhusen Mats Pettersson Jes Østergaard
Lundbeck contacts
Investors: Media:
Jacob Tolstrup Mads Kronborg
Vice President, IR & Communication Media Relations Manager
+45 36 43 30 79 +45 36 43 28 51
Palle Holm Olesen Stine Hove Marsling
Chief Specialist; Investor Relations External Communication Specialist
+45 36 43 24 26 +45 36 43 28 33
Magnus Thorstholm Jensen
Investor Relations Officer
+45 36 43 38 16
About Lundbeck
H. Lundbeck A/S (LUN.CO, LUN DC, HLUKY) is an international pharmaceutical
company highly committed to improving the quality of life for people suffering
from central nervous system (CNS) disorders. For this purpose, Lundbeck is
engaged in the research, development, production, marketing and sale of
pharmaceuticals across the world. The company's products are targeted at
disorders such as depression and anxiety, schizophrenia, insomnia, Huntington's,
Alzheimer's and Parkinson's diseases.
Lundbeck was founded in 1915 by Hans Lundbeck in Copenhagen, Denmark. Today
Lundbeck employs approximately 5,900 people worldwide. Lundbeck is one of the
world's leading pharmaceutical companies working with CNS disorders. In 2009,
the company's revenue was DKK 13.7 billion (approximately EUR 1.8 billion or USD
2.6 billion). For more information, please visit www.lundbeck.com
<http://www.lundbeck.com/>.
Recent Corporate Releases from H. Lundbeck A/S
22 April 2010
H. Lundbeck A/S held its Annual General Meeting on 20 April 2010 at the
company's registered office
16 April 2010
Update on legal proceedings
6 April 2010
Novel agent for treatment of Parkinson's disease - Lu AE04621 enters Lundbeck's
development pipeline
26 March 2010
Notice of the annual general meeting
16 March 2010
Desmoteplase enters clinical phase II in Japan in ischaemic stroke representing
Lundbeck's first clinical programme in Japan
Please visit www.lundbeck.com for more information.
1 Xenazine(®) is a registered trademark of Biovail Laboratories International
(Barbados) S.R.L.
[HUG#1412413]
First Quarter Report 2010 - Lundbeck delivers strong growth - and is off to a very good start to achieve full year guidance
| Source: H. Lundbeck A/S
Attachments
