Annual Report
2024
Management review
In Brief Performance Partner to Society Governance Consolidated financial statements Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 2
Our 2030 strategy
Bringing
Discoveries
to
Lives
The common thread for our
commercial and philanthropic
endeavours.
Click to read highlights from our strategy
In Brief
Our business model 3
At a glance 4
Letter from the Chair and the CEO 6
The 2030 strategy: ‘Bringing Discoveries to Lives’ 8
Financial highlights 11
Five-year summary 12
Performance
Financial performance 13
Lundbeckfonden Strategic Ownerships 16
Lundbeckfonden Invest 25
Lundbeckfonden BioCapital 27
Partner to Society
Grants & Prizes 31
Active public voice 34
Governance
Risk management 35
Sustainability 39
Foundation Governance 43
Grant policy 46
Board of Directors 48
Management 51
Financial statements Lundbeckfonden Group 54
Financial statements of the Parent Foundation 126
Management statement 135
Independent Auditor’s Report 136
Other reports
Sustainability Report
Our 2024 Sustainability Report
provides detailed information
on our sustainability efforts and
responsible business behaviour.
Read the report
Contents
Management Review
Financial statements
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Management review
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Our business model
Strategic Ownerships
The Lundbeck
Foundation is a long-term owner of multiple
healthcare companies headquartered in Denmark. Our ambition is
to position and maintain the companies as international market
leaders within their industry segment. Business ownerships is a
key element of the Fou
ndation's financial and societal value
creation and of building the route to market for new treatments
and therapies for patients all over the world.
Asset Management
Financial invest
ments ensure long-term financial stability and
robustness,
and allows the Foundation to invest in the future of
healthcare and su
pport new scientific research. The Foundation's
biotech investments contribute to the financial value creation
while also developing people and businesses in the Danish life
science ecosystem.
Partner to Society
The Foundation channels profits back to society through
grants and partnerships, which are anchored in the
Foundation’s purpose of 'Bringing discoveries to lives'. Our
strategic ambition is to improve the world's understanding of
the brain and create better treatments of brain disorders while
also developing the Danish life science ecosystem through
advancing and enhancing the conditions for science,
innovation and economic growth in Denmark.
Partner to Society
•
Supporting public research and science
th
rough grants and activities to bring
forward new discoveries
•
Disseminating knowledge through
programmes and activities
•
Strengthening a vibrant Danish ecosystem
for life science, research, innovation, and
economic growth
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Lundbeck Foundation Annual Report 2024 Page 4
The purpose of the Lundbeck
Foundation is to create powerful
ripple effects that bring
discoveries to lives through
investing actively in business
and science at the frontiers of
their fields.
We live our purpose every day through engaged ownership
of our strategic ownerships and biotech portfolio
companies, all of which strive to improve patients’ lives.
Our investment activities enable us to continuously award
significant independent research grants to advance Danish-
based biomedical research with a specific focus on
neuroscience. Established in 1954, the Lundbeck Foundation
is one of Denmark’s largest enterprise foundations, with a
net wealth at the end
of 2024 of DKK 72bn.
At a lance
Revenue
DKK 3
9,675
m
of which in DKKm
Lundbeck 22,004
ALK 5,537
Falck 12,134
The increase in revenue
of 8%
was pri
marily attributable to
Lundbeck (
+2,092m) and ALK
(
+713m).
Operating
profit
DKK
4,569m
of which in DKKm
Lundbeck 3,270
ALK 1,091
Falck 460
The increase in operating profit
of 21%
was primarily attributable
to ALK (
+425m).
Net profit
DKK 6,
567m
of which in DKKm
Lundbeck 3,143
ALK 815
Falck 116
Foundation 2,493
Overall profit for the Group was
DKK 6,
567m, corresponding to
an increase of 5%, primarily
attributable to Lundbeck and
ALK
.
Net wealth
DKK
71,739m
of which in DKKm
Strategic
Ownership
47,459
Invest 23,779
BioCapital 2,884
Net wealt
h increased by 22%,
significantly affected by an
increase in Lundbeck’s and ALK’s
share price
and the profit in
Invest.
+8%
+21%
+5%
+22%
Grants and Prizes
1,074DKKm
grants awarded in 2024
Strategic Ownership
8%
stake was acquired in WS Audiology in April 2024
Invest
3,108DKKm
generated return in 2024 primarily driven
by listed equities. Total market value at
31 December 2024 amounted to DKK 24bn
BioCapital
108DKKm
in net return for the year. Total market value
at 31 December 2024 amounted to DKK 3bn
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Lundbeck Foundation Annual Report 2024 Page 5
In 2024, the Lundbeck Foundation
continued to support outstanding
biomedical research, with a strong
commitment to talent development
and research in basis and clinical
neuroscience.
1
With the Lundbeck Foundation as funding agency according to Web of Science as of 17 January 2025. Include all document types except meeting abstracts.
Total payouts
632DKKm
Grants paid out in 2024
Total support for brain research
947DKKm
Corresponding to 88% of total grants in 2024
Number of full-time employees
funded
1,012
Research in
Neuroscience
DKK 658m
Research
benefitting
neuroscience
DKK 194m
Talent
development in
biomedical
science
DKK 129m
Prizes
DKK 13m
Science
Engagement and
Communication
DKK 33m
Other grants
DKK 47m
Distribution of total grants in 2024
DKK 1,074m
A year with remarkable scientific achievements …
In 2024, research supported by the Lundbeck Foundation resulted in over 600
1
scientific publications. Below examples are based on articles published in Nature.
Plague emerges from stone age graves. The Lundbeck Foundation GeoGenetics
Centre have published new insights into plague and its prevalence in Neolithic
Scandinavia with the aid of powerful DNA analysis of bones and teeth. Plague may
have blazed the trail for the closest ancestors of present-day Scandinavians.
Significant depression-risk interaction between personality and brain
chemistry.
Researchers from the University of Copenhagen and Mental Health
Services advance our understanding of the causes of major depressive disorder and
indicates the need to target novel therapies.
Close-up of the havoc wreaked in the brain by cocaine. With the most powerful
microscope in the world, researchers from the University of Copenhagen have
imaged the
brain’s dopamine transporter, demonstrating at near-atomic level how
cocaine binds to this transporter.
Read the full stories on Lundbeckfonden.com
… and new strategic initiatives.
Lundbeck Foundation Parkinson’s Disease Research Center (PACE)
In 2024, the Foundation initiated the first of a number of larger strategic
initiatives and awarded DKK 313m to the Lundbeck Foundation Parkinson’s
Disease Research Center (PACE) at Aarhus University Hospital with Professor
Per Borghammer as leader of the
world-leading multidisciplinary NeuroHub.
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Group revenue grew by 8% to DKK 39,675m, exceeding
expectations and reaching an all-time high. Operating
profit grew by 21% to DKK 4,569m, while the
Foundation’s financial investment activities delivered
solid returns for the year of DKK 3,108m. The profit for
the year thus amounted to DKK 6,567m, an increase of
5% compared to 2023.
At the Lundbeck Foundation, we are committed to
improving lives by reinvesting profits in Danish society,
investing responsibly with a long-term engagement in
healthcare companies and by supporting public
research, focusing on neuroscience. Following our 2030
strategy, we pursue our commercial and philanthropic
objectives with the ambition of creating both financial
and societal value while strengthening Denmark's
position as a leading life science nation.
In 2024, our strategic ownerships continued their
respective journeys towards becoming international
leaders within their segments and made significant
strategic moves to secure growth and development.
H. Lundbeck acquired Longboard Pharmaceuticals, a
highly innovative late-stage asset that significantly
bolsters the company’s pipeline and addresses a critical
unmet need in severe epilepsies. Underlined by notable
pipeline progress, H. Lundbeck aims to provide growth
drivers well into the next decade while continuing to
deliver solid growth driven by its strategic brands.
ALK delivered solid sales growth and increased
operating profit while also launching its new strategy
Allergy+. In November, ALK acquired the rights to the
anaphylactic nasal spray ‘Neffy’ in Europe, Canada and
other markets. Furthermore, ALK achieved promising
results from the Phase I part of the ongoing Phase I/II
programme within peanut allergy.
Falck continued to invest in digitalisation and the
development of new healthcare services. In 2024, Falck
provided over nine million healthcare services and
launched new strategic initiatives focused on advancing
healthcare at home services.
Ferrosan Medical Devices suffered from a setback
caused by a fire at its production facilities in August but
managed to deliver better than expected results and
continued its market expansion, supply chain renewal
and product innovation activities.
Letter from the Chair and the CEO
2024 was a landmark year for the Lundbeck Foundation. We
delivered
strong financial results and awarded an unprecedented level of
grants
while maintaining our commitment to business and science with the
purpose of
‘Bringing discoveries to lives’.
Lene Skole, CEO and Steffen Kragh, Chair
Following the Annual Meeting in March 2025, Steffen Kragh will in accordance with our Articles of Association retire as Chair
of
the Board of Directors of the Lundbeck Foundation and Lundbeckfond Invest A/S. Steffen Kragh joined both boards in 2013 and
was
appointed Chair in 2020.
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Ellab saw lower-than-expected demand for its high-end
validation and monitoring solutions and began
implementing several initiatives to restore topline and
earnings growth from 2025. In December, Ellab
announced the acquisition of PharmaProcess,
reinforcing its combined offering to life science
customers.
In April 2024, we became minority shareholders in WS
Audiology by partnering with T&W Medical, the family-
owned company that holds majority ownership in WS
Audiology, a Danish-based leading global hearing aid
company that markets its care and diagnostic solutions
in over 130 markets.
Despite volatile financial markets characterised by
increased geopolitical instability, recession risk
decreased and the Foundation’s financial investment
portfolio, Invest, generated solid returns, benefitting
from a structured approach to balancing risks while
maintaining a long-term investment horizon and a large
exposure to listed equities.
Lundbeckfonden BioCapital reaffirmed its commitment
to the Danish biotech sector by adding Danish quantum
computing startup Kvantify to its portfolio. It also
continued to support clinical development across its
portfolio companies, with notable progress from NMD
Pharma, Vesper Bio and Cytoki Pharma.
2024 was a significant year for our philanthropic and
societal impact priorities as we continued to advance
our mission to drive innovation, foster talent and
support outstanding biomedical research, particularly in
basic and clinical neuroscience. All of this aimed at
translating new scientific discoveries into improving the
lives of patients and their families.
Throughout the year, we provided a variety of grants to
support scientists and researchers at various career
stages and across different research disciplines while
also promoting activities to strengthen networks
among scientists in Denmark. For the first time in the
Foundation’s 70-year history, our philanthropic funding
surpassed the ‘one billion’ mark, totalling DKK 1,074m.
We maintained close dialogue and collaboration with
Danish universities and hospitals, and we took
ambitious steps towards enhancing the neuroscience
community in Denmark. This included the launch of
Lundbeck Foundation Parkinson’s Disease Research
Center (PACE) as our first large strategic initiative to
strengthen the integration of basic and clinical research.
Our most prestigious award, The Brain Prize, the world’s
largest in brain research, was awarded in 2024 to
Professors Haim Sompolinsky, Larry Abbott, and Terry
Sejnowski for their groundbreaking and foundational
contributions to theoretical and computational
neuroscience, which have paved the way for modern
artificial intelligence. The award was celebrated at a
ceremony in Copenhagen attended by His Majesty The
King of Denmark, who also announced his patronage of
The Brain Prize.
Neurotorium, our online learning platform that
translates neuroscience research into free, unbiased,
high-quality and internationally reviewed educational
content for clinicians, educators and anyone interested
in the brain, attracted more than 450,000 visits from
189 countries.
As an enterprise foundation in Denmark with a strong
commitment to healthcare, public research and
neuroscience, we have a responsibility to continually
inspire both science and business to push the
boundaries in their pursuit of future innovations that
will create economic and societal value for Denmark.
Guided by our purpose of ‘Bringing discoveries to lives’,
we have expanded our long-term engagement in Danish
healthcare and biotech business, and we have launched
significant new initiatives that will strengthen public
research and support the Danish scientific community,
particularly in neuroscience.
So, with high aspirations for the future, we extend our
gratitude to the Lundbeck Foundation employees for
their purposeful dedication, and to our partners for
their valuable collaboration. Together, we contribute to
making Denmark a leading life science nation.
Steffen Kragh,
Chair of the Board
Lene Skole,
CEO
For the first time in
the Foundation’s 70
-year
history, our philanthropic
funding surpassed the ‘one
billion’ mark
.
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The 2030 stratey: ‘Brinin Discoveries to Lives’
2024 marked the fourth year since the launch of the Foundation’s
2030 strategy, ‘Bringing Discoveries to Lives’. With the
strategy, the
Foundation strives to create value across five key themes
.
Top
-tier neuroscience
Close collaboration between
research and business
Active public voice
Attractive financial returns
Leading healthcare companies
We
create value when we fund Danish-
based research that results in a better
understanding of the brain and better
prevention, diagnosis and treatment of
brain diseases
.
We create value when we invest in research
talents, entrepreneurs and innovation in
Danish healthcare, and when we strengthen
the collaboration between universities,
hospitals and companies in Denmark
.
We create value when we develop and
internationalise Danish healthcare research
and business culture and when we improve
society's understanding of the brain and
its diseases
.
We create value when our return on
investment enables us to increase our
grants to society and secures our long
-term
financial
robustness and growth.
We create value when, as a competent
and engaged owner, we develop and
grow healthcare companies to become
international market leaders within
their categories
.
Our ambition is that, by 2030, Lundbeck Foundation
-
funded research will have led to a better
understanding of the brain and to groundbreaking
new programmes and treatments in clinical trials or
on their way to the market.
Our ambition is that, by 2030, the Lundbeck
Foundation will have contributed to innovative
healthcare solutions and/or started new healthcare
companies in Denmark.
Our ambition for 2030 is that the Foundation has
increased public understanding of the importance
of brain health, improved the conditions for research
in Denmark
and further developed the role of
enterprise foundations.
Our ambition for 2030 is for our investment
activities to deliver a competitive return equal to or
better than that of relevant peers
to at least double
our net wealth
, and double our average annual
grants
to at least DKK 1bn.
Our ambition is that, by 2030, we will be a long
-term
and significant owner of a portfolio of
five to eight
small or large healthcare companies, preferably in
Denmark, that are international market leaders or
on their way to becoming leaders.
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Delivering on our strategy
towards 2030
The Lundbeck Foundation is an enterprise foundation
engaged in a diverse range of commercial and
philanthropic activities. While these activities vary
greatly, they are interconnected and mutually
reinforcing. The Foundation’s strategy provides a clear
roadmap for value creation, with specific goals and
ambitions across five thematic areas. In 2024, the
Foundation continued to make progress across all
themes, achieving several key milestones.
Top-tier neuroscience
The Foundation’s scientific focus in 2024
remained centred on the tremendous
complexity of the brain, one of
humanity’s most challenging scientific
topics. The lack of basic knowledge about
the brain - both in terms of its normal functioning and
its disorders - underscores the pressing need for new
insights. By 2030, the Foundation therefore aims to
double its average annual grants to at least DKK 1bn,
with a strategic focus on neuroscience to generate
knowledge that can improve prevention, diagnosis and
treatment of brain disorders.
In 2024, the Foundation awarded DKK 1,074m. Of this
total, 88% was dedicated to neuroscience research
across all levels - from PhD students to professors -
through strategic programmes, open calls and talent
development initiatives. These efforts aim to generate
knowledge that benefits patients, doctors and
therapists while further strengthening Denmark’s
neuroscience community.
In 2024, the Foundation launched its first strategic
initiative to integrate basic and clinical research for
better prevention, diagnosis and treatment of brain
diseases. As part of this vision, it awarded DKK 223m to
establish the Lundbeck Foundation Parkinson’s
Disease Research Center (PACE) at Aarhus University
Hospital. With a vision to be a world-leading
translational research centre, it will focus on Parkinson’s
disease and other Lewy body disorders, aiming to
discover and validate innovative treatments for clinical
trials within 10 years.
Additionally, the Foundation partnered with the Novo
Nordisk Foundation and the LEO Foundation to
establish the Center for Pharmaceutical Data Science
Education, integrating data science disciplines into
pharmaceutical science education.
A core priority for the Foundation is nurturing the next
generation of neuroscience researchers. The
Neuroscience Academy Denmark (NAD) offers young
scientists opportunities to explore neuroscientific topics
and connect with peers in the field. Building on the
success of NAD, the Foundation awarded DKK 222m in
2024 to double the initial cohort of 48 PhD students
recruited since the programme's start in 2021, with an
additional 48 PhD students joining over the next three
years.
The open knowledge platform Neurotorium, which
develops and shares educational materials about the
brain and its diseases, continued to grow strongly. In
2024, the platform attracted more than 450,000 visits
from 189 countries only two years after its launch in
2022 and up from 180,000 visits in 2023. All content is
curated by an international board of renowned
neurologists and psychiatrists, ensuring high-quality
resources.
Professors Larry Abbott, Terrence Sejnowski and Haim
Sompolinsky were awarded The Brain Prize for their
pioneering contributions to computational and
theoretical neuroscience and for advancing our
understanding of the principles that govern the brain’s
structure, dynamics and the emergence of cognition
and behaviour. The Brain Prize was again complemented
by a series of seminars as part of the Foundation’s
global scientific outreach programme.
Close collaboration between
research and business
Healthcare innovation and
entrepreneurship require a strong
connection between the scientific
research community and the
commercial business world. This
dynamic is evident in the world’s most innovative
healthcare ecosystems, where talents seamlessly
transition between science and business. However, this
journey can be challenging in Denmark. Strengthening
the dialogue and collaboration between Denmark’s
academic research institutions and the local biotech
and pharmaceutical communities is a key aspiration for
the Foundation. The goal is to empower academic talent
to explore, innovate and ultimately make the leap from
science to business, enabling discoveries to scale and
transform lives. The Foundation employs several
instruments to achieve this ambition.
To bridge the gap between basic research and
commercial viability, the Foundation introduced Frontier
Grants in 2022. These grants support the transition of
early-stage research projects into opportunities
attractive to biotech investors. The purpose is twofold:
to advance research projects within biomedicine or
health sciences to a stage where they become
financeable and commercially viable, and to support the
scientific project owners in their early entrepreneurial
journeys. In 2024, four Frontier Grants were awarded to
scientists working on projects related to a new obesity
drug, gene therapy, pancreatic cancer treatment, and
stem cell therapy for Parkinson’s disease.
Launched in 2022, Lundbeckfonden BioCapital is an
evergreen life science venture fund that builds on the
Foundation’s decade-long commitment to creating and
financing biotech companies. Its focus is on translating
pioneering research into innovations that address areas
of high unmet medical need.
In 2024, Lundbeckfonden BioCapital continued to
prioritise the local Danish biotech ecosystem, including
an investment in Kvantify, a Danish quantum
computing company with the potential to revolutionise
drug discovery in the coming years. BioCapital also
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began implementing its sustainability programme,
starting with a co-created pilot initiative on recruitment
and company building for its portfolio companies.
Financially, 2024 mirrored the challenges of 2022 and
2023, with depressed public markets impacting
company valuations and complicating fundraising
across biotech. Despite this, the portfolio performed
well with several successful fundraises and many
positive clinical updates.
Active public voice
The Foundation’s ambition is to enhance
public understanding of the importance
of brain health, improve the conditions
for research in Denmark and the
development of the enterprise
foundation model as a responsible and sustainable
business ownership framework. To achieve this, the
Foundation engages in a variety of activities spanning
communication, partnerships and public affairs across
its entire value chain.
One notable example from 2024 was the launch of a
whitepaper aimed at strengthening Denmark's vibrant
ecosystem for life sciences, research, innovation and
economic growth. This initiative was carried out in
collaboration with Axcelfuture, Kromann Reumert and
the Novo Nordisk Foundation. The whitepaper included
a catalogue of proposed legislative amendments
designed to attract international talent and scientists
to Denmark. These recommendations have since been
incorporated into the official guidelines of the
"Virksomhedsforum for globale risici" (a corporate
advisory forum on global risks) as well as the Danish
government's Life Science Strategy and Strategy for
Entrepreneurship.
Attractive financial returns
The investment activities of the
Foundation are split into three
categories: Lundbeckfonden Strategic
Ownerships (Lundbeck, ALK, Falck, FeMD,
Ellab and WS Audiology),
Lundbeckfonden Invest (financial investments) and
Lundbeckfonden BioCapital (biotech investments).
The overarching ambition for all investment teams
toward 2030 is to deliver annual financial returns that
exceed those of market peers. This includes doubling
the Foundation’s net wealth by 2030 and growing the
Foundation’s philanthropic grants to an average of at
least DKK 1bn annually by 2030 while ensuring long-
term financial robustness.
Building on the momentum from 2023, solid returns
were delivered in 2024, with the Foundation’s total
wealth increasing to approximately DKK 72bn from
DKK 59bn at the end of 2023.
Leading healthcare companies
The engaged ownership of Danish
healthcare companies lies at the core of
the Foundation’s value creation. These
companies develop products and
treatments that benefit patients
worldwide while generating financial returns that enable
new investments in science and business development.
As part of the 2030 strategy, the Foundation set a clear
goal of expanding its portfolio to include five to eight
strategically owned Danish healthcare companies
by 2030.
In 2024, the Foundation acquired a minority stake in WS
Audiology, a global leader in the hearing aid industry.
The company helps millions of people regain and enjoy
their hearing, employs over 12,500 people and generates
an annual turnover of close to DKK 20bn. WS Audiology
joins a strategic ownership portfolio that already
includes majority stakes in Lundbeck, ALK and Falck, as
well as significant minority stakes in Ferrosan Medical
Devices (FeMD) and Ellab.
The Foundation’s ambition is to grow and develop its
ownerships on a global scale, helping these companies
become leaders in their respective industrial segments
while bringing innovations, products and treatments to
patients worldwide.
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Financial hihlihts
Revenue (DKKm) and revenue growth (%)
Profit for the year (DKKm)
Lundbeckfonden’s share of equity (DKKm)
Revenue reached DKK 39,675m representing a growth of 8.2% compared to 2023
Profit for the year increased from DKK 6,273m to DKK 6,567m
Lundbeckfonden’s share of equity increased by DKK 4,421m in 2024
Operating profit (DKKm) and operating profit margin (%)
Return on equity (%)
Average number of employees (FTEs)
Operating profit
increased from DKK 3,790m in 2023 to DKK 4,569m,
representing a profit margin of 11.5%
Return on equity
decreased from 11.9% in 2023 to 11.3%
Average number of employees
was on par with 2023
39,675
- 6%
- 4%
- 2%
0%
2%
4%
6%
8%
10%
32,000
34,000
36,000
38,000
40,000
2020 2021 2022 2023 2024
6,567
0
2,000
4,000
6,000
8,000
2020 2021 2022 2023 2024
50,280
25,000
30,000
35,000
40,000
45,000
50,000
55,000
2020 2021 2022 2023 2024
4,569
0%
2%
4%
6%
8%
10%
12%
14%
0
1,000
2,000
3,000
4,000
5,000
2020 2021 2022 2023 2024
11%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2020 2021 2022 2023 2024
27,437
15,000
25,000
35,000
2020 2021 2022 2023 2024
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For the definitions of key figures, please see note 36.
Five-year summary
DKKm
2024
2023
2022
2021
2020
Revenue 39.675
36.659
35.426
35.403
33.520
Operating profit 4.569
3.790
3.427
3.872
2.340
Profit for the year 6.567
6.273
1.211
6.928
2.415
Lundbeckfonden's share of profit 5.068
5.159
-126
5.880
1.998
Financial items, Invest etc. 3.102
2.832
-1.430
4.608
1.244
Financial items, BioCapital 108
772
-565
-141
-6
Net financial items 3.420
3.200
-1.662
3.872
653
Grants awarded 1.074
592
550
803
600
Dividends from subsidiaries 481
545
1.286
343
563
Cash flow from operating activities 5.598
5.584
3.974
4.569
5.635
Cash flow from investing activities -17.263
-1.731
-2.096
-1.368
-1.131
Cash flow from operating and investing activities (free
cash flow)
-11.665
3.853
1.878
3.201
4.504
Cash flow from financing and grant-making activities 11.491
-2.348
-1.610
-4.840
-3.494
Subsidiaries' acquisitions 15.862
101
1.079
680
-
Investments in intangible assets 1.134
298
516
255
171
Investments in property, plant and equipment 1.157
800
912
738
606
Equity 61.043
55.146
50.164
49.422
42.852
Lundbeckfonden's share of equity 50.280
45.859
41.571
41.621
36.108
Total assets 105.427
81.732
77.633
78.022
74.563
Debt to financial institutions and others 21.635
8.625
9.669
9.310
12.549
Net wealth 71.739
58.807
51.608
67.114
64.411
DKKm
2024
2023
2022
2021
2020
Key figures
Revenue growth 8,2% 3,5% 0,1% 5,6% -1,8%
Operating profit margin 11,5% 10,3% 9,7% 10,9% 7,0%
Return on equity
11,3% 11,9% 2,4% 15,0% 5,7%
Average number of employees (FTE)
27.437
27.350
28.086
28.932
29.084
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In 2024, the Lundbeck Foundation
Group delivered record revenue of
DKK 39,675m, and Group profit for the
year amounted to DKK 6,567m.
Ahead of the Foundation’s expectation of Group
revenue between DKK 37bn and DKK 39bn, Group
revenue amounted to DKK 39,675m, largely thanks
to Lundbeck, which delivered record revenue of
DKK 22,004m.
Group operating profit, at DKK 4,569m (DKK 3,790m),
was negatively impacted by transaction and integration
costs of DKK 420m related to Lundbeck’s acquisition of
Longboard Pharmaceuticals and impairment of product
rights (MAGLi) of DKK 547m. Adjusted for this, Group
operating profit was well ahead of expectations, which
were between DKK 4.6bn and DKK 5.2bn.
Grants totalled DKK 1,074m (DKK 592m), which was the
highest level ever awarded.
Operating Activities
Reported revenue for the year increased to DKK 39,675m
(DKK 36,659m), largely thanks to Lundbeck and ALK,
which delivered record revenue of DKK 22,004m (+11%)
and DKK 5,537m (+15%), respectively.
Revenue at Falck increased by DKK 221m, corresponding
to an increase of 2% on 2023.
Gross profit was DKK 24,192m, versus DKK 20,931m in
2023. The increase was primarily attributable to
Lundbeck, where gross profit increased by DKK 2,347m.
Gross profit at ALK and Falck increased by DKK 517m
and DKK 253m, respectively.
The Group’s gross margin was 61%, up from 57% in 2023.
Research and development (R&D) costs increased to
DKK 5,102m (DKK 4,155m), corresponding to an increase
of DKK 947m, of which DKK 547m relates to the MAGLi
impairment.
Overall sales and distribution costs increased to
DKK 10,087m (DKK 9,317m), driven by higher costs at
Lundbeck of DKK 664m. Overall sales and distribution
costs represented 25% of total revenue in 2024 (25%).
Overall administration costs amounted to DKK 4,006m
(DKK 3,663m), with the increase largely attributable to
Falck and Lundbeck.
The Foundation’s own net administration and operating
costs amounted to DKK 166m versus DKK 162m in 2023.
Financial performance
Revenue
+8
%
D
KK 39,675m
(DKK 3
6,659m)
R
eported revenue at ALK and
Lundbeck
increased by 15% and 11%,
respectively,
on 2023.
Group operating profit
+
21%
DKK
4,569m
(DKK 3,
790m)
The increase in Group operating profit
was primarily attributable to ALK
(+
DKK 425m).
Net wealth
+
22%
DK
K 71,739m
(DKK 5
8,807m)
The increase was primarily
attributable to
an increase in
Lundbeck’s and ALK’s share price and
the investment portfolio in Inves
t.
Revenue
DKKm 2024 2023
Lundbeck 22,004
19,912
ALK 5,537 4,824
Falck 12,134 11,913
Other business 0 10
Total 39,675 36,659
Management review
In Brief Performance Partner to Society Governance Consolidated financial statements Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 14
Total operating costs thus amounted to DKK 19,195m
versus DKK 17,135m in 2023.
Other operating items, net, amounted to an expense of
DKK 428m (expense of DKK 6m). In 2024, other
operating items, net, included transaction and
integration costs of DKK 420m related to Lundbeck’s
acquisition of Longboard.
Group operating profit increased to DKK 4,569m (DKK
3,790m). The improvement was primarily attributable to
ALK, which saw increases of DKK 425m. Additionally,
operating profit in 2023 was negatively affected by a
loss of DKK 229m related to Dysis (portfolio company of
BioCapital).
Operating profit
DKKm 2024 2023
Lundbeck 3,270
3,195
ALK 1,091
666
Falck 460
388
Lundbeckfonden -166
-162
Other business -86
-297
Total 4,569
3,790
Investment activities
The Foundation’s investment activities saw a profit
of DKK 3,006m compared to a profit of DKK 3,570m
in 2023.
The investment portfolio in Invest generated a profit of
DKK 3,108m versus a profit of DKK 2,832m in 2023. The
return was primarily driven by listed equities.
Meanwhile, the Foundation’s BioCapital portfolio
delivered a net profit totalling DKK 108m (DKK 772m).
Profit in 2024 and 2023 was positively impacted by the
valuation of the private portfolio on the back of clinical
progress and selected positive market developments,
which compensated for decreases in the value of the
publicly listed portfolio.
The Group’s profit share in the strategic minority
ownerships (associates) amounted to a loss of DKK
210m (loss of DKK 34m).
Tax
The effective tax rate of 16% (10%) was below the Danish
income tax rate primarily due to deductible grants
recognised directly in equity and Lundbeck’s reversal of
an uncertain tax position related to a tax audit closed in
2024. In 2023, the effective tax rate was impacted by
deductible grants recognised directly in equity and the
Foundation’s utilisation of tax assets – in accordance
with the accounting policy – not being recognised.
Net effective tax rate of the three strategic subsidiaries
was 19% (19%) impacted by reversal of the uncertain tax
position, cf. above.
Net results and grants
In 2024, overall profit for the Group was DKK 6,567m
(DKK 6,273m). The Foundation’s share of Group profit
was DKK 5,068m (DKK 5,159m).
The Foundation awarded a total of DKK 1,074m (DKK
592m) in grants in 2024.
Assets
Total assets at 31 December 2024 amounted to DKK
105,427m versus DKK 81,732m at the end of 2023. The
increase was primarily driven by Lundbeck’s acquisition
of Longboard.
Intangible assets amounted to DKK 46,634m at 31
December 2024 (DKK 26,086m). Product rights
accounted for DKK 30,066m (DKK 14,903m) including
the addition related to the acquisition of Longboard of
DKK 16,453m. Amortisation and impairment of product
rights amounted to DKK 1,980m (DKK 1,711m). Goodwill
at year-end amounted to DKK 14,285m (DKK 9,977m).
The Foundation’s financial assets at 31 December 2024
amounted to DKK 25,290m (DKK 24,423m), equivalent to
an increase of DKK 867m compared to year-end 2023.
Cash and bank balances at 31 December 2024 amounted
to DKK 5,907m (DKK 6,080m).
Equity and liabilities
Total Group equity at 31 December 2024 amounted to
DKK 61,043m (DKK 55,146m), reflecting an increase of
DKK 5,897m in 2024. The Foundation’s share of equity
increased to DKK 50,280m (DKK 45,859m).
At 31 December 2024, total debt to financial institutions
etc., including lease liabilities, increased to DKK 21,635m
(DKK 8,625m), particularly following Lundbeck’s
acquisition of Longboard. Consequently, net interest-
bearing debt, excluding the Foundation’s financial
assets, amounted to DKK 15,728m (DKK 2,545m).
Cash Flow
Total cash flow from operating activities amounted to
DKK 5,598m versus DKK 5,584m in 2023. In 2024, cash
flow was negatively impacted by settlement of liabilities
The Lundbeck Foundation’s share of equity and
debt to financial institutions etc.
0
10
20
30
40
50
60
2020 2021 2022 2023 2024
DKKbn
Equity Debt
Management review
In Brief Performance Partner to Society Governance Consolidated financial statements Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 15
related to Longboard's long-term incentive program and
transaction costs associated with the acquisition.
Total cash flow from investment activities amounted to
an outflow of DKK 17,263m (outflow of DKK 1,731m).
Excluding the purchase and sale of financial assets, cash
flow from investment activities was an outflow of
DKK 17,983m (outflow of DKK 1,103m), of which
DKK 15,862m (DKK 101m) relates to acquisition of
businesses.
In 2024, the total cash flow from grants paid and
dividends paid to non-controlling interests amounted to
an outflow of DKK 845m (outflow of DKK 680m).
Furthermore, cash flow from financing activities
included a net inflow of DKK 12,414m (net outflow of
DKK 1,618m) related to proceeds from taking out loans
from financial institutions, etc.
Net cash flow in 2024 amounted to an outflow of
DKK 174m (inflow of DKK 1,505m). At the end of 2024,
the Group’s cash balance totalled DKK 5,907m versus
DKK 6,080m at the end of 2023.
Net wealth
At 31 December 2024, the Group’s net wealth amounted
to DKK 71,739m (DKK 58,807m). Net wealth was
significantly affected by the increase in Lundbeck’s and
ALK’s share price and the profit in Lundbeckfonden
Invest, which had positive effects of DKK 5,741m,
DKK 5,197m and DKK 3,094m, respectively.
Outlook
The financial performance of the Group depends on
developments in the commercial activities of Lundbeck,
ALK and Falck, as well as returns generated by the
Foundation’s investment activities, including strategic
ownerships (Ferrosan Medical Devices, Ellab and WS
Audiology) and the biotech portfolio. Returns provided
by investment activities largely depend on the overall
performance of the financial markets, whereas returns
from the biotech portfolio also depend on the
development of products and similar factors at the
portfolio companies.
For 2025, Group revenue is expected to reach between
DKK 42bn and DKK 43bn. Group operating profit is
expected to be between DKK 6.2bn and DKK 6.6bn. The
expected increase in Group revenue and operating profit
compared to 2024 is related to expected higher revenue
and improvements at all subsidiaries.
These expectations are based on the exchange rates
prevailing at the end of January 2025.
Please refer to the respective annual reports of
Lundbeck, ALK and Falck for further details about the
companies’ individual expectations.
Lundbeck Foundation (parent entity)
The Foundation’s profit for the year amounted to
DKK 2,822m versus DKK 969m in 2023. The 2024 result
was positively affected by dividends from Lundbeckfond
Invest A/S amounting to DKK 1,545m (DKK 0). Additional
net financial profit amounted to DKK 1,451m (profit of
DKK 1,063m).
In total, grants awarded in 2024 amounted to
DKK 1,074m versus DKK 592m in 2023. Net grants
amounted to DKK 1,060m (DKK 580m) in 2024, as grants
of DKK 14m (DKK 12m) were reversed or repaid during
the year. Subsequently, the carrying equity at 31
December 2024 amounted to DKK 12,474m (DKK
10,712m).
DKKbn 2025 outlook 2024
Revenue 42.0 – 43.0
39.7
Operating profit
6.2 – 6.6
4.6
Distribution of net wealth
Net wealth
DKKm Value
Contribution to net
wealth 2024
Strategic ownerships
47,459 11,349
Invest
23,779
3,092
BioCapital
2,884 -56
Grants, corporate
functions, etc.
-2,383
-1,453
Net wealth
71,739 12,932
The strategic ownerships’ contributions to net wealth differed
from the contribution recognised and measured in accordance
with the accounting policies of the Lundbeck Foundation Group.
The fair value of the Foundation’s net assets is based on market
prices, where available
- for ALK and Lundbeck - and, for other
companies, an estimated fair value based on a trading
-multiple
model.
Figures for 2023 are shown in brackets
Net wealth
DKK 72bn
In 2024, the Group’s net
wealth increased by
DKK 13bn
or
22%
Management review
In Brief Performance Partner to Society Governance Consolidated financial statements Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 16
Long-term value creation
The Foundation is a long-term owner of healthcare
companies based in Denmark which are either global
leaders in their respective market segments or striving
for leadership positions. The Foundation invests in both
public and private companies and can take minority as
well as majority ownership positions. The ambition is to
own between five and eight companies in this category
by 2030. The Foundation is therefore looking to invest in
companies rooted in Denmark with the potential to
become global leaders in their fields.
The Foundation’s aim is to develop both small- and
large-scale healthcare companies and help them
become global leaders. The Foundation is able to do this
because skills have been built in the field of healthcare
throughout the Foundation’s entire existence. Over the
past decades, the Foundation has established itself as a
competent and engaged owner.
As an enterprise foundation, the Foundation takes a
long-term approach to the strategic ownerships and can
ensure the right conditions for these companies to
become global leaders in their fields. The enterprise
foundation model is a strong, sustainable type of
ownership that ensures long-term value creation, keeps
companies in Danish ownership as long as possible and
contributes to society by - in the case of the Foundation
- awarding grants to Danish-based biomedical sciences
research. The Foundation wishes to spread the unique
potential of the enterprise foundation model to more
Danish healthcare companies.
What we invest in
• Healthcare companies headquartered in Denmark
• Companies leading in their field, or with the potential
to become a leader
• Companies delivering financially attractive returns
that could contribute to growing the Foundation’s net
wealth long term
The portfolio
After the acquisition of an 8% stake in WS Audiology in
2024, the portfolio now consists of:
• Majority-owned strategic ownerships
• H. Lundbeck
• ALK Abelló
• Falck
• Minority-owned strategic ownerships
• Ferrosan Medical Devices
• Ellab
• WS Audiology
Lundbeckfonden Strateic Ownerships
Strategic ownerships’ portfolio includes six listed and private
healthcare companies headquartered in Denmark
.
Global pharmaceutical company
specialising in the development of
innovative therapeutics for brain
disorders.
Leading developer and manufacturer of
innovative haemostatic products used by
healthcare professionals in the fields of
surgery and diagnostics.
Year of investment 1954 Year of investment 2022
Ownership 69% (76% voting rights) Ownership 30%
Partner Listed Partner ATP & Kirk Kapital
Leading global developer and producer of
a wider range of allergy treatments,
products and services that meet the
unique needs of allergy sufferers.
Leading global player within high-end
validation and monitoring solutions, as
well as field service and consulting to
primarily life science customers.
Year of investment 2005 Year of investment 2023
Ownership 40% (67% voting rights) Ownership 34%
Partner Listed Partner Novo Holdings
Global supplier of healthcare and
emergency services to help people
live healthy lives.
WS Audiology is a global leader in the
hearing aid industry.
Year of investment 2011 Year of investment 2024
Ownership 58% Ownership 8%
Partner Kirkbi & TryghedsGruppen Partner T&W Medical & EQT
Management review
In Brief Performance Partner to Society Governance Consolidated financial statements Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 17
2024 was a transformative year for Lundbeck that laid
the foundation for a promising future. Lundbeck
generated its highest revenue ever while further
strengthening its pipeline of innovative and promising
late-stage assets.
At the beginning of 2024, Lundbeck launched the
Focused Innovator Strategy to support its purpose of
advancing brain health and transform lives by aiming to
secure mid-term growth, lead with focused innovation
and deliver on sustainable profitability. With the
Focused Innovator Strategy, Lundbeck has further
narrowed its focus with the aim of winning in neuro-rare
and specialist-treated disease areas.
In 2024, Lundbeck began the largest capital reallocation
programme in the company’s history. The programme
will allow Lundbeck to optimise the business and fund
its growth ambitions. Throughout 2024, Lundbeck had a
disciplined focus on maximising its existing resources
through investments. This way Lundbeck improved its
profitability while investing more in R&D and key
brands, i.e. the launches of Rexulti® for agitation
associated with dementia in Alzheimer’s disease
(AADAD) and Vyepti® for migraine prevention.
During the year, Lundbeck continued its ‘Let the patient
speak’ events focusing on innovative ways to integrate
patients’ perspectives into the development
programmes. The idea is that Lundbeck invites patients
and caregivers to share their perspectives, ultimately
helping Lundbeck to incorporate insights into
innovation and integrated evidence generation efforts.
Executing the R&D strategy
In 2024, Lundbeck continued to build its pipeline as the
engine for sustainable growth. In January 2024,
Lundbeck’s AMULET Phase II trial with amlenetug (anti
α-synuclein mAb Lu AF82422) showed convincing trends
of slowing Multiple System Atrophy (MSA). Lundbeck is
committed to addressing the unmet needs of MSA
patients with amlenetug, and in November 2024
Lundbeck launched a Phase III trial to further assess
the efficacy and safety of amlenetug in the treatment
of MSA.
In March 2024, Lundbeck’s potential first-in-class
therapy for migraine prevention, the Lu AG09222 (anti-
PACAP mAb) programme, entered an advanced clinical
stage with a clinical Phase IIb dose-finding trial. This
trial will assess the efficacy and safety of
subcutaneously administered Lu AG09222 in migraine
prevention and aims to establish the optimal dose for
future global pivotal trials.
In June 2024, the U.S. Food and Drug Administration,
FDA, accepted a supplemental new drug application,
sNDA, filing for brexpiprazole in combination with
sertraline for the treatment of adults with post-
traumatic stress disorder (PTSD). The FDA plans to host
a Psychopharmacologic Drugs Advisory Committee
meeting to seek input on issues related to the sNDA. If
the application is approved, the brexpiprazole and
sertraline combination treatment would be the first
FDA-approved pharmacological treatment for PTSD in
more than 20 years. In June, Lundbeck also initiated a
first trial with Lu AG13909 (anti-ACTH) in patients with
Cushing’s disease (CD). Lu AG13909 is also being tested
in congenital adrenal hyperplasia (CAH).
In October 2024, Lundbeck initiated the first clinical trial
of its CD40L blocker, Lu AG22515, in patients. The proof-
of-concept (PoC) trial will evaluate the efficacy, safety
and tolerability of Lu AG22515 as a potential treatment
for Thyroid Eye Disease, an autoimmune disease causing
a debilitating, disfiguring and potentially blinding
periocular condition. In addition, Lundbeck announced
positive results from the SUNRISE Phase III pivotal trial
of Vyepti® (eptinezumab) in migraine prevention. Based
on the trial results, Lundbeck plans to initiate
discussions with relevant regulatory authorities with the
aim of making Vyepti® available for people suffering
from migraine across Asia.
Epilepsy back in the pipeline
In 2024, Lundbeck undertook the largest acquisition in
the company’s history by acquiring Longboard
Pharmaceuticals with the lead asset bexicaserin which
holds blockbuster potential. The strategic deal will
enhance Lundbeck’s neuroscience pipeline and
represents a significant step forward in the Focused
Innovator Strategy. In September 2024, a global Phase III
trial was initiated by Longboard Pharmaceuticals,
evaluating bexicaserin for the treatment of seizures
associated with Dravet Syndrome, one of the rare
epilepsies. In November, Longboard Pharmaceuticals
initiated a second Phase III to evaluate the efficacy of
bexicaserin in Developmental and Epileptic
Encephalopathies (DEEs).
There is a strong unmet need across a broad range of
epilepsy indications, including DEEs. Among the more
than 20 known DEEs, only 4 have approved treatments
so far. The innovative potential of bexicaserin, with its
H. Lundbeck A/S
Lundbeck is a global pharmaceutical company specialised in
developing innovative treatments for brain diseases. The Lundbeck
Foundation owns 69% of the share capital and 76% of the votes
.
1
Rexulti®/Rxulti® (depression/schizophrenia), Brintellix®/Trintellix® (depression), Abilify Maintena®/Asimtufii® (schizophrenia) and Vyepti® (prevention of migraine)
Management review
In Brief Performance Partner to Society Governance Consolidated financial statements Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 18
unique 5-HT2C superagonist mechanism of action,
positions Lundbeck to address significant unmet needs
in severe epilepsies across DEEs including Dravet and
Lennox-Gastaut syndromes.
Bexicaserin has shown encouraging anti-seizure effects
to date in preclinical and clinical studies, with its next-
generation superagonist mechanism specifically
targeting 5-HT2C receptors, supporting bexicaserin’s
potential to offer a highly differentiated and best-in-
class profile. It complements perfectly Lundbeck’s late-
stage internal pipeline and the Focused Innovator
ambition to build a neuro-rare franchise and reestablish
Lundbeck’s strong presence in the epilepsy space.
Financial performance
Sales
In 2024, Lundbeck achieved a record revenue of DKK
22,004m (DKK 19,912m), with all regions contributing to
growth. The revenue of Lundbeck’s strategic brands
increased by 20%, reaching DKK 16,462m, representing
75% of total revenue and with all four products showing
double-digit growth rates. Approximately 64% of the
strategic brand growth can be attributed to the strong
performance of Vyepti in the U.S. and Europe and
Rexulti® in the U.S.
The U.S. constituted 51% of total revenue in 2024 and
represented Lundbeck’s largest market. Revenue growth
in the U.S. was mainly driven by increasing market share
as well as the continued demand uptake of Rexulti®
following the AADAD approval and the strong
performance of Vyepti®, which continues to grow in
market share and momentum, offset by the erosion of
mature brands. Europe and International Operations
also saw robust revenue growth driven by higher sales
across all strategic brands.
Operating profit
Cost of sales decreased by 6% to DKK 4,230m in 2024,
mainly driven by lower amortisation costs due to the
fully amortised product rights of one of Lundbeck’s
products, offset by an increase in the cost of goods sold
associated with the higher revenue. The gross margin
was 80.8%, representing an increase of 3.3 percentage
points compared to last year.
Sales and distribution costs were DKK 8,146m in 2024,
an increase of 9% compared to 2023. The development
reflects the strong revenue growth, offset by continued
investments in sales and promotional activities in
strategic brands such as Rexulti® and Vyepti® in the U.S.,
including preparation for PTSD commercialisation for
Rexulti® pending FDA review and the global roll-out of
Vyepti®. Furthermore, sales and distribution costs in
2024 were negatively impacted by the recognition of
restructuring and integration costs. Sales and
distribution costs corresponded to 37.0% of revenue in
2024 compared to 37.6% in 2023.
Administrative expenses increased by 11% to DKK
1,437m, corresponding to 6.5% of total revenue and in
line with 2023. The main drivers of the increase are
higher legal costs primarily due to DKK 150m of legal
provisions for ongoing litigations recognised in the
second quarter of 2024.
R&D costs reached DKK 4,501m in 2024 (DKK 3,457m)
with an R&D ratio of 20.5%, which includes the impact
of the MAGLi impairment loss of DKK 547m. The higher
R&D costs also reflect the progression of the Phase IIb
dose-finding trial for LU AG09222 anti-PACAP, the
progress of Phase III preparations for amlenetug as well
as generally higher discovery and development costs
across early-stage programmes in 2024. Operating profit
grew by 2%, thereby reaching DKK 3,270m in 2024. The
operating profit margin reached 14.9% compared to
16.0% in 2023.
Net profit
Net financial expenses amounted to an income of DKK
449m, primarily driven by the gain from a hedging
transaction settled in connection with the acquisition of
Longboard.
The effective tax rate for 2024 was 15.5% compared to
23.5% for 2023. The tax rate is positively impacted by
the reversal of an uncertain tax position related to a tax
audit closed in the third quarter of 2024. Profit for 2024
reached 3,143m (DKK 2,290m).
The Board of Directors is proposing distribution of
dividends of 30% of the net profit for the year,
equivalent to DKK 0.95 per share (DKK 0.70 per share) or
DKK 946m (DKK697m).
Revenue (DKKm)
22
,004
Operating profit (DKKm)
3
,270
Net profit (DKKm)
3
,143
Number of employees (FTEs)
5,
694
Figures for 2023 are shown in brackets
Management review
In Brief Performance Partner to Society Governance Consolidated financial statements Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 19
ALK is a global specialty
pharmaceutical company focused on
allergy and allergic asthma. ALK
markets allergy immunotherapy (AIT)
and anaphylaxis treatments for people
with allergy. The Lundbeck Foundation
owns 40% of the share capital and 67%
of the votes.
2024 was a rewarding year for ALK. ALK delivered on its
short-term targets and established a new strategic
framework for the long-term development of ALK,
including entry into new disease areas. ALK continued to
build on its growth momentum and accelerated revenue
growth to 15% in local currencies. Operating profit
increased by 65% in local currencies and exceeded DKK
1bn for the first time, driven by top-line growth, margin
expansion and efficiencies.
Growth was powered by an inflow of new patients with
moderate to severe, uncontrolled allergies. ALK
estimates that 2.6 million people, an increase of
200,000, were treated with ALK’s products in 2024 - an
important step towards the ambition of helping five
million people yearly by 2030.
To define ALK’s journey of sustained growth and
earnings improvements towards 2028 and beyond, ALK
launched the new Allergy+ strategy and new long-term
financial targets in June 2024. The implementation of
the strategy is progressing well and is starting to deliver
the desired results. Key achievements in 2024 included
approval of the house dust mite tablet for children,
progress in food allergy, the licensing agreement for
neffy® in the field of anaphylaxis, an expansion of the
addressable markets in respiratory allergy, and efforts
to calibrate ALK’s business platform to focus on high-
potential growth levers.
Transformative neffy® deal
In emergency treatment of acute allergic reactions
(anaphylaxis), ALK entered into a potentially
transformative license agreement with US-based ARS
Pharma in 2024. Against an upfront payment of DKK
1bn and future milestone payments and sales royalties,
ALK was granted exclusive rights to commercialise the
neffy® adrenaline nasal spray world-wide, except for the
USA, Australia, New Zealand, Japan and China.
EURneffy® (the trade name for neffy® in Europe) has
obtained market authorisation in the EU, and ALK
expects to start launching the product in key markets
from the second half of 2025 once local market access
negotiations are completed. Filings for regulatory
approvals have recently been submitted in the UK –
Europe’s largest anaphylaxis market – and in Canada,
the world’s third largest anaphylaxis market. neffy® also
has potential in other markets e.g. some of the
countries in Asia, the Middle East and Latin America.
ALK expects neffy® and other future needle-free
innovations to transform anaphylaxis treatment and
substantially expand the currently under-served
markets. ALK estimates that neffy® holds a long-term
annual peak sales potential in anaphylaxis of up to DKK
3bn in the licensed territories, where the product will be
an important add-on to ALK’s portfolio, which covers the
already marketed autoinjector Jext® and a next-
generation autoinjector (the Genesis project), currently
in late-stage development. With this portfolio, ALK is the
only company offering both needle-free solutions and
autoinjectors to the market.
Under the agreement with ARS Pharma, ALK further
gains exclusive rights to any new indications in the
licensed territories, enabling ALK to address new,
adjacent disease areas. In 2025, ARS Pharma plans to
begin a Phase IIb clinical trial in people with acute flares
due to chronic urticaria.
Positive results in food allergy
During 2024, ALK progressed its activities in food
allergy. ALK reported positive interim results from its
Phase I/II clinical trial for the peanut tablet. Data
showed that the tablet was safe and well tolerated
across multiple doses. No severe adverse effects and no
cases of treatment emergent anaphylaxis were reported.
The development has now advanced to Phase II for dose
finding and efficacy, and the first patients have already
initiated treatment. Phase II involves around 125
patients in North America and is scheduled to complete
in 2026 after which ALK intends to advance the peanut
tablet programme into Phase III after which it can be
submitted for regulatory approval, expectedly towards
the late 2020s.
ALK’s future portfolio in food allergy also spans novel
concepts in pre-clinical development, including tree nut
allergy.
Full paediatric coverage
Key initiatives with respect to the current core products
were the targeted expansion of the respiratory tablet
portfolio to new prescribers and patients, particularly
children. Work intensified in 2024 to secure regulatory
approvals to expand the product indications for the
house dust mite (HDM) tablet and the tree pollen tablet
to include young children. In December 2024, the
authorities in 21 European countries approved the HDM
tablet for treatment of young children aged five to 11.
Initial market introductions have taken place in ALK’s
ALK-Abelló A/S
Management review
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Lundbeck Foundation Annual Report 2024 Page 20
largest market, Germany, and other key markets.
Subject to approval, the HDM tablet is also projected to
become available for young children in the first half of
2025 in Canada and the USA
Subject to approval, ALK’s tree tablet could also become
available for children and adolescents from mid-2025 in
Europe and Canada. By then, all of ALK’s respiratory
tablets will be approved for all age groups – children,
adolescents and adults – in key markets.
Focus and priorities
Focus and priorities have been top of the agenda for the
past year. In 2024, optimisation and prioritisation
initiatives were implemented across ALK to reduce
complexity and scale for future growth. Initiatives
involved manufacturing and quality optimisations as
well as downsizing of operations in certain markets with
limited immediate growth prospects for allergy
immunotherapy (AIT). The organisation in China was
also adjusted to the new expected timeline for the
ACARIZAX® launch. More than 200 positions were made
redundant, and ALK expects the optimisation initiatives
to generate savings of more than DKK 300m with effect
from 2025.
The savings allow ALK to pursue Allergy+ priorities more
rigorously – by investing in the pipeline, strengthening
the footprint in high-growth markets, and supporting
the launches of the children indications and neffy®,
among other initiatives – while also improving earnings.
Financial performance
Sales
2024 revenue increased by 15% in local currencies to
DKK 5,537m (DKK 4,824m), reflecting continued growth
across Europe and International markets. Europe was
the key growth driver with double-digit growth in tablet,
SCIT/SLIT-drops and Jext® sales. Exchange rates had an
immaterial impact on reported revenue. Following gains
in market share in Germany and other key markets, ALK
consolidated its position as market leader in European
AIT in 2024.
Operating profit
Cost of sales increased by 11% in local currencies to DKK
1,985m (DKK 1,789m). The gross profit of DKK 3,552m
(DKK 3,035m) yielded an improved gross margin of 64%
(63%), mainly reflecting volume growth, changes to the
sales mix, improved pricing and production efficiencies.
As expected, these positive factors were somewhat
offset by inflationary pressure on the cost base and
minor one-off costs related to optimisation activities in
product supply.
Capacity costs increased by 4% in local currencies to
DKK 2,464m (DKK 2,371m). As planned, R&D expenses
decreased by 14% in local currencies to DKK 531m (DKK
618m), reflecting last year’s completion of late-stage
clinical trials. Sales and marketing expenses were up
10% in local currencies to DKK 1,564m (DKK 1,422m) in
support of continued growth. Administrative expenses
increased 12% in local currencies to DKK 369m (DKK
331m), mainly linked to costs for the Allergy+ strategy
process. Optimisation of resources and general savings
contributed positively to the overall cost development.
Operating profit amounted to DKK 1,091m (DKK 666m),
an improvement of 65% in local currencies and 64% in
reported currency. The EBIT margin progressed to 20%
(14%) due to higher sales, gross margin improvements
and a lower capacity cost-to-revenue ratio. The impact
of exchange rates on growth in reported EBIT was
negligible.
Net profit
Net financials were a loss of DKK 34m (loss of DKK 19m)
related to interest expenses and currency losses.
Tax on the profit totalled DKK 242m (DKK 161m), and net
profit increased to DKK 815m (DKK 486m).
Figures for 2023 are shown in brackets
Revenue (DKKm)
5
,537
Operating profit (DKKm)
1,091
Net profit (DKKm)
815
Number of
employees (FTEs)
2,
789
Management review
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Lundbeck Foundation Annual Report 2024 Page 21
Falck delivers preventive, acute and
rehabilitative healthcare services to
supplement and support established
healthcare systems. The Lundbeck
Foundation owns 58% of Falck.
2024 was another year of progress and results in line
with expectations for Falck. Falck delivered organic
revenue growth and improved operating profit while
still increasing its investments in digitalisation and the
development of new healthcare solutions. In addition,
Falck advanced on its sustainability targets. During the
year, most business units improved on operational
efficiency, and continuing this trajectory remains high
on the agenda. The full-year financial results were in line
with expectations, as revenue amounted to DKK 12,134m
and operating profit was DKK 460m.
In the European region, revenue was flat despite a
negative impact from contract changes in Falck’s
European ambulance operations. The contract changes
were compensated for by strong organic growth in the
Individual Care segment. The largest growth
contribution came from stronger demand for Falck’s
pay-on-use based services within both healthcare and
travel and security assistance for corporate customers.
Another contribution came from higher subscription
revenue from healthcare services within Individual Care.
For the Americas region, strong revenue in 2024 was
driven by significant organic growth mainly in Individual
but to some extent also in Societal Care. In Societal Care
US, growth was positively impacted by both higher pay-
on-use activity and, in particular, efforts to improve
revenue collection, which led to more revenue being
recognised per ambulance trip. In addition, a partial
reversal of a fully written-down receivable from a large
player in the US had a positive impact on revenue. In
Individual Care LATAM, strong organic growth was
driven by a solid uptake of subscribers throughout the
year. In both segments, annual indexation of prices also
contributed to growth.
Strategic ambitions with Care for More ’27
The corporate strategy – Care for More ’27 – is the
foundation on which Falck wants to further strengthen
its ability to deliver significant healthcare impacts for
individuals and society at large. 2024 was another year
of progress on Falck’s strategic direction, building on
the achievements of previous years. During the year,
Falck made progress on key digitalisation initiatives
such as platform consolidation, robotic process
automation, customer self-services and generative AI as
well as the development of stronger financial
management systems together with enhanced
cybersecurity measures. These impacts will materialise
as operational efficiencies and improved customer
solutions from 2025 onwards.
Compared to a few years ago, Falck stands stronger and
more focused in its stronghold markets, which include
several European countries, California in the US and
Colombia in Latin America. Falck is increasingly being
recognised for its capacity to deliver a broad portfolio of
healthcare services, spanning prevention, acute care and
rehabilitation for both physical and mental issues.
In 2024, Falck launched private healthcare subscriptions
in Sweden, distributed through workplaces to private
households. In the Danish market, Falck streamlined its
subscription-based healthcare packages. Moreover, Falck
launched an extended healthcare coverage for
corporations with access to additional services. In Latin
America, the focus during 2024 was to scale the doctor-
on-call services to broader audiences in Colombia,
Uruguay and Panama.
In conclusion, Falck progressed well on Care for More ’27
during 2024 by strengthening the delivery of individual
and societal care solutions, thereby helping even more
people live healthy lives.
Falck A/S
In 2024, Falck has updated its business
segmentation within Europe and the
Americas. This has been done with the
introduction of Individual Care and
Societal Care, thereby creating a
consistent approach between the two
regions:
• Europe consists of:
• Societal Care Europe - Emergency response
ambulance and fire services as well as patient
transport services to public-sector customers
• Individual Care Europe - Services that target
individual non-emergency needs such as
mental or physical health, patient transport
as well as travel and security assistance
• Industrial Fire services – Preventive and
emergency response fire services for
corporate customers
• Americas consists of
• Societal Care US – Ambulance service
operations targeting public-sector customers.
Healthcare at home services are currently
being developed and piloted
• Individual Care LATAM – “Doctors-on-
demand” services for individual subscribers
and insurance holders
Management review
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Lundbeck Foundation Annual Report 2024 Page 22
Driving digitalisation and innovation
Since 2023, Falck has invested significantly in the
digitalisation and innovation of sustainable healthcare
solutions. Digitalisation is a key driver in Falck’s pursuit
of improving operational efficiency and cybersecurity.
That is why the investment programme is considerable
in terms of financial resources. Altogether, Falck
invested DKK 213m in digitalisation initiatives during
2024.
Alongside the digitalisation investments, Falck has
made investments in the introduction of new
healthcare at home solutions with Mobile Care in the US
and AcuCare in Denmark during 2024. The purpose of
these services is to reduce acute incidents, ambulance
emergencies and hospitalisations through new ways of
organising healthcare systems. The feedback from
patients receiving home treatment has been extremely
positive with reports of improved health, a sense of
security and greater flexibility. Based on these results,
Falck is encouraged to further mature the market in
2025 in the US and elsewhere.
Falck awarded large ambulance contract
Before the close of 2024, Falck was awarded a major
ambulance contract in Catalonia, Spain. As a result,
Falck will increase its current presence in Catalonia by
approximately 50%, employ around 2,200 employees
compared to about 1,400 today and double the revenue
volume. The new agreement is expected to commence
within one year.
Financial performance
Sales
In 2024, revenue increased to DKK 12,134m (DKK 11,913m),
corresponding to reported growth of 1.9%. This was
mainly driven by organic growth of 1.0%, largely by the
Americas and by a combination of subscription growth,
higher pay-on-use activity and price increases. M&A
activities, mainly due to the acquisition of MedConnect
A/S in Q4 2023, contributed 0.5 percentage points to
reported growth, while foreign exchange effects
contributed 0.4 percentage points.
Operating profit
Cost of services decreased to DKK 9,218m (DKK 9,253m)
despite the increase in revenue. This was driven by
reduced contract volume in Societal Care Europe from
contracts with a higher OPEX ratio than the business
segments that contributed the revenue growth. This
resulted in positive mix effects. Together with
operational efficiency improvements and price
increases, this had a significant positive impact on the
OPEX ratio.
Sales and administrative expenses increased to DKK
2,404m (DKK 2,230m). Almost half of the increase was
due to salary inflation, while DKK 60m of the increase
was attributable to investments in digitalisation. Year to
date, these investments amounted to DKK 213m (DKK
153m). Finally, the increase was also driven by costs for
the continued sales push in LATAM and by costs related
to the launch of healthcare at home services in both
Europe and the Americas. Overall, the SG&A ratio
increased to 19.8% (18.7%).
Operating profit increased to DKK 460m (DKK 388m),
corresponding to an operating profit margin of 3.8%
(3.3%).
Net profit
Net financial expenses increased slightly to DKK 190m
(DKK 181m), and profit before tax was DKK 255m (DKK
205m). Income tax amounted to DKK 139m (income of
DKK 129m). Last year income taxes were positively
impacted by reassessment of deferred tax assets in the
US. Profit for the year was DKK 116m (DKK 334m).
Revenue (DKKm)
1
2,134
Operating profit (DKKm)
460
Net profit (DKKm)
116
Number of employees (FTEs)
18
,890
Figures for 2023 are shown in brackets
Management review
In Brief Performance Partner to Society Governance Consolidated financial statements Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 23
In April 2024, the Lundbeck
Foundation acquired an 8% stake in
WS Audiology, a global leader in the
hearing aid industry. This became the
third minority owned strategic
ownership of the Lundbeck
Foundation.
Ferrosan Medical Devices
Ferrosan Medical Devices (FeMD) is an international
medical device company that develops and
manufactures medical devices used in surgical care.
FeMD’s biomaterial devices are gelatine-based
adjunctive haemostatic agents used by clinical
professionals in the operation room to control
intraoperative bleeding in a fast and effective manner,
allowing surgeons to carry out surgery.
The portfolio of haemostatic devices includes three
formulations, flowable matrices, sponges and powder.
The devices are sold under the trademarks SURGIFLO™,
SPONGOSTAN™ and SURGIFOAM™, and are all marketed
and distributed in more than 100 countries through
FeMD’s partnership with Ethicon, Inc. (part of Johnson &
Johnson).
In addition, FeMD develops and produces handheld
biopsy devices used by physicians for breast cancer
diagnostics. These are developed and distributed in
collaboration with a global partner.
Today, FeMD manufactures the second-generation
biopsy device at its manufacturing site in Poland.
Since 1947, FeMD has developed and manufactured
surgical haemostatic devices for use by healthcare
professionals. Today, FeMD has approximately 500
employees; 360 employees at the headquarters in
Søborg, Denmark, and 140 employees in Szczecin,
Poland.
The Lundbeck Foundation owns 30% of FeMD in a
partnership with Kirk Kapital and ATP.
Ellab
Ellab is the market leading player within high-end
validation, monitoring and calibration solutions,
including field services primarily to life science
customers where accurate and complete
documentation is essential.
Ellab serves both small and large companies, including
the top 40 pharma and top 20 biotech companies in the
world. The company designs, develops and
manufactures high-precision equipment and software
for temperature, pressure and humidity validation and
monitoring.
Ellab has solutions for applications such as sterilisation,
freeze drying, environmental chamber testing,
depyrogenation, warehouse mapping, pasteurisation
and many more. The product portfolio comprises a
comprehensive range of wireless data loggers,
thermocouple systems, wireless environmental
monitoring systems, calibration equipment, software
solutions and accessories.
Ellab was established in Denmark in 1949. Today, Ellab is
headquartered in Hillerød, Denmark, and has a
worldwide presence, with R&D and production in
Denmark, and 24 sales and service centres and over 50
distributors around the globe. Ellab has close to 800
employees, of which approximately 225 are in Denmark.
The Lundbeck Foundation owns 34% of Ellab in a
partnership with Novo Holdings.
Ferrosan Medical Devices, Ellab and WS Audioloy
Ferrosan Medical Devices’
Surgiflo kit
Ellab’s data logger and monitoring device
Management review
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Lundbeck Foundation Annual Report 2024 Page 24
WS Audiology
WS Audiology (WSA) is a global leader in the hearing aid
industry. The company was created through a merger
between the family-owned Widex and EQT-owned
Sivantos in 2019 and was until April 2024 owned by T&W
Medical (51%) and EQT (49%). T&W Medical is owned by
the founding families of Widex, Tøpholm and
Westermann. In April 2024, T&W Medical entered an
agreement with the Lundbeck Foundation whereafter
T&W Medical’s 51% stake in WSA was transferred to a
company - CN8 - where T&W Medical owns 85% and the
Lundbeck Foundation owns 15%. The Lundbeck
Foundation has through CN8 an indirect ownership of
8% in WSA.
Widex dates back to 1956 and Sivantos actually dates
back to 1878 and was originally part of Siemens.
WSA has its global headquarters in Lynge, Denmark, and
has 7 production sites around the world, R&D hubs in
Denmark, Germany, Singapore and India and global
sales from 45 offices. WSA operates under several
brands, Widex and Signia being the most well-known.
The mission of WSA - Wonderful Sound for All - is to
address the growing challenge of hearing loss. With
industry-leading innovation, a diverse portfolio of
solutions and a strong global presence, WSA is very well
positioned to help more people than any other hearing
aid manufacturer.
WSA currently produces around 1/3 of all hearing aids in
the world and has close to 12,600 employees, of which a
little over 1,000 are in Denmark.
The Lundbeck Foundation owns 8% of WSA in a
partnership with T&W Medical and EQT.
Widex SmartRIC
Management review
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Lundbeck Foundation Annual Report 2024 Page 25
Invest generates returns with the
primary purpose of securing sufficient
reserves to protect the long-term
ownership of the Foundation’s
strategic ownerships and to maintain
philanthropic grant activities. The
financial investments are spread
across a diversified investment
portfolio.
2024 was another volatile year for financial markets
with continued geopolitical instability and turbulence
on the political front.
Despite an uncertain world, 2024 in general was a very
good year for financial markets as recession risk
decreased and central banks started to cut interest
rates. A traditional ‘60/40 portfolio’ – which sees
investments allocated 60% to equities and 40% to
bonds – would have experienced a return of nearly 14%
over the full year, as equities in particular experienced
strong gains, though credit and bonds also delivered a
solid performance. Against this backdrop, Invest
delivered a solid return of 14%.
Global equities performed strongly (18% in USD, 26% in
DKK), albeit a story of two tales: The US and rest of the
world. US equities continued the rally from 2023, fuelled
by still strong labour markets, firm consumer
confidence, solid growth and central bank easing. The
S&P 500 index yielded a total return of 25% (USD) for
the year, and the tech-loaded NASDAQ index increased
almost 30%. As was the case for 2023, the “Magnificent
7” stocks contributed significantly, accounting for
almost half of the S&P 500’s total return. The Trump
victory in November further ignited equity markets on
the back of expectations of a turbo-charged US
economy from “America First” initiatives.
Europe’s economies on the other hand had a
challenging year, with its two largest economies,
Germany and France, facing significant headwinds. The
overall situation in Europe is characterised by sluggish
growth, political instability and mounting economic
pressures. Inflation fell below the European Central
Bank’s target of 2% for the first time in over three years,
spurring a series of rate cuts in response and to address
concerns about economic growth within the Eurozone.
The STOXX Europe 600 index increased 10%.
Finally, the world's second-largest economy, China, is
grappling with an economic slowdown and facing
significant challenges as it navigates through a period
of reduced growth, financial strain and weak housing
markets.
Consumers, however, are holding up well overall, helped
by falling interest rates, savings and very low
unemployment figures. The US labour market remained
very strong throughout most of 2024, and European
labour markets proved resilient despite weak growth,
with historically low unemployment rates underscoring
continued market tightness.
Return on the investment portfolio
Invest generated a return of DKK 3,108m in 2024, versus
DKK 2,832m in 2023. The return was primarily driven by
listed equities with a return of DKK 2,387m, or 21% – but
lagging the benchmark return of 24% due to only modest
exposure to the US and US tech. Industrial and financial
sector investments earned the largest positive returns in
absolute terms, while consumer discretionary had a
negative impact on the year. FLSmidth delivered a total
return of 25% and hence contributed significantly to
absolute return.
The bond portfolio delivered a return of 6%, better than
the comparison benchmark portfolio, which recorded 3%.
Invest had a cautious view on bonds during 2022-23 and
thus a low duration on the bond portfolio. Duration was,
however, increased in autumn 2023 and early 2024 and
boosted returns in 2024.
Corporate debt/credit delivered a return of 12%, which was
better than the benchmark portfolio yield of 6%. The
result was driven by distressed debt investments, direct
loans and the internally managed high-yield corporate
debt portfolio. In particular, financial credit assets
performed strongly.
Private equity generated a return of 9% and improved
versus 2023, but performance has lagged listed equities.
Real assets, including real estate and woodland,
generated a minor negative return.
Investment strategy
Invest generates returns with the primary purpose of (a)
securing sufficient reserves to protect the long-term
future of the Foundation’s strategic ownerships; (b)
increasing philanthropic grant activities; and (c)
increasing the overall asset base.
Invest manages DKK 24bn, which is allocated to listed
equities (54%), credit (12%), bonds and liquid funds
(15%), private equity (12%) and real assets (7%). Illiquid
assets represented 23% of the portfolio by year-
end 2024.
Lundbeckfonden Invest
Invest generated a return
of DKK
3,108m in 2024, versus
DKK
2,832m in 2023 primarily
driven by listed equities,
which
generated a return
of DKK 2,387m, or 21%.
Management review
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Lundbeck Foundation Annual Report 2024 Page 26
Invest Portfolio
The majority (58%) of the assets are managed internally
by the investment team. Real asset investments are
mainly invested via partnerships (Obel-LFI Ejendomme
A/S and LFI Silva Investments A/S), while private equity is
fully outsourced.
The investment philosophy is centred around a long-
term fundamental investment focus with a balanced
approach to risk, quality and valuation. All investments
undergo a thorough due diligence process and
investments are selected based on absolute return
potential and risk assessment.
Invest prefers quality companies whose revenues
undergo secular growth driven by forces that will likely
be in place for an extended period. Examples include
energy transition, IT technology and healthcare. Invest
also seeks investments in cyclical quality companies
with deep intrinsic value.
Long-term investment returns
Invest entered 2024 with a pro-risk portfolio
construction and selective approach to risk taking, thus
continuing to tilt investments towards cases with a high
margin of safety supplemented by risk management
using derivatives. In 2024, Invest has added quality
exposure within cyclical and defensive segments of the
equity market.
Invest maintained its long-term track record in 2024
with annual total returns of 7% and 10% over three and
five years, respectively – materially higher than the
benchmark returns of 4% and 6%, respectively. The
accumulated five-year return for Invest is thus 62%
compared to the benchmark return of 31%.
The long-term returns endorse the investment
philosophy of investing in high quality companies across
different sectors with a goal of generating attractive
long-term return without compromising strong near-
term risk management
Investment risk
Invest manages both short- and long-term investment
risks, ensuring adequate reserves to protect the long-
term future of the Foundation's strategic ownerships.
The main risk in relation to long-term returns is the
investment team's ability to select the right
investments and external managers. Invest has
developed a structured process and a solid fundamental
due diligence investment framework for each asset
class, with the key aim of opting out of weak
investments and understanding the risks in each
investment.
Portfolio construction considers the quality of the
investments, expected return potential, risk assessment
and overall knowledge level of the sector and company.
The portfolio is well diversified.
Over the past 5 years, Invest has continuously
strengthened its risk management, primarily by
improving the quality of the listed stock portfolio
through enhanced investment processes and the
incorporation of derivatives for hedging. Recently, the
investment strategy and process for credit and private
equity were adjusted.
Short-term risks mainly relate to external risks such as
geopolitics and macro risk. Invest manages these risks
ad hoc and seeks to take advantage of excessive market
movements. In 2022-23, Invest successfully navigated
the turbulence in the bond market, and in 2024 Invest
has benefitted from a large exposure to listed equities.
Investment portfolio
Market value (DKKm)
Return (%)
Assets
31.12.2024
31.12.2023
2024
2023
Bonds and liquid funds
3,467
3,022
5.6%
7.0%
Credit etc.
2,840
3,245
11.7%
11.2%
Listed equities
12,817
12,266
20.5%
21.5%
Private equities
2,851
2,554
9.3%
-0.5%
Real assets
1,804
1,913
-0.1%
0.1%
Total
23,779
23,000
14.1%
13.0%
Return past five years (%)
8%
24%
- 6%
13%
14%
- 10%
0%
10%
20%
30%
2020 2021 2022 2023 2024
DKK 24bn
Management review
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Lundbeck Foundation Annual Report 2024 Page 27
BioCapital is the Foundation’s
evergreen life science venture capital
fund. The fund creates and finances
biotech companies based on
pioneering research with the potential
to deliver significant innovation to
patients in areas of high unmet
medical need.
2024 was an eventful year for Lundbeckfonden
BioCapital and for our portfolio companies. During 2024
we continued to focus on the local Danish biotech
ecosystem and the year saw us close a new seed
investment into the Danish quantum computing
company Kvantify. While not a traditional biotech
opportunity, the investment builds on local excellence in
quantum research, which has the potential to
revolutionise drug discovery over the coming years. 2024
was also the year when we started to execute on our
sustainability programme by co-creating and testing a
recruitment and company building programme with
three of our portfolio companies generating tools and
learnings that will be shared more widely across our
portfolio in the coming years.
From a financial perspective, the year continued the
trend from 2022 and 2023 with depressed public
markets putting pressure on company valuations, in
turn complicating fundraising activities for both public
and private companies across the biotech industry.
Despite these challenges our portfolio continued to
perform well with several successful private as well as
public fundraises and many positive clinical updates.
NMD Pharma continued to build momentum by
initiating two Phase II studies in 2024 and the company
is now undertaking three concurrent Phase II studies in
separate neuromuscular indications, a remarkable
achievement for a private biotech company. Following
the success of last year’s Phase IIa trial in Myasthenia
Gravis, the company initiated a Phase IIb study in the
same indication and in November the company
launched a Phase II study in Charcot-Marie-Tooth
Disease Type 1 and 2, a hereditary neurological disorder
with no approved treatment affecting motor and
sensory functions and resulting in progressive loss of
muscle tissue and touch sensation.
Several other companies from the Danish portfolio,
including IO Biotech, Vesper Bio and Cytoki Pharma, also
made substantial progress on advancing their clinical
pipeline. At a pre-planned interim review of IO Biotech’s
Phase III melanoma study, the Independent Data
Monitoring Committee (IDMC) confirmed that the study
should continue without modifications with the primary
endpoint of progression-free survival (PFS) expected
during 2025. During a productive year, the company also
provided positive updates from ongoing Phase II trials in
patients with non-small cell lung cancer and head and
neck cancer.
Meanwhile, Vesper Bio completed a Phase I study in
healthy volunteers with their lead programme VES001, a
small- molecule sortilin inhibitor with the potential to
become a disease-modifying treatment for certain
inherited forms of Frontotemporal Dementia (FTD). The
study confirmed that dosing of VES001 is safe and leads
to an increase in progranulin levels, a key biomarker of
target engagement. The company initiated a Phase IIa
study in presymptomatic carriers in late 2024. Sortilin
inhibitors also have potential as disease modifying
treatments for Parkinson’s disease and during the year
Vesper Bio was successful in securing a substantial
preclinical grant from The Michael J. Fox Foundation for
Parkinson's Research.
Last but not least, Cytoki Pharma concluded a
successful Phase I trial of CK-0045, a long-acting IL-22
analogue, demonstrating clinical effects across several
key metabolic parameters in healthy obese volunteers
including body weight, cholesterol, blood glucose levels,
and insulin resistance, suggesting the potential for a
completely new class of weight loss and diabetes
therapeutics. Building on this data, the company
initiated a placebo-controlled Phase II study in patients
with obesity and type 2 diabetes.
Fundraising activities also continued in 2024. SNIPR
Biome secured up to EUR 20m in loan financing from
the European Investment Bank (EIB) supported by HERA
Invest, a top-up to the European Union’s Invest EU
initiative. The funds will be used to develop advanced
therapies against microbial resistance. Further, IO
Biotech secured a debt facility of up to EUR 57.5m from
the EIB to help fund the continued development and
pre-commercialisation of its leading cancer vaccine.
Our international portfolio continued to make progress
as several companies reached significant clinical or
commercial value inflection points or succeeded in
raising funds to continue development.
scPharmaceuticals continued to build on their
successful launch of FUROSCIX
®
, reporting Q3 2024
Lundbeckfonden BioCapital
2024 was a year of execution,
which saw the initiation of
several key clinical proof
-of-
concept studies, setting the
scene for a busy 2025 with
important value inflection
points. 2024 was also the year
when we started to apply our
sustainability programme as
we pilot tested our new
initiative to support and guide
our portfolio companies on
their sustainability journey.
Management review
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Lundbeck Foundation Annual Report 2024 Page 28
revenues of USD 10m, an increase of 164% from the
same quarter last year. The company also announced a
label expansion in the existing heart failure indication
and raised up to USD 125m in debt and royalty financing
to fund expansion of the commercial activities.
Other companies from our international portfolio also
raised capital in 2024. Lexeo Therapeutics raised USD
95m in equity financing, extending their runway into
2027, while Enliven Therapeutics took advantage of
positive results from a Phase I study of their lead
programme by raising USD 95m in a private investment
in public equity (PIPE).
Lexeo, Enterome, Trevi, Aura and Enliven all provided
positive clinical updates from ongoing trials. During the
year, Lexeo presented positive clinical data from two
separate clinical studies. In an October update, the
company reported that administration of LX1001, a gene
therapy encoding APOE2, resulted in positive biomarker
responses in Alzheimer’s patients. In an update earlier in
the year, the company had reported a positive effect on
biomarkers of heart structure and function of LX2006 in
Friedreich Ataxia Cardiomyopathy, an inherited
neuromuscular disorder. Enterome presented data
from a Phase I/II mono-therapy study with an off-the-
shelf B-cell vaccine in indolent non-Hodgkin lymphoma
at the 2024 American Society of Hematology (ASH)
meeting demonstrating a high rate of objective
responses and benign side effect profile.
In December, Trevi reported data from an abuse liability
study, a key regulatory requirement, confirming that
their lead product, Haduvio™, has less abuse potential
than the reference compound butorphanol, a schedule
IV-controlled substance. Later during the same month,
the company announced a positive outcome from the
pre-planned sample size re-estimation for the ongoing
Phase IIb study in chronic cough in idiopathic
pulmonary fibrosis (IPF), an important milestone in the
study. Enliven reported initial results from an ongoing
Phase I study in Chronic myeloid leukaemia. The data
demonstrated a favourable tolerability profile and
provided evidence of activity in heavily pre-treated
patients, confirming the possible best-in-class potential
of ELVN-001. The company also initiated a Phase I study
of a second pipeline programme, ELVN-002, in patients
with HER2+ cancers.
Aura Biosciences provided an update on the first 13
patients in a Phase I study in Non-Muscle-Invasive
Bladder Cancer, emphasising multiple complete clinical
responses after a single low dose of belzupacap
sarotalocan (bel-sar). The study highlights that the
company’s platform may be applicable to non-ocular
malignancies. The company also provided an end of
study report on their Phase IIb study in choroidal
melanoma confirming positive data from earlier interim
readouts. An ongoing Phase III study is expected to read
out in 2026.
Finally, Folium Science’s CRISPR-based product
BiomElix
®
One was approved by Brazil’s Ministry of
Agriculture (MAPA) for use as an animal feed additive
and included in their Positive List of Feed Ingredients.
There was also disappointing news from the portfolio, as
Spero Therapeutics announced a Phase II failure of
SPR720 and subsequent termination of the programme.
In other news, Reneo Therapeutics completed their
reverse merger with OnKure Therapeutics. This follows
the clinical failure of Reneo’s lead programme in late
2023. The new company will trade under the name
OnKure Therapeutics. In December, the company
released initial data from the Phase I study of the lead
compound OKI-219, a mutation-specific PI3Kα inhibitor.
Financial results
The net return for the year was DKK 108m, versus
DKK 772m in 2023. The positive result reflected an
increase in the valuation of the private portfolio driven
by clinical progress and selected positive market
developments during the year partly offset by a
negative share price development during the year in the
US public biotech market.
At year-end, the BioCapital portfolio comprised 21
companies, of which eight were listed. The fair market
value of the portfolio was DKK 2,884m at 31 December
2024, compared to DKK 2,886m at the end of 2023. The
complete portfolio is listed to the right and on the
following pages.
Public Portfolio Companies
Aura Biosciences’ first product candidate, the laser-
activated AU-011, is currently being investigated in a
Phase III study for the treatment of patients with small-
to-medium primary ocular melanoma.
Enliven Therapeutics is developing best in class small
molecule kinase inhibitors to treat cancer. The company
currently has two compounds in Phase I.
IO Biotech develops disruptive cancer immune
therapies, targeting immunosuppressive cells in the
local tumour environment. The combination of the
company’s lead programmes, IO102 and IO103, currently
in late-stage clinical development, has been granted US
Food and Drug Administration (FDA) ‘breakthrough
therapy’ designation in combination with anti-PD-1
antibodies for patients with unresectable metastatic
melanoma.
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Public Portfolio Companies (continued)
Lexeo Therapeutics is progressing a pipeline of gene
therapy programmes based on the company’s AAV10
platform. The lead programme targets treatment of the
cardiomyopathy that occurs in patients suffering from
the genetic disorder Friedreich’s ataxia (FA).
OnKure Therapeutics is developing best in class PI3Kα
inhibitors for the treatment of solid tumours. Lead
programme is currently in Phase I.
scPharmaceuticals is marketing a proprietary
subcutaneous furosemide formulation for heart failure
diuresis that is delivered via an easy-to-operate, on-body
infusion pump.
Spero Therapeutics is a multi-asset, clinical-stage
pharmaceutical company, focused on identifying,
developing and commercialising novel treatments for
multi-drug resistant (MDR) bacterial infections.
Trevi Therapeutics is engaged in the late-stage
development of Haduvio™ (nalbuphine ER) for the
treatment of chronic cough for patients with idiopathic
pulmonary fibrosis.
Private Portfolio Companies
Akamis Bio is a clinical stage company developing gene-
based, immuno-oncology treatments for solid tumours,
using its proprietary, intravenously administered T-SIGn
virus platform.
Cytoki Pharma is a biotechnology company focused on
serious diseases caused by epithelial injury with unmet
medical needs. The company’s lead programme is a
long- acting interleukin-22 for use in metabolic and
inflammatory disease, and other pathologies related to
epithelial tissue injury. Cytoki is running a Phase II study
in obesity and type 2 diabetics.
Dania Therapeutics is a discovery stage company
developing first in class small molecule drugs to treat
Acute Myeloid Leukaemia (AML) and other cancers.
Dysis markets high-resolution, digital colposcopes with
an adjunctive map overlaid on a live image of the cervix,
to help with identification of the most relevant biopsy
sites when cancerous and pre-cancerous cervical cancer
lesions are suspected. Dysis’ activity has been divested
in 2025.
Enterome is pioneering the development of novel
microbiome-inspired peptide drugs. Enterome is in
Phase II studies in several oncology indications.
Folium Science uses CRISPR technology to eliminates
harmful microbes and bacteria, while preserving the
beneficial ones, resulting in a healthier animal gut.The
technology has applications in the food and feed
industries and the first product is aimed at controlling
salmonella in industrial chicken feed.
Kvantify is a commercial-stage company developing
quantum-ready software for computer-aided drug
design (CADD) to accelerate drug discovery.
NMD Pharma develops innovative medical treatments
for rare neuromuscular diseases based on world-leading
electrophysiology science. The company has three
ongoing clinical Phase II programmes.
Notify Therapeutics is a discovery stage company
developing hormone-free small molecule drugs for the
treatment of infertility in women.
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Private Portfolio Companies (continued)
SNIPR Biome is a clinical-stage company developing new
therapies based on the CRISPR gene technology. The
company’s technology enables gene therapy of the
microbiome or precision killing of bacteria. The lead
clinical product is designed to prevent bloodstream
infections caused by fluoroquinolone-resistant E. coli.
Sorriso is developing gastrointestinal tract-restricted
antibodies to treat inflammatory bowel disease (IBD)
and other inflammatory diseases. The lead candidate is
in Phase II development.
VarmX is a clinical stage company developing a novel
reversal agent to safely and effectively restore
haemostasis in case of bleeding or emergency surgery in
patients taking oral factor Xa inhibitors.
Vesper Bio is developing new products focused on
central nervous system and peripheral diseases. The
lead programme, targeting frontotemporal dementia, is
currently in Phase II clinical development.
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In the Foundation’s strategy from 2020, one of the main
goals was to bring discoveries to lives by supporting a
research environment that strengthens the
collaboration between basic and clinical research, with
the aim of better prevention, diagnosis and treatment
of brain diseases. In 2024, the Foundation, together with
Aarhus University, initiated Lundbeck Foundation
Parkinson’s Disease Research Center (PACE) as the first
major strategic initiative. The Neurohub will strengthen
the integration of basic and clinical research.
DKKm
Prizes 13
Talent development in biomedical science 129
Research benefitting neuroscience 194
Research in neuroscience 658
Science engagement and communication 33
Other grants 47
Total grants in 2024 1,074
Other grants include donations of DKK 138,105 to descendants.
Besides strategic initiatives, the Foundation continued
its support of outstanding biomedical research, with a
strong commitment to talent development and
research in basic and clinical neuroscience.
Alongside research grants and prizes, the Foundation
supported activities to strengthen and facilitate
networks between scientists, as well as to increase
awareness about the brain and the importance of brain
health among the Danish population.
The total grant sum amounted to DKK 1,074m, versus
DKK 592m in 2023. The grant sum reflected a
commitment to strategic initiatives of DKK 500m.
In the relevant open calls during 2024, the Foundation
implemented the new model for the Foundation’s
coverage of indirect costs agreed between six private
foundations and the eight Danish universities.
In 2025, discussions are continuing with Danish
universities and hospitals on Neurohubs and national
strategic initiatives supporting translational research in
neuropsychiatry.
Grants & Prizes
The Lundbeck Foundation’s ambition is to make Denmark a
frontrunner in the field of neuroscience by funding Danish
-based
research that promotes an improved understanding of the brain as
well as better prevention, diagnosis and treatment of brain disorders.
The
Foundation also supports activities to improve collaboration
between research and
business.
Total grants (DKKm)
1,074
Number of grants
186
Support for brain research (DKKm)
947
Number of full time employees funded
1,012
S
trategic programmes
A
neurohub is a centre where
basic and clinical research are
co
-located.
National strategic initiatives
involve two or more research
centres
with complementary
competencies working
towards a common goal
.
Both aim to solve complex
research problems
that
require interdisciplinary
approaches.
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Lundbeck Foundation Parkinson’s Disease
Research Center (PACE)
In 2024, the Foundation initiated the first of a number
of larger strategic initiatives and awarded DKK 223m to
the Lundbeck Foundation Parkinson’s Disease Research
Center (PACE) at Aarhus University Hospital with
Professor Per Borghammer as leader of the
multidisciplinary NeuroHub.
Neuroscience Academy Denmark (NAD)
The Foundation awarded the Neuroscience Academy a
grant of DKK 222m to expand the group of 48 PhD
students recruited since the programme started in 2021
with an additional 48 PhD students to start over the
next three years. The PhD programme is differentiated
from standard PhD programmes by adding an initial
year with rotations between Danish neuro-research
laboratories. The aim of the Academy is to enhance the
neuroscience PhD level and, by working between
universities, strengthen the coherence of Danish
neuroscience research activities.
Center for Pharmaceutical Data Science
Education
The Foundation has awarded DKK 43m and together
with the Novo Nordisk Foundation and LEO Foundation
awarded DKK 123m in total to establish the Center for
Pharmaceutical Data Science Education, the aim of
which is to integrate data science disciplines into the
pharmaceutical science education in order to equip
candidates and PhDs to master both “data and drugs”.
The additional grants were distributed across the
following categories:
Grants supporting research in neuroscience
Grants in this category support research aimed at
solving a fundamental problem in neuroscience or
research into brain-related diseases. The grants were:
• LF Collaborative Projects focus on complex, basic or
clinical neuroscience projects that require
collaborative efforts. DKK 120m was awarded to 5
projects. The supported projects included studies in
brain cancer, AI in mental health and schizophrenia
risk genes.
• LF Projects Challenge-Young was awarded DKK 12m
to investigate the use of virtual-reality-augmented
technologies in adolescents with auditory
hallucinations. The project is integrated as a
subproject in the “Best for You-DK” programme.
• Startup grants to support recruiting international or
industry-based scientists to Danish universities. DKK
16m was awarded to two grantees.
• Imaging platform at University of Copenhagen was
granted DKK 2m.
• Centre for Music in the Brain was awarded DKK 10m.
Grants supporting research with the potential
to benefit neuroscience
Grants in this category broadly support research or
technologies where the applicant can propose a
potential benefit for neuroscience and therapies for
nervous system disorders. The major grants were:
• LF Postdoc grants support postdoctoral scientists
who wish to strengthen their research development
through changes in research environment or topics.
DKK 48m was awarded to 20 postdocs, of which seven
bring international experience to Denmark and 11 gain
international experience by studying outside
Denmark.
• LF Ascending Investigators are independent
researchers leading smaller groups with projects to
build the groups or redirect their research. DKK 84m
was awarded to 15 investigators (five professors and
seven associate professors as well as three medical
professionals). Nine grantees used the option for an
additional DKK 1m to support international exchange.
• LF Experiments focus on funding high-risk, ground-
breaking research ideas. DKK 60m was awarded to 30
projects.
Grants supporting talent development in
biomedical and health-related science
Grants in this category support the development of
talented researchers in all aspects of biomedical and
health-related science. The grants were:
• Early-Career Clinician Scientist grants aim to
support talented medical doctors who, concurrent
with their clinical specialisation, want to retain an
active research career. DKK 23m was awarded to 11
projects and six of the projects were in neuroscience
(migraine, Alzheimer’s disease, depression,
encephalitis, genetics in psychiatry and familial
frontotemporal dementia).
Lundbeck Foundation Parkinson’s Disease
Research Center (PACE)
Professor and
Senior Consultant
Per Borghammer
The vision is to build a world-leading translational
research centre based at Aarhus University
Hospital (AUH).
The centre will focus on Parkinson’s Disease and
other Lewy body disorders with the aim of
discovering and validating novel innovative tools,
biomarkers and disease-modifying mechanisms,
all of which can be translated into clinical trials
within a 10-year timeframe.
“To realise our high ambitions, we will be building
a top-tier research environment with
international collaborations of a multidisciplinary
nature and with a strong focus on talent
attraction and development,” says Per
Borghammer, Professor and Senior Consultant,
Department of Nuclear Medicine & PET centre,
Aarhus University Hospital and Aarhus University.
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• LF Fellows are talented, young researchers who wish
to establish or expand their own independent
research groups in Denmark. DKK 50m was awarded
to five scientists: two in neuroscience (pain processing
and genetics in mental disorders), and three in other
areas (cellular stress, chromatin repair and cancer).
Prizes
The Brain Prize is the world’s largest international
neuroscience prize, dedicated to scientists who have
made an outstanding contribution to neuroscience. The
DKK 10m Brain Prize 2024 was awarded to Professors
Larry Abbott, Terrence Sejnowski and Haim Sompolinsky
(all US) for their pioneering contributions to the field of
computational and theoretical neuroscience and
seminal contributions to our understanding of the
principles that govern the brain’s structure, dynamics
and the emergence of cognition and behaviour.
His Majesty The King presented The Brain Prize to the
2024 winners at an awards ceremony in Copenhagen.
Brain Prize outreach activities bring the outstanding
science behind each year’s Brain Prize to the scientific
community. Six webinars on “Neural Circuits of the
Mind: Frontiers of Computational Neuroscience” were
organised and chaired by the Brain Prize winners
together with 14 other leading scientists who provided
in-depth insights. A series of Brain Prize plenary lectures
were also given at several international meetings. A film
collection covering the winners’ scientific journey,
patient case stories and educational films was also
produced.
The Scientific Enrichment Prize is a personal prize of
DKK 100,000, awarded in 2024 to Professor Bjørn
Ebdrup, Psykiatrisk Center Glostrup, for his cross
disciplinary research using quantitative measures and
biomarkers to improve treatment of psychosis. He also
pays active attention to diversity and lived experiences
when recruiting members to his research team.
The Young Investigator Prize of DKK 1m, for promising
researchers under the age of 40, was awarded to
Professor and biotech entrepreneur PhD Andreas
Hougaard Laustsen-Kiel, Technical University of
Denmark, for his contribution to antibody engineering
technologies and pioneering work in developing
engineered human antibodies as snake bite antivenom
combined with an exceptional innovation mindset
resulting in eight startup companies.
Five Talent Prizes of DKK 300,000 each for promising
young researchers under the age of 30 were awarded to
PhD fellow Eva Havers-Borgersen, Rigshospitalet (linking
women’s diseases to heart disease); postdoc Mathias
Maagaard Blem, Zealand University Hospital
(minimising postoperative pain); MD, PhD student Adile
Orhan, Zealand University Hospital (improving outcomes
for cancer patients); PhD fellow Drummond E-Wen Joe
McCulloch, Rigshospitalet (Scanning brains on
psychedelic drugs) and PhD student Haidar M. Al-
Khazali, Rigshospitalet (locating the headache on/off
switch).
Science education and communication
The Foundation supports science education projects at
high school level and above that help to promote a
better understanding of the brain and brain disorders as
well as science communication projects to promote a
better understanding of brain disorders and their
consequences. In 2024, the Foundation granted DKK
33m to 21 projects, including DKK 9m for the exhibition
“SUPER-krop” at Experimentarium and support for the
Alzheimer’s Association’s activities following the
television broadcast “The Dementia Choir”.
In addition, more than 30 scholarships were awarded
by seven scientific societies through grants totalling
DKK 6m.
Other activities
Frontier Grants serve a dual purpose by supporting
advanced research ideas to a stage where they can
become attractive for investors while at the same time
supporting the training of the lead scientists. Four
grants totalling DKK 20m were awarded to explore a
new obesity drug, gene therapy, treatment of pancreatic
cancer and stem cell therapy for Parkinson’s disease.
Neurotorium is an open, online platform
(www.neurotorium.org) launched in 2022 that is aimed
at clinicians and educators of clinicians, covering topics
about the brain and its diseases and attracting more
than 450,000 visits in 2024.
The scientific content is governed by a board of
internationally renowned neurologists and psychiatrists.
The platform contains comprehensive slide decks
covering selected indications, including a new deck in
2024 on stroke and bipolar disease, videos, illustrations
and a three-dimensional brain atlas.
PhD fellows from all three cohorts came together at
Neuroscience Academy Denmark’s (NAD) annual meeting in
October 2024. The full group counts 48 fellows.
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The ambition for our active public
voice is to enhance public
understanding of the importance of
brain health, improve the conditions
for research in Denmark and the
development of the enterprise
foundation model as a responsible and
sustainable business ownership
framework.
Advancing Brain Health Awareness
Raising public awareness about the importance of brain
health requires accessible and relevant knowledge. To
this end, the Foundation updated its “Hjernerapporten
2.0”, an expanded version of the original 2021 report,
after dialogue with patient organisations. The report
sheds light on the prevalence and economic burden of
brain diseases in Denmark.
In 2024, the Foundation contributed to the
international Brain Awareness Week by hosting several
public meetings in Copenhagen and Aarhus, featuring
leading Danish neuroscientists Professor Søren Dinesen
Østergaard, Associate Professor, Ole Köhler-Forsberg,
Professor Bjørn Ebdrup, and Associate Professor Lise
Glenthøj, sharing their insights on the themes;
dementia, schizophrenia and stroke, and updating the
audience on the latest scientific developments.
The concept was mirrored at Folkemøde 2024 (The
Democracy Festival of Denmark), where Professor Peter
Lund Madsen on behalf of the Foundation moderated
several debates on brain health with invited guest
speakers on the stage, including Associate Professor Dea
Siggaard Stenbæk, MD and PhD Mathias Ebbesen
Jensen, Craftsperson and Psychologist Anne Kirketerp,
Specialist in Child and Adolescent Psychiatry Jeppe
Plesner, and Freja Sangild Boysen, Founder of Social
Space, a non-profit organisation working to improve
young people's mental health.
Also, on Kulturnatten (Copenhagen Culture night
October 2024), the Foundation organised two highly
attended events at Panum, the Faculty of Health and
Medical Sciences at Copenhagen University, inviting the
public to learn more about addiction and dopamine,
featuring Professor Ulrik Gether. The evening also
included a creative ‘drawing lab’ for children, providing
an engaging approach to learn about healthy brain
habits.
Emphasis on Talent Development
In 2024, the Lundbeck Foundation prioritised talent
development. In collaboration with the Novo Nordisk
Foundation, the Foundation published and launched a
white paper addressing the barriers faced by highly
educated international talents moving to Denmark to
continue their scientific careers. The study, conducted
by Axcel Future (now Erhvervslivets Tænketank), was
supplemented by legal insights from the law firm
Kromann Reumert.
Attracting and nurturing the next generation of
scientists is essential for sustaining a vibrant, world-
leading research community and for positioning
Denmark as a stronger international hub for healthcare
and neuroscience research. This focus aligns with the
Danish government’s strategies for entrepreneurship
and life sciences, which emphasise talent attraction.
Supporting Innovation and Entrepreneurship
In 2024, the Foundation joined a partnership with the
Danish Ministry of Business and Financial Affairs and
other enterprise foundations to enhance
entrepreneurial environments within Denmark’s key
industries. A thriving innovation ecosystem within
biotech is critical for establishing Denmark as a leading
life sciences nation.
Promoting the Enterprise Foundation Model
The enterprise foundation ownership model was also a
key topic at the Folkemøde 2024. The Foundation joined
a panel with politicians, an advisor, and Danish Chamber
of Commerce CEO Brian Mikkelsen to explore how this
model could benefit more companies. Additionally,
Lene Skole participated in a debate with the CEO of
TrygFonden on fostering growth for publicly listed
companies.
Active public voice
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Lundbeck Foundation Annual Report 2024 Page 35
The Lundbeck Foundation’s risk
management framework provides a
systematic approach to identifying,
monitoring, managing and reporting
risks and opportunities in a changing
environment.
The Lundbeck Foundation strives for a reasonable
balance between value creation and risk exposure in its
work to deliver on its longer-term strategic targets.
Risk assessment is an important part of the
Foundation’s business procedures, allowing it to
respond appropriately to changing circumstances and
to integrate risk management into the development of
the Foundation’s strategy. The risk management
framework includes a ‘top-down’ as well as a ‘bottom-up’
approach to risk mapping, which identifies key risks that
the Foundation faces.
The most important risks relate to the business risks of
the Foundation’s strategic ownerships – particularly the
subsidiaries – as well as the financial risks related to its
portfolio of other investments. Assessing and mitigating
these risks is important for long-term value creation, as
well as for the ability of the Foundation and its
subsidiaries to execute on the strategy.
As a foundation with significant positions in the Danish
business and research communities, reputational risk is
an important factor. In relation to grant-making, there
is a strong governance framework in place to cover
these activities, setting high standards designed to
protect the Foundation from excessive risk.
Risk assessment and management
As a business owner and investor, risks are a natural and
integral part of the Foundation’s activities. However, by
incorporating risk management at both entity and
group level into the risk assessment framework, and by
balancing its capital allocation, the Foundation
mitigates risk to what it considers to be an acceptable
level.
The Foundation is faced with several types of risks,
including business, operational, cyber and market risks –
including fluctuations in interest rates, share prices,
exchange rates and credit spreads - as well as
reputational risks. Through understanding of its
ownerships and of its own internal operations, other
investments and grant activities, the Foundation
aggregates the various risk factors and identifies the
most important ones in terms of probability and
potential impact.
A risk analysis report - including proposed mitigating
actions – is prepared and submitted biannually to the
Foundation’s Board of Directors. More frequently,
updates on exposure to risk factors, such as industry
and geographical concentrations, are submitted to the
Investment Committee, which meets on a quarterly
basis. The Foundation’s Management Team monitors
the development of current and potential risks on an
ongoing basis.
The overall risk level is assessed in the risk reports. The
Foundation has a long-term horizon for its activities,
and the current strategy spans until 2030. Similarly, the
Foundation takes a long-term view on potential risks
and risk management, spanning at least 10 years.
Diversification across the Foundation’s different
investments and activities is a central part of the
Foundation’s approach to risk management, and this is
adjusted continuously, depending on the risk
assessment, to ensure that there are sufficient financial
resources to support the Foundation’s activities.
The most recent risk assessment exercise resulted in
the identification of a range of strategic, operational,
financial, political and reputational risks that could
potentially pose a threat to the Foundation. A key
priority for the subsequent work has been to ensure
that no single risk can materially damage the
Foundation, and that the Foundation would be able to
continue its operations and strategy should any one or
more of the risk factors materialise. To ensure this is the
case, each of the risks identified has an assigned owner
who is responsible for actively managing and mitigating
the risk.
The key risks that have been identified are presented in
the table on pages 37-38, together with details of the
mitigation measures that have been put in place.
Risks related to the strategic ownerships
Business and financial risks associated with the
operation and performance of the Foundation’s six
strategic ownerships, Lundbeck, ALK, Falck, Ferrosan
Medical Devices, Ellab and WS Audiology, are most
effectively managed within each business. Consequently,
the boards of directors and management teams at each
individual company define their own risk management
policies and procedures.
The Foundation is represented on the board of directors
of each strategic ownership and monitors the business
performance of the companies closely. Descriptions of
each company’s approach to risk management are given
by each of the companies in their own annual reports.
Reports on business- and risk-related issues associated
with the strategic ownerships are provided monthly to
the Foundation’s Board of Directors.
Risks related to the Foundation’s other investments
The Board of Directors defines the Foundation’s
investment policy, while compliance with the policy is
monitored by the Investment Committee.
The Foundation manages the market risk of its
investments by having limits for its exposure to
individual asset classes and their underlying assets. This
policy covers the whole portfolio, including investments
by BioCapital.
To manage interest rate risk, limits for the duration of
bond investments are defined. Derivative financial
Risk manaement
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instruments, such as swaps, options and forward
contracts, are used for risk management purposes and
as an alternative to buying the underlying assets.
The investment policy governs the use of such
instruments regarding maturity, quantity and
counterparty requirements.
Weekly portfolio performance reports are prepared for
the CEO, and detailed monthly reports are prepared for
the Board of Directors.
Finally, all investments must comply with the
Foundation’s environmental, social and governance
(ESG) principles. The portfolio investments are
monitored for issues related to ESG principles. An ESG
status report is reviewed and approved by the CEO and
the Investment Committee twice a year. In 2024, no
investments were identified as being in violation of the
ESG principles.
Risks related to IT security
In recent years, several major cyber-attacks have been
launched against companies and organisations around
the world.
Each of the ownerships and the Foundation rely on their
IT platforms to run their businesses and the Group
owns various types of intellectual property rights.
Consequently, the Group is a potential target for cyber-
attacks or industrial espionage, and it is a strategic
priority to continuously improve cyber-security.
As IT platforms differ across the Group, cyber-security is
managed by each company and the Foundation
separately. Each has programmes designed to improve
resilience against cyber-attacks. In addition, cyber-risk
awareness campaigns are conducted regularly
throughout each organisation to minimise risks
resulting from phishing emails and similar threats.
Risk reporting and management
The Foundation’s risk reporting and management
framework is illustrated in the figure to the right.
[Image text]
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Risks and Mitigation (1/2)
Risk
Distress in the Foundation’s strategic
ownerships
The strategic ownerships accou
nt for 66%
of the Foundation’s total net wealth
Research and development risk in
pharmaceutical subsidiaries
Supply, Quality & Product Safety in
pharmaceutical subsidiaries
Financial market crisis effect on Invest
The financial investments account for 33%
of the Foundation’s total net wealth
BioCapital – loss on investments
The portfolio companies account for 4% of
the Foundation’s total net wealth
Context
Poor performance, ultimately resulting in
value destruction of the Foundation’s
shareholdings in the companies
Lack of a successful pipeline in
pharmaceutical subsidiaries will limit long
-
term growth in the companies and result in
value
destruction
Disruption of production and supply, and
loss of licenses
Defects in product quality or safety, and
potential loss of license to manufacture or
sell pharmaceuticals
Financial losses due to financial turmoil
and possible economic recession
Unsuccessful development and/or
commercial failure of portfolio companies
Mitigation
Engaged ownership with a focus on:
• The overall strategy and key activities
• Board and executive management
composition to ensure the right
competencies
• A sound capital structure to support the
strategy
• Good governance with delegation of
duties
• Representation on the boards
• Diversification through several different
companies
• The companies’ own risk management
procedures and their mitigating actions
High quality research and development with
a focus on:
• New, innovative drugs in areas with
unmet medical needs
• Ongoing evaluation of the product
pipelines, regulatory requirements and
product benefits
Active involvement through:
• Board and executive management
composition to ensure the right
competencies
• Representation on the scientific
committees in the subsidiaries
• A sound capital structure to support
research and development
Supply chain and production resilience:
• Initiatives to ensure resilience in
production and supply chain include
monitoring, production forecasting, safety
stock supply of key products, alternative
supply strategy, long-term contracts,
reducing manufacturing complexity and
management of key third parties
Rigorous
Pharmacovigilance system, policies,
procedures and surveillance to ensure
quality and safety of products
Diversified portfolio
Close monitoring of financial and non
-
financial risks in the portfolio and dynamic
hedging and
adjustment of exposure
Limits on market and concentration risks
through investment policy
Close monitoring of risks in the portfolio
and active participation on boards
Diversified investment in a broad portfolio
of life science companies
Understanding the risk in portfolio
companies and investing in tranches
Management review
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Risks and Mitigation (2/2)
Risk
Misuse of grants
Geographical exposure to the USA
Group exposure to the US market is nearly
38% of total revenue
Price pressure in the healthcare sector
Group exposure to healthcare accounts for
62% of the Foundation’s total net wealth
Legal and compliance
IT security
Context
Fraud or scientific misconduct by grant
recipients
Exposure to the USA through the strategic
ownerships and investments
Regulation or market dynamic that lowers
the prices for drugs
Non-compliance with applicable laws,
industry standards and regulations
Loss, expiration or infringement of
intellectual property rights
Regulatory changes may affect future
profit and level of grants
Cyber-attacks and cyber-fraud
System down-time
Mitigation
Transparent grants allocation processes
Peer reviews by external
scientists
Status reports and budget follow
-ups
Code of conduct signed by grant recipients
Ongoing monitoring of exposure to the USA
and adjustment of exposure
Hedging against exchange rate risk (USD)
and financing of companies in USD
(strategic
subsidiaries)
Limit on exposure to pharmaceutical
companies in the Foundation’s liquid
investment portfolio
Focus in pharmaceutical companies on:
•
Innovation and generating strong clinical
data
•
Cooperation with healthcare authorities
to document the value of the companies’
products
•
Stringent process for managing price
changes
Code of Conduct, Compliance Programs and
training the employees
Whistle
-blower system
Internal reviews and monitoring of
compliance with laws and industry
standards
Policies and processes to safeguard
intellectual property rights
Close monitoring and evaluation of
legislative proposals
IT policies and procedures are in place to
safeguard systems and data
Cyber
-defences are tested on a regular
basis
Management review
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The Foundation strives to improve lives through
healthcare innovation, with a specific focus on
neuroscience. Over the years, it has grown to become
one of Denmark’s largest enterprise foundations,
managing close to DKK 72bn. Its commitment to
sustainable development is rooted in its founding
principles, strategy and business model. Sustainability is
viewed both as a responsibility and a license to operate -
now and in the future - as well as an opportunity to
drive long-term value creation.
At the core of the Foundation’s business model is the
principle that its ownerships and investments generate
dividends and profits that are reinvested into society. In
2024, the Foundation awarded DKK 1,074m in grants,
compared to DKK 592m in 2023, and contributed DKK
195m in investments to the Danish life science
ecosystem. As a Group, the Foundation employed close
to 34,000 people in 2024, reached more than 19 million
patients, and invested more than DKK 5bn in research
and development. As a long-term owner, the Foundation
aims to support sustainable business development and
initiatives.
Research indicates that companies with enterprise
foundation ownership achieve higher environmental,
social and governance (ESG) performance, maintain ESG
activities even during financial crises, and commit to
more significant emission reductions in the post-Paris
Agreement period.
In 2024, the Foundation conducted a double materiality
assessment based on its business model as both an
investor and a long-term owner. This assessment
enabled the Foundation to identify key impacts, risks
and opportunities from a sustainability perspective.
These insights will shape the Foundation’s sustainability
priorities, policies, actions and targets moving forward
and is preparing to collect material data points to
ensure it can report in accordance with the Corporate
Sustainability Reporting Directive (CSRD).
Lundbeck and ALK have reported according to CSRD for
2024.
Sustainability
Sustainability is embedded in the Lundbeck Foundation’s purpose,
strategy, business model and activities. Through the 2030 strategy,
‘Bringing Discoveries to Lives’, the Foundation has articulated a clear
commitment to making a
positive and sustainable impact on society.
This strategy drives sustainable outcomes in health, innovation,
economic growth and good governance
.
Management review
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The Foundation’s commitment to society
The purpose, business model and 2030 strategy of the
Foundation provide a strong platform and clear
direction for its societal impact, focusing on health,
innovation, economic growth and good governance. The
Foundation’s commitment to society can be viewed
through its alignment with four key Sustainable
Development Goals (SDGs).
Sustainability through the
Foundation’s different activities
The Foundation’s role as a societal partner presents
both unique opportunities and significant
responsibilities. Its societal impact, risk and
opportunities are evident throughout its diverse
activities.
Activity: Strategic ownerships
The Foundation is the engaged owner of three
international healthcare companies, generating group
revenue of more than DKK 39bn and employing close to
34,000 people. Furthermore, the Foundation has three
minority strategic ownerships.
The strategic ownerships entail a responsibility to foster
sustainable economic growth, create jobs and be a
responsible employer, ensuring a healthy and inclusive
working environment. The Foundation remains
committed to supporting long-term development and
helping its companies achieve global leadership in their
fields while emphasising innovation and social aspects
such as talent development, employee engagement, pay
equality and diversity.
Sustainability is a cornerstone of the Foundation’s
ownership model. While decisions are ultimately made
by the companies’ boards and leadership teams, the
Foundation actively encourages the integration of
sustainability measures and initiatives, as reflected in
their respective reporting. Through its board
representation, the Foundation advocates for
sustainability agendas and ensures compliance with its
sustainability policy’s minimum standards.
All six strategic ownerships have greenhouse gas
reduction targets that are either approved by, in the
process of being approved by, or aligned with the
Science Based Targets initiative. This framework
provides a defined path for reducing emissions. The
Foundation also leads initiatives to facilitate knowledge
sharing and promote sustainable practices across its
ownerships, including efforts to improve access to
healthcare.
Activity: Financial investments
The Foundation’s financial investments ensure
economic stability and enable the sustainable
distribution of dividends to society through grants and
partnerships. Investment decisions are guided by the
principle that responsible and ethical companies create
both financial and societal value.
The Foundation’s investment policy incorporates
environmental, social and governance (ESG) factors into
asset management and due diligence processes. All
financial investments must comply with ESG principles
and undergo biannual screening to ensure alignment
with these standards.
Activity: Biotech investments
Through new investments and its existing portfolio of 21
international and Danish life science companies, the
Foundation supports innovation in healthcare by
investing in people, businesses and science at the
forefront of their fields. Supporting the growth of
Danish life sciences and investing in the future of
healthcare are central to the Foundation’s biotech
investments.
The Foundation identifies companies and teams with
strong commercial potential that address unmet
medical needs. By taking a proactive approach that
combines guidance, policies, advisory support and
resource allocation, the Foundation works to embed
sustainable practices into the early stages of these
companies’ commercial development.
In 2024, Lundbeckfonden BioCapital launched its
sustainability programme, initiating the ‘Fit for Growth’
pilot with three portfolio companies. This pilot focused
on building high-performance teams by leveraging best
practices in recruitment, diversity, equity and inclusion.
Additionally, the Foundation aligned sustainability
reporting requirements for early-stage biotech
companies through its involvement in the ‘Life Sciences
ESG Knowledge Project’, a collaborative effort among 23
leading life science venture investors. The initiative aims
The Foundation’s philanthropic and
commercial activities
, developing top-tier
neuroscience and leading healthcare
companies, supports SDG 3
- especially sub-
target 3.4 regarding treatment of non
-
communicable diseases and mental health.
As part of its engaged ownership and
responsible asset management, the
Foundation contributes to SDG 8 through
the sub
-targets 8.1 - GDP growth - and 8.5 -
Decent work for all men and women.
Long
-
term ownerships, biotech investments,
and support for collaboration in research
are
key components of the Foundation’s
impact on society, with a clear link to SDG 9
and sub
-target 9.5 of encouraging
innovation and research development.
The
footprint of the Lundbeck Foundation
is primarily defined by the companies it
owns, the investments it makes, and the
recipients of its grants. The basis for
promoting sustainable development is good
governance in line with SDG 16, contributing
to effectiv
e, accountable, and inclusive
organisations.
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to make sustainability reporting as relevant and
efficient as possible for early-stage biotech companies,
enabling them to meet key responsibility expectations
and regulatory requirements without undue burden.
The Foundation will continue to expand and implement
its sustainability programme in the coming years.
Activity: Supporting new knowledge
Brain diseases affect over 3 billion people worldwide,
causing significant personal and socio-economic
challenges. Despite these impacts, brain health remains
an under-prioritised research area. Addressing this is at
the core of the Foundation’s purpose.
In 2024, the Foundation dedicated DKK 947m - 88% of
its total grants - to neuroscience research. This funding
supported studies on topics ranging from psychoses to
neurodegenerative disorders, resulting in over 602
scientific publications and several strategic initiatives.
The Foundation also integrates impact measurement
into its grant requirements to enhance the translation
of research into tangible patient outcomes.
In its grant activities, the Foundation is committed to
integrity, transparency and accountability. The
Foundation aims to support world-class scientific
research that drives positive outcomes and advances
the frontiers of knowledge. Best practices - such as the
Danish Code of Conduct for Research Integrity - and
environmental, social and governance (ESG)
considerations are integrated into the Foundation’s
grant processes.
Applications are handled and evaluated through a
rigorous assessment process, which includes peer
reviews conducted by international third-party expert
panels. These panels operate in compliance with the
Foundation’s principles of impartiality, ensuring a fair
and transparent evaluation
Activity: Disseminating knowledge
Bringing scientific discoveries to treatments for patients
and the dissemination of knowledge to clinicians,
patients, business and the wider society is crucial, as is
close collaboration between research and business.
One example of the Foundation’s work in 2024 in this
regard is the online platform Neurotorium, which offers
curated educational materials on neurology and mental
health. In 2024, it attracted more than 450,000 visits
from 189 countries.
Activity: Improving conditions for the life
science ecosystem
The Foundation actively works to build partnerships
that support its mission of driving positive societal
change. By fostering a vibrant Danish healthcare
research and business culture, the Foundation enhances
understanding of the brain and destigmatises brain
diseases, improving the well-being of patients and their
families while reducing societal costs.
The Foundation also strengthens Denmark’s position as
a global hub for healthcare research and business
through collaborations between science and industry,
talent development and funding access. Additionally,
the Foundation advocates for greater public awareness
of enterprise foundations and their unique ability to
combine financial and societal value.
Other ESG initiatives
Gender diversity
The Foundation is committed to building gender
equality and diversity and inclusion across all areas. The
Foundation’s Board of Directors comprises one woman
and six men, excluding employee representatives.
Hence, the gender balance is not in accordance with the
guidelines on gender equality issued by the Danish
Business Authority (‘Guidelines on target figures,
policies and reporting on the gender composition of
management’).
When electing new members to the Board of Directors,
the Board strives to ensure diversity in competencies as
well as gender. The Board will continue to pursue equal
representation in the coming elections.
In the short term, the Board of Directors strives towards
complying with the guidelines. Currently, the board
expects this target will be realised by 2027.
At the end of 2024, the Management Team of the
Lundbeck Foundation comprised six members, including
the CEO, and counted one woman and five men. One
female management member has stepped down but
will be replaced by a person of the same gender in 2025,
and the Management Team will then be comprised of
two women and five men. The Lundbeck Foundation’s
employee group counts 27 women out of a total of 56.
Diversity and inclusion will remain focus areas for the
Foundation in the years to come.
In 2024, the Foundation awarded 42% of its grants to
women, while additional measures aim to promote
diversity in general in its grants administration. Besides
its general DEI efforts, the LF Scientific Enrichment Prize
celebrates science leaders at Danish universities who
champion diversity and inclusion to develop creative
solutions to complex scientific problems. The prize is
accompanied by the Scientific Enrichment Call to
support new initiatives harnessing and promoting
diversity for the benefit of scientific progress and
culture.
The diversity focus was also reflected in the
Foundation’s three subsidiaries, each of which has
Gender diversity in the Lundbeck Foundation 2024 2023
Members of the Board of Directors
7 7
Board of Directors, underrepresented gender 14% 14%
Members of the Management Team
6 7
Management Team, underrepresented gender
17% 29%
Management review
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defined gender-balance targets for its board of
management. Falck’s senior management consists of
40% women. Lundbeck’s and ALK’s senior management
consist of 35% and 45% women, respectively.
Furthermore, the subsidiaries reported individual
targets in their 2024 annual reports and defined
individual policies concerning gender balance at other
management levels.
Reducing the Foundation’s greenhouse gas emissions
Climate change is among the most pressing global
challenges. While the Foundation’s primary purpose is
advancing health, it recognises its responsibility to
promote environmentally sustainable practices.
The Foundation’s climate impact is primarily driven by
scope 3 activities. The approach to handling scope 3
emissions will be further developed based on the results
of the double materiality assessment carried out in
2024, which will be reflected in the 2025 reporting.
In 2024, emissions from international travel totalled 332
tonnes of CO2. To offset these emissions, the
Foundation purchases high-quality carbon credits. While
carbon offsetting is not a comprehensive solution, it
complements ongoing efforts to establish measurable
and concrete emission reduction targets, which will be
further developed in 2025.
ESG Governance at the Lundbeck Foundation
Good governance is central to integrating sustainability
considerations into day-to-day business decisions and
strategy. As owner, investor and philanthropist, the
Foundation has many opportunities and a responsibility
to promote sustainable practices both inside and
outside its organisation. The Foundation does this with
a clear governance model based on four key principles
(see next page for more information)::
• Compliance with Danish recommendations on good
governance
• Board director independence
• Transparency in reporting and grant decisions
• Internal checks and balances in decision-making
The Foundation has implemented a clear sustainability
governance framework that is anchored in the Board of
Directors with the CEO having overall responsibility and
clear responsibilities distributed throughout the
organisation.
Moreover, the Foundation has developed eight policies
to guide key activities: grant administration,
investments, communication, tax, remuneration and
sustainability policy. The sustainability policy applies to
the Foundation, grant recipients, investments and
ownerships, encouraging the strategic ownerships and
direct investments to pursue ambitious sustainability
agendas. The goal is for the Foundation to fulfil a role in
business and society in a way that is environmentally,
socially and financially sustainable. All policies can be
found on the Foundation’s website. The Foundation has
also implemented a whistleblower system, which can be
used by external and internal parties in case of concerns
involving legal or other serious risks. The whistleblower
system can also be accessed via the Foundation’s
website. No cases were reported in 2024.
Learn more about sustainability at
the Lundbeck Foundation Group
For more information on the Lundbeck Foundation
’s impact as well
as
important developments in 2024, please refer to the Foundation’s
Sustainability Report 202
4
(
https://www.lundbeckfonden.com/en/sustainability).
This report is the Lundbeck Foundation’s statutory statement on
sustainability in accordance with sections 99a and 99d of the Danish
Financial Statements Act.
For information about Lundbeck, ALK and Falck’s approaches to
sustainability, please visit their websites.
Management review
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The Lundbeck Foundation values
transparency and integrity and
operates with a clear governance
model and relevant policies that
define the operating model for the
Foundation’s broad range of
commercial investments and
philanthropic grant activities.
Enterprise foundations play an important role in Danish
society. As majority owners of some of Denmark’s
largest business corporations, but also a significant
philanthropic contributor, enterprise foundations can
influence social and economic development in Denmark.
Such influence comes with responsibility.
The Foundation is committed to transparency and has
defined a clear governance model that seeks to comply
with two sets of principles issued by two Danish
governance committees. Firstly, The Committee on
Foundation Governance, which issues recommendations
for the governance of enterprise foundations. Secondly,
the Danish Committee on Corporate Governance, which
guides the listed companies in Denmark. As an
enterprise foundation and the majority owner of two
listed companies, both sets of recommendations are
relevant and used as guiding principles by the
Foundation.
The Foundation follows the recommendations issued by
The Committee on Foundation Governance, with two
exceptions:
• Board members’ tenure: In accordance with the
statutes of the Foundation, Board members serve for
one year, which reflects the rules issued by The Danish
Committee on Corporate Governance rather than the
rules issued by The Committee on Foundation
Governance, which recommends a tenure of two to
four years.
• CEO bonus model: The Board of Directors has
decided to incorporate a bonus model into the
remuneration of the CEO who is also the CEO of the
Foundation’s holding company, Lundbeckfond Invest
A/S. The bonus model is based on several elements,
including the financial results of the subsidiaries and
the financial investment activities. The bonus
elements are determined relevant to ensure
alignment between the CEO’s remuneration and the
Lundbeck Foundation Group’s short and long-term
development.
For a full overview of the Foundation’s compliance with
the Recommendations on Foundation Governance, cf.
section 77a of the Financial Statements Act, please use
the following link:
(https://www.lundbeckfonden.com/en/foundationgovern
ance).
The Foundation follows the recommendations issued by
The Danish Committee on Corporate Governance where
relevant, with two exceptions:
Foundation Governance
The Lundbeck Foundation’s four governance principles
Compliance
• As an enterprise foundation, the Foundation strives to comply with two sets of
recommendations:
1) Recommendations on Foundation Governance issued by the Danish Committee
on Foundation Governance
2) Recommendations on Corporate Governance issued by the Danish Committee
on Corporate Governance
• Where the Foundation does not comply with these recommendations, this is
explicitly stated and explained
Independence
• The Foundation is headed by the Board of Directors. Six Board members, including
the Chair, are independent. Four Board members are elected by employees in the
subsidiaries
• Former executives of the Foundation and its subsidiaries cannot be appointed to
the Foundation’s Board of Directors
• In each strategic subsidiary, the Foundation’s Board of Directors is represented by
one board member elected according to statutes
• The Foundation’s Chair cannot hold board membership positions in the
Foundation’s subsidiaries
Transparency
• The Foundation publishes its annual accounts in alignment with listed companies
• All key policies and governance documents are made public on the Foundation’s
website
• Major decisions on philanthropic grants are communicated proactively via the
website, social media and the media
Checks and balances
• The Foundation’s organisation and key processes are designed to prevent the
concentration of decision-making power
• The majority of all grant-making decisions are subject to external reviews by
international experts to ensure appropriate quality levels are met
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• Diversity policy: The Foundation has not formulated
a concrete diversity policy, but principles and priorities
are stated in the Sustainability Policy, which is
available on the Foundation’s website.
• Audit Committee and internal audit function: As an
independent foundation with no shareholders,
financial information is only shared in the Annual
Report. Its strategic subsidiaries share information on
a quarterly basis. The Foundation has chosen not to
have an Audit Committee or internal audit function,
whereas the subsidiaries have set up Audit
Committees.
For a full overview of the Foundation’s compliance with
the Recommendations on Corporate Governance, please
use the following link:
(https://www.lundbeckfonden.com/en/corporategoverna
nce).
The Foundation’s governance principles are described
more fully on the Foundation’s website and in the box
on the previous page.
The Board of Directors
The Lundbeck Foundation is managed by the Board of
Directors in collaboration with the CEO. The Board
members are presented on pages 48-49.
The Board’s primary responsibilities are to:
• Decide the Foundation’s strategy
• Make decisions of major significance or of an
exceptional nature
• Make final decisions on the allocation of grants
• Supervise the organisation to ensure the Foundation
is managed appropriately and in accordance with
applicable laws and the Foundation’s statutes
• Approve the Foundation’s policies for investments,
communication, remuneration, etc.
• Appoint the Foundation’s CEO
The Board of Directors meets a minimum of four times
each year and holds an annual seminar to review,
discuss and refine the strategy.
The Board has set up two committees and the Grants
and Prizes Panel with members from the Board of
Directors to prepare the meetings of the Board of
Directors. The two committees are the Research and
Prize Committee and the Investment Committee. The
two committees and the panel meet on a regular basis
to prepare and discuss issues related to the
Foundation’s grants and prizes, and investments,
respectively.
Active involvement in strategic ownerships
The Foundation is long-term strategic shareholder of six
companies: Lundbeck, ALK, Falck, Ferrosan Medical
Devices, Ellab and WS Audiology. It monitors their
performances and contributes to value creation as a
long-term owner exerting influence through its
representation on the companies’ boards.
As stated previously, the Foundation has a strong focus
on good governance and the independence of board
members. Please see page 43 for a full description.
Board member’s attendance at meetings in 2024 Board meetings
Investment
Committee
meetings
Research
and Prize
Committee
meetings
Grants and
Prizes Panel
meetings
Steffen Kragh, Chair of the Foundation and Lundbeckfond Invest A/S
and member of the Investment Committee
●●●●●●●●
●●●●●●●
Søren Skou, Deputy Chair of the Foundation and Lundbeckfond Invest
A/S and member of the Investment Committee since 12 March 2024
●●●●●●●●
●●●●○
Lars Holmqvist, Chair of the Investment Committee
●●●●●●●●
●○●●●●●
Michael Kjær, member of the Research Committee
●●●●●●●□
●●●●□●
●●
Susanne Krüger Kjær, Chair of the Research Committee
●●●●●●●●
□●●□●●
●□
Svend Andersen, member of the Investment Committee
●●●●●●●●
●●●●●●●
Thomas Mears Werge, member of the Research Committee
●●●●●●●□
●●●●●□
●●
Henrik Sindal Jensen, employee representative from H. Lundbeck A/S
●●●●●●●●
Katja Barnkob, employee representative from ALK-Abelló A/S
●●●●●●●●
Mikkel Helmer Nielsen, employee representative from Falck A/S
●●●●●●●●
Morten Egholm Aagaard, employee representative from Falck A/S
●●●●●●●●
Peter Schütze, former Deputy Chair of the Foundation and
Lundbeckfond Invest A/S and member of the Investment Committee,
stepped down on 12 March 2024
●●●●●●●●
●●●●●●●
●
Attended
○
Did not attend
□
Conflicted
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Grant governance
The Board of Directors has established a Research and
Prize Committee and appoints three committee
members from among its members elected according to
the statutes. The Committee meets four times a year or
as required by special circumstances.
The basic criteria for the allocation of research funding
are the scientific content of the application, the
qualifications of the applicant, and the academic
environment at the host institution, all of which must
be of a high international standard.
The Foundation seeks to ensure the consistent and
equal assessment of all applications. Consequently, all
significant applications must be peer reviewed by
experts. In addition to the Research and Prize
Committee, the Board of Directors has established the
Selection Committee to oversee The Brain Prize – as well
as four permanent evaluation panels: the Grants and
Prizes Panel, the Talent Panel, the Internationalisation
Panel and the Scientific Enrichment Panel. Please see
page 47 for information about the committees and
panels.
Furthermore, ad hoc evaluation panels with
international experts are established as required to
assess personal and strategic applications. The
members of the committees and panels must comply
with the Foundation’s impartiality rules.
The Research and Prize Committee and the Grants and
Prizes Panel report to the Board of Directors. The
Selection Committee for The Brain Prize reports to the
Board of Directors through the Research and Prize
Committee to ensure that its recommendations comply
with the provisions for The Brain Prize.
The Board of Directors decides on the allocation of
grants in accordance with statutory requirements.
However, the Foundation has developed a model that
has been approved by the Danish Business Authority
whereby the Board, as part of its decision-making on the
allocation of grants, can issue a grant mandate to a
panel formed by the Board of Directors to implement
the Board’s grant decisions.
The following panels allocate grants under a grant
mandate:
• The Talent Panel evaluates LF Postdocs, LF Clinical
Postdocs, LF Ascending Investigators and LF
Experiments
• The Internationalisation Panel evaluates scientific
meetings and conferences, visiting professorships and
senior researcher sabbaticals
The Board of Directors has also issued a grant mandate
to the CEO to implement the Board’s decisions on
Frontier Grants.
In general, assessment procedures for applications and
recommendations are adjusted on an ongoing basis to
accommodate the development and implementation of
new initiatives.
Distribution of responsibility
The Senior Vice President, Grants & Prizes, Director of
Science, is responsible for managing day-to-day
operations in the Grants & Prizes department.
The Board of Directors approves all the Foundation’s
prizes before they are awarded.
Investment governance
The Board of Directors has established an Investment
Committee and appoints four committee members
from among its members elected according to the
statutes. The Committee meets four times a year or as
required by special circumstances.
The Committee is responsible for preparing decisions
and recommendations for consideration and approval
by the Board of Directors, and for ensuring that the
Board of Directors is informed of all material matters.
Supervision of the Foundation’s investment activities is
delegated to the Investment Committee in accordance
with the investment policy, which is described in the
Risk Management section on page 35.
Policies
Each year, the Board of Directors discusses and approves several
policies which are a vital part of the framework for the Foundation’s
activities.
Please find the Foundation’s policies at the Foundation’s w
ebsite:
https://www.lundbeckfonden.com/en/policies.
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Statutory report cf. section 77b
of the Financial Statements Act
In accordance with the statutes of the Lundbeck
Foundation, the Foundation has two primary objectives:
a. To consolidate and expand the activities of the
Lundbeck Group
b. To make distributions for the purposes mentioned
in article 6 of the statutes
At the annual strategy seminar, the Board takes a
position on the overall strategy and grant policy. The
grant objectives of the Foundation are divided into the
following categories:
• Social causes
• Research
• Cultural purposes
• Relatives of the Founder
• Employees of the Lundbeck Group
• Subsidiaries
The Foundation may, in accordance with its statutes
prescribed charitable objectives, donate grants to a wide
range of different charitable purposes, and the
Foundations' founder has granted great flexibility to the
Board of Directors to decide upon the Foundation's
grants, including to decide upon which of the charitable
purposes to support, as well as the individual donation
terms. The Board of Directors therefore each year
carefully considers which grants are to be made,
including which of the charitable categories that are to
be supported in light of the flexibility that the
Foundation's statutes provides.
The grant objectives listed under section 6 in the
statutes are categorised as follows:
Grant policy
Statutes
Grant objective
Article 6a
(Relatives of the Founder)
The Foundation may make grants to descendants of the parents of the founder and her spouse.
Article 6b (Employees of the Lundbeck Group) The Foundation may provide financial support to, and otherwise make distributions for the benefit of, existing and former employees of the
Lundbeck Group, including for training and education, for holidays and for holiday purposes. In so far as there is no need in each individual case to
make distributions at any other time of the year, such distributions will only be made once a year on 20 July, which is the birthday of the deceased
Mr Hans Lundbeck, manufacturer.
Article 6c (Research) The Foundation may grant honorary awards to physicians, scientists and others.
Article 6d (Research) The Foundation may grant support for scientific purposes, primarily for specific projects.
Article 6e (Subsidiaries) The Foundation may support special research projects within the Lundbeck Group.
Article 6f (Research) The Foundation may grant support to hospitals and for disease prevention.
Article 6g (Research) The Foundation may provide support for training and education in the widest sense of the words, if relevant, by way of interest-free loans.
Article 6h (Research) The Foundation may make grants for nurses.
Article 6i (Social causes) The Foundation may distribute up to 3% of the profit for the year, before tax, less retained earnings, in subsidiaries and associates, including LFI a/s,
for the support of old and/or sick people, as well as those in need.
Article 6j (All categories) The Foundation may support other purposes, as decided by the Board of Directors. However, support for such purposes may only account for 25%
of the total annual distributions in each calendar year.
Management review
In Brief Performance Partner to Society Governance Consolidated financial statements Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 47
The aim of the grant activities is to fulfil the
Foundation’s grant strategy as based on the grant
objectives set out in the statutes’ section 6. The grant
strategy is an integral part of this grant policy.
The Board of Directors has overall responsibility for the
allocation of all grants. The Board of Directors has
decided that the previously mentioned objectives should
be met mainly through support for research in
biomedicine with a focus on strengthening Danish
neuroscience. The Board of Directors may decide on
grants based upon recommendations from
committees/expert panels or issue a grant mandate to
an expert panel that will make the final decisions within
certain grant programmes. Grants for the support of
research are primarily awarded to projects invited
through open calls for applications. Grants may also be
awarded without calls for applications.
Committees
To facilitate grant and prize activities within the
aforementioned categories, the Foundation has
established two committees that serve as advisory
bodies and submit recommendations for decisions to
the Board of Directors.
Research and Prize Committee
This committee comprises the three members of the
Board of Directors who are appointed for their research
expertise according to the statutes. The CEO and the
Senior Vice President, Grants & Prizes, Director of
Science, neither of whom are members of the Research
and Prize Committee, assist this committee. The
members of the Research and Prize Committee, who are
also members of the Grants and Prizes Panel (see
below), are tasked with the following:
• Advising and submitting recommendations for
decisions to the Board of Directors regarding
applications, prize nominations and strategic research
policy issues
• Supervising the implementation of the Foundation’s
strategy within grants and prizes
The selection committee for The Brain Prize
The selection committee for The Brain Prize reviews the
nominations for The Brain Prize. Its members, all of
whom are external and independent of the Foundation,
represent the highest possible level of expertise within
the field of brain research, bringing to the committee
relevant and comprehensive knowledge about the
international scientific world.
Expert panels
The Foundation has set up four expert panels to
evaluate applications and make decisions on grants.
The Grants and Prizes Panel
This panel comprises the three members of the Board of
Directors appointed for their research expertise
according to the statutes as well as three external
experts from within the field of neuroscience. The panel
evaluates applications for LF Fellows, LF Professors and
LF Collaborative Projects, and submits
recommendations for decisions to the Board of
Directors.
The Talent Panel
This panel comprises 14 external experts spanning the
field of biomedical research. The panel evaluates
applications for LF Postdocs, Early-Career Clinician
Scientist grants, LF Ascending Investigators and
LF Experiments. The panel makes decisions on grants
according to a grant mandate issued by the Board of
Directors.
The Internationalisation Panel
This panel comprises two of the three members of the
Board of Directors appointed for their research expertise
according to the statutes as well as the Senior Vice
President, Grants & Prizes, Director of Science, and the
Senior Grant Manager. The panel evaluates applications
for meetings, visiting professorships and senior
researcher sabbaticals. The panel makes decisions on
grants according to a grant mandate issued by the
Board of Directors.
The Scientific Enrichment Prize Panel
This panel comprises three members with experience in
handling diversity policies in a variety of research
environments. The panel evaluates nominations for the
Lundbeck Foundation Scientific Enrichment Prize and
submits a recommendation for approval by the Board of
Directors.
General terms and conditions
for research grants
All grant recipients must comply with the Lundbeck
Foundation’s General Terms and Conditions for
Research Grants.
The Foundation expects researchers who receive
funding to conduct their research according to
recognised codes of Good Research Practice, including
the Danish Ministry of Higher Education and Science’s
Code of Conduct for Research Integrity, the Medical
Research Council’s Good Research Practice, and the
International Society for Pharmacoepidemiology’s
Guidelines for Good Pharmacoepidemiology Practice.
This also applies to interactions with other researchers,
the collection, generation and analysis of data,
applications for research funding, the publication of
research results, and the recognition of direct and
indirect contributions by colleagues, partners and
others.
It is a prerequisite that researchers who receive funding
from the Lundbeck Foundation are affiliated with
institutions that have their own published codes and
guidelines for Good Research Practice, and that grant
recipients comply with such guidelines. In addition, it is
a prerequisite that these institutions have formally
described procedures that must be adhered to when
handling any suspicion of scientific dishonesty.
To be eligible for a grant from the Foundation, the grant
recipient and their host institution, as well as
researchers and third parties affiliated with the research
project, must also comply with all laws and rules
relevant to the research project.
Management review
In Brief Performance Partner to Society Governance Consolidated financial statements Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 48
Board of Directors
Steffen Kragh
C
hair
Considered independent
Born 1964
Male
Danish
Elected 2013
Søren Skou
D
eputy chair
Considered independent
Born 1964
Male
Danish
Elected 2024
Lars Holmqvist
Considered independent
Born 1959
Male
Swedish
Elected 2015
Michael Kjær
Considered independent
Born 1957
Male
Danish
Elected 2016
Board committee(s)
Member of
the Investment Committee
Member of the Investment Committee
Chair of the Investment Committee
Member of the Research and Prize Committee
and
Shareholdings
20,000 B
-shares in H. Lundbeck A/S and 8,000 shares in
ALK
-Abelló A/S
75,000 B
-shares in H. Lundbeck A/S
200 shares in ALK
-Abelló A/S
Other board and
management positions
·
President & CEO of Egmont Foundation and Egmont
International Holding A/S
·
Chair of companies in the Egmont group
·
Deputy chair of Tryg A/S, Tryg Forsikring A/S and
Nordic Bioscience Holding A/S
·
Chair of Danish Crown AmbA, C.W. Obel A/S, Controlant
hf., VTG Gmbh, Skyborn Renewables GmbH, Bygma
Group A/S, HES International B.V. and Mærsk Mc-
Kinney Møller Center for Zero Carbon Shipping
·
Deputy Chair of Nokia Oyj
·
Senior Advisor, Blackrock Global Infrastructure
Partners
·
Chair of the board of Biovica International AB
·
Member of the boards of H. Lundbeck A/S, ALK-Abelló
A/S and Vitrolife AB (Sweden)
·
Professor, Chief Physician, DMSc. Head of Institute of
Sports Medicine, Department of Orthopaedic Surgery,
Bispebjerg Hospital
·
Coordinating Professor (for Bispebjerg-Frederiksberg
Hospital), Institute of Clinical Medicine, University of
Copenhagen
Education and
competencies
M
Sc and MBA
Expertise within strategy,
economics, finance and
accounting, capital markets, securities and funding, legal
and regulatory matters of importance to financial
business, corporate management and financial business
management, including IT
MBA (honors) from IMD
), Graduate Diploma in Business
Administration
and Graduate, A.P. Moller Maersk
Shipping School
Experience within
management, strategy, t
ransformation,
M&A,
logistics & supply chain and green transition
Degree in Business Administration
Experience in management,
finance, sales and marketing
in international life science companies, including
medtech and pharmaceutical companies
MD and DMSc
Scientific production within musculoskeletal and
metabolic research. Skills in research, development and
research evaluation. Experience in research management
and international scientific board work
Management review
In Brief Performance Partner to Society Governance Consolidated financial statements Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 49
Svend Andersen
Considered independent
Born 1961
Male
Danish
Elected 2020
Susanne Krüger Kjær
Considered independent
Born 1955
Female
Danish
Elected 2014
Thomas Mears Werge
Considered dependent
Born 1962
Male
Danish
Elected 2023
Board committee(s)
Member of the Investment Committee
Chair
of the Research and Prize Committee
Member of the Research and Prize Committee
Shareholdings
1
,029 shares in ALK-Abelló A/S
Other board and
management positions
·
Investor and advisor
·
Professor, MD, DMSc. (Department of Gynaecology),
Rigshospitalet, University of Copenhagen
·
Head of Research, Unit of Virus, Lifestyle and Genes,
Danish Cancer Institute
·
Member of the Board of Johannes Clemmesens
Research Foundation
·
Member of the Human Papillomavirus Prevention and
Control Board
·
Scientific reviewer for AIRC Direzione Scientifica
·
Visiting professor, Johns Hopkins University,
Baltimore, USA
·
Professor, Director Inst. Biol. Psychiatry, Mental Health
Services, Copenhagen University Hospital
·
Board member of National Genome Centre, and
Member of the Strategic Research Council,
Copenhagen University Hospital
·
Principal Investigator, NIH & EU Initiatives on mental
disorders
·
Expert Witness (WADA) CAS, Court of Arbitration for
Sport, Lausanne (CH)
Education and
competencies
BSc in Economics and Business, and Graduate Diploma in
Bus
iness Administration, Sales & Marketing and
Organisation
Extensive international leadership experience in several
pha
rmaceutical sectors with a proven track record of
creating sustainable value
MD and DMSc
Substantial scientific output within oncology. Skills in
research development, clinical cancer epidemiology,
research evaluation and innovation. Longstanding
experience within international research management
B.Sc. Biochemistry; M.Sc. Mol. Oncology; PhD, Mol.
Neuroscience
Substantial scientific output on Psychiatry and
Neurosciences. Skills in Genetics and epidemiology of
complex traits and disorders. Longstanding experience
in large
-scale, international initiatives
Management review
In Brief Performance Partner to Society Governance Consolidated financial statements Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 50
H
enrik Sindal Jensen
Born 1969
Male
Danish
Elected 2022
Katja Barnkob
Born 1969
Female
Danish
Elected 2022
Mikkel Helmer Nielsen
Born 1977
Male
Danish
Elected 2022
Morten Egholm Aagaard
Born 1976
Male
Danish
Elected 2022
Employee elected
Elected by the employees of H. Lundbeck A/S
Elected by the employees of
ALK-Abelló A/S
Elected by the employees of Falck A/S
Elected by the employees of Falck A/S
Shareholdings
1
,655 B-shares in H. Lundbeck A/S
480 shares in ALK
-Abelló A/S
Other board and
management positions
·
Senior Director in Corporate Business Development
& Licensing
·
Senior Project Director
·
Member of the Board of ALK-Abelló A/S
·
Head of Technology, Fire
·
Paramedic
Education
PhD Neuroscience (University of
Copenhagen)
MSc Molecular Biology and BSc Chemistry (University
of Aarhus)
MSc
Biochemistry
Certified Business Economist (CBEcon)
Lieutenant Firefighter
Graduate Certificate in Business Administration
Management review
In Brief Performance Partner to Society Governance Consolidated financial statements Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 51
Manaement
Lene Skole
Born 1959
Female
Danish
Joined 2014
Arne Due
-Hansen
Born 1962
Male
Danish
Joined 2022
Christian Elling
Born 1968
Male
Danish
Joined 2012
Management position
Chief Executive Officer
Senior Vice President, Strategic
Ownerships
Senior Vice President, BioCapital
Shareholdings
61,270 B
-shares in H. Lundbeck A/S and 23,000 shares in
ALK
-Abelló A/S
NA
NA
Board positions
Chair of the board of Ørsted A/S and d
eputy chair of the
boards of H. Lundbeck A/S*,
ALK-Abelló A/S*, Falck A/S*
and
Nordea Bank Abp
*
Board positions included in the position as CEO of
the Lundbeck Foundation
Chair of the board of Cresco Capital Services A/S and
deputy chair of the board
s of Obel-LFI Ejendomme A/S
and CN8 A/S
Member of the boards of Ferrosan Medical Devices Group,
Ellab Group
, WS Audiology A/S and LFI Silva
Investments A/S
Chair of the boards of SNIPR Holdings ApS, SNIPR Biome
ApS and CytoKi Pharma ApS
Member of the boards of IO Biotech, Inc and NMD
Pharma A/S
Management review
In Brief Performance Partner to Society Governance Consolidated financial statements Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 52
Jan Egebjerg
Born 1962
Male
Danish
Joined 2019
Peter Rothausen
Born 1972
Male
Danish
Joined 2018
Søren Christiansen
Born 1967
Male
Danish
Joined 2017
Management position
Senior Vice President, Grants & Prizes,
Director of Science
Senior Vice President, Financial Investments
and Head of Invest
Senior Vice President, Finance & People
Shareholdings
NA
NA
NA
Board positions
Member of the board of
CN8 A/S
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 53
Consolidated
financial statements
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 54
Income statement 55
Balance sheet 56
Cash flow statement 58
Statement of changes in equity 59
Notes 60
1. Basis of preparation 60
2. Revenue 61
3. Employee costs 62
4. Incentive programmes 64
5. Depreciation, amortisation and impairment 67
6. Fees to auditors appointed at the annual meeting 67
7. Other operating items, net 67
8. Financial items 68
9. Tax on profit for the year 69
10. Grants 70
11. Intangible assets 71
12. Property, plant and equipment 76
13. Right-of-use assets 78
14. Biological assets 79
15. Investments in associates 79
16. Financial assets 80
17. Deferred tax 83
18. Inventories 85
19. Trade receivables 85
20. Contract assets 86
21. Liquidity 86
22. Capital base 87
23. Other reserves 87
24. Non-controlling interests 88
25. Provisions 90
26. Bank debt, bond debt and borrowings 94
27. Contract liabilities 97
28. Other payables 98
29. Adjustment for non-cash operating items 98
30. Working capital changes 98
31. Acquisitions and divestments 99
32. Financial risks and financial instruments 102
33. Contractual obligations, contingent assets and
liabilities, and collaterals 110
34. Related parties 112
35. Group overview 113
36. Material accounting policy information 117
37. Events after the balance sheet date 124
Financial statements
Lundbeck Foundation Group
Contents
Notes
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 55
Income statement
For the period 1 January – 31 December
DKKm Note 2024 2023
Revenue 2
39,675 36,659
Cost of sales 3-5 -15,483 -15,728
Gross profit
24,192 20,931
Research and development costs 3-5 -5,102 -4,155
Sales and distribution costs 3-5
-10,087 -9,317
Administrative expenses 3-6
-4,006 -3,663
Other operating items, net 7
-428 -6
Operating profit
4,569 3,790
Share of net profit of associates accounted for using the equity method
15
-210 -34
Financial income 8
5,456 5,413
Financial expenses 8
-2,036 -2,213
Profit before tax
7,779 6,956
Tax on profit for the year 9 -1,212 -683
Profit for the year
6,567 6,273
Profit attributable to:
Lundbeckfonden
5,068 5,159
Non-controlling interests 24
1,499 1,114
Profit for the year
6,567 6,273
Grants authorised, gross 10 1,074 592
Statement of comprehensive income
For the period 1 January – 31 December
DKKm Note 2024 2023
Profit for the year
6,567 6,273
Actuarial gains/losses 25 4 -25
Tax 9
-1 5
Items that will not subsequently be reclassified to the income statement
3 -20
Currency translation reserve:
Currency translation, foreign subsidiaries
786 -324
Currency translation concerning additions to net investments in foreign subsidiaries
58
-7
Hedging of net investments in foreign subsidiaries
- 17
Deferred gains/losses on cash flow hedge, exchange rate
-378 117
Deferred gains/losses on cash flow hedge, interest rate
-8
-19
Deferred gains/losses on cash flow hedge, price
-14 -78
Exchange gains/losses, hedging (transferred to revenue)
52 -137
Tax on other comprehensive income
9
58
18
Items that may subsequently be reclassified to the income statement
554 -413
Other comprehensive income for the year, net of tax
557 -433
Total comprehensive income for the year
7,124 5,840
Attributable to:
Lundbeckfonden
5,444 4,864
Non-controlling interests 24
1,680 976
Total comprehensive income for the year
7,124
5,840
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 56
Balance sheet
At 31 December, Assets
DKKm Note 2024 2023
Goodwill
14,285 9,977
Product rights
30,066 14,903
Brands
514 514
Customer contracts
88 131
Other intangible assets
1,681 561
Intangible assets 11
46,634 26,086
Property, plant and equipment 12 6,031 5,515
Right-of-use assets
13
1,724
1,717
Biological assets 14 333 317
Tangible assets
8,088 7,549
Investments in associates 15 4,418 2,619
Financial assets 16
24,990 23,887
Deferred tax 17
1,250 1,470
Income tax
145 198
Other financial assets
432 410
Other non-current assets
31,235 28,584
Non-current assets
85,957
62,219
DKKm Note 2024 2023
Inventories 18
5,734 5,892
Trade receivables 19 5,677 5,004
Other receivables
935 980
Prepayments
488 373
Contract assets 20
369 408
Income tax
60 240
Receivables
7,529 7,005
Securities 21 300 536
Cash and bank balances 21 5,907 6,080
Current assets
19,470 19,513
Assets
105,427 81,732
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 57
Balance sheet
At 31 December, Equity and liabilities
DKKm Note 2024 2023
Capital base 22
4,937 4,357
Other reserves 23 2,891 2,337
Retained earnings
42,452 39,165
Lundbeckfonden's share of equity
50,280 45,859
Non-controlling interests’ share of equity
24
10,763
9,287
Total equity
61,043 55,146
Payable grants
1,738 1,382
Provisions 25
1,139 935
Deferred tax 17
5,680 2,475
Income tax
186 230
Debt to financial institutions and bond debt 26
19,085 6,533
Lease liabilities 26
1,373 1,323
Contract liabilities 27
45 46
Other payables 28
462 439
Non-current liabilities
29,708 13,363
DKKm Note 2024 2023
Payable grants
728 656
Provisions 25 1,702 1,207
Income tax
567 681
Debt to financial institutions and bond debt 26
710 293
Lease liabilities 26
467 476
Contract liabilities 27
797 673
Other payables 28
9,705 9,237
Current liabilities
14,676 13,223
Liabilities
44,384 26,586
Equity and liabilities
105,427 81,732
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 58
Cash flow statement
For the period 1 January – 31 December
DKKm Note 2024 2023
Operating profit
4,569 3,790
Adjustment for non-cash operating items 29 4,074 3,370
Adjustments related to acquisition of business 31
-2,756 -
Working capital changes 30
-459 -1,213
Cash flows from operating activities before financial receipts and payments and tax
5,428
5,947
Financial receipts
1,315 737
Financial payments
-402
-419
Income tax paid
-743 -681
Cash flows from operating activities
5,598 5,584
Acquisition of businesses 31 -15,862 -101
Divestment of businesses 31
1 -
Investments in intangible assets 11
-1,134 -298
Investments in property, plant and equipment 12
-1,157 -800
Investments in biological assets 14
- -33
Disposal of intangible assets and property, plant and equipment
169 129
Investments in associated companies
-2,002 -1,778
Investments in financial assets measured at fair value through profit or loss
-5,550 -6,029
Sale of financial assets measured at fair value through profit or loss
7,293 7,175
Proceeds from securities and other financial assets
979 4
Cash flows from investing activities
-17,263 -1,731
Cash flows from operating and investing activities (free cash flow)
-11,665 3,853
DKKm Note 2024 2023
Proceeds from loans and issue of bonds 26
13,429 2,155
Repayment of loans and lease liabilities 26 -1,015 -3,773
Purchase of treasury shares in subsidiaries
-46 -43
Sale of treasury shares in subsidiaries
6 12
Capital increase
- 1
Settlement of exercised share options and warrants
-38 -20
Dividends paid to non-controlling interests
-213 -285
Authorised grants paid
-632 -395
Cash flows from financing and grant-making activities
11,491 -2,348
Cash flows from operations
-174 1,505
Net cash flow for the year
-174 1,505
Cash at 1 January 21
6,080 4,609
Unrealised exchange rate adjustments for the year
1 -34
Cash at 31 December
21
5,907
6,080
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 59
Statement of changes in equity
For the period 1 January – 31 December
DKKm Capital base
Other
reserves
Retained
earnings
Lundbeck-
fonden’s
share
of equity
Non-con-
trolling
interests’
share
of equity
Total
equity
Equity at 1 January 2024 4,357 2,337 39,165 45,859 9,287 55,146
Profit for the year - - 5,068 5,068 1,499 6,567
Other comprehensive income - 554 -178 376 181 557
Comprehensive income - 554 4,890 5,444 1,680 7,124
Grants for the year, net - -1,060 - -1,060 - -1,060
Provision for future grants - 1,060 -1,060 - - -
Non-controlling interests’ share of
dividends
- - - - -213 -213
Purchase of treasury shares in
subsidiaries
- - -32 -32 -14 -46
Sale of treasury shares in subsidiaries - - 2 2 4 6
Change in non-controlling interests - - 11 11 -11 -
Incentive programmes - - 37 37 21 58
Valuation adjustment of repurchase
obligation of treasury shares
- - 4 4 3 7
Other adjustments - - 4 4 1 5
Tax related to items recognised
directly on equity
- - 11 11 5 16
Other transactions - - -1,023 -1,023 -204 -1,227
Increase of capital base 580 - -580 - - -
Equity at 31 December 2024 4,937 2,891 42,452 50,280 10,763 61,043
DKKm Capital base
Other
reserves
Retained
earnings
Lundbeck-
fonden’s
share
of equity
Non-con-
trolling
interests’
share
of equity
Total
equity
Equity at 1 January 2023 4,162 2,744 34,665 41,571 8,593 50,164
Profit for the year - - 5,159 5,159 1,114 6,273
Other comprehensive income - -407 112 -295 -138 -433
Comprehensive income - -407 5,271 4,864 976 5,840
Grants for the year, net - -580 - -580 - -580
Provision for future grants - 580 -580 - - -
Non-controlling interests’ share of
dividends
- - - - -285 -285
Purchase of treasury shares in
subsidiaries - - -30 -30 -13 -43
Sale of treasury shares in subsidiaries - - 7 7 5 12
Change in non-controlling interests - - 5 5 -5 -
Incentive programmes - - 30 30 18 48
Repurchase obligation of treasury
shares
- - -8 -8 -5 -13
Other adjustments - - 1 1 2 3
Tax related to items recognised
directly on equity - - -1 -1 1 -
Other transactions - - -576 -576 -282 -858
Increase of capital base 195 - -195 - - -
Equity at 31 December 2023 4,357 2,337 39,165 45,859 9,287 55,146
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 60
Basis of preparation - continued
Note 1
Reporting entity
Lundbeckfonden (the Lundbeck Foundation) is
domiciled in Denmark. The Foundation’s registered
office is at Scherfigsvej 7, 2100 Copenhagen. These
consolidated financial statements comprise the Parent
Foundation and its subsidiaries.
Basis of accounting
The consolidated financial statements have been
prepared in accordance with IFRS Accounting Standards
as adopted by the EU and additional requirements of
the Danish Financial Statements Act. The consolidated
financial statements were approved by the Board of
Directors on 12 March 2025.
Details of the Group’s accounting policies are included
in this note and note 36 Material accounting policy
information.
Functional and presentation currency
Items included in the financial statements of each of
the Group’s entities are measured using the currency of
the primary economic environment in which the entity
operates (the functional currency).
The consolidated financial statements are presented in
Danish kroner (DKK), which is also the functional and
presentation currency of Lundbeckfonden (the Parent
Foundation). All amounts have been rounded to the
nearest DKK million, unless otherwise indicated.
Principal accounting policies
Apart from the general accounting policies, which are
described in note 36 Material accounting policy
information, some other relevant information is
specified in each of the individual notes to the
consolidated financial statements. The accounting
policies have been applied consistently in the
preparation of the consolidated financial statements for
all the years presented.
Use of judgements and estimates
In preparing the consolidated financial statements,
Management has made estimates and judgments that
affect the application of the Group’s accounting policies
and the reported amounts of assets, liabilities, income
and expenses. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions of estimates are recognised
prospectively. Management believes that the following
accounting estimates, assumptions and judgments are
significant to the consolidated financial statements.
Changes in material accounting policy information
New and amended standards adopted by the group
Effective 1 January 2024, a number of amendments to the
accounting standards were implemented.
None of the amendments have a material impact on the
accounting policies and/or on the consolidated financial
statements. Consequently, no material changes to the
accounting policies or retrospective adjustments have
been made as a result of adopting these standards and/or
amendments.
New standards and amendments issued but
not yet effective
A number of new standards and amendments are
effective for annual periods beginning after 1 January
2024 though not mandatory for annual reporting periods
ending on 31 December 2024. Earlier application is
permitted; however, the new or amended standards have
not been early adopted by the Group.
The amended standards are as follows:
• Lack of exchangeability (Amendments to IAS 21 The
Effects of Changes in Foreign Exchange Rates)
• Classification and Measurement of Financial
Instruments (Amendments to IFRS 9 Financial
Instruments and IFRS 7 Financial Instruments:
Disclosures)
• IFRS 18 Presentation and Disclosure in Financial
Statements
The Group expects to adopt the new standards,
improvements, amendments and interpretations when
they become mandatory. Possible impacts are being
evaluated and will be completed by the date the standard
becomes effective.
None of the amended standards or new accounting
pronouncements are expected to significantly impact the
accounting policies and/or on the consolidated Financial
Statements.
Note 1
Basis of preparation
Principal accounting policies
Key accounting estimates, assumptions and judgements Notes
Provision for discounts and rebates Estimate of discounts and rebates in the USA
25
Income tax and deferred income taxes Judgement and estimate of deferred tax assets and liabilities and provision for uncertain tax positions 9,17
Intangible assets Judgement and estimates when determining the carrying amounts in connection with capitalisation of intangible assets
Estimate of the value-in-use methodology for impairment of intangible assets
11
Inventory Judgment and estimate of the provision for obsolescence 18
Financial assets Estimate of fair value of unlisted investments 16,32
Provisions and contingent assets and liabilities Estimate of ongoing legal disputes, environmental provisions, litigations and investigations 25,33
Business combinations
Judgement is particularly involved in the assessment of whether or not the net assets acquired constitute a business and, in the
recognition, and fair value measurement of assets acquired, liabilities assumed and contingent consideration. In making this
assessment, management considers the underlying economic substance of the items concerned in addition to the contractual terms
21
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 61
Revenue - continued
Note 2
* Abilify long-acting injectable (LAI) franchise comprises following products: Abilify Maintena®, Abilify Maintena® 960 mg and Abilify Asimtufii®
Note 2
Revenue
DKKm 2024 2023
Europe
17,504 16,080
North America 15,143 14,428
Rest of the world
7,028 6,151
Total
39,675 36,659
Brain diseases (Lundbeck)
22,004
19,912
Allergy treatment (ALK) 5,537 4,824
Ambulance Europe, Ambulance US, Fire Services, Employee and Labour Market services, Consumer and
Technical services and Community Health services (Falck)
12,134 11,913
Other
-
10
Total 39,675 36,659
Revenue includes: 2024 2023
Sale of goods
26,813 24,064
Rendering of services 12,035 11,795
Downpayments and milestone payments
- 7
Royalties
827 793
Total
39,675 36,659
Revenue in Denmark 3,919 4,049
Brain diseases (Lundbeck)
DKKm 2024 2023
Abilify LAI franchise*
3,504 3,187
Brintellix®/Trintellix® 4,847 4,324
Cipralex®/Lexapro®
2,048 2,135
Rexulti®
5,202 4,525
Vyepti®
2,909 1,697
Other pharmaceuticals
3,180 3,580
Revenue by product
21,690 19,448
Other revenue 366 327
Effects from hedging -52 137
Total
22,004 19,912
Allergy treatment (ALK)
DKKm 2024 2023
SCIT/SLIT-drops
2,052 1,939
SLIT-tablets 2,851 2,296
Other products and services
634 589
Total
5,537 4,824
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 62
Employee costs - continued
Note 2
Note 2
Revenue - continued
Falck
DKKm 2024 2023
Societal Care
6,405 6,598
Individual Care 4,628 4,202
Industrial Fire services
1,109
1,120
Eliminations -8 -7
Total
12,134 11,913
Note 3
Employee costs
DKKm 2024 2023
Wages and salaries
13,902 13,078
Share-based payments
95
71
Pensions 833 756
Other social security costs
1,515 1,418
Severance and other costs from restructuring activities
115
59
Total 16,460 15,382
The year’s employee costs are specified as follows:
Cost of sales 8,243 8,182
Research and development costs
1,575 1,326
Sales and distribution costs
4,208 3,700
Administrative expenses
2,313 2,044
Other operating items, net
29 49
Included in the cost of assets
92 81
Total
16,460 15,382
Average number of full-time employees during the year 27,437 27,350
Number of employees at year-end
33,959 33,963
DKKm 2024 2023
Remuneration in the Group including remuneration for board positions in subsidiaries:
Total remuneration to key management of Lundbeckfonden 18.3 18.1
Total remuneration (fees) to the Board of Directors of Lundbeckfonden
9.1 9.6
Total
27.4 27.7
Key management, Lene Skole, CEO
Salary 12.3 11.8
Cash bonus 4.0 4.3
Pension
1.7 1.7
Non-cash benefits (company car and telephone)
0.3 0.3
18.3 18.1
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 63
Employee costs - continued
Note 3
Fees to Board of Directors,
DKK '000
Membership Board fee
Commit-
tees
Subsi-
diaries
2024 Total Board fee
Commit-
tees
Subsi-
diaries
2023 Total
Steffen Kragh Chair of the Foundation and Lundbeckfond Invest A/S and member of the Investment Committee
1,080 270 - 1,350 1,080 248 - 1,328
Søren Skou Deputy Chair of the Foundation and Lundbeckfond Invest A/S and member of the Investment Committee since 12 March 2024 580 217 - 797 - - - -
Lars Holmqvist Chair of the Investment Committee
360 405 1,075 1,840 360 394 1,046 1,800
Michael Kjær Member of the Research Committee
360 370 - 730 360 338 - 698
Susanne Krüger Kjær Chair of the Research Committee since 27 March 2023
360 505 - 865 360 439 - 799
Svend Andersen Member of the Investment Committee
360 270 - 630 360 248 - 608
Thomas Mears Werge Member of the Research Committee since 27 March 2023
360 370 - 730 275 281 - 556
Henrik Sindal Jensen Employee representative from H. Lundbeck A/S
360 - - 360 360 - - 360
Katja Barnkob Employee representative from ALK-Abelló A/S
360 - 350 710 360 - 350 710
Mikkel Helmer Nielsen Employee representative from Falck A/S
360 - - 360 360 - - 360
Morten Egholm Aagaard Employee representative from Falck A/S
360 - - 360 360 - - 360
Peter Schütze
Former Deputy Chair of the Foundation and Lundbeckfond Invest A/S and member of the Investment Committee, stepped down
on 12 March 2024
140 53 135 328 720 248 650 1,618
Gunhild Waldemar Former Chair of the Research Committee, stepped down on 27 March 2023
- - - - 265 115 - 380
Total
5,040 2,460 1,560 9,060 5,220 2,311 2,046 9,577
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 64
Incentive programmes - continued
Note 4
Lundbeckfonden
The Executive Management of Lundbeckfonden
participates in a short-term incentive programme that
provides an annual bonus for the achievement of pre-
determined targets. Bonuses under the programme
amounted to DKK 4.0m in 2024 (DKK 4.3m in 2023),
which was equivalent to 100% of the maximum, and will
be paid out with a delay of 12 months.
In addition, Lundbeckfonden has incentive programmes
to be able to attract and retain skilled and qualified
employees. The costs related to the programmes are
recognised as employee costs when there is certainty
about the amount due and the time of payment.
Subsidiaries
To attract, retain and motivate key employees and align
their interests with those of the shareholders, a number
of incentive programmes have been established in
Lundbeck, ALK and Falck. The Group uses short-term
incentive programmes that provide an annual bonus for
the achievement of pre-determined targets for the
financial year, as well as long-term, equity-based and
debt-based programmes, as described below.
Lundbeck
Lundbeck uses equity- and cash-settled programmes.
Equity-settled programmes
As from 2023, Lundbeck has established a performance
share units (PSU) programme in substitution for the
previous restricted share units (RSU) programme for
Lundbeck’s Registered Executive Management and key
employees, as part of Lundbeck’s recurring long-term
incentive programme. The general terms and conditions
for the PSU programme are similar to those applying to
the RSU programme. In 2024, Registered Executive
Management and some key employees were granted
PSUs. The total number of options granted to the above-
mentioned employees are disclosed below. The price of
the granted shares is referenced to the price of B-shares.
The participants were selected based on job level. All the
PSUs/RSUs vest three years after grant. Vesting is
subject to the Board of Directors’ decision on vesting, to
Lundbeck achieving certain strategic and financial
targets specified by the Board of Directors and to
continuing employment with the Group during the
vesting period. The fair value of PSUs and RSUs has been
calculated based on the share price reduced by an
expected dividend yield of 2.00% p.a. The fair value is
disclosed below for each date of grant. At 31 December
2024, a total of 1.4 million shares (1.1 million in 2023)
were outstanding for key management, including all
ongoing programmes.
Cash-settled programmes
In 2024, the cash-settled programmes consisted of
performance cash units (PCUs) and restricted cash units
(RCUs). The cash-settled programmes cannot be
converted into shares as this programme is settled in
cash.
In 2023, the Group established a PCUs programme for a
few key employees in the subsidiaries. Previously, a re-
stricted cash units (RCU) programme was applied. The
general terms and conditions for the PCUs program are
similar to those applying to the RCUs programme. The
price of the granted PCUs is referenced to the price of B-
shares. At 31 December 2024, the PCUs granted to the
key employees, totaled 18,842 PCUs (39,152 PCUs for the
2023 programme). All PCUs/RCUs will vest 3 years after
the grant. Vesting is subject to the Board of Directors’
decision on vesting, to Lundbeck achieving certain
strategic and financial targets specified by the Board of
Directors and to continuing employment with the
Group during the vesting period. The size of the amount
depends on the value of the Lundbeck share on the
vesting date. The fair value at the time of the initial
grant was DKK 31.07 per PCU (DKK 28.29 per PCU for the
2023 programme).
Fair value, liability and expense recognised in the
income statement
The PSUs/RSUs granted are recognized in profit or loss
for 2024 and 2023 at an expense corresponding to the
fair value at the time of grant for the part of the vesting
period attributable to each one. The total expense
recognised in respect of equity-settled programmes
amounted to DKK 45m (DKK 36m in 2023). At 31
December 2024, the fair value of the remaining equity-
settled programmes was DKK 192m (DKK 120m at 31
December 2023).
The PCUs/RCUs granted are recognised in the income
statement at an expense corresponding to the value
adjustment for the year based on the performance of
the Lundbeck share. The total expense recognised in
respect of cash-settled programmes amounted to DKK
2m (DKK 5m in 2023) and covers all cash-settled
programmes in force at 31 December 2024. At 31
December 2024, the total liability in respect of cash-
settled programmes was DKK 2m (DKK 1m at 31
December 2023).
The total expense recognised in profit or loss for all
incentive programmes amounted to DKK 47m in 2024
(DKK 41m in 2023).
ALK
The incentive plans consist of share options,
performance share units, and restricted stock units that
are considered sufficiently covered by treasury shares.
The share options entitle the holder to acquire one
existing B share of DKK 0.5 nominal value in the
company per share option. The performance share units
and restricted stock units entitle the holder to receive
one existing B share per performance share unit or
restricted stock unit free of charge.
The vesting period for both share options, performance
share units, and restricted stock units is three years
Note 4
Incentive programmes
PSU and RSU programmes 1)
2024
2023
2022
2021
2020
Number of persons included in the programme
215
166
176
139
135
Total number of PSUs/RSUs granted 2,165,
649
1,738,514
1,592,
060
801,
365
695,595
Number of PSUs/RSUs granted to the registered
Executive Management
470,
009
407,514
385,
659
173,
905
149,615
Vesting date
01.02.27
01.02.26
01.02.25
01.02.24
01.02.23
Fair value at the date of grant, DKK 31.
07
28.29
28.
43
47.
24
51.68
1) Lundbeck introduced a performance share units (PSU) programme in 2023. Consequently, information for 2023 comprises details on PSUs and prior information comprises
details on RSUs. Comparative figures for 2020 and 2021 have been restated to reflect the result of the share split completed on 8 June 2022.
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 65
Incentive programmes - continued
Note 4
after grant. Vesting of share options and performance
share units is conditional upon certain targets being
met and upon the participant not having resigned.
Target achievement is met upon fulfilment of strategic
key performance indicators. In case performance is
below the threshold there will be no units vesting, and if
above target, a multiplier is applied that can increase
the vesting by up to 100%. Vesting of restricted stock
units is conditional upon continued employment.
The exercise of share options is possible in the trading
windows following the release of annual and interim
reports conditional upon the share option holder not
having resigned at the time of exercise. For performance
share units and restricted stock units, the final transfer
of ownership takes place at vesting three years after the
grant.
For the 2023 and 2024 plans, a cap applies to the
maximum total value gain from share options,
performance shares, and restricted stock units at
exercise and/or vesting, respectively, granted in a
calendar year. The cap is four times the annual base
salary at the time of award of the share options,
performance share units, and restricted stock units
concerned.
Expensed in the income statement
In 2024, the total cost of share-based payments
included a financial expense of DKK 3m due to the
exercise and cash settlement of share options (2023:
financial income of DKK 0.1m). The total cost included
DKK 22m related to adjustment in the share options
and performance share units (2023: DKK 8m).
Specification of outstanding share options, performance
share units, and restricted stock units:
The Board of Directors decided for two trading windows
in 2024 to settle share options by cash and a total of
616,647 share options were exercised and total cash
payments amounted to DKK 33m. For two trading
windows in 2024 the Board of Directors decided to
settle share options by shares and a total of 77,168 share
options were exercised.
In 2023, the Board of Directors decided for two trading
windows to settle share options by cash and a total of
434,219 share options were exercised and total cash
payments amounted to DKK 14m. The Board of Directors
decided not to open two trading windows for exercises
in 2023.
1) In relation to the resignation of the previous CEO in 2023, it was agreed that he kept his outstanding share options and the related outstanding costs were accelerated,
while outstanding performance share units were cancelled.
Share options
Performance share units
Restricted stock
units
Units
Board of
Management
Other key
employees
Total
Weighted
average exercise
price, DKK
Board of
Management
Other key
employees
Total
Board of
Management
1 January 2024 487,811 766,268 1,254,079 95
28,263 387,116 415,379
151,997
Additions 49,945 116,286 166,231 126
39,983 154,125 194,108
-
Exercised/settled
-105,535
-588,280
-693,815
92
-6,216
-175,980
-182,196
-
Cancellations - - - -
- -20,639 -20,639
-
31 December 2024 432,221 294,274 726,495 95
62,030 344,622 406,652
151,997
Total number of vested share options
103,656
Average remaining life at year-end (years)
4.3
Exercise prices at year-end (DKK)
76-148
1 January 2023 590,120 638,740 1,228,860 82
79,020 423,920 502,940
-
Additions 397,661 86,657 484,318
86
25,358 165,452 190,810
151,997
Exercised/settled -192,320 -241,899 -434,219
48
-42,895 -202,216 -245,111
-
Change in Board of Management
1)
-307,650
307,650
-
-8,240
8,240
-
-
Cancellations - -24,880 -24,880 106
-24,980 -8,280 -33,260
-
31 December 2023 487,811 766,268 1,254,079
95
28,263 387,116 415,379
415,379
Total number of vested share options
451,150
Average remaining life at year-end (years)
2.6
Exercise prices at year-end (DKK)
59-144
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 66
Incentive programmes - continued
Note 4
Outstanding share options, performance share units
and restricted stock units have the following
characteristics:
Fair value of share options, performance share units,
and restricted stock units granted
Share options
Fair value at grant date is measured in accordance with
the Black & Scholes model for valuation of share
options, using the following assumptions:
Performance share units
In 2024, performance share units have been granted at
DKK 126 per share (2023: DKK 104 per share).
Restricted stock units
No restricted stock units were granted in 2024. In 2023,
restricted stock units were granted at DKK 105 and
DKK 77 per share for the respective 2023 plans.
Falck
The remuneration of the members of the Executive
Committee consists of three key components: base
salary, a short-term incentive plan and a long-term
incentive plan.
Falck’s short-term incentive programme is a cash-based
one-year programme with focus on financial,
commercial and ESG KPIs.
The long-term incentive programme is a cash-based
incentive on a three-year performance period with an
50% EBITA target and 50% on implementation of
strategic Care for more ’27 initiatives at the end of the
three-year period.
Group
Recognised expenses, DKKm 2024 2023
Recognised expenses concerning
equity-based schemes
96
66
Recognised expenses concerning cash-
based schemes
2
5
Total recognised expenses 98
71
Share options Performance share units
Performance share units
Plan Units
Exercise price,
DKK
Vested as per
Exercise
period (years)
Units Vested as per
Units Vested as per
2021 Plan 103,656 126 01.03.2024 2
01.03.2024
2022 Plan 126,080 152 01.03.2025 2
119,300 01.03.2025
20213Plan 84,433 104 01.04.2026
4
150,330 01.04.2026
2023 Plan, special 323,519 82 01.06.2026
4
2023 Plan, special
21,925 01.03.2026
2023 Plan, special
130,072 01.11.2026
2024 Plan 88,807 126 01.04.2027
4
137,022 01.04.2027
31 December 2024
726,495
406,652
151,997
2024 Plan 2023 Plan
2023
Special plan
Average share price (DKK) 126
104
82
Expected exercise price (DKK) 126
104
82
Expected volatility rate, based on the historical volatility 40% p.a.
36% p.a.
38% p.a.
Expected option life 5 years
5 years
5 years
Expected dividend per share -
-
-
Risk-free interest rate 2.29% p.a.
2.57% p.a.
2.73% p.a.
Calculated fair value of granted share options (DKK) 48
37
31
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 67
Depreciation, amortisation and impairment - continued
Note 5
The amounts include gains and losses on disposal of
intangible and tangible assets.
Note 6
Fees to auditors appointed
at the annual meeting
PwC audits the consolidated financial statements of the
Lundbeck Foundation and a majority of the subsidiaries’
financial statements.
The fee for non-audit services provided to the Group by
PricewaterhouseCoopers Statsautoriseret
Revisionspartnerselskab, Denmark, consisted of limited
assurance of the sustainability statements, consultancy
services, other assurance services and other accounting
and tax advisory services.
See note 31.1 for information on transaction costs
related to acquisitions and divestments and integration
costs.
In 2024, the change in value of biological assets and
related land included an impairment on property and
land of DKK 8m.
Note 5
Depreciation, amortisation and impairment
DKKm 2024 2023
Depreciation, amortisation and impairment are specified as follows:
Cost of sales 2,387 2,613
Research and development costs
641 83
Sales and distribution costs
109 132
Administrative expenses
153 124
Other operating items, net
-15 -11
Total
3,275 2,941
DKKm 2024 2023
Administrative expenses include fees to the Group auditors appointed at the annual meeting in the
amount of:
Statutory audit 26
24
Assurance engagements other than audit 5
1
Tax advisory services 2
3
Other services 2
3
Total 35
31
DKKm 2024 2023
Transaction costs related to acquisitions and divestments
-211
-1
Change in value of biological assets and related land 1
8
Gain on sales of assets, net 23
11
Redundancy and restructuring costs, etc. -243
-63
Other operating income 2
39
Total -428
-6
Note 7
Other operating items, net
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 68
Financial items - continued
Note 8
As part of the Longboard acquisition, Lundbeck entered
into a deal-contingent forward (foreign exchange con-
tract) to mitigate the foreign exchange risks associated
to the acquisition. The derivative was designated at fair
value through profit or loss. The contract was entirely
settled with the closing and cash payment of the
Longboard’s acquisition. The accounting impact of the
derivative was recognised as a ‘gain on financial assets
at fair value through’ in the income statement, at an
amount of DKK 380m.
Note 8
Financial items
Lundbeck, ALK and Falck BioCapital Invest etc. Group
DKKm 2024 2023 2024 2023 2024 2023 2024 2023
Financial income
Interest on financial assets measured at amortised cost
299
116
-
-
-
-
299
116
Interest on financial assets measured at fair value through profit or loss - - - - 269 333 269 333
Interest on receivables from associates
- - 11 4 - - 11 4
Dividends from portfolio investments
-
-
-
-
353
287
353
287
Gains on financial assets at fair value through profit or loss 392 4 753 1,331 3,248 3,317 4,393 4,652
Fair value adjustment of contingent considerations
60 4 - - - - 60 4
Exchange gains
26 3 - - 18 6 44 9
Other financial income
7 3 - - 20 5 27 8
Total financial income
784 130 764 1,335 3,908 3,948 5,456 5,413
Financial expenses
Interest on financial liabilities measured at amortised cost 342 195 - - 40 13 382 208
Interest component, discounted liabilities
39 31 - - - - 39 31
Losses on financial assets at fair value through profit or loss
14 25 656 522 735 1,066 1,405 1,613
Fair value adjustment of contingent considerations
39 10 - - - - 39 10
Exchange losses
56 212 - - 10 9 66 221
Losses from divestment of enterprises
15 2 - - - - 15 2
Other financial expenses
69 59 - 41 21 28 90 128
Total financial expenses
574 534 656 563 806 1,116 2,036 2,213
Net financials 210 -404 108 772 3,102 2,832 3,420 3,200
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 69
Tax on profit for the year - continued
Note 9
Uncertain tax positions
The Group operates in a multinational tax environment.
Complying with tax rules can be complex as the
interpretation of legislation and case law may not
always be clear or may change over time. In addition,
transfer pricing disputes with tax authorities may occur.
Management’s judgments are applied when estimating
the expected outcome of disputes or interpretational
uncertainties. Provisions for uncertain tax positions are
determined by using the ‘most probable outcome’ or
‘single best estimate’ method depending on the type of
uncertainty.
The net accrual for uncertain tax positions amounts to
DKK 321m (DKK 595m at 31 December 2023).
Management believes that the accrual is adequate.
However, the actual obligation may differ from the
accrual made and depends on the outcome of
litigations and settlements with the relevant tax
authorities.
Note 9
Tax on profit for the year
DKKm 2024 2023
Current tax
773 673
Prior-year adjustment, current tax 9 34
Prior-year adjustment, deferred tax
-3 -65
Change of deferred tax for the year
360 17
Change of deferred tax as a result of changed income tax rates
- 1
Total tax for the year
1,139 660
Tax for the year is composed of:
Tax on profit for the year
1,212
683
Tax on other comprehensive income -57 -23
Tax on other transactions in equity
-16 -
Total tax for the year
1,139 660
Tax on other comprehensive income, DKKm 2024 2023
Actuarial gains/losses
1
-5
Currency translation, foreign subsidiaries 6
4
Currency translation on additions to net investments in foreign subsidiaries 12
4
Value adjustment of interest-hedging instruments -1
-5
Deferred gains/losses on cash flow hedge, price -3
-17
Adjustment, deferred exchange gains/losses, hedging -83
26
Exchange gains/losses, hedging (transferred to the hedged items) 11
-30
Total tax on other comprehensive income -57
-23
1) The amount of DKK 283m in 2024 primarily reflects the reversal of an uncertain tax provision in the UK following the closure of a tax audit during the period.
Explanation of the Group’s effective tax rate relative to the Danish tax rate 2024 DKKm %
Profit before tax
7,779
Calculated tax, 22% 1,711 22.0
Tax effect of:
Differences in income tax rates of foreign subsidiaries from Danish corporate income tax rate 102 1.3
Non-deductible/non-taxable items and other permanent differences -27 -0.3
Research and development activities (tax credits) -69 -0.9
Foreign-derived intangible income benefit -32 -0.4
Prior-year tax adjustments etc., total effect on operations 6 0.1
Non-deductible losses/non-taxable gains on shares and other equity investments -3 -
Change in valuation of net tax assets 17 0.2
Deduction for grants -229 -2.9
Reversal of UK tax provision
1)
-283 -3.6
Pillar Two top-up tax 14 0.2
Other taxes and adjustments 5 -
Effective tax for the year 1,212 15.6
Explanation of the Group’s effective tax rate relative to the Danish tax rate 2023 DKKm %
Profit before tax 6,956
Calculated tax, 22% 1,530 22.0
Tax effect of:
Differences in income tax rates of foreign subsidiaries from Danish corporate income tax rate 122 1.8
Non-deductible/non-taxable items and other permanent differences -157 -2.3
Non-capitalised tax losses etc., for the year 31 0.4
Research and development activities (tax credits) -52 -0.7
Foreign-derived intangible income benefit -31 -0.4
Prior-year tax adjustments etc., total effect on operations -31 -0.4
Change in valuation of net tax assets -411 -5.9
Deduction for grants -308 -4.4
Other taxes and adjustments -11 -0.2
Change of deferred tax as a result of changed income tax rates 1 -
Effective tax for the year 683 9.8
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 70
Grants - continued
Note 10
Donations to descendants amounted to DKK 138,105
(DKK 196,200 in 2023).
Note 10
Grants
DKKm 2024 2023
LF Professorships
-
80
LF Collaborative Projects 120
-
LF Projects 300
98
LF & NIH Brain Initiative 222
-
LF Start-Up Programme 16
-
Research in neuroscience 658
178
LF Ascending Investigators 84
68
LF Experiment
60
63
LF Postdocs 44
41
LF Projects 2
-
LF Visiting Professor, LF Sabbatical leave & LF Larger international meetings and conferences
4
2
Pioneer centre -
80
Research benefitting neuroscience 194
254
LF Early-Career Clinician Scientists 23
16
LF Fellowships 50
61
LF Pre-Graduate Scholarships 7
7
LF Projects 47
-
Universitetshospitalernes Center for Sundhedsfaglig Forskning 2
2
Talent development in biomedical science 129
86
DKKm 2024 2023
The Brain Prize
10 10
LF Talent Prizes 2 2
LF Young Investigator Prize
1 1
Prizes
13 13
LF Frontier grants, Neurotorium, LF Investigator Network & LF Diversity
32
29
Other grants & purposes §6J 14 7
Other purposes
46 36
Science Education & Communication and Diversity 34 25
Grants authorised, gross 1,074 592
Descendants - -
Reversed grants/repayments
-14 -12
Grants for the year, net
1,060 580
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 71
Intangible assets - continued
Note 11
Other intangible assets includes intangible assets in
progress, and individual development projects running
for short-term periods. In 2024, ALK has entered a
Collaboration, License and Distribution Agreement with
ARS Pharmaceuticals Operations Inc. where the asset of
DKK 994m is not ready for use due to pending
regulatory and other approvals.
Product rights at 31 December 2024 included product
rights not yet commercialised amounting to DKK
18,150m. This amount does include the effect of the
provisional intangible assets acquired from Longboard.
Intangible assets acquired as part of the acquisition of
Longboard amounts to DKK 20,402m at the acquisition
date, and this amount reflects the provisional purchase
price allocation.
Furthermore, additions on acquisitions relate to ALK’s
acquisition of the operating assets of AllerQuest and
Falck’s acquisition of the two companies in Colombia
(Asistencia Médica S.A.S. and Servicio de Asistencia
Médica Inmediata S.A.S.).
Please refer to note 31.1 for information about additions
on acquisitions.
Note 11
Intangible assets
DKKm Goodwill
Product
rights Brands
Customer
contracts
Other
intangible
assets Total
Cost at 1 January 2024
11,810 32,638 514 233 3,659 48,854
Currency translation 349 1,305 - -11 19 1,662
Additions on acquisitions 3,970 16,453 - 7 118 20,548
Additions - - - - 1,134 1,134
Disposals - -306 - - -131 -437
Cost at 31 December 2024
16,129
50,090
514
229
4,799
71,761
Amortisation and impairment at 1 January 2024 -1,833 -17,735 - -102 -3,098 -22,768
Currency translation -11 -615 - 6 -11 -631
Amortisation - -1,433 - -45 -117 -1,595
Impairment - -547 - - -2 -549
Amortisation and impairment on disposals - 306 - - 110 416
Amortisation and impairment at 31 December 2024 -1,844 -20,024 - -141 -3,118 -25,127
Carrying amount at 31 December 2024 14,285 30,066 514 88 1,681 46,634
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 72
Intangible assets - continued
Note 11
Other intangible assets includes individual development
projects running for short-term periods.
Product rights at 31 December 2023 included product
rights not yet commercialised amounting to
DKK 1,973m.
In 2023, Abilify Maintena® achieved a sales milestone of
EUR 300m triggering the recognition of an addition in
the product rights of Abilify Maintena® of DKK 112m
(EUR 15m). The milestone has been paid in 2023.
Additions on acquisitions are related to Falck’s
acquisition of MedConnect A/S. The acquisitions of
goodwill, customer contracts, software, and other
intangible assets have primarily been made to achieve
synergies with Falck’s existing business units, to further
develop existing markets and to establish a presence in
new markets.
Please refer to note 31.1 for information about additions
on acquisitions.
Impairment testing goodwill
As required by IFRS, intangible assets with indefinite
useful lives, intangible assets not yet available for use
and goodwill acquired in a business combination are
tested for impairment annually, irrespective of whether
there is any indication of impairment.
Management has performed impairment tests of
goodwill related to the investments in the subgroups.
The impairment test for 2024 did not result in
recognition of any impairment losses on goodwill.
Based on sensitivity analyses related to the impairment
test for 2024, it is Management’s opinion, that no
DKKm Goodwill
Product
rights
Brands
Customer
contracts
Other
intangible
assets
Total
Cost at 1 January 2023 11,877 33,025 514 250 3,478 49,144
Currency translation -138 -499 - -17 -4 -658
Reclassifications/transfers - - - - - -
Additions on acquisitions 71 - - - 40 111
Additions - 112 - - 186 298
Disposals - - - - -41 -41
Cost at 31 December 2023 11,810 32,638 514 233 3,659 48,854
Amortisation and impairment at 1 January 2023
-1,840
-16,284
-
-59
-3,009
-21,192
Currency translation 7 260 - 4 4 275
Amortisation - -1,584 - -47 -118 -1,749
Impairment
-
-127
-
-
-
-127
Amortisation and impairment on disposals - - - - 25 25
Amortisation and impairment at 31 December 2023 -1,833 -17,735 - -102 -3,098 -22,768
Carrying amount at 31 December 2023 9,977 14,903 514 131 561 26,086
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 73
Intangible assets - continued
Note 11
probable change in any key assumptions would result in
impairment losses.
The impairment test for 2023 did not result in
recognition of any impairment losses on goodwill.
Methodology used for Lundbeck
At 31 December 2024, goodwill related to Lundbeck
amounted to DKK 9,832m.
Goodwill has been tested at an aggregated level for
Lundbeck as one cash-generating unit (CGU).
In the impairment test of the CGU, based on the fair
value less cost of disposal, the market price of Lundbeck
is compared with its carrying amount.
Methodology used for ALK
At 31 December 2024, goodwill related to ALK amounted
to DKK 561m.
Goodwill has been tested at an aggregated level for
ALK as one CGU.
In the impairment test of the CGU, based on the fair
value less cost of disposal, the market price of ALK is
compared with its carrying amount.
Methodology used for Falck
At 31 December 2024, goodwill related to Falck
amounted to DKK 3,892m.
Impairment tests are carried out per business segment
which is the lowest level of cash-generating units (CGUs)
to which the carrying amount of intangibles, i.e.
goodwill and customer contracts, can be allocated and
monitored with any reasonable certainty.
Impairment tests are carried out on the business
segments Societal Care Europe, Individual Care Europe,
Industrial Fire services, Societal Care US and Individual
Care LATAM.
Impairment test of the Falck brand
The carrying amount of the Falck brand is tested at
Falck Group level based on Falck Group-wide cash flows
(aggregated cash flows determined for each CGU), less
the total carrying amount of the goodwill and other
non-current assets. The impairment test shows
significant headroom from comparing the value in use
to the carrying amount of all assets in the Falck Group.
Key assumptions in the impairment test
The recoverable amounts for the CGUs are determined
based on the value-in-use.
In the impairment tests, the discounted values of the
future net cash flows of each of the CGUs value-in-use
are compared with their carrying amounts. The value-in-
use is calculated using certain key assumptions for the
expected future cash flows and applied discount factor.
The cash flow projections are grounded in financial
budgets and business plans approved by Management.
These projections involve judgement and estimates,
which, while based on experience, carry some
uncertainty. To calculate the present value, discount
rates are applied using a weighted average cost of
capital (WACC), which incorporates both estimates and
external sources.
The value-in-use calculation comprises the following key
assumptions:
• Revenue growth in the forecast period
• EBIT margin before special items
• Net working capital
• Discount rates
• Growth rate in terminal period
Falck’s climate related transition plans are not assessed
to impact the future operating margins of the cash-
generating units materially.
Revenue growth
Revenue growth projections in the financial forecast for
2025-2029 are estimated based on current operations
and the expected market development for the
individual CGU.
For Societal Care Europe, a few large contracts have
been lost or changed in 2023 and 2024, but in the
longer term the key strategic focus on key European
markets is unchanged. Growth from other geographical
areas and from pursuing new business opportunities is
expected to compensate for the lost or changed
contracts.
For Individual Care Europe, an increase in revenue is
expected through organic growth and launch of new
products in line with the development in 2024.
For Industrial Fire services, moderate growth rates are
expected and this is in line with Falck’s strategy plan.
For Societal Care US, a flat revenue development is
assumed as the impact from exit of contracts is
expected to be compensated for by price increases on
existing contracts.
For Individual Care LATAM, revenue growth from
increased number of subscribers in the forecasting
period is expected.
EBIT margin before special items and net working capital
When estimating the CGUs’ EBIT margin before special
items in the financial forecast for 2025-2029, past
experiences are taken into consideration.
The EBIT margin before special items in the forecasting
period in Societal Care Europe is expected to gradually
improve during the first three years of the forecast
period as an outcome of execution of profitability
improvement initiatives in accordance with the Falck
Group strategy plan.
For Individual Care Europe, the EBIT margin before
special items is expected to be in line with the margin
achieved in 2024.
For Industrial Fire services, an improved EBIT margin
before special items is expected in the forecasting
period due to operational efficiency improvements.
The EBIT margin before special items in Societal Care US
is expected to be relatively stable in the forecasting
period due to continued focus on revenue cycle
management and other operational efficiency
initiatives. The operational efficiency initiatives are
expected to compensate for other impacts e.g. from
changes to contracts.
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 74
Intangible assets - continued
Note 11
For Individual Care LATAM, an increasing EBIT margin
before special items is expected mainly due to an
increased number of subscribers.
Net working capital is based on historical experience for
each CGU and thus increases on a linear basis as the
level of activity increases.
Discount rates and terminal growth
The discount rates for 2024 impairment testing
purposes are based on a calculation of weighted average
cost of capital (WACC).
The cost of equity is calculated using Capital Asset
Pricing Model (CAPM). The beta applied at year-end 2024
is obtained from comparable peers. Market risk
premiums have been added based on observed market
data.
The cost of debt is based on Falck’s debt margin plus
the risk-free interest to Falck’s spread plus the risk-free
interest of the countries in which the CGU operates.
The terminal growth rates are equal to the International
Monetary Fund (IMF) projections of inflation in 2029.
Carrying amounts and key assumptions
The carrying amount of goodwill and customer
contracts, and the key assumptions used in the
impairment testing at 31 December are presented for
each CGU:
Impairment testing of other intangible assets
Other intangible assets in use with indefinite useful lives
are tested for impairment if there is any indication of
impairment. Furthermore, prior impairment losses are
reviewed for possible reversal at each reporting date.
Lundbeck
Material product rights
Vyepti®
The eptinezumab product rights (Vyepti®), which is an
investigational monoclonal antibody (mAb) for migraine
prevention targeting the calcitonin gene-related peptide
(CGRP), were acquired in 2019. The value of those
product rights was DKK 13,421m at the time of
acquisition. At 31 December 2024, the carrying amount
of the Vyepti® product rights, net of amortisation,
amounted DKK 10,154m (DKK 10,667m at 31 December
2023). The remaining amortisation period of the Vyepti®
product rights is around 11 years.
Rexulti®
Rexulti® is a prescription medication used as an
adjunctive therapy to antidepressants for the treatment
of Major Depressive Disorder (MDD) and as a treatment
for adults with schizophrenia in certain markets.
Rexulti® is co-marketed in a partnership collaboration
with Otsuka Pharmaceuticals Co., Ltd. The carrying
amount of the Rexulti® product rights, net of
amortisation, amounted DKK 1,762m at 31 December
2024 (DKK 2,143m at 31 December 2023). The remaining
amortisation period of the Rexulti® product rights is
around five years.
Family of MAGLi compounds
A family of compounds; a first-in-class, small-molecule
inhibitor of monoacylglycerol lipase (MAGLi/MGLL)
currently being investigated in clinical trials for the
treatment of neurological disorders, and various
compounds in the pre-clinical phase, was acquired in
2019. The value of the family of compounds recognised
as product rights was DKK 1,853m at the time of
acquisition.
Carrying amount Forecasting period Terminal period Applied discount rate
2024, DKKm Goodwill
Customer
contracts
Total
Total growth
(avg.)
Margin (avg.) Growth
EBITA
margin
After tax Pre-tax
Societal Care Europe 541 - 541 1.4% 3.7% 2.0% 4.7% 6.9% 8.5%
Individual Care Europe 2,363 81 2,,444 6.6% 13.9% 2.0% 14.4% 7.1% 8.4%
Industrial Fire services 196 - 196 4.2% 5.2% 2.1% 6.0% 8.1% 10.1%
Societal Care US 310 - 310 1.1% 9.9% 2.1% 9.8% 8.8% 11.6%
Individual Care LATAM 482 7 482 12.8% 16.1% 3.3% 19.3% 12.9% 16.9%
Total 3,892 88 3,980
Carrying amount Forecasting period Terminal period Applied discount rate
2023, DKKm Goodwill
Customer
contracts
Total
Total growth
(avg.)
Margin (avg.) Growth
EBITA
margin
After tax Pre-tax
Societal Care Europe 347 - 347 4.5% 4.2% 2.0% 4.9% 7.4% 9.3%
Individual Care Europe 2,432 131 2,563 6.5% 12.6% 2.0% 13.9% 7.5% 8.9%
Industrial Fire services 348 - 348 -0.7% 9.0% 2.0% 10.7% 8.5% 10.7%
Societal Care US 287 - 287 1.5% 7.4% 2.1% 8.8% 8.5% 10.8%
Individual Care LATAM 499 - 499 12.3% 18.4% 3.5% 18.0% 11.9% 15.7%
Total 3,913 131 4,044
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 75
Intangible assets - continued
Note 11
At 31 December 2024, the carrying amount was DKK
1,324m (DKK 1,871m at 31 December 2023) and refers to
Lu AG12947, the remaining molecule from the
acquisition, as described in the impairment testing out-
come below. Lu AG12947 is not yet commercialised,
consequently amortisation has not commenced.
Bexicaserin
Bexicaserin is a novel 5-HT2C agonist in development for
the treatment of seizures associated with Develop-
mental and Epileptic Encephalopathies (DEEs), including
Dravet syndrome, Lennox-Gastaut syndrome, and other
rare epilepsies, acquired in December 2024 along with
the Longboard acquisition. See note 2 Business
combination.
In the impairment tests of product rights, based on the
value-in-use, the discounted expected future cash flows
for the specific asset tested are compared with the
carrying amount of the intangible asset. The expected
future cash flows are based on a forecast period, which
is the period used by Management for decision-making,
with due consideration of patent expiry.
The assumptions used in the impairment test are based
on benchmarked external data and historical trends.
The key parameters in the calculation of the value-in-
use are revenue, earnings, working capital, discount rate
and the preconditions for the cash flow period.
Significant assumptions and estimates are applied to
the discounted expected future cash flows from the
product rights. The assumptions are based on
experience, external source of information and industry-
relevant observations for each product right.
The four category elements in the table below are
considered when determining the key parameters for
the value-in-use calculation.
• Financial elements: Prices, rebates, quantities,
patient population, market shares, competition, fill
rates, prescription rates and Lundbeck costs
(including promotion costs)
• Market elements: Healthcare reforms, price reforms,
market access, pharma restrictions, launch success,
product positioning, competing pharmaceuticals and
generics on the market
• R&D elements: R&D spend, collaborations, pipeline
success rate, product labelling and liaison with
regulatory bodies
• Other elements: Supply chain effectiveness and
strength and abilities of partners
The calculation of the value-in-use for product rights is
based on a weighted average discount rate pre-tax of
7.75% (8.64% in 2023).
2024 testing outcome
Lundbeck
During 2024, an impairment loss of DKK 547m was
recognised, as a result of the negative read-out of a
Compound of MAGLi family (Lu AG06474 and Lu
AG12947) that was acquired in 2019 through a business
combination. Management decided to close the
development of the molecule Lu AG06474 after readout,
as results did not support additional studies, resulting
in the individual asset being impaired presented as
research and development costs in the income
statement. At 31 December 2024, no impact is expected
for Lu AG12947.
The carrying amount of the family of compounds
recognised as product rights prior to impairment was
DKK 1,871m. As of 31 December 2024, the remaining
gross carrying amount to DKK 1,324m, exclusively
related to Lu AG12947.
Sensitivity analysis
Management performed a sensitivity analysis,
considering a 5% decrease in growth rate or a 0.5
percentage point decrease in the after-tax discount rate.
These scenarios resulted in additional impairment
losses of DKK 170m and DKK 160m, respectively. For
other product rights, the headroom would have
continued to be positive.
Besides the impairment loss disclosed above, for other
product rights not yet commercialised, no impairment
was observed in 2024.
The sensitivity analyses are based on a change in an
assumption while holding all other assumptions
constant. The method and types of assumptions used in
preparing the sensitivity analyses did not change
compared to the prior period. The potential changes in
key assumptions are considered within historic
variations experienced by the Group and thus
considered reasonably possible.
ALK
Impairment testing in 2024 resulted in an impairment
of production and administrative software of DKK 2m.
2023 testing outcome
Dysis
Impairment testing in 2023 identified a need for
impairment on product rights of DKK 127m based on a
value in-use calculation. The impairment loss was
related to continued lower-than-expected commercial
performance.
Impairment testing total
The impairment losses per intangible asset category can
be specified as follows:
Impairment loss per
intangible asset category,
DKKm
2024 2023
Product rights
547
127
Other intangible assets 2
-
Impairment loss total
549
127
The impairment loss has been recognised in the income
statement as follows:
Impairment loss recognised
in the income statement,
DKKm
2024 2023
Cost of sales
1
127
Research and
development costs
547
-
Administrative expenses 1
-
Impairment loss total 549
127
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 76
Property, plant and equipment - continued
Note 12
Impairment amounted to DKK 12m, of which, DKK 8m
was attributable to land and buildings related to
forestry activities in Scotland. Impairment of production
and administrative equipment in ALK amounted to
DKK 4m.
Note 12
Property, plant and equipment
DKKm
Land and
buildings
Plant and
machinery
Other fixtures
and fittings,
tools and
equipment
Leasehold
improvements
Prepayments
and assets
under
construction
Total
Cost at 1 January 2024
6,467
3,317 2,670 200 1,293 13,947
Currency translation 34
27 10 -1 7 77
Reclassifications/transfers 125
34 90 - -249 -
Additions on acquisitions 11
2 2 2 2 19
Additions 88
70 357 17 625 1,157
Disposals -49
-62 -295 -50 - -456
Disposals on divestments
-11
- -11
Transferred from right-of-use assets 131
160 121 3 -298 117
Cost at 31 December 2024 6,807
3,548 2,944 171 1,380 14,850
Depreciation and impairment at 1 January 2024 -3,718
-2,365 -2,199 -150 - -8,432
Currency translation
-3
-16
-8
1
-
-26
Depreciation -207
-196 -178 -15 - -596
Impairment -8
-3 -1 - - -12
Depreciation and impairment on disposals
24
29
170
41
-
264
Disposals on divestments 1
33 23
- 57
Transferred from right-of-use assets -
- -74 - - -74
Depreciation and impairment at 31 December 2024 -3,911
-2,518 -2,267 -123 - -8,819
Carrying amount at 31 December 2024 2,896
1,030 677 48 1,380 6,031
Carrying amount of property, plant and equipment provided as loan collateral
562
-
-
-
-
562
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 77
Property, plant and equipment - continued
Note 12
Impairment amounted to DKK 11m, of which, DKK 10m
was attributable to Dysis’ production equipment with no
recoverable amount after impairment.
DKKm
Land and
buildings
Plant and
machinery
Other fixtures
and fittings,
tools and
equipment
Leasehold
improvements
Prepayments
and assets
under
construction
Total
Cost at 1 January 2023
6,237
3,097 2,520 187 1,315 13,356
Currency translation -11
-10 3 1 -6 -23
Reclassifications/transfers
163
202 96 - -441 20
Additions
54
76 227 17 426 800
Disposals
-37
-48 -190 -8 -1 -284
Transferred from right-of-use assets
61
- 14 3 - 78
Cost at 31 December 2023
6,467
3,317 2,670 200 1,293 13,947
Depreciation and impairment at 1 January 2023
-3,539
-2,222
-2,112
-142
-
-8,015
Currency translation -1
8 -2 - - 5
Depreciation
-200
-199 -145 -15 - -559
Impairment
-
-
-10
-
-1
-11
Depreciation and impairment on disposals 33
48 80 7 1 169
Transferred from right-of-use assets
-11
- -10 - - -21
Depreciation and impairment at 31 December 2023
-3,718
-2,365 -2,199 -150 - -8,432
Carrying amount at 31 December 2023 2,749
952 471 50 1,293 5,515
Carrying amount of property, plant and equipment provided as loan collateral
497
-
-
-
-
497
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 78
Right-of-use assets - continued
Note 13
The total cash outflow from recognised lease
agreements amounted to DKK 612m (DKK 523m in 2023)
and includes repayment of lease liabilities and interest.
For disclosures of the lease liabilities, see note 26.3
Lease liabilities.
Note 13
Right-of-use assets
DKKm
Land and
buildings
Other fixtures
and fittings, tools
and equipment
Total
Cost at 1 January 2024
2,523 1,103
3,626
Currency translation 21 25
46
Re-measurement 46 7
53
Additions on acquisitions 25 -
25
Additions 281 215
496
Disposals -175 -77
-252
Transferred to property, plant and equipment - -117
-117
Cost at 31 December 2024 2,721 1,156
3,877
Depreciation and impairment at 1 January 2024 -1,265 -644
-1,909
Currency translation -13 -20
-33
Depreciation
-342
-188
-530
Depreciation and impairment on disposals 155 72
227
Disposals on divestments 18 -
18
Transferred to property, plant and equipment
-
74
74
Depreciation and impairment at 31 December 2024 -1,447 -706
-2,153
Carrying amount at 31 December 2024 1,274 450
1,724
DKKm
Land and
buildings
Other fixtures
and fittings, tools
and equipment
Total
Cost at 1 January 2023 2,395 920 3,315
Currency translation -30 -15 -45
Re-measurement 116 7 123
Additions on acquisitions 2 - 2
Additions 256 231 487
Disposals -155 -23 -178
Transferred to property, plant and equipment -61 -17 -78
Cost at 31 December 2023 2,523 1,103 3,626
Depreciation and impairment at 1 January 2023 -1,112 -521 -1,633
Currency translation 10 10 20
Depreciation
-327
-165
-492
Depreciation and impairment on disposals 153 22 175
Transferred to property, plant and equipment 11 10 21
Depreciation and impairment at 31 December 2023 -1,265 -644 -1,909
Carrying amount at 31 December 2023 1,258 459 1,717
Amounts recognised in the income statement, DKKm 2024 2023
Expenses relating to short-term leases, not capitalised
44
39
Expenses related to low value leases, not capitalised 169
194
Interest expenses relating to lease liabilities 61
49
Depreciation 530
492
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 79
Biological assets - continued
Note 14
Biological assets comprise forestry activities in Scotland.
The fair value of the biological assets was based on a
calculation of the present value (by level 3 input from
the fair value hierarchy) of future expected cash flows
from the forests. The cash flows were calculated based
on harvesting volumes according to the Group’s current
plan and assessments of future price and cost changes.
The cash flows were discounted using discount rates
of 2.05 - 3.15% (2.20 – 3.60% at 31 December 2023).
At 31 December 2024, the Group owned 3,407 hectares
of forest farming land being managed actively.
The carrying amount of land related to forestry
activities is recognised under property, plant and
equipment.
The investments in WS Audiology and Ellab were
completed end April 2024 and end October 2023,
respectively.
The Group has significant influence through
representation on the Boards of Directors of the
companies. Consequently, the investments are classified
as associates.
Note 14
Biological assets
DKKm 2024 2023
Fair value at 1 January
317
289
Currency translation 15
7
Reclassifications/transfers -
-20
Additions -
33
Change in fair value 1
8
Fair value at 31 December 333
317
Note 15
Investments in associates
DKKm 2024 2023
Cost at 1 January
2,652 874
Additions
2,002
1,778
Cost at 31 December 4,654 2,652
Adjustments at 1 January -33 -
Share of result for the year
-210 -34
Other adjustments
7 1
Adjustments at 31 December
-236 -33
Carrying amount at 31 December 4,418 2,619
Associates, DKKm
Registered
office Ownership
Share of
equity
Goodwill etc. Total value
Ferrosan Medical Devices HoldCo ApS Søborg 30% 860 17 877
Echo TopCo A/S (Ellab) Hellerup 34% 1,657 47 1,704
CN8 A/S (WS Audiology) Lynge 15% 701 1,136 1,837
Carrying amount at 31 December 2024
3,218 1,200 4,418
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 80
Financial assets - continued
Note 16
The Group’s financial investments classified as financial
assets at fair value through profit or loss primarily
relate to Invest’s investments. These investments are
made based on an investment policy approved by the
Board of Directors. The strategy aims for an appropriate
diversification of investments across different asset
classes and geographical markets to achieve an
appropriate diversification of interest rate, exchange
rate, credit and equity risks on the financial
investments. The purpose is to reduce the risk of losses
but also to retain the prospect of gaining a long-term
return on the investments.
Financial assets include investments in listed and
unlisted equity instruments and securities, including life
science investments recognised at their fair value.
Investments in unlisted equity instruments and
securities amounted to DKK 7,484m at 31 December
2024 (DKK 6,192m at 31 December 2023).
The assessment of fair value of unlisted investments is
subject to considerable uncertainty. This applies
especially to life science investments because the value
of these businesses is linked to the companies’ often
long-term investment in the development of new
pharmaceuticals and technologies. Please refer to note
32.3 for information about applied valuation methods
for the determination of fair value.
Credit risks
Credit risks relating to the Group’s financial investments
primarily relate to investment in bonds and unlisted
funds investing in loans to businesses.
To limit the credit risk, a proportion of this asset class
has been invested in Danish government and mortgage
bonds with a high credit rating. To achieve a higher
return, the Group also invests in corporate bonds.
Equity risks
Equity risks relate to the Group’s holding of listed and
unlisted shares, including private equity funds, as part
of the Group’s investment operations. Most of these
investments are placed in listed shares.
To limit the risk of losses on these shares, the
investments are diversified across different geographical
regions and sectors in accordance with the applicable
investment policy. Derivative financial instruments are
used to manage the equity risk. The instruments can be
used both for risk management purposes and as an
alternative to selling or buying the underlying assets.
Other things being equal, a 10% decrease/increase in
equity prices would decrease/increase profits after tax
by DKK 1,420m and DKK 1,417m respectively (decrease by
DKK 1,430m and increase by DKK 1,372m in 2023).
For further information on risks relating to the Group’s
financial investments, see note 21 Liquidity and note 32
Financial risks and financial instruments.
Financial assets included in Invest and BioCapital are
part of the Group’s investment strategy and measured
at fair value through profit or loss. Other receivables are
measured at amortised cost. At 31 December 2024,
investments in associates included in Lundbeckfonden’s
investment strategy amounted to DKK 3,035m (DKK
2,761m at 31 December 2023).
Note 16
Financial assets
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 81
Financial assets - continued
Note 16
DKKm
Danish mortgage
and government
bonds
Credit bonds
and loans
Equities
Private equity
funds and other
unlisted funds
Derivative financial
instruments
Other receivables Total
Carrying amount at 1 January 2024
2,613 2,524
15,839 3,344 43 60 24,423
Additions 1,612 522
2,563 590 235 28 5,550
Disposals -1,172 -1,219
-4,317 -396 -189 - -7,293
Value adjustments, year-end 72 95
2,163 309 -28 -1 2,610
Carrying amount at 31 December 2024 3,125 1,922
16,248 3,847 61 87 25,290
Invest 3,125 1,922
13,907 3,847 61 - 22,862
BioCapital - -
2,341 - - 87 2,428
3,125 1,922
16,248 3,847 61 87 25,290
Recognised in:
Financial assets 3,035 1,712
16,248 3,847 61 87 24,990
Securities 90 210
- - - - 300
3,125 1,922
16,248 3,847 61 87 25,290
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 82
Financial assets - continued
Note 16
Please refer to note 32 for information about exchange
rate and interest rate risks.
DKKm
Danish mortgage
and government
bonds
Credit bonds
and loans
Equities
Private equity
funds and other
unlisted funds
Derivative financial
instruments
Other receivables Total
Carrying amount at 1 January 2023 3,246
3,003
13,202 2,709 211 137 22,508
Additions 2,134 195
2,386 788 510 17 6,030
Disposals -2,845
-794
-2,750 -201 -585 - -7,175
Value adjustments, year-end 78
120
3,001 48 -93 -94 3,060
Carrying amount at 31 December 2023 2,613
2,524
15,839 3,344 43 60 24,423
Invest 2,613 2,524
13,484 3,344 43 - 22,008
BioCapital -
-
2,355 - - 60 2,415
2,613
2,524
15,839 3,344 43 60 24,423
Recognised in:
Financial assets 2,468 2,133
15,839 3,344 43 60 23,887
Securities 145
391
- - - - 536
2,613
2,524
15,839 3,344 43 60 24,423
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 83
Deferred tax - continued
Note 17
Temporary differences between the carrying amount
and the tax base:
Management estimates future income according to
budgets, forecasts, business plans and initiatives
scheduled for the coming years, which support the
recognition of deferred tax assets. When forecasting the
utilisation of tax assets, the Group applies the same
assumptions as for impairment testing. See note 11
Intangible assets.
Accordingly, at 31 December 2024, all deferred tax assets
relating to tax losses carried forward in Denmark going
back to 2015 were capitalised in the amount of DKK
452m (DKK 961m at 31 December 2023).
US tax losses and tax credits stemming from
acquisitions have been recognised at an amount of DKK
907m (DKK 242m at December 2023), equalling the
expected utilisation within a foreseeable future, whereas
an amount of DKK 20m (DKK 15m at 31 December 2023)
has not been recognized in the balance sheet.
Global minimum top-up tax (Pillar II)
The Group is within the scope of the OECD Pillar Two
model rules, and it applies the IAS 12 exception for
recognise and disclose information about deferred tax
assets and tax liabilities related to Pillar Two income
taxes. The Group will incur top-up taxes due to the Pillar
Two legislation that became effective 1 January 2024.
Under the legislation the Group is liable to pay a top-up
tax for the difference between its GloBE effective tax
rate in each jurisdiction and the 15% minimum rate.
The Group has estimated that the effective tax rates
exceed 15% in all jurisdictions in which it operates,
except for four countries. Considering the impact of
specific adjustments in the Pillar Two legislation, the
Group recognised a current income tax expense of
DKK 14m, which is included in the income tax in the
income statement.
Note 17
Deferred tax
DKKm
Balance at
1 January
Currency
translation
Adjustment of
deferred tax at
beginning of year
Addition on
acquisition
of businesses etc.
Other
Movements
during the year
Balance at
31 December
2024
Non-current assets 3,637 128 -5
3,823 - 116 7,699
Current assets -263 -1 -21
- - -274 -559
Other -267 -6 14
-6 - -47 -312
Provisions in subsidiaries -613 -21 -
- - -180 -814
Tax loss carry-forwards etc. -1,356 18 9
-813 -1 706 -1,437
Research and development activities (tax credits) -133 -9 -
-44 - 39 -147
Deferred (tax assets)/tax liabilities 1,005 109 -3
2,960 -1 360 4,430
2023
Non-current assets 3,731 -82 1
9 - -22 3,637
Current assets -368 3
4
- - 98 -263
Other -252 16
23
1 - -55 -267
Provisions in subsidiaries -423 -2
-51
- - -137 -613
Tax loss carry-forwards etc. -1,480 32
-42
-1 - 135 -1,356
Research and development activities (tax credits) -137 5
-
- - -1 -133
Deferred (tax assets)/tax liabilities
1,071
-28
-65
9
-
18
1,005
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 84
Deferred tax - continued
Note 17
Unrecognised deferred tax assets primarily relate to net
operating losses and tax credits not expected to be
utilised within a foreseeable future. The majority of the
tax losses have no expiry date.
DKKm 2024 2023
Deferred tax assets relate to the following items:
Non-current assets -112 -44
Current assets
665 368
Provisions and payables
180 164
Other
161 164
Provisions in subsidiaries
814 613
Tax value of tax loss carry-forwards etc.
1,437 1,356
Research and development activities (tax credits)
147 133
Offset within legal tax entities and jurisdictions
-2,042 -1,284
Total
1,250 1,470
Deferred tax liabilities relate to the following items:
Non-current assets 7,587 3,593
Current assets
106 105
Other
29
61
Offset within legal tax entities and jurisdictions -2,042 -1,284
Total
5,680 2,475
Deferred tax, net -4,430 -1,005
DKKm 2024 2023
Unrecognised deferred tax assets:
Unrecognised deferred tax assets at 1 January 179
396
Currency translation -
-9
Additions through acquisitions 4
-
Prior-year adjustments -8
-
Additions 56
28
Recognised -2
-236
Unrecognised deferred tax assets at 31 December 229
179
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 85
Inventories - continued
Note 18
Inventories balance is reduced by DKK 540m at
31 December 2024 (DKK 540m at 31 December 2023) due
to a provision for Vyepti®’s risk of obsolescence
recognised in the prior years. No additional provision
was recognized in 2024 for Vyepti®. Management’s
estimate takes into consideration assumptions on
inventory-estimated usage, approval dates, expected
shelf life, etc.
Inventories at 31 December 2024 of DKK 2,506m (DKK
2,724m at 31 December 2023) are expected to be utilised
after more than 12 months, mostly due to the Vyepti
fixed batch quantity supply agreement, which ended
in 2023.
Credit risks
The Group’s products are sold primarily to distributors
of pharmaceuticals, pharmacies and hospitals. Services
are sold to public authorities, other large customers and
small individual customers.
No single customer contributed 10% or more to total
revenue. The Group has no significant reliance on
specific customers. Internal procedures for evaluating
specific credit risks from new customer relationships,
and changes to the risk profile of existing relationships,
ensure that the risk of loss is reduced to an acceptable
level.
Note 18
Inventories
DKKm 2024 2023
Raw materials and consumables
602 527
Work-in-progress 2,984 3,217
Manufactured goods and goods for resale
2,148 2,148
Total
5,734 5,892
Indirect costs of production
1,587
1,504
Impairment loss for the year -15 441
Inventories calculated at net realisable value
147 100
The total cost of goods sold is included in cost of sales in the amount of
3,535
3,574
Note 19
Trade receivables
Trade receivables, DKKm Receivables, gross Loss allowance 2024 Total
Expected
loss rate %
Days past due
Not due 4,525 15 4,510 0%
1 month to 6 months 1,137 113 1,024 10%
6 months to 12 months 153 53 100 35%
More than 12 months 73 30 43 41%
Total 5,888 211 5,677
Trade receivables, DKKm Receivables, gross Loss allowance 2023 Total
Expected
loss rate %
Days past due
Not due 4,007 11 3,996 0%
1 month to 6 months 1,119 179 940 16%
6 months to 12 months 60 14 46 23%
More than 12 months 55 33 22 60%
Total 5,241 237 5,004
DKKm
2024
2023
Allowance for doubtful trade receivables:
Allowance at 1 January 237
193
Losses recognised
-201
-158
Adjustment for the year 170
207
Currency translation 11
-5
Reversal
-6
-
Allowance at 31 December 211
237
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 86
Contract assets - continued
Note 20
Securities are classified as financial assets measured at
fair value through profit or loss.
Liquidity and credit risk and capital structure
With the present capital structure, the Group is well-
consolidated. The Group aims to retain adequate cash
resources to support business development and
flexibility in case of changes to the market situation,
potential acquisition activities and product in-licensing
opportunities. This is achieved through a combination
of liquidity management, ultra-liquid assets and
guaranteed and unguaranteed credit facilities. The
capital structure is considered appropriate relative to
the Group's strategic plans.
The credit risk of cash, bank balances and derivatives
(forward exchange contracts, currency options, interest-
rate options and share options) is limited because the
Group only deals with banks with a high credit rating. To
further limit the risk of loss, internal limits have been
defined for the credit exposure accepted towards the
banks with which the Group collaborates. Pursuant to
the Group’s policies, the credit lines are presented to the
Board of Directors and boards of directors in sub-
groups, for approval. Furthermore, the Group aims to
maintain counterparty diversification to avoid material
concentration at individual counterparties. The Group
also uses collateral agreements (e.g., International
Swaps and Derivatives Association (ISDA) and Global
Master Repurchase Agreement (GRMA)) and exchange
of collateral with counterparties with which the Group
has hedging business.
Note 20
Contract assets
DKKm 2024 2023
Contract assets (not invoiced)
371
410
Contract assets impairments -2
-2
Total 369
408
Expected loss rate 1% 1%
Note 21
Liquidity
DKKm 2024 2023
Cash and bank balances, Invest
328 399
Cash and bank balances, subsidiaries 5,579 5,681
Cash and bank balances at 31 December
5,907 6,080
Securities with a maturity of less than 3 months 209 85
Securities with a maturity of more than 3 months
91 451
Securities at 31 December
300
536
Cash, bank balances and securities at 31 December 6,207 6,616
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 87
Capital base - continued
Note 22
The present statutes of Lundbeckfonden were approved
by the Board of Directors on 12 March 2024. The Danish
Business Authority acts as supervisory authority.
Of the Foundation’s profit before tax less non-
distributed earnings in the subsidiaries and associates,
at least 20% must first be allocated to the capital base.
Currency translation of foreign subsidiaries and
currency translation concerning additions to net
investments in foreign subsidiaries and tax related to
these items amounted to a net profit of DKK 826m (net
loss of DKK 316m in 2023), and are recognised in the
currency translation reserve in equity. Other items and
tax related to such items are recognised in reserve for
hedging transactions at a net loss of DKK 272m (net loss
of DKK 91m in 2023).
Note 22
Capital base
Capital base, DKKm 2024 2023 2022 2021 2020
Capital base at 1 January
4,357 4,162 3,901 3,461 3,236
Increase in capital base 580 195 261 440 225
Capital base at 31 December
4,937 4,357 4,162 3,901 3,461
Note 23
Other reserves
DKKm 2024 2023
Reserve for future grants:
Balance at 1 January 1,500 1,500
Grants for the year
-1,060 -580
Transferred to provision for future grants
1,060 580
Balance at 31 December
1,500 1,500
Currency translation reserve:
Balance at 1 January 772 1,088
Currency translation for the year concerning foreign subsidiaries and additions to net investments in
foreign subsidiaries
844
-308
Tax in relation hereto -18 -8
Balance at 31 December
1,598 772
Hedging reserve:
Balance at 1 January 65 156
Deferred gains/losses on cash flow hedge, exchange rate
-378 117
Deferred gains/losses on cash flow hedge, interest rate
-8 -19
Deferred gains/losses on cash flow hedge, price
-14 -78
Exchange gains/losses, hedging, transferred to revenue
52 -137
Tax in relation hereto
76 26
Balance at 31 December
-207 65
Other reserves at 31 December 2,891 2,337
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 88
Non-controlling interests - continued
Note 24
Lundbeckfonden's subsidiaries with significant non-
controlling interests include the following:
The minority shareholder’s share of goodwill in acquired
businesses in Falck is recognised in the consolidated
financial statements. Thus, goodwill of DKK 1,791m
(DKK 1,791m at 31 December 2023) arising at the time of
the Foundation’s acquisition of Falck is not recognised
in the consolidated financial statements.
Note 24
Non-controlling interests
DKKm 2024 2023
Non-controlling interests at 1 January
9,287 8,593
Share of profit/loss for the year
1,499
1,114
Share of other comprehensive income for the year 181 -138
Incentive programmes
44 18
Dividend
-213
-285
Buyback of shares from non-controlling interests -14 -13
Sale of treasury shares
4 5
Change in non-controlling interests
-11
-5
Repurchase obligation of treasury shares 3 -5
Capital increase
-23 1
Other adjustments
1
1
Tax on other transactions in equity 5 1
Non-controlling interests at 31 December
10,763 9,287
Non-controlling
interests
Lundbeckfonden's
percentage of votes
Registered office
H. Lundbeck A/S 31%
76%
Valby
ALK-Abelló A/S 60% 67%
Hørsholm
Falck A/S 42% 58%
Copenhagen
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 89
Non-controlling interests - continued
Note 24
Lundbeck
ALK
Falck
DKKm
2024
2023
2024
2023
2024
2023
Income statement:
Revenue 22,004
19,912
5,537 4,824
12,134 11,913
Profit (loss) for the year
3,143
2,290
815 486
116 334
Total comprehensive income
3,652
1,848
900 448
52 382
Profit (loss) for the year attributable to non-controlling interests
965
704
485 289
49 141
Balance sheet:
Non-current assets 43,966
24,118
4,952 3,758
6,830 6,925
Current assets
13,010
13,289
3,294 2,968
2,406 2,081
Non-current liabilities
23,386
7,372
924 965
3,642 3,637
Current liabilities
8,580
7,990
1,949 1,314
3,281 3,115
Equity
25,010
22,045
5,373 4,447
2,313 2,254
Carrying amount of non-controlling interests of equity
7,682
6,783
3,195 2,643
-128 -153
Statement of cash flows:
Cash flows from operating activities 3,326
4,080
1,213 667
719 554
Cash flows from investing activities
-15,286
-498
-1,417 -375
-301 -184
Cash flows from financing activities
11,629
-2,085
310
-31
-297
-384
Net cash flow for the year -331
1,497
106 261
121 -14
Dividends paid to the non-controlling interests during the year
213
178
- -
- 107
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 90
Provisions - continued
Note 25
25.1 Pensions and similar obligations
Defined contribution plans
In defined contribution plans, the employer is obliged to
pay a certain contribution to a pension fund or the like
but bears no risks regarding the future development in
interest, inflation, mortality, disability rates etc.,
regarding the amount to be paid to the employee.
The cost of defined contribution plans, representing
contributions to the plans, amounted to DKK 783m in
2024 (DKK 717m in 2023).
Defined benefit plans
The defined benefit plans guarantee employees a
certain level of pension benefits for life. The pension is
based on seniority and salary at the time of retirement.
The Group bears the risks regarding the future
development in interest, inflation, mortality, disability
rates etc. regarding the amount to be paid to the
employee.
The Group has defined benefit plans in a few countries.
The most important plans comprise current and former
employees in France, Germany, Switzerland and the UK.
Actuarial assumptions
The following were the key actuarial assumptions at the
reporting date.
Note 25
Provisions
DKKm
Note
2024 2023
Provisions can be specified as follows:
Pensions and similar obligations 25.1 416 423
Other provisions 25.2
2,356 1,665
Total
2,772 2,088
Provisions break down as follows:
Non-current assets
-69
-54
Non-current liabilities
1,139 935
Current liabilities
1,702 1,207
Total
2,772 2,088
DKKm 2024 2023
Retirement benefit obligations and similar obligations:
Present value of defined benefit plans 644
631
Limitation due to asset ceiling 1
-
Fair value of plan assets -338
-315
Defined benefit plans at 31 December 307
316
Other pension-like obligations 109
107
Retirement benefit obligations and similar obligations at 31 December
416
423
Retirement benefit obligations and similar obligations break down as follows:
Non-current assets -69
-54
Non-current liabilities 484
476
Current liabilities 1
1
Retirement benefit obligations and similar obligations at 31 December 416
423
Key assumptions for the most significant plans 2024 2023
Discount rate
3.30-5.50%
3.30-4.50%
Inflation rate 2.05-3.05%
2.25-3.05%
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 91
Provisions - continued
Note 25
25.1 Pensions and similar obligations – continued
Assumptions regarding future longevity are set based
on actuarial advice in accordance with published
statistics and experience in each country. The
longevities underlying the values of the defined benefit
obligation for the most significant plans were as follows:
Sensitivity analysis
The most significant assumptions used in the
calculation of the obligation for defined benefit plans
are discount rate, inflation rate and assumed life
expectations on retirement age for current pensioners.
An increase in the discount rate of 0.25 of a percentage
point would result in a decrease in the obligation of
approximately DKK 20m, before tax (DKK 19m at
31 December 2023) and vice versa. An increase in the
inflation rate of 0.25 of a percentage point would result
Shares and bonds are measured at fair value based on
quoted prices in an active market. Insurance contracts
and other assets are not based on quoted prices in an
active market.
in a decrease in the obligation of approximately
DKK 2m, before tax (DKK 3m at 31 December 2023) and
vice versa. An increase in the life expectancy of 1 year
would result in an increase in the obligation of
approximately DKK 20m, before tax (DKK 22m at
31 December 2023) and vice versa. The sensitivity
analysis indicates how a change in the individual
assumptions would change the obligation. However,
the assumptions will most likely be correlated and
consequently result in a different obligation.
Years 2024 2023
Assumed life expectations on retirement age for current pensioners
Female 23.10-24.30
23.10-24.20
Male 20.10-21.20
20.00-21.40
Assumed life expectations on retirement age for current employees
(future pensioners)
Female 24.80-26.50
25.30-26.40
Male 21.20-23.60
22.60-23.50
% distribution
2024
2023
The fair value of the plan assets breaks down as follows:
Shares 10
32
Bonds 13
17
Property
5
12
Insurance contracts 19
21
Other assets 53
18
Total 100
100
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 92
Provisions - continued
Note 25
25.1 Pensions and similar obligations – continued
The expected contribution for 2025 for the defined
benefit plans was DKK 25m (DKK 28m in 2024).
Other obligations of a retirement benefit nature
An obligation at 31 December 2024 of DKK 109m
(DKK 107m at 31 December 2023) was recognised to
cover other obligations of a retirement benefit nature,
which primarily include post-employment benefits in a
number of subsidiaries. The benefit payments are
conditional upon specified requirements being met.
DKKm 2024 2023
Change in present value of defined benefit plans:
Present value of defined benefit plans at 1 January 631
589
Effect of foreign exchange differences 3
11
Current service costs 7
6
Pension expenses 7
5
Interest expenses relating to the obligations 22
23
Experience and assumptions adjustments -2
22
Benefits paid -26
-26
Used provision -2
-1
Employee contributions 2
1
Other adjustments 2
1
Present value of funded pension obligations at 31 December 644
631
Change in fair value of plan assets:
Fair value of plan assets at 1 January 315
298
Effect of foreign exchange differences 7
13
Interest income on plan assets 12
14
Experience adjustments 3
-6
Contributions 22
10
Benefits paid -21
-13
Employee contributions 2
1
Administration fee -1
-1
Return on plan assets -1
-1
Fair value of plan assets at 31 December
338
315
Realised return on plan assets 15 8
DKKm 2024 2023
Specification of expenses recognised in the income statement:
Current service costs 6
6
Pension expenses 7
5
Interest expenses relating to the obligations 10
9
Administration fees 1
1
Total expenses recognised 24
21
Specification of amount recognised in the statement of comprehensive income:
Actuarial (gains)/losses -4
25
Total expenses recognised
-4
25
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 93
Provisions - continued
Note 25
25.2 Other provisions
Discounts and rebates
The most significant sales deductions are in the USA
and comprise discounts and rebates given in connection
with sales under US Federal and State Government
Healthcare programmes, primarily Medicaid.
Management’s estimate of discounts and rebates is
based on a calculation which includes a combination of
historical product/population utilisation mix, price
increases, program/market growth and state-specific
information. Further, the calculation of rebates involves
legal interpretation of relevant regulations and is
subject to changes in interpretive guidance from
governmental authorities. The obligations for discounts
and rebates are incurred at the time the sale is
recorded; however, the actual rebate related to a specific
sale may be invoiced by the authorities six to nine
months later. In addition to this billing time lag, there is
no statute of limitations for states to submit rebate
claims; thus, rebate adjustments in any particular period
may relate to sales from a prior period. Moreover, when
a product loses exclusivity, shifts in payer mix may
cause Medicaid claims/estimates to be more volatile.
Other
At 31 December 2024, other comprised liabilities for
legal disputes DKK 423m (DKK 230m at 31 December
2023), restructuring programmes DKK 288m (DKK 62m
at 31 December 2023), long-term incentive programmes
in USA DKK 77m (DKK 87m at 31 December 2023) and
provisions from acquisition DKK 94m (DKK 60m at
31 December 2023).
DKKm
Discount and
rebates
Product
returns Other Total
Other provisions at 1 January 2024
618 206 841 1,665
Currency translation 48 13 19 80
Divestments - - -3 -3
Provisions charged 1,415 101 1,052 2,568
Provisions used during the year -1,236 -67 -599 -1,902
Unused provisions reversed - -13 -37 -50
Reclassified to and from other balance sheet accounts - - -2 -2
Other provisions at 31 December 2024 845 240 1,271 2,356
Other provisions at 31 December can be specified as follows:
Non-current provisions - 174 481 655
Current provisions 845 66 790 1,701
Total
845
240
1,271
2,356
DKKm
Discount and
rebates
Product
returns Other Total
Other provisions at 1 January 2023 890 146 559 1,595
Currency translation -24 -6 -8 -38
Provisions charged 1,629 86 437 2,152
Provisions used during the year -1,877 -20 -105 -2,002
Unused provisions reversed - - -73 -73
Reclassified to and from other balance sheet accounts - - 31 31
Other provisions at 31 December 2023 618 206 841 1,665
Other provisions at 31 December can be specified as follows:
Non-current provisions - 113 346 459
Current provisions 618 93 495 1,206
Total 618 206 841 1,665
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 94
Bank debt, bond debt and borrowings - continued
Note 26
Note 26
Bank debt, bond debt and borrowings
DKKm Note 2024 2023
Debt to financial institutions and others can be specified as follows:
Debt to financial institutions etc.
19,795 6,826
Lease liabilities
1,840 1,799
Total
21,635 8,625
Can be specified as follows:
Non-current liabilities
Mortgage debt 26.1 490 520
Bank debt and bond debt 26.2
18,595 6,013
Lease liabilities
26.3
1,373
1,323
Total
20,458 7,856
Current liabilities
Mortgage debt 26.1 33 29
Bank debt etc. 26.2
677 264
Lease liabilities 26.3
467 476
Total
1,177 769
Total debt
21,635
8,625
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 95
Bank debt, bond debt and borrowings - continued
Note 26
26.1 Mortgage debt
Fair value was calculated by applying the market value
of the underlying bonds at 31 December and therefore
measured by level 1 input.
DKKm 2024 2023
Mortgage debt by maturity:
Within 1 year 33
29
Between 1 and 5 years 155
166
More than 5 years 335
354
Mortgage debt at 31 December 523
549
DKKm Currency/expiry
Fixed/floating
Weighted
average
effective
interest rates
Amortised cost Nominal value Fair value
2024
Falck DKK/2035-2045
Floating 3.8% 261 259 259
Falck DKK/2027-2041
Fixed/floating 3.8% 77 69 69
ALK DKK/2035
Floating 0.2% 185 185 187
Total
523 513 515
2023
Falck DKK/2035-2045
Floating 5.00% 259 259 259
Falck
DKK/2027-2041
Fixed/floating 1.90% 87 87 77
ALK
DKK/2035
Floating 0.20% 203 203 206
Total
549
549
542
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 96
Bank debt, bond debt and borrowings - continued
Note 26
26.2 Bank debt and bond debt etc.
Falck
Falck’s primary debt financing is a Syndicated Facility
Agreement of EUR 310m (DKK 2,419m), expiring in 2029.
The facility was voluntarily reduced by EUR 40m in
September 2024.
In September 2024, Falck A/S entered a DKK 300m term
loan with Nordic Investment Bank. The loan proceeds
are dedicated to investments in digitalisation. The
term loan has a seven-year maturity with a three-year
grace period and semi-annual repayment beginning
January 2028.
Lundbeck
In 2019, Lundbeck entered into a revolving credit facility
(RCF) of EUR 1.5bn with its strategic banks. The RCF
expires in 2026. The flexible structure of the RCF enables
Lundbeck to repay the debt in full at short notice,
normally not more than three months, and still
maintain the facility until expiration of the credit
commitment. The RCF is subject to covenants, and no
breaches were encountered during the year.
In October 2020, Lundbeck issued a seven-year euro-
bond in the amount of EUR 500m with a fixed coupon
of 0.875%. The bond was issued under Lundbeck´s euro
medium-term note (EMTN) program of EUR 2bn.
In October 2024, Lundbeck entered into a bridge facility
of EUR 500m with its strategic banks. The bridge facility
expires in April 2026 (with utilisation of six-month
extension). The bridge facility provides short-term
committed funding until long-term financing is secured.
Similar to the RCF, the bridge facility is subject to
covenants, and no breaches were encountered during
the year. Lundbeck’s exposure to interest rate risk
derives mainly from the EUR drawdown under the
revolving credit facility. To hedge the currency risk of
the EUR loans, Lundbeck swapped EUR 1.100m into DKK
by a cross-currency swap with an amortised profile
matching the expected payback profile of the
underlying loan. The floating DKK debt amount is
swapped into fixed interest by an interest rate swap
with same amortised profile and an average fixed
interest rate of 2.20%.
Fair value of issued bonds was calculated by level 1
input. Please refer to note 32.5 for information about
interest rate swaps.
DKKm 2024 2023
Bank debt and bond debt by maturity:
Within 1 year 677 264
Between 1 and 5 years
18,428 3,714
More than 5 years
167 2,299
Total
19,272 6,277
DKKm Currency
Expiry Fixed/floating
Weighted
average
effective
interest rates
Carrying amount Fair value
2024
Bank debt, Falck EUR
2029 Floating 5.10% 1,123 1,125
Bank debt, Falck DKK
2029 Floating 5.20% 1,004 1,005
Bank debt, NIB, Falck DKK
2030 Floating 4.60% 300 300
Bank debt, Lundbeck EUR
2026 Floating 3.51% 8,725 8,726
Bank debt, Lundbeck EUR
2026 Floating 3.34% 3,729 3,729
Issued bonds, Lundbeck EUR
2027 Fixed 0.90% 3,720 3,521
Other bank and finance loans, ALK Various
2025 Fixed 3.60% 671 671
Total
19,272 19,077
2023
Bank debt, Falck EUR
2029 Floating 5.8% 1,121 1,121
Bank debt, Falck
DKK
2029 Floating 5.8% 1,181 1,181
Issued bonds, Lundbeck
EUR
2027 Fixed 0.9% 3,714 3,385
Other bank and finance loans, ALK
Various
2024 Fixed 4.5% 261 261
Total
6,277 5,948
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 97
Contract liabilities - continued
Note 26
26.3 Lease liabilities
In 2024, the Group paid DKK 612m (DKK 523m in 2023)
for lease agreements, of which, interest expenses
amounted to DKK 61m (DKK 49m in 2023). See also
note 13 Right-of-use assets.
26.4 Development in mortgage debt, bank debt
and bond debt, etc.
Note 26
Bank debt, bond debt and borrowings - continued
DKKm 2024 2023
Leasing liabilities by maturity:
Within 1 year 467 476
Between 1 and 5 years
1,012 956
More than 5 years
361 367
Total
1,840 1,799
DKKm
Balance at
1 January
Cash flow,
net
Non-cash
changes
Balance at
31 December
2024
Long-term borrowings 6,533 12,548 4 19,085
Short-term borrowings 293 417 - 710
Lease liabilities 1,799 -551 592 1,840
Total 8,625 12,414 596 21,635
2023
Long-term borrowings 7,585 -1,042 -10 6,533
Short-term borrowings 395 -102 - 293
Lease liabilities 1,689 -474 584 1,799
Total
9,669
-1,618
574
8,625
Note 27
Contract liabilities
DKKm 2024 2023
Stepped-pricing contracts
-
1
Prepayments 842
718
Total 842
719
Within 1 year 797
673
More than 1 year
45
46
Total 842
719
Revenue recognised from amounts included in contract liabilities at the
beginning of the year
668
712
Revenue recognised from performance obligations satisfied in previous years -1
-17
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 98
Other payables - continued
Note 28
At 31 December 2024, other payables included debt
related to salaries and holiday payment of DKK 2,056m
(DKK 1,943m at 31 December 2022), VAT and other taxes
of DKK 634m (DKK 644m at 31 December 2023) and
discounts and rebates of DKK 888m (DKK 860m at
31 December 2023).
Contingent consideration recognised through
acquisitions
As part of the acquisition of Alder BioPharmaceuticals,
Inc. (subsequently renamed Lundbeck Seattle BioPhar-
maceuticals, Inc.), Lundbeck has recognised a contingent
consideration liability related to sales milestone
dependent on predefined milestones being reached. At
31 December 2024, the fair value of this contingent
consideration related to this acquisition amounted to
DKK 306m (DKK 306m at 31 December 2023).
As part of the acquisition of Abide Therapeutics, Inc.,
(subsequently renamed Lundbeck La Jolla Research
Center, Inc.), Lundbeck has recognised a contingent
consideration liability related to sales milestones
dependent on predefined milestones being reached. At
31 December 2024, the fair value of this contingent
consideration related to this acquisition amounted to
DKK 33m (DKK 32m at 31 December 2023).
Contingent considerations are recognised at fair value.
The calculation of the fair value is based on the
discounted cash flow method (DCF method) which
comprises significant assumptions and estimates.
Expected timing of payment (using a specific discount
rate) and probability of success are key inputs to the fair
value of the contingent considerations.
The fair value adjustment of all contingent
considerations amounted to a net gain of DKK 21m,
being DKK 39m of financial expenses and DKK 60m of
financial income. The liability was impacted by
unfavourable exchange variations of DKK 23m.
DKKm 2024 2023
Depreciation, amortisation
and impairment
3,275 2,941
Incentive programmes 96 68
Change in other provisions
575 104
Change in valuation of
biological assets
-1 -8
Other adjustments
129 265
Total
4,074 3,370
DKKm 2024 2023
Change in inventories
232 -886
Change in contract assets 34 -85
Change in receivables
-800 -146
Change in contract liabilities
127 -59
Change in liabilities
-52 -37
Total
-459 -1,213
Note 28
Other payables
DKKm 2024 2023
Trade payables
5,233 5,256
Contingent consideration 340 338
Derivative financial instruments
358 51
Other
4,236 4,031
Total
10,167 9,676
Other payables break down as follows:
Non-current 462 439
Current
9,705
9,237
Total 10,167 9,676
Note 29
Adjustment for non
-cash
operating items
Note 30
Working capital changes
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 99
Acquisitions and divestments - continued
Note 31
The amounts in the table represent the purchase price
allocation to the identifiable assets and liabilities, and
consequently also to goodwill at the acquisition date.
Acquisitions in 2024
Lundbeck
On 2 December 2024, Lundbeck announced the
successful acquisition of Longboard Pharmaceuticals,
Inc. (herein denominated “Longboard”) as a U.S. listed
entity at a total purchase consideration of USD 2.35bn
fully paid (DKK 16.6bn), on a fully diluted basis. Lundbeck
obtained control of Longboard by acquiring of
39,168,546 of issued shares, representing 100% of
Longboard’s share capital. Under the terms of the
agreement, Lundbeck paid an amount of USD 60 per
share.
Longboard is a clinical-stage biopharmaceutical
company focused on developing novel, transformative
medicines for neurological diseases. Its lead asset,
bexicaserin, has shown encouraging anti-seizure
reduction to date in preclinical and clinical studies, with
its next-generation superagonist mechanism specifically
targeting 5-HT2C receptors, which support bexicaserin’s
potential to offer a highly differentiated and best-in-
class profile. Bexicaserin is now being evaluated in a
global Phase III clinical program (the DEEp program).
The acquisition of Longboard marks a strategic
milestone for Lundbeck, enhancing and complementing
its Focused Innovator strategy and advancing their goal
of building a neuro-rare disease franchise.
Through the acquisition of Longboard, Lundbeck gains
access to bexicaserin, a novel 5-HT2C agonist in
development for the treatment of seizures associated
with Developmental and Epileptic Encephalopathies
(DEEs), including Dravet syndrome, Lennox-Gastaut
syndrome, and other rare epilepsies. This aligns with
Lundbeck’s expertise in delivering innovative treatments
and re-establishes our scientific and commercial
leadership in rare epilepsies. Bexicaserin has entered a
global Phase III trial (DEEp SEA program) evaluating
bexicaserin for the treatment of seizures associated
with Dravet syndrome in participants two years of age
and older. The DEEp SEA Study is part of a broader DEEp
Program (DEEp SEA, DEEp OCEAN and DEEp OLE) which
is planned to take place across ~80 sites globally and
include ~480 participants with a range of DEEs.
Bexicaserin has received a Breakthrough Therapy
Designation (BTD) from the U.S. FDA and is set to
become a cornerstone of Lundbeck’s new neuro-rare
disease franchise. Recent nine-month open-label data
further supports the de-risked nature of its 5-HT2C
mode-of-action, highlighting its superior target product
profile.
As a result of the acquisition, Longboard has become an
entirely subsidiary of Lundbeck and the common stock
of Longboard has been delisted from the NASDAQ
Global Market.
Lundbeck has funded the acquisition through its
existing cash resources and bank financing facilities (see
note 26.2 Bank debt, bond debt and borrowings).
The identifiable assets acquired, and liabilities assumed
are set out in the table on the left. The amounts are
provisional and based on preliminary information.
Identification and valuation of intangible assets, other
assets and liabilities will be adjusted during 2025.
The purchase price allocation assessment has not yet
been finalised as the acquired entity was listed and the
access to certain information was only granted after the
transaction closing. The estimated fair values primarily
consisting of intangible assets, the respective effect of
deferred tax liabilities and goodwill as noted above are,
therefore, not to be considered as final. These amounts
are provisional and shall be adjusted during 2025 when
the purchase price allocation process is finalised.
Goodwill represents the acquired work force and the
expected synergies. None of the goodwill is expected to
be deductible for income tax purposes.
Transaction costs related to the Longboard acquisition
amounted DKK 206m and were recognised as 'Other
operating items, net' in the income statement.
Note 31
Acquisitions and divestments
31.1 Acquisitions of businesses etc.
DKKm Lundbeck ALK Falck 2024 2023
Assets:
Product rights 16,453 118 - 16,571 40
Customer contracts
-
-
7
7
-
Property, plant and equipment, including right-of-use
assets
25 6 13 44 2
Deferred tax asset
991 - - 991 -
Other non-current assets
- - 9 9 -
Inventories and trade receivables
- 1 1 2 2
Other current assets
133 - - 133 -
Securities
941
-
-
941
-
Cash and bank balances 886 - 4 890 7
Equity and liabilities:
Deferred tax
-3,949
-
-2
-3,951
-9
Lease liabilities -26 - - -26 -2
Trade payables
-83 - -2 -85 -1
Other payables
-2,730 - -4 -2,734 -2
Net assets acquired
12,641 125 26 12,792 37
Goodwill 3,949 - 21 3,970 71
Purchase price
16,590 125 47 16,762 108
Contingent considerations - -10 - -10 -
Adjustment for cash and bank balances acquired
-886 - -4 -890 -7
Cash consideration for acquisitions
15,704 115 43 15,862 101
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 100
Acquisitions and divestments - continued
Note 31
31.1 Acquisitions of businesses etc. – continued
Additionally, integration costs of the acquisition of
Longboard amounts to DKK 214m and were recognised
as 'Other operating items, net' in the income statement.
The acquired business contributed with no revenue and
a net loss of DKK 60m to the Group for the period from
2 December to 31 December 2024. If the acquisition had
occurred on 1 January 2024, consolidated pro-forma
revenue and loss impact for the year ended 31 December
2024 would have been DKK 0 and DKK 3,250m,
respectively. The pro-forma loss impact from the
acquisition of Longboard is mainly due to the Long-
board’s transaction costs and long-term incentive
program, as they were accelerated prior to acquisition
and fully settled in December 2024.
Settlement of Longboard's long-term incentive program
liabilities and transaction costs on 31 December 2024,
resulted in a DKK 2.7bn cash outflow, impacting
operating cash flows.
ALK
On 2 January 2024, the ALK Group acquired the
operating assets of AllerQuest for a total cash
consideration of DKK 125m. The consideration amount
includes an escrow amount of DKK 10m which serves as
reserve for potential indemnifications over 18 months
from acquisition date.
AllerQuest was a U.S.-based company dedicated to
manufacturing PRE-PEN® Skin Antigen Test. This
acquisition makes ALK the sole manufacturer and
distributor of PRE-PEN in the U.S. and Canada, with
global ownership rights to all assets of AllerQuest. PRE-
PEN is the only FDA-approved diagnostic skin test for
the evaluation of penicillin allergy and is indicated for
the assessment of sensitization to penicillin in patients
suspected to have clinical penicillin hypersensitivity.
AllerQuest was previously a supplier of the ALK Group
and integration has been completed in 2024.
The transaction was on a debt and cash free basis. No
liabilities were transferred.
Falck
In June 2024, Falck signed an agreement to acquire all
shares in two Colombian companies: Asistencia Médica
S.A.S. and Servicio de Asistencia Médica Inmediata S.A.S.
The acquisition was completed by payment of the
agreed consideration on 14 June 2024. Ownership of the
shares in the acquired companies is still subject to
approval by the Colombian Health Superintendency.
However, the sellers have pledged the shares,
transferring all political and economical rights to Falck.
Based on the pledge, Falck assumed control over the
acquired companies from payment of the agreed
consideration.
The two acquired Colombian companies operate in the
pre-hospital and doctor-at-home service sector in the
northern part of Colombia, serving around 42,000
subscribers with 20 ambulances, 30 consultation cars
and occupies approximately 350 employees across the
companies. The acquisition aligns with Falck’s strategy
to establish a comprehensive national presence in
Colombia’s highly populated areas and serves as a
strategic advantage for the B2I segment in the country.
The two acquired Colombian companies are both
included in the business segment Individual Care LATAM
from the date of the acquisition.
The consideration paid on the closing date amounted to
DKK 26m and an addition amount of DKK 18m was paid
in Q4. An additional deferred payment of DKK 3m has
been agreed bringing the total consideration to DKK
47m. Adjusted for cash of DKK 4m, the net
consideration amounted to DKK 43.
The deferred consideration does not depend on the
receivers’ continued employment in Falck, which means
that this part of the consideration is included in the
total consideration amount.
No additional contingent consideration has been
agreed.
Transaction costs related to the acquisition amounted
to DKK 1m and were recognised as 'Other operating
items, net' in the income statement.
Besides the value of customer contracts amounting to
DKK 7m, no assets or liabilities have been identified
which were not recognised in the company acquired on
the date of acquisition.
Goodwill of DKK 21m was calculated. The recognised
goodwill is not tax deductible. Goodwill mainly
represents the value of operational synergies from the
integration of the acquired companies into the existing
operation in Colombia as well as the strategic leverage
for the B2I segment in Colombia.
Net assets, goodwill, contingent assets and liabilities
recognised at the reporting date are to some extent still
provisional. Adjustments can be made for a period of 12
months from the acquisition date.
Valuation of intangible assets
An assessment was made of the value of the customer
contracts in the two acquired companies. The valuation
thereof was based on the “Multi Period Excess Earnings
Method” (MEEM-method) in which the value was
calculated on the basis of expected future cash flow.
The principle assumptions were expected earnings
generated from the acquired customer contracts, churn
rate and the discounting rate.
Acquired assets included receivables from sales at fair
value of DKK 1m. The contractual gross receivable was
DKK 1 million of which DKK 0 was deemed to be
unrecoverable as of the date of takeover
Acquisitions in 2023
In October 2023, Falck signed an agreement to acquire
all shares in MedConnect A/S. The acquisition was
completed by payment of the agreed consideration on
31 October 2023, from which point Falck assumed
control. Additional contingent and deferred
consideration was agreed for payment 18 months after
the closing date.
The consideration paid on the closing date amounted to
DKK 108m. Adjusted for cash of DKK 7m, the net
consideration amounted to DKK 101m. The additional
contingent and deferred consideration amounted to up
to DKK 51m and is depending on the receivers’
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 101
Acquisitions and divestments - continued
Note 31
31.1 Acquisitions of businesses etc. – continued
continued employment in Falck. Therefore, this part of
the consideration is recognised as salary costs in special
items on a straight line basis over the 18 months after
the closing date.
Transaction costs related to the acquisition amounted
to DKK 1m, which were recognised as 'Other operating
items, net' in the income statement.
Besides the value of the digital platform amounting to
DKK 40m, no net assets were identified which were not
recognised in the company acquired on the date of
acquisition. Goodwill of DKK 71m was calculated. The
recognised goodwill was not tax deductible. Goodwill
represented the value of operational synergies from
integration of MedConnect A/S.
During 2024, the provisional Purchase Price Allocation
has been completed. Final consideration and opening
balance was adjusted by DKK 0.3m and no other
adjustments were applied to the provisional amounts.
31.2 Divestment of businesses
In 2024, Falck divested the Industrial Fire services
company in Brazil and an ambulance activity in
Cuxhaven, Germany.
Net assets divested amounted to DKK 6m.
An amount of DKK 4m of exchange rate adjustments
from divestments was recirculated from the currency
translation reserve.
Adjustments amounting to DKK 14m from previous
years' divestments primarily concern old receivables
from divested companies, which have been written
down. Furthermore, adjustments concerning costs
related to disputes which have been settled.
A total loss from divestment of enterprises of DKK 15m
was recognised in the income statement in financial
expenses.
DKKm 2024
2023
Assets
Property, plant and equipment -
2
-
Other current assets
-6
-
Cash and bank balances -
7
-
Equity and liabilities
Provisions
1
-
Current liabilities
8
-
Net assets divested -
6
-
Recirculation of exchange rate adjustments from divestments
4
-
Sales price
1
-
Adjustments related to prior years' divestments -
14
-
Gains/losses from divestments of enterprises -
15
-
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 102
Financial risks and financial instruments - continued
Note 32
The Group’s business activities imply that the results
and balance sheet may be affected by various financial
risks. The management of these risks is decentralised
and handled in Lundbeckfonden and in Lundbeck, ALK
and Falck based on policies and guidelines approved by
the Board of Directors or the boards of directors in the
subsidiaries.
See also note 16 Financial assets, note 19 Trade
receivables, and note 21 Liquidity for descriptions of
risks and the management thereof and note 32.5 for
information about derivative financial instruments.
32.1 Exchange rate risks
Exchange rate risks arise because the Group’s expenses
and income in different currencies do not match and
because the Group’s assets and liabilities denominated
in foreign currency do not balance, among other things,
due to Invest's and BioCapital’s investment assets. The
management of these risks is focused on risk
mitigation.
The Group applies various derivative financial
instruments to manage these risks. Some of these
instruments are classified as hedging instruments and
meet the accounting criteria for hedging future cash
flows. Changes in the fair value of these contracts are
recognised in the statement of comprehensive income
under other comprehensive income as they arise and, on
invoicing of the hedged cash flow, transferred from
other comprehensive income for inclusion in the same
item as the hedged cash flow. Hedging contracts that
do not meet the hedge criteria are classified as trading
contracts, and changes in the fair value are recognised
as financial items as they arise. The need for hedging is
assessed separately in Lundbeck, ALK and Falck and in
Invest.
Estimated impact from financial instruments on profit
for the year and equity from a 5% increase in year-end
exchange rates of the major currencies:
DKKm CAD CNY USD
2024
Profit 3
10
522
Equity -19
-15
184
2023
Profit 6
2
402
Equity -17
-27
173
The shown sensitivities only comprise impact from
financial instruments and reflect a relative change of
the exchange rates at 31 December 2024 and 2023.
The sensitivity analysis includes derivatives, bank loans,
trade receivables, trade payables, intercompany lending
and borrowing, as those are the financial instruments
where the Group has the most currency exposure.
The profit impact comprises financial instruments that
remained open at the balance sheet date and which
have an impact on profit in the current financial year. It
includes foreign exchange differences relating to intra-
group balances that are not eliminated in the
consolidated financial statements. The calculation of
the estimated impact is based on the functional
currency of the entities where the financial instruments
are located. The profit impact is limited as the largest
liabilities are exchange rate adjusted in other
comprehensive income, being part of the Group’s
hedging structure.
The equity impact includes financial instruments that
remained open at the balance sheet date and which are
exchange rate adjusted in other comprehensive income.
The equity effects in 2024 and 2023 primarily consist of
exchange-rate adjustments in USD on outstanding cash
flow hedging contracts.
Due to Denmark’s long-standing fixed exchange rate
policy against the euro and the expected continuation
of this policy, the foreign currency risk for the euro is
considered immaterial, and the euro is therefore not
included in the table.
32.2 Interest rate risks
Interest rate risk relates to the Group’s interest-bearing
assets and liabilities and, principally, to the Group’s
bonds classified as financial assets measured at fair
value through profit or loss. See note 26 Bank debt,
bond debt and borrowings and note 32.3 Fair value
hierarchy for financial assets and liabilities, measured at
fair value.
Interest income
The duration of the investments when selecting
financing and investment instruments is used to
manage the interest rate risk. In addition, the Group
uses derivative financial instruments to mitigate the
interest rate exposure. The use of financial instruments
to manage interest rate risk does not qualify for hedge
accounting, and the changes in fair value are therefore
recognised as financial income or expenses in an
ongoing process.
At 31 December 2024, the Group’s portfolio of bonds had
a duration of 2.41 years (3.00 years at 31 December 2023).
Other things being equal, an increase of 1 percentage
point in interest rates would increase the Group’s profit
after tax by DKK 104m (increase of DKK 103m at 31
December 2023).
At 31 December 2024 and 2023, there were no
derivatives to manage interest rate risks because the
distribution of investments carrying floating and fixed
interest at the given times was deemed to be
satisfactory.
Interest expenses
Lundbeck’s exposure to interest rate risk is low, as the
EUR 500m bond has a fixed coupon, and EUR bank loans
are swapped into fixed DKK interest through a cross-
currency swap and interest rate swap. For more
information see note 26.2.
Falck’s exposure to interest rate risk relates to the part
of the mortgage loans which carry a floating interest
rate, and the bank debt of DKK 2,427m, which carries
variable interest.
ALK does not hedge its interest rate exposure, as this is
not considered to be financially viable.
Note 32
Financial risks and financial instruments
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 103
Financial risks and financial instruments - continued
Note 32
32.2 Interest rate risks - continued
An interest rate change on bank debt and bond debt,
including interest rate swaps, of +/-1 percentage point
would decrease/increase profit for the year after tax by
DKK 65m (DKK 28m in 2023) and increase/decrease
equity by DKK 61m in 2024 (DKK 28m at 31 December
2023) on an annual basis.
32.3 Fair value hierarchy for financial assets
and liabilities, measured at fair value
Level 1 includes financial assets for which the fair value
is measured based on quoted prices (unadjusted) in
active markets for identical assets. Level 2 includes
financial assets and financial liabilities for which the fair
value is measured based on directly or indirectly
observable inputs other than the quoted prices included
in level 1. Level 3 includes financial assets for which the
fair value is measured based on valuation methods
which include inputs not based on observable market
data.
The requirement for reclassifications between the levels
is evaluated continually during the year. For individual
financial assets and liabilities, it is evaluated whether
the most critical input variable in connection with
determination of fair value has changed from
unobservable to observable or the other way round. If
this is the case the asset or liability is reclassified from
the recent relevant level to new level from the time
when the change in input variable occurs.
Level 3 liabilities are determined on the basis of profit
prior to the right being exercised, multiplied by an
already agreed multiple, typically less net debt in the
relevant companies. When recognised in the balance
sheet, this liability is made up on the basis of earnings
and net debt at the time when the non-controlling
interests are expected to exercise their right to sell their
shares to the Group. The calculated liability typically
assumes an increase in earnings and a decrease in net
debt in the relevant companies as compared with the
value recognised in the financial statements.
The fair value of derivatives is determined by applying
recognised measurement techniques, whereby
assumptions are based on the market conditions
prevailing on the balance sheet date.
The fair value of contingent consideration is calculated
as the discounted cash outflows from future milestone
payments, taking probability of success into
consideration.
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 104
Financial risks and financial instruments - continued
Note 32
32.3 Fair value hierarchy for financial assets and liabilities, measured at fair value - continued
Financial assets and liabilities measured at fair value through profit or loss
31 December 2024, DKKm Level 1 Level 2 Level 3 Total
Financial assets
Financial assets, Invest
Danish mortgage and government bonds 3,035 - - 3,035
Credit bonds and loans 1,209 - 503 1,712
Equities 13,025 - 882 13,907
Private equity funds and other unlisted funds - 259 3,588 3,847
Derivative financial instruments - 61 - 61
Total financial assets, Invest 17,269 320 4,973 22,562
BioCapital
Equities 361 - 1,980 2,341
Receivables from sale of companies - - 16 16
Other receivables - - 71 71
Total BioCapital 361 - 2,067 2,428
Other financial assets 7 - 30 37
Securities (current assets) 300 - - 300
Total financial assets
17,937
320
7,070
25,327
Financial liabilities
Contingent consideration (see note 28) - - 340 340
Total financial liabilities - - 340 340
Financial assets and liabilities measured at fair value through other comprehensive income
31 December 2024, DKKm
Level 1
Level 2
Level 3
Total
Financial assets
Derivative financial instruments - 58 36 94
Financial liabilities
Derivative financial instruments - 358 - 358
Financial assets and liabilities measured at fair value through profit or loss
31 December 2023, DKKm Level 1 Level 2 Level 3 Total
Financial assets
Financial assets, Invest
Danish mortgage and government bonds
2,468
-
-
2,468
Credit bonds and loans 2,084 - 49 2,133
Equities 12,638 - 846 13,484
Private equity funds and other unlisted funds - 135 3,209 3,344
Derivative financial instruments - 43 - 43
Total financial assets, Invest 17,190 178 4,104 21,472
BioCapital
Equities 665 - 1,690 2,355
Receivables from sale of companies - - 13 13
Other receivables - - 47 47
Total BioCapital 665 - 1,750 2,415
Other financial assets 33 - 27 60
Securities (current assets) 536 - - 536
Total financial assets 18,424 178 5,881 24,483
Financial liabilities
Contingent consideration (see note 28) - - 338 338
Total financial liabilities - - 338 338
Financial assets and liabilities measured at fair value through other comprehensive income
31 December 2023, DKKm Level 1 Level 2 Level 3 Total
Financial assets
Derivative financial instruments - 84 49 133
Financial liabilities
Derivative financial instruments - 51 - 51
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 105
Financial risks and financial instruments - continued
Note 32
Applied valuation methods for the determination of fair
value of the material categories above are as follows:
32.3 Fair value hierarchy for financial assets and liabilities, measured at fair value
– continued
Financial assets measured at fair value through profit or loss according to level 3, DKKm 2024 2023
Carrying amount at 1 January
5,881 4,416
Additions 1,170 954
Disposals
-404 -502
Reclassification, from level 3 to level 1 in connection with IPOs
-165 41
Fair value adjustment
588 972
Carrying amount at 31 December
7,070 5,881
Valuation method used Used unobservable inputs
Sensitivity in fair value in case of changes in
unobservable inputs
Danish mortgage and government bonds and
credit bonds (listed)
Closing prices according to exchange markets N/A N/A
Equities (listed) Closing prices according to exchange markets N/A N/A
Equities, real assets (unlisted) Capitalisation model Required rates on return 4.0-4.5% or cost if under construction
If required rate of return is reduced by 0.25pp the fair value
will be increased by DKK 104m
Equities, BioCapital (unlisted)
Trading multiples, relative adjustment based on predefined value
triggers/business plans, cost at recent transaction and price at
financing round
Trading multiples, value trigger assumptions, cost at recent
transaction and price at financing round
If trading multiples decreased by 10%, the fair value will decrease
by DKK 191m
If the WACC increased by 0.25pp, the fair value will decrease by
DKK 8m
Private equity funds and other unlisted funds Adjusted reported net asset value (NAV)
Latest reported NAV adjusted for capital calls, capital returns and
pricing development (if relevant)
Data not accessible
Receivables including receivables from sale of portfolio companies Expected discounted cash flow N/A N/A
Securities (current assets) Closing prices according to exchange markets N/A N/A
Derivative financial instruments
Fair value of interest rate swaps is calculated as the present value of
estimated future cash flows based on observable yield curves. Fair
value of foreign exchange contracts is determined using forward
exchange rate at the balance sheet date. Fair value for share and
index options is based on closing prices according to exchange
markets
N/A N/A
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 106
Financial risks and financial instruments - continued
Note 32
The amounts in the tables are including interest.
32.4 Maturity dates for financial assets and financial liabilities
31 December 2024, DKKm
Less than
1 year
1-5 years
More than
5 years
Total
Carrying
amount
Effective
interest
Financial assets
Financial assets, Invest
Danish mortgage and government
bonds
1 665 4,679 5,345 3,035 0-6%
Credit bonds and loans 49 841 905 1,795 1,712 0-11%
Derivative financial instruments 61 - - 61 61 -
Financial assets, BioCapital
Receivables from sale of portfolio
companies
- 16 - 16 16 -
Other receivables 53 36 - 89 71 10-16%
Securities (current assets) 394 - - 394 300
Financial assets at fair value through
profit or loss
558 1,558 5,584 7,700 5,195
Derivatives to hedge future cash flows
– exchange rate
57 - - 57 57 -
Derivatives to hedge future cash flows
– interest rate
- 1 - 1 1 -
Derivatives to hedge future cash flows -
price
6 30 - 36 36 -
Financial assets at fair value through
other comprehensive income
63 31 - 94 94
Receivables 6,130 297 - 6,427 6,427 0-1%
Cash and bank balances 5,907 - - 5,907 5,907 0-10%
Financial assets measured at
amortised cost
12,037 297 - 12,334 12,334
Total financial assets
12,658
1,886
5,584
20,128
17,623
31 December 2024, DKKm
Less than
1 year 1-5 years
More than
5 years Total
Carrying
amount
Effective
interest
Financial liabilities
Derivatives included in the trading
portfolio
- - - - - -
Contingent consideration
-
-
339
339
339
-
Financial liabilities at fair value
through profit or loss
- - 339 339 339
Derivatives to hedge future cash flows
– exchange rate
348 5 - 353 353 -
Derivatives to hedge future cash flows
– interest rate
- 5 - 5 5 -
Financial liabilities at fair value
through other comprehensive income
348 10 - 358 358
Bank debt and bond debt etc. 1,359 19,234 505 21,098 19,795 0-5.2%
Leasing liabilities 502 1,120 375 1,997 1,840 1-13%
Other payables and non-disbursed
grants
8,877 1,859 - 10,736 10,736 0-1%
Financial liabilities measured at
amortised cost
10,738 22,213 880 33,831 32,371
Total financial liabilities 11,086 22,223 1,219 34,528 33,068
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 107
Financial risks and financial instruments - continued
Note 32
The amounts in the tables are including interest.
32.4 Maturity dates for financial assets and financial liabilities
31 December 2023, DKKm
Less than
1 year
1-5 years
More than
5 years
Total
Carrying
amount
Effective
interest
Financial assets
Financial assets, Invest
Danish mortgage and government
bonds
53 586 4,129 4,768 2,468 -1-4%
Credit bonds and loans 504 2,038 204 2,746 2,133 0-44%
Derivative financial instruments 43 - - 43 43 -
Financial assets, BioCapital
Receivables from sale of portfolio
companies
- 13 - 13 13 -
Other receivables 17 57 1 75 47 10-16%
Securities (current assets) 580 - - 580 536 -
Financial assets at fair value through
profit or loss
1,197 2,694 4,334 8,225 5,240
Derivatives to hedge future cash flows
– exchange rate 85 - - 85 85 -
Derivatives to hedge future cash flows -
price
10 39 - 49 49 -
Financial assets at fair value through
other comprehensive income
95
39
-
134
134
Receivables 5,468 257 - 5,725 5,725 0-1%
Cash and bank balances 6,080 - - 6,080 6,080 -1-10%
Financial assets measured at
amortised cost 11,548 257 - 11,805 11,805
Total financial assets 12,840 2,990 4,334 20,164 17,179
31 December 2023, DKKm
Less than
1 year 1-5 years
More than
5 years Total
Carrying
amount
Effective
interest
Financial liabilities
Contingent consideration - - 338 338 338 -
Financial liabilities at fair value
through profit or loss
- - 338 338 338
Derivatives to hedge future cash flows
– exchange rate 51 - - 51 51 -
Financial liabilities at fair value
through other comprehensive income 51 - - 51 51
Bank debt and bond debt etc. 476 4,563 2,707 7,746 6,826 0-6%
Leasing liabilities 519 1,034 394 1,947 1,799 0-13%
Other payables and non-disbursed
grants
8,532 1,483 - 10,015 10,015 2-4%
Financial liabilities measured at
amortised cost
9,527
7,080
3,101
19,708
18,640
Total financial liabilities 9,578 7,080 3,439 20,097 19,029
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 108
Financial risks and financial instruments - continued
Note 32
Hedging part
The Group uses forward exchange contracts to hedge its
risks related to exchange rates. The fair value of the
effective part of the outstanding foreign exchange
contracts as at 31 December used as hedging
instruments and qualifying for hedge accounting in
respect of future transactions has been recognised
directly in equity through other comprehensive income
until the hedged transactions are recognised in the
income statement. Forward exchange contracts are
used to hedge investments in subsidiaries with a
functional currency other than Danish kroner.
32.5 Net outstanding forward
exchange rate transactions, currency options, interest rate swaps and equity options
Forward contracts, DKKm
Contractual value
according to hedge
accounting
Fair value at year-end
recognised in other
comprehensive income
Realised exchange
gains/losses for the
year recognised in the
income statement/
balance sheet
Average hedge prices of
existing forward
exchange contracts
Maturity
2024
CAD (sell position) 291 1 1 497.19 Nov 2025
CNY (sell position) 429 -6 10 96.12 Nov 2025
KRW (sell position) 255 22 16 0.52 Dec 2025
USD (sell position) 6,802 -309 -45 678.19 Nov 2025
Other currencies 1,393 13 7 - Dec 2025
Forward contracts 9,170 -279 -11
2023
CAD (sell position) 550 -2 6 502.33 Nov 2024
CNY (sell position) 364 11 43 98.04 Oct 2024
KRW (sell position) 230 1 4 0.53 Dec 2024
USD (sell position) 4,009 49 120 676.06 Nov 2024
Other currencies 1,123 -19 -34 - Dec 2024
Forward contracts 6,276 40 139
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 109
Financial risks and financial instruments - continued
Note 32
32.5 Net outstanding forward exchange rate transactions, currency options,
interest rate swaps and equity options
- Continued
Currency option contracts, DKKm
Contractual value
according to hedge
accounting
Fair value at year-end
recognised in other
comprehensive income
Realised exchange
gains/losses for the
year recognised in the
income statement/
balance sheet
Average hedge prices of
existing forward
exchange contracts Maturity
2024
CAD (sell position) 322 -1 -3 486.36-504.39 Oct 2025
USD (sell position) 431 -9 -35 652.43 Aug 2025
Other 127 -2 -3 - -
Currency option contracts 880 -12 -41
2023
CAD (sell position) 137 -3 8 482:97-495.64 Apr 2024
USD (sell position)
1,855
-3
-11
654.31-708.61
Nov 2024
Other 204 - 1 - -
Currency option contracts 2,196 -6 -2
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 110
Contractual obligations, contingent assets
and liabilities, and collaterals - continued
Note 33
Trading part
Contingent Assets and liabilities
Pending legal proceedings
The Group is involved in several legal proceedings,
including patent disputes and environmental matters,
the most significant of which are described below. Some
of these involve significant amounts and are subject to
considerable uncertainty. Management continuously
assesses the risks associated with the legal proceedings,
and their likely outcome. Management is of the opinion
that, apart from items recognized in the financial
statements, the outcome of these legal proceedings and
disputes are not probable or cannot be reliably
estimated in terms of amount or timing. Such
proceedings may, however, develop over time, and new
proceedings may occur, in a way which could have a
material impact on the Group’s financial position and/or
cash flows.
In June 2013, Lundbeck received the European
Commission’s decision that agreements concluded with
four generic competitors concerning citalopram violated
competition law. The decision included fining Lundbeck
EUR 93.8m (approximately DKK 700m). Lundbeck paid
and expensed the fine in the third quarter of 2013. In
March 2021, the European Court of Justice rejected
Lundbeck’s final appeal of the European Commission’s
decision. So-called “follow-on claims” for reimbursement
of alleged losses, resulting from violation of competition
law, often arise when decisions and fines issued by the
European Commission are upheld by the European
Court of Justice. The below mentioned “follow-on
claims” are ongoing or threatened. Lundbeck disagrees
with all claims and intends to defend itself against
them.
At the end of first quarter 2023, the UK health
authorities served their claim form on Lundbeck and
several generic companies, and Lundbeck filed its
defence in the third quarter of 2023. The hearing on
whether the claim is time-barred was held in the second
quarter of 2024 and the Competition Appeal Tribunal
has subsequently issued a decision in favor of the UK
health authorities. Lundbeck has been granted
permission to appeal the decision to the Court of
Appeal and the substantive proceedings have remained
pending the appeal.
In late October 2021, Lundbeck received a writ of
summons from a German health-care company claiming
compensation for an alleged loss of profit plus interest
payments, allegedly resulting from Lundbeck’s
conclusion of agreements with two of the four generic
competitors, which were comprised by the EU Court of
Justice ruling. Lundbeck filed its first defence in May
2022, and the parties have subsequently exchanged
additional pleadings. The first instance court hearing
Note 32
Financial risks and financial instruments
- continued
32.5 Net outstanding forward exchange rate transactions, currency options,
interest rate swaps and equity options
- Continued
Equity contracts, DKKm Contractual value
Gains/losses
recognised in the
income statement
Market value 31
December
Expiry
2024
Options on indices 1.428
-56
43
Jun 2025
Options on shares -317
28
18
Jun/Dec 2025
Total
1,111
-28
61
2023
Options on indices 618
-176
21
Mar/Apr 2024
Options on shares 847
34
22
Jan/Mar/Sep/Dec
2024
Total 1,465
-142
43
Note 33
Contractual obligations, contingent assets and liabilities, and collaterals
DKKm 2024 2023
Purchase obligations relating to property, plant and equipment
637 692
Research and development milestone obligations 1,029 1,106
Guarantee for a third party’s debt
96 92
Capital contribution obligations
2,363 1,863
Other contractual obligations, including service agreements
31 -
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 111
Contractual obligations, contingent assets
and liabilities, and collaterals - continued
Note 33
was held in the second quarter of 2024, and Lundbeck
currently expects that additional procedural steps will
be taken before a first instance court ruling, likely in
2025. The first instance court ruling may be appealed,
and it make take several years before a final conclusion
is reached by the German courts.
In October 2024, Lundbeck received a claim form from
the health authority in one of the regions (comunidades
autónomas) in Spain and in November 2024 Lundbeck
filed its defense. A Case Management Conference is
scheduled in the first quarter of 2025.
Lundbeck has been informed about potential claims in
several other European countries, however, it is still
uncertain whether the potential claims will be actively
pursued.
In Canada, Lundbeck is involved in two product liability
class-action lawsuits relating to Cipralex®/Celexa® (one
case alleging various Celexa-induced birth defects and
one case against several SSRI manufacturers (incl.
Lundbeck) alleging that SSRI (Celexa®/Lexapro®) induces
autism birth defect), three relating to Abilify Maintena®
(alleging i.a. failure to warn about compulsive behavior
side effects) and one relating to Rexulti® (also alleging
i.a. failure to warn about compulsive behavior side
effects). Lundbeck strongly disagrees with the claims.
The Celexa birth defect litigation has been discontinued
in Quebec. A settlement agreement has been signed by
the parties in the Abilify Maintena® cases and is pending
approval by the courts.
In 2018, Lundbeck entered into settlements with three
of four generic companies involved in an Australian
federal court case, in which Lundbeck was pursuing
patent infringement and damages claims over the sale
of escitalopram products in Australia. Lundbeck’s case
against the last of the four generic companies, Sandoz
Pty Ltd, went up to the High Court of Australia, who has
decided that Sandoz Pty Ltd infringed Lundbeck’s
escitalopram patent between 2009 and 2012. The High
Court has sent the case back to the first instance court
for recalculation of the damages awarded to Lundbeck
in first instance which amounted to AUD 26.3m (DKK
121m). Lundbeck’s appeal of the Australian Patent
Office’s decision to grant Sandoz a license has now been
decided, and the license was substantially limited.
Sandoz can still appeal the license decision to the
Federal Court.
Otsuka and Lundbeck have received paragraph IV
certifications from Sun Pharma and Apotex with respect
to certain patents listed for Abilify Maintena® in the U.S.
and commenced patent infringement proceedings
against both companies. The FDA will stay approval to
Sun and Apotex until 30 months from receipt of the
respective paragraph IV certifications or a court decision
in Sun’s and/or Apotex’ favor.
Lundbeck received a Civil Investigative Demand (“CID”)
from the U.S. Department of Justice (“DOJ”) in March
2020. The CID seeks information regarding the sales,
marketing, and promotion (including the promotional
speaker program) of Trintellix®. Lundbeck is cooperating
with the DOJ.
In June 2022 in the U.S., several entities, created for the
purpose of receiving assignment of claims from payors
providing health insurance coverage pursuant to
Medicare Parts C and D and Medicaid, filed a complaint
against Lundbeck and others. The complaint alleges
that Lundbeck and the other defendants conspired to
in-crease the unit price and quantity dispensed of
Xenazine®. The case was dismissed with prejudice earlier
in 2023 and is currently under appeal.
In June 2023 in the U.S., Humana Inc., an insurer, filed a
complaint against Lundbeck U.S. legal entities. The
complaint alleges that Lundbeck engaged in an illegal
kickback scheme to increase the sales and sale price of
Lundbeck’s Xenazine®. The complaint alleges that
Lundbeck’s activities targeted Humana Inc. and other
private Medicare insurers who were forced to bear the
costs of the alleged illegally subsidized drug sales.
Lundbeck denies the allegations in the complaint and
intends to defend itself.
Product return obligations
The Group has product return obligations that are
normal for the industry. Management does not expect
any major losses from these obligations apart from the
amount already recognised.
Usual representations and warranties are made in
connection with the divestment of enterprises and
operations. There are no significant outstanding claims
that are not sufficiently recognised in the balance sheet.
Research and development milestones and collaborations
The Group has entered into a number of agreements
relating to research and development of new products
and intellectual property rights from acquisitions, as
well as other collaborations. According to these
agreements, the Group is committed to pay certain
milestones. Such amounts entail uncertainties in
relation to the period in which payments are due
because a proportion of the obligations is dependent on
the milestone achievements
At 31 December 2024, potential future milestone
payments amounted to DKK 1,029m (DKK 1,106m at 31
December 2023).
Sales milestones, royalties and other payments
The Group is committed to paying certain commercial
sales milestones, royalties or other payments based on a
percentage of sales generated from the sale of goods
following marketing approval. These amounts are
excluded from the contractual obligations because of
their contingent nature, being dependent on future
sales.
Other purchase obligations
The Group has undertaken purchase obligations relating
to property, plant and equipment in the amount of
DKK 637m (DKK 692m at 31 December 2023).
Contractual obligations with intangible assets, excluding
commitments with R&D milestones and collaborations,
amounted to DKK 24m and other obligations relating to
licensing agreements amounted to DKK 7m at 31
December 2024 (DKK 0 at 31 December 2023).
Environmental obligations
PFAS pollution has been identified at Lundbeck’s site in
Lumsås, pollution to the soil and water has occurred
from the use of PFAS-containing firefighting foam in the
factory’s fire extinguishing system, which was used until
2011 in compliance with applicable law and following
recommendations by the fire authorities at that time.
The case is being managed in accordance with the
requirements set by the authorities and in line with
Lundbeck’s HSE, Compliance and Sustainability Policies.
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 112
Related parties - continued
Note 33
Since the pollution was detected, Lundbeck has been
engaged in a close dialogue with the Danish
Environmental Protection Agency (EPA) regarding the
mapping and remediation of the pollution. Lundbeck
has proactively taken steps to reduce PFAS level while is
continuously engaged with neighbours and the
municipality to address concerns in the local
community. As remediation and mitigation action
advances, our knowledge and understanding of PFAS
pollution will continue to evolve and we are committed
to continue to take further steps to reduce PFAS levels
in the area.
Falck has been involved in investigations by Danish
environmental authorities and may, at some point in
the future, be involved in more investigations regarding
PFOS contamination in the portfolio of properties
owned by Falck. Falck does not consider it probable that
the investigations will result in a liability for Falck.
Collaterals
Land and buildings provided as security for mortgage
debt amounted to DKK 562m (DKK 497m at 31
December 2023) out of mortgage debt of DKK 518m
(DKK 548m at 31 December 2023).
Lundbeckfonden is an enterprise foundation established
by Grete Lundbeck in 1954. As a foundation, no party
controls Lundbeckfonden.
Related parties to Lundbeckfonden:
• The Foundation’s Executive Management and Board
of Directors
• Companies in which the Foundation’s Executive
Management and Board of Directors exercise
controlling influence
• Associates
See note 3 Employee costs for information about
remuneration received by the Board of Directors and the
Executive Management.
Note 33
Contractual obligations, contingent assets
and liabilities, and collaterals - continued
Note 34
Related parties
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 113
Group overview - continued
Note 35
Note 35
Group overview
Company name Country Ownership
Subsidiaries of Lundbeckfonden
Lundbeckfond Invest A/S, including Denmark
100%
- H. Lundbeck A/S
Denmark
69% (76% of the votes)
- ALK-Abelló A/S
Denmark
40% (67% of the votes)
- Falck A/S
Denmark
58%
- LFI Equity A/S
Denmark
100%
- LFI Silva Investments A/S
Denmark
97%
- LFI Silva Investments Ltd.
United Kingdom
100%
- DySIS Medical Ltd., including
United Kingdom
89%
- Forth Photonics Trustees Limited
United Kingdom
100%
- Forth Photonics Limited
United Kingdom
100%
- DYSIS Medical Inc
United States
100%
- Forth Photonics Hellas S.A
Greece
100%
Vesper Bio ApS
Denmark
75%
Associates of Lundbeckfond Invest A/S
Ferrosan Medical Devices HoldCo ApS Denmark
30%
Echo TopCo A/S (Ellab)
Denmark
34%
CN8 A/S (WS Audiology A/S)
Denmark
15%
Obel-LFI Ejendomme A/S
a)
Denmark
50%
Cresco Capital Services A/S
a)
Denmark
25%
CytoKi Pharma ApS
a)
Denmark
29%
IO Biotech, Inc.
a)
United States
21%
SNIPR Biome ApS
a)
Denmark
29%
NMD Pharma A/S
a)
Denmark 18%
Akamis Bio Limited
a)
United Kingdom 4%
SA ENTEROME
a)
France 13%
Folium Food Science Limited
a)
United Kingdom 13%
Kvantify ApS
a)
Denmark 12%
VarmX B.V.
a)
Netherlands 11%
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 114
Group overview - continued
Note 35
Company name Country Ownership
Subsidiaries of H. Lundbeck A/S
Lundbeck Argentina S.A., Argentina Argentina
100%
Lundbeck Australia Pty Ltd, Australia, including
Australia
100%
- CNS Pharma Pty Ltd, Australia
Australia
100%
Lundbeck Austria GmbH
Austria
100%
Lundbeck S.A.
Belgium
100%
Lundbeck Brasil Ltda.
Brazil
100%
Lundbeck Canada Inc.
Canada
100%
Lundbeck Chile Farmacéutica Ltda.
Chile
100%
Lundbeck (Beijing) Pharmaceuticals Consulting Co., Ltd.
China
100%
Lundbeck Colombia S.A.S.
Colombia
100%
Lundbeck Croatia d.o.o.
Croatia
100%
Lundbeck Czech Republic s.r.o.
Czech Republic
100%
Lundbeck Export A/S
Denmark
100%
Lundbeck Pharma A/S
Denmark
100%
Lundbeck Eesti A/S
Estonia
100%
OY H. Lundbeck AB
Finland
100%
Lundbeck SAS
France
100%
Sofipharm SAS, including
France
100%
- Elaiapharm SAS
France
100%
Lundbeck GmbH Germany 100%
Lundbeck Hellas S.A.
Greece
100%
Lundbeck HK Limited
Hong Kong
100%
Lundbeck Hungária KFT
Hungary
100%
Lundbeck India Private Limited
India
100%
Lundbeck (Ireland) Ltd.
Ireland
100%
Lundbeck Israel Ltd.
Israel
100%
Lundbeck Italia S.p.A.
Italy
100%
Lundbeck Pharmaceuticals, Italy S.p.A., including
Italy
100%
- Archid S.A.
Luxembourg
100%
Lundbeck Japan K.K.
Japan
100%
Lundbeck Korea Co., Ltd.
Republic of Korea
100%
SIA Lundbeck Latvia
Latvia
100%
Company name Country Ownership
UAB Lundbeck Lietuva
Lithuania
100%
Lundbeck Malaysia SDN. BHD. Malaysia
100%
Lundbeck México, SA de CV
Mexico
100%
Lundbeck B.V.
Netherlands
100%
Prexton Therapeutics B.V., including
Netherlands
100%
- Prexton Therapeutics S.A.
Switzerland
100%
Lundbeck New Zealand Limited
New Zealand
100%
H. Lundbeck AS
Norway
100%
Lundbeck Pakistan (Private) Limited
Pakistan
100%
Lundbeck America Central S.A.
Panama
100%
Lundbeck Peru S.A.C.
Peru
100%
Lundbeck Business Service Centre Sp.z.o.o.
Poland
100%
Lundbeck Poland Sp.z.o.o.
Poland
100%
Lundbeck Portugal - Produtos Farmacêuticos Unipessoal Lda
Portugal
100%
Lundbeck Romania SRL
Romania
100%
Lundbeck RUS LLC
Russia
100%
Lundbeck Regional Headquarters
Saudi Arabia
100%
Lundbeck Singapore PTE. LTD.
Singapore
100%
Lundbeck Slovensko s.r.o.
Slovakia
100%
Lundbeck Pharma d.o.o.
Slovenia
100%
Lundbeck South Africa (Pty) Limited, including
South Africa
100%
- H. Lundbeck (Proprietary) Limited
South Africa
100%
Lundbeck España S.A.
Spain
100%
H. Lundbeck AB
Sweden
100%
Lundbeck (Schweiz) AG
Switzerland
100%
Lundbeck İlaç Ticaret Limited Şirketi
Turkey
100%
Lundbeck Group Ltd. (Holding), including
United Kingdom
100%
- Lundbeck Limited
United Kingdom
100%
- Lundbeck Pharmaceuticals Ltd.
United Kingdom
100%
- Lifehealth Limited
United Kingdom
100%
- Lundbeck UK LLP
b)
United Kingdom
100%
Lundbeck USA Holding LLC, including
United States
100%
- Lundbeck LLC, including
United States
100%
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 115
Group overview - continued
Note 35
Company name Country Ownership
- Chelsea Therapeutics International, Ltd., including
United States
100%
- Lundbeck NA Ltd. United States
100%
- Lundbeck Pharmaceuticals LLC
United States
100%
- Lundbeck Research USA, Inc.
United States
100%
- Lundbeck La Jolla Research Center, Inc., including
United States
100%
- Abide Therapeutics (UK) Limited
United Kingdom
100%
- Lundbeck Seattle BioPharmaceuticals, Inc., including
United States
100%
- Alder Biopharmaceuticals Pty., Ltd.
Australia
100%
- Alderbio Holdings LLC ("ANEV")
United States
100%
- Longboard Pharmaceuticals, Inc.
United States
100%
Lundbeck de Venezuela, C.A.
Venezuela
100%
Subsidiaries of ALK-Abelló A/S
Europe
ALK-Abelló Allergie-Service GmbH Austria
100%
ALK-Abelló Nordic A/S
Denmark
100%
ALK S.A.S.
France
100%
ALK-Abelló Arzneimittel GmbH
Germany
100%
ALK-Abelló B.V.
Netherlands
100%
ALK-Abelló Sp. z o.o.
Poland
100%
ALK Slovakia s.r.o.
Slovakia
100%
ALK-Abelló S.A., including
Spain
100%
- ALK-Abelló S.p.A.
Italy
100%
ALK AG (in liquidation)
Switzerland
100%
ALK-Abelló AG
Switzerland
100%
ALK-Abelló Ltd.
United Kingdom
100%
North America
ALK-Abelló Pharmaceuticals, Inc. Canada
100%
ALK-Abelló, Inc., including
United States
100%
- OKC Allergy Supplies, Inc.
United States
100%
ALK-Abelló Source Materials, Inc.
United States
100%
International markets
ALK (Shanghai) Medical Technology Co., Ltd., including China
100%
Company name Country Ownership
- ALK (Guangzhou) Medical Technology Co., Ltd.
China
100%
Tasfiye Halinde ALK Ilac ve Alerji Ürünleri Ticaret Anonim Sirketi (in liquidation) Turkey
100%
Subsidiaries of Falck A/S
Falck (Victoria) Pty. Ltd. Australia
100%
Falck Pty. Ltd.
Australia
100%
Falck Fire Services BE NV
Belgium
100%
Falck Brasil 747 Participações Ltda.
Brazil
100%
Falck Global Assistance (China) Limited
China
100%
Empresa de Medicina Integral EMI S.A. Servicio de Ambulancia Prepagada – Grupo
EMI S.A.
Colombia
100%
Falck Servicios Logisticos S.A.S.
Colombia
100%
Haces Inversiones y Servicios S.A.S
Colombia
100%
Asistencia Médica S.A.S. Prepagado
c)
Colombia
100%
Servicio de Asistencia Médica Immediata S.A.S.
c)
Colombia
100%
Falck Danmark A/S
Denmark
100%
Falck Digital Technology Denmark A/S
Denmark
100%
Falck Global Assistance A/S
Denmark
100%
Falck Healthcare A/S
Denmark
100%
MedConnect A/S
Denmark
100%
EMI Ecuador S.A.- Emergencia Medica Integral
Ecuador
100%
EMI El Salvador S.A. de C.V.
El Salvador
100%
Falck Global Assistance Oy
Finland
100%
Falck France SAS
France
100%
Falck Arbeitsgemeinschaft Rettungsdienst Plauen GmbH & Co. OHG
Germany
100%
Falck Fire Services DE GmbH
Germany
100%
Falck Notfallrettung und Katastrophenschutz gGmbH
Germany
100%
Falck Notfallrettung und Krankentransport Dortmund GmbH
Germany
100%
Falck Notfallrettung und Krankentransport GmbH
Germany
100%
Falck Notfallrettung und Krankentransport Spree-Neiße GmbH
Germany
100%
Falck Operations Services DE GmbH
Germany
100%
Falck Rettungsdienst GmbH
Germany
100%
Falck Rettungsdienst Hanse GmbH
Germany
100%
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 116
Group overview - continued
Note 35
a Ownership above 20% and/or significant influence through
representation on the board of directors. The companies are included
in financial assets - Invest or financial assets - BioCapital
b Lundbeck UK LLP is owned by Lundbeck Group Ltd, (Holding),
Lundbeck Limited and Lifehealth Limited, all of which have H,
Lundbeck A/S as the direct or ultimate parent company
c Ownership of the shares in the company is still subject to approval
from the Colombian Health Superintendency. However Falck has
obtained control of the company. See note 31.1.
Company name Country Ownership
Falck Rettungsdienst Holding GmbH
Germany
100%
Falck Rettungsdienst Nord GmbH Germany
100%
Falck India Pvt. Ltd. (India)
India
100%
Falck Servizi Industriali di Emergenza S.r.l.
Italy
100%
Falck Brann og Redningstjeneste AS
Norway
100%
Falck Global Assistance Norway AS
Norway
100%
Falck Helseformidling AS
Norway
100%
Falck Norge AS
Norway
100%
EMI Holdings Management S.A.
Panama
100%
EMI Panama S.A.
Panama
100%
Falck Fire Services Polska Sp. z.o.o.
Poland
100%
Falck Digital Technology Poland Sp. z.o.o.
Poland
100%
Falck Medycyna Sp. z.o.o.
Poland
100%
Falck SCI Portugal – Segurança Contra Incêndios, SA.
Portugal
100%
Falck Fire Services S.R.L
Romania
100%
Falck Global Assistance Singapore Pte. Ltd.
Singapore
100%
Falck Fire Services a.s.
Slovakia
100%
Falck Global Assistance Spain S.L. Spain 100%
Falck SCI, S.A. Spain 100%
Falck Servicios Sanitarios, S.L.
Spain
100%
Falck Sverige AB
Sweden
100%
Alviva AB
Sweden
100%
Falck Ambulans AB
Sweden
100%
Falck Global Assistance AB
Sweden
100%
Falck Healthcare AB
Sweden
100%
Falck Hälsopartner AB
Sweden
100%
Falck Räddningstjänst AB
Sweden
100%
Falck Global Assistance (Thailand) Ltd.
Thailand
49%
Falck Global Assistance Ltd.
Thailand
49%
Falck Eurasia B.V.
The Netherlands
100%
Falck Holding B.V.
The Netherlands
100%
Company name Country Ownership
Falck Sağlık AŞ
Turkey
100%
Falck Fire Services UK Limited United Kingdom
100%
Luvtel S.A.
Uruguay
100%
Portovenus S.A.
Uruguay
16%
UCM Uruguay S.A.
Uruguay
100%
Falck Global Assistance, LLC
United States
100%
Falck HealthNet, Inc.
United States
100%
Falck Mobile Health Corp.
United States
100%
Falck Northern California Corp.
United States
100%
Falck Northwest Corp.
United States
100%
Falck Rocky Mountain, Inc.
United States
100%
Falck Southwest Corp.
United States
100%
Falck USA, Inc.
United States
100%
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 117
Material accounting policy information - continued
Note 36
The Group has consistently applied the following
accounting policies to all periods presented in these
consolidated financial statements, unless otherwise
mentioned (see note 1 for information about new
standards and amendments issued but not yet
effective).
Basis of consolidation
The consolidated financial statements comprise the
Parent Foundation Lundbeckfonden and entities
controlled by the Parent Foundation.
Subsidiaries are all entities over which the Group has
control. The Group controls an entity when the Group is
exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect
those returns through its power to direct the activities
of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the Group.
They are deconsolidated from the date that control
ceases.
The acquisition method of accounting is used to
account for business combinations by the Group.
Intercompany transactions, balances and unrealised
gains on transactions between Group companies are
eliminated. Unrealised losses are also eliminated unless
the transaction provides evidence of an impairment of
the transferred asset. Accounting policies of subsidiaries
have been changed where necessary to ensure
consistency with the policies adopted by the Group.
Non-controlling interests in the results and equity of
subsidiaries are shown separately in the consolidated
income statement and of comprehensive income,
statement of changes in equity and balance sheet
respectively
Business combinations
Acquisitions are evaluated to determine whether they
constitute a business combination in accordance with
IFRS 3 Business Combinations or a purchase of
individual assets and liabilities.
Acquired assets and liabilities that do not constitute a
business are recognised at cost, i.e., no goodwill or
negative goodwill is recognised.
Newly acquired or newly established companies or
operations are recognised in the consolidated financial
statements from the date of acquisition or
establishment. The date of acquisition is the date when
control of the company actually passes to the Group.
The acquisition method of accounting is used to
account for all business combinations. The
consideration transferred for the acquisition of a
subsidiary comprises the:
• fair values of the assets transferred
• liabilities incurred to the former owners of the
acquired business
• equity interests issued by the Group
• fair value of any asset or liability resulting from a
contingent consideration arrangement
• fair value of any pre-existing equity interest in the
subsidiary. Identifiable assets acquired, and liabilities
and contingent liabilities assumed in a business
combination are, with limited exceptions, measured
initially at their fair values at the acquisition date
The Group recognises any non-controlling interest in the
acquired entity on an acquisition-by-acquisition basis
either at fair value or at the non-controlling interest’s
proportionate share of the acquired entity’s net
identifiable assets. Acquisition-related costs are
expensed as incurred.
The excess of the consideration transferred, amount of
any non-controlling interest in the acquired entity and
acquisition-date fair value of any previous equity
interest in the acquired entity over the fair value of the
net identifiable assets acquired is recorded as goodwill.
If those amounts are less than the fair value of the net
identifiable assets of the business acquired, the
difference is recognised directly in the income
statement as a bargain purchase.
Divestments
Companies divested or discontinued are recognised in
the income statement until the date of divestment or
discontinuation. Divested activities are shown separately
as discontinued operations.
Gains and losses on divestment or winding up of
subsidiaries and associates are stated as the difference
between the sales price and the carrying amount of the
net assets, including goodwill at the time of sale,
accumulated foreign exchange adjustments recognised
in other comprehensive income and anticipated
disposal costs. In addition, any retained non-controlling
interests are measured at fair value. Gains and losses on
the disposal and the effect of renewed measurement of
any retained non-controlling interests are recognised in
the income statement.
Foreign currency
On initial recognition, transactions denominated in
foreign currencies are translated at standard rates
which approximate the exchange rates at the
transaction date. Exchange differences arising between
the exchange rates at the transaction date and the
exchange rates at the date of payment are recognised in
the income statement under financial items.
Receivables, payables and other monetary items
denominated in foreign currencies that have not been
settled at the balance sheet date are translated at the
exchange rates at the balance sheet date. The
differences between the exchange rates at the time of
recognition and the exchange rates at the balance sheet
date or recognition of settlement are recognised in the
income statement under financial items.
On translation of foreign subsidiaries having a
functional currency different from the one used by the
Foundation, items in the income statement are
translated at monthly average exchange rates, and non-
monetary and monetary items are translated at the
exchange rates at the balance sheet date. Exchange
differences arising when translating the income
statements and the balance sheets of foreign
subsidiaries are recognised in other comprehensive
income.
Exchange gains/losses on translation of receivables
from, or payables to, subsidiaries that are considered
part of the Group’s net overall investment in the
subsidiaries are recognised in other comprehensive
income.
Note 36
Material accounting policy information
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 118
Material accounting policy information - continued
Note 36
Exchange gains/losses on that part of the bank debt in
foreign currency which is used for hedging of the net
investments in subsidiaries, and which provides an
effective hedging of the exchange gains/losses of the
net investments, are recognised in other comprehensive
income.
Financial instruments
Forward exchange contracts, interest rate swaps, equity
options and other derivatives are initially recognised in
the balance sheet at fair value on the contract date and
subsequently remeasured at fair value at the balance
sheet date. The fair value of derivatives is determined by
applying recognised measurement techniques, whereby
assumptions are based on the market conditions
prevailing at the balance sheet date. Positive and
negative fair values are included in other receivables and
other payables, respectively.
Changes in the fair value of derivatives classified as
hedging instruments and meeting the criteria for hedge
accounting are recognised in other comprehensive
income. On recognition of hedged items, income and
expenses related to such hedging transactions are
transferred from other comprehensive income and
recognised in the same line item as the hedged item.
Changes in the fair value of derivatives classified as
hedging instruments and meeting the criteria for
hedging the fair value of a recognised asset or liability
are recognised in the income statement together with
changes in the value of the hedged asset or liability.
Changes in the fair value of derivatives used for hedging
net investments in foreign subsidiaries or associates
and that otherwise meet the relevant criteria for
hedging are recognised in other comprehensive income.
Changes in the fair value of derivatives not qualifying
for hedge accounting are recognised in the income
statement under financial items as they arise.
Securities, equity investments recognised in other
financial assets, derivatives and contingent
consideration measured at fair value are classified
according to the fair value hierarchy as belonging to
levels 1-3 depending on the valuation method applied.
Incentive programmes
Share-based incentive programmes (equity-settled
share-based payments) which comprise share option
plans, conditional share plans, and performance shares
are measured at the grant date at fair value and
recognised in the income statement under the
respective functions over the vesting period and offset
in equity.
The fair value of share options is determined using the
Black-Scholes model.
If the share option agreements entitle the Group to
demand cash settlement of the options, the cash-
settled share options are recognised as other liabilities
and adjusted to fair value when the Group has an
obligation to settle in cash. The subsequent adjustment
to fair value is recognised in the income statement
under financial items.
Warrants regarding warrant programmes for the
executive management boards of subsidiaries are issued
at the market value on the date of grant. Payments
received and made in relation to the warrant
programmes are recognised in equity.
Non-controlling interests
On initial recognition, non-controlling interests are
measured either at fair value (including the fair value of
goodwill related to non-controlling interests in the
acquired company) or at the non-controlling interests’
proportionate share of the acquired company’s
identifiable assets, liabilities and contingent liabilities
measured at fair value (excluding the fair value of
goodwill related to non-controlling interests in the
acquired company). The measurement basis for non-
controlling interests is selected for each individual
transaction.
Acquisition and divestment of non-controlling interests
Increases and reductions of non-controlling interests
are accounted for as transactions with shareholders, in
their capacity as shareholders. Thus, any differences
between adjustment to the carrying amount of non-
controlling interests and the fair value of the
consideration received or paid are recognised directly in
equity.
Income statement
Revenue Lundbeck and ALK
Revenue comprises invoiced sales less expected return
of goods for the year less returned goods, sales,
discounts, rebates and revenue-based taxes. Revenue is
recognised when the goods are delivered at the agreed
destination (point in time), meaning that control of
products has transferred to the buyer, and it is probable
that the Group will collect the consideration to which it
is entitled for transferring the products.
Revenue is measured at the amount of consideration to
which the Group expects to be entitled in exchange for
transferring the products. Revenue is recognised net of
sales deductions, including product returns as well as
discounts, rebates and revenue-based taxes.
Moreover, revenue includes licence income and royalties
from out-licensed products as well as non-refundable
down payments and milestone payments relating to
research and development collaborations and income
from collaborations on the commercialisation of
products.
Sales-based licensing income and royalties from out-
licensed products is recognised in profit or loss under
revenue, when the Group provides access to its product
rights as they exist throughout the licence period.
Revenue from sales-based licensing income is
recognised when the performance obligation is satisfied,
i.e., when transferred to the customer. For royalties,
revenue is recognised when the subsequent sale occurs.
As the performance obligations are satisfied over time,
revenue is also recognised over time.
When the Group provides a customer the right to use
the product rights as they exist at the point in time at
which the licence is granted, revenue is recognised at a
point in time when control is transferred to the licensee
and the licence period begins when the customer's right
to the intellectual property is transferred.
Non-refundable down payments and milestone
payments received relating to research collaborations
are recognised in profit or loss under revenue.
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 119
Material accounting policy information - continued
Note 36
Revenue Falck
Revenue includes services and goods delivered together
with invoiced subscriptions attributable to the financial
period. Revenue is recognised in the income statement
if the control of the services or goods are transferred to
the customer. Services are recognised over time when
the customer receives and consumes the benefits as the
service is delivered by Falck.
For long-term contracts with fixed price and
subscriptions, revenue is recognised on a straight-line
basis over the contract period. For pay-by-use contracts,
revenue is recognised in connection with the actual
delivery of the individual service.
Services related to long-term contracts with fixed price
and subscriptions are usually prepaid by the customers.
Prepayment usually occurs between one and twelve
months before the start of the service period. For pay-
by-use contracts, the payment term is usually between
one and three months after the service has been
delivered.
For contracts with predetermined price reductions, the
transaction price will be recalculated to an average price
covering the total contract period.
For contracts where Falck acts as an agent (mainly
related to claims handling for insurance companies),
revenue is recognised as the net amount that Falck is
entitled to retain in return for its services as agent. For
contracts where Falck acts as a principal, revenue is
recognised as the gross amount to which Falck expects
to be entitled.
Revenue is measured at the fair value of the agreed
consideration excluding VAT and other taxes collected
on behalf of third parties. All discounts granted are
recognised in revenue.
Contracts with variable considerations are measured
using the most likely amount and remeasured on a
monthly basis.
Cost of sales
Cost of sales comprises the cost of goods and services
sold. Cost includes the cost of raw materials,
transportation costs, consumables and goods for resale,
direct labour and indirect costs of production, including
operating costs, amortisation/depreciation and
impairment losses relating to product rights and
manufacturing facilities. Moreover, cost of sales includes
royalty payments for in-licensed products, expenses for
quality assurance of products and write-downs to net
realisable value of obsolete and slow-moving goods.
Cost of sales also includes external assistance used to
generate the revenue for the year.
Research and development costs
Research and development costs comprise costs
incurred for the Group’s research and development
functions, i.e., employee costs, amortisation/
depreciation and impairment losses, and other indirect
costs as well as costs, relating to research and
development collaborations.
Research costs are always recognised in the income
statement as they incur.
Due to a very long development period and the
significant uncertainties inherent in the development of
new products, development costs are expensed as
incurred in line with industry practice. Consequently, the
development costs do not qualify for capitalisation as
intangible assets until marketing approval by a
regulatory authority is obtained or considered highly
probable.
Sales and distribution costs
Sales and distribution costs comprise costs incurred for
the sale and distribution of the Group’s products sold
during the year. This includes costs incurred for sales
campaigns, training and administration of the sales
force and direct distribution, marketing and promotion.
Sales and distribution also include salaries and other
costs for the sales, distribution and marketing
functions, amortisation/depreciation and impairment
losses, and other indirect costs.
Administrative expenses
Administrative expenses comprise expenses incurred in
the year for the management and the administration of
the Group, i.e., salaries and other expenses relating to
for example, management, HR, IT and finance functions,
as well as amortisation/depreciation and impairment
losses, and other indirect costs.
Other operating items
Other operating items comprise other income and
expenses relating to operating activities of a secondary
nature to the Group. Other operating items include
integration and transaction costs relating to material
acquisitions, transaction costs relating to divestments,
income and expenses relating to legal settlements and
material gains and losses on the sale or retirement of
items of intangible assets and property, plant and
equipment.
Special items
Special items comprise significant income and expenses
of a special nature in terms of the Group’s revenue-
generating operating activities such as impairment of
goodwill and product rights.
Results of investments in associates measured using the
equity method
The proportionate share of the results of associates is
recognised in the income statement after tax.
Financial items
Financial items comprise:
• Interest income and expenses
• Net gain or loss on financial assets, including
dividends
• Fair value adjustment of contingent consideration
• Fair value adjustment of other financial liabilities
• Interest expenses and income related to uncertain tax
positions are recognised on the balance sheet as tax
liabilities and tax assets, respectively, upon the receipt
of rulings from the tax authorities, and
correspondingly reflected in the income statement as
financial items, net
• Foreign currency gain and loss
• Other financial income and expenses
Interest income and expenses are accrued based on the
principal and the effective rate of interest.
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 120
Material accounting policy information - continued
Note 36
Income tax
Lundbeckfonden’s Danish subsidiaries are jointly taxed
with Lundbeckfond Invest A/S as the administration
company. The current Danish corporate income tax
liability is allocated among the companies of the tax
pool in proportion to their taxable income (full
allocation subject to reimbursement in respect of tax
losses).
Lundbeckfonden has the option to use section 3(4) of
the Danish Corporation Tax Act. Under these rules, the
taxable income of Lundbeckfond Invest A/S is
considered to have been earned by Lundbeckfonden if
the taxable income is distributed as a dividend to
Lundbeckfonden. Since Lundbeckfonden’s taxable
income is regularly offset against grants for the year
and tax provisions for future grants, no deferred tax
asset or liability is recognised owned by
Lundbeckfonden.
Tax for the year, which consists of the year’s current tax
and the change in deferred tax, is recognised in the
income statement as regards the amount that can be
attributed to the net profit or loss for the year, in other
comprehensive income as regards the amount that can
be attributed to items in other comprehensive income,
and in equity as regards the amount that can be
attributed to items in equity. The effect of foreign
exchange differences on deferred tax is recognised in
the balance sheet as part of the movements in deferred
tax.
The Group has determined that the global minimum
top-up tax, which it is required to pay under Pillar Two
legislation, is an income tax in the scope of IAS 12. The
Group has applied a temporary mandatory relief from
deferred tax accounting for the impacts of the top-up
tax and will account for it as a current tax when it
incurs.
The current income tax charge is calculated based on
the tax laws enacted or substantively enacted at the
end of the reporting period in the countries where the
Group operates and generates taxable income.
Management periodically evaluates positions taken in
tax returns with respect to situations in which
applicable tax regulation is subject to interpretation and
considers whether it is probable that a tax authority will
accept an uncertain tax treatment. The Group measures
its tax balances based on either the most likely amount
or the expected value, depending on which method
provides a better prediction of the resolution of the
uncertainty.
Current tax for the year is calculated based on the
income tax rates and rules applicable at the reporting
date.
Current tax payables and receivables, including
contributions payable and receivable under the Danish
joint taxation scheme, are recognised in the balance
sheet, computed as tax calculated on the taxable
income for the year adjusted for provisional tax paid.
Deferred tax is recognised on all temporary differences
between the carrying amounts of assets and liabilities
and their tax bases. However, deferred tax is not
recognised on temporary differences arising either on
initial recognition of goodwill or from a transaction that
is not a business combination, if the temporary
difference ascertained at the time of the initial
recognition affects neither the financial result nor the
taxable income. The tax value of the assets is calculated
based on the planned use of the individual assets.
Deferred tax is measured based on the income tax rates
and tax rules in force in the respective countries at the
balance sheet date. Changes in deferred tax resulting
from changed income tax rates or tax rules are
recognised in profit or loss.
Deferred tax assets, including the tax value of tax loss
carry-forwards, are recognised in the balance sheet at
the value at which the assets are expected to be
realised, either through an offset against deferred tax
liabilities or as net tax assets to be offset against future
positive taxable income.
Changes in deferred tax concerning expenses for share-
based payments are generally recognised in profit or
loss. However, if the amount of the tax deduction
exceeds the related cumulative expense, it indicates
that the tax deduction relates not only to an operating
expense, but also to an equity item. In such a case, the
excess of the associated current or deferred tax is
recognised directly in equity.
Deferred tax in respect of recaptured losses previously
deducted in foreign subsidiaries is recognised based on
a specific assessment of each individual subsidiary.
Balance sheet
Goodwill
On initial recognition, goodwill is measured and
recognised as the excess of the cost over the fair value
of the acquired assets, liabilities and contingent
liabilities. On recognition, the goodwill amount is
allocated to those of the Group’s activities that generate
separate cash flows (cash generating units).
Development projects
Development costs are recognised in the income
statement as they incur unless the conditions for
capitalisation have been met. Development costs are
capitalised only if the development projects are clearly
defined and identifiable and where the technical rate of
utilisation of the project, the availability of adequate
resources and a potential future market or development
opportunity can be demonstrated. Furthermore, such
costs are capitalised only where the intention is to
manufacture, market or use the project, when the cost
can be measured reliably and when it is probable that
future earnings can cover production, sales and
distribution costs, administrative expenses and
development costs.
After completion of the development work,
development costs are amortised over the expected
useful life. The maximum amortisation period for
development projects protected by intellectual property
rights is consistent with the remaining patent
protection period of the rights concerned. Ongoing
development projects are tested for impairment at least
annually or when there is indication of impairment.
Product rights and other intangible assets
Acquired intellectual property rights in the form of
product rights, patents, licences, customer relationships,
brands and software are measured at cost less
accumulated amortisation and impairment losses. The
cost of software comprises the cost of planning, labour
costs and costs directly attributable to the project.
Subsequent milestone-related expenditures are
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 121
Material accounting policy information - continued
Note 36
considered contingent consideration and the Group
follows the cost accumulation approach.
Product rights are amortised over the economic lives of
the underlying products, which in all material aspects
follow the patent terms, which are currently between
five and 15 years. Other rights are amortised over the
period of agreement. Intangible assets acquired on
acquisition are amortised over the expected economic
life, estimated to be three-to-10 years. Software is
amortised over the expected economic life, estimated to
be three-to-five years. Amortisation commences when
the asset is ready to be brought into use.
Amortisation is recognised in the income statement
under cost of sales, and research and development
costs, respectively.
Borrowing costs to finance the manufacture of
intangible assets are recognised in the cost price, if such
borrowing costs relate to the production period. Other
borrowing costs are expensed.
Gains and losses on the disposal of development
projects, patents and licences are measured as the
difference between the selling price less cost to sell and
the carrying amount at the time of sale. Gains and
losses are recognised in profit or loss; normally in other
operating items, net, or, if considered immaterial to the
understanding of the consolidated financial statements,
in the same line item as the associated amortisation. In
general, amortisation methods, useful lives and residual
values are reviewed at each reporting date and adjusted
if appropriate.
Property, plant and equipment
Items of property, plant and equipment are measured
at cost less accumulated depreciation and impairment
losses. Land is not depreciated.
Cost includes the cost of acquisition and expenses
directly attributable to the acquisition until the asset is
ready for use. The cost of self-constructed assets
includes costs directly attributable to the construction
of the asset. Borrowing costs to finance the
manufacture of property, plant and equipment are
recognised in the cost price, if such borrowing costs
relate to the production period. Other borrowing costs
are recognised in the income statement.
Right-of-use assets are initially measured at cost, which
comprises the initial amount of the liability adjusted for
any lease payments made at or before the
commencement date, plus any initial direct costs
incurred and an estimate of costs to dismantle and
remove the underlying asset or to restore the
underlying asset or the site on which it is located, less
any lease incentives.
Subsequently, the right-of-use asset is depreciated using
the straight-line method from the commencement date
to the end of the lease term unless it is reasonably
certain that a purchase option will be exercised at the
end of the lease term. In that case, the assets are
depreciated over the full, expected useful life.
Items of property, plant and equipment are depreciated
on a straight-line basis over the expected useful lives of
the assets:
Years
Buildings
25-50
Installations 10
Plant and machinery 3-10
Vehicles according to category
5-12
Dispatch centres, radio systems, major
administrative systems and networks
8
Fire extinguishers and similar equipment installed
at customers’ locations
3-5
Other fixtures and fittings, tools and equipment
3-10
Leasehold improvements, max. 10
Depreciation methods, useful lives and residual values
are reassessed annually and adjusted if appropriate.
Costs incurred that increase the recoverable amount of
the asset are added to the value of the asset as an
improvement and are depreciated over the estimated
useful life of the improvement.
Gains or losses on the sale or retirement of items of
property, plant and equipment are calculated as the
difference between the carrying amount and the selling
price less cost to sell or discontinuance costs. Gains and
losses are recognised in profit or loss; normally in other
operating items, net or, if considered immaterial to the
understanding of the consolidated financial statements,
in the same line item as the associated depreciation.
Biological assets
Forest assets are divided into growing forests, which are
recognised as biological assets at fair value less cost to
sell, and land, which is measured at cost. The valuation
of biological assets is based on discounted cash flow
models.
Changes in the fair value of biological assets are
recognised in the income statement under other
operating items.
Impairment
Intangible assets with indefinite useful lives and
intangible assets not yet commercialised are not subject
to amortisation and are tested annually for impairment,
or more frequently if events or changes in
circumstances indicate that they may be impaired. The
annual impairment test is performed irrespective of
whether there is any indication of impairment.
Intangible assets and property, plant and equipment in
use with finite useful lives are tested for impairment
whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable.
Impairment losses are reversed only if the assumptions
and estimates underlying the impairment calculation
have changed. Indications of impairment or reversal of
impairment include the following:
• Research and development results for a product
• Changes in expected cash flows due to lower sales
expectations
• Changes in technology
• Changes in assumptions about future use
• Changes in market and legal risks
• Changes in cost structure
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 122
Material accounting policy information - continued
Note 36
An impairment loss is recognised for the amount by
which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the
higher of an asset’s fair value less costs of disposal and
value-in-use. For the purpose of assessing impairment,
assets are grouped at the lowest levels for which there
are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or
groups of assets (cash-generating unit). Non-financial
assets other than goodwill that suffer an impairment
are reviewed for possible reversal of the impairment at
the end of each reporting period.
Investments in associates
Investments in associates, except for investments in
associates that are included in Lundbeckfonden’s
investment strategy, are measured in the consolidated
financial statements using the equity method and
recognised at the proportionate share of the equity of
the relevant enterprise, made up in accordance with the
Group’s accounting policies, with the addition of values
added on acquisition, including goodwill.
Investments in associates that are included in
Lundbeckfonden’s investment strategy are measured at
fair value and presented together with the investment
assets. Both realised and unrealised gains and losses are
recognised in the income statement under financial
items.
Financial assets
At initial recognition, securities that are included in the
group’s investment strategy are measured at its fair
value. Transaction costs of financial assets are expensed
under financial items.
Subsequently, securities are measured at fair value at
the balance sheet date. Both realised and unrealised
gains and losses are recognised in the income
statement under financial items.
Bonds with a term to maturity of less than one year are
recognised in current assets. Bonds forming part of repo
transactions, i.e., the selling of bonds to be repurchased
at a later date, remain on the balance sheet as financial
assets, and the amount received on repo transactions is
recognised as repo debt. Returns on such bonds are
recognised under financial items.
The fair value of listed investments is calculated using
market prices at the balance sheet date. The calculation
of fair value of unlisted investments, including biotech
investments, is made on the basis of relevant valuation
methods based on discounted cash flows or trading
multiples. If the fair value cannot be determined with
sufficient reliability, the investments in question are
recognised at cost at recent transaction, or price at
financing round, taking into account whether or not the
companies live up to predefined value triggers/business
plans.
Equity investments that are not included in the Group’s
investment strategy are classified as other financial
assets. On initial recognition, these investments are
measured at cost, corresponding to fair value. They are
subsequently measured at fair value at the balance
sheet date, and changes to the fair value are recognised
in the income statement or other comprehensive
income according to an individual decision for each
equity investment.
Inventories
Raw materials, packaging and goods for resale are
measured at the latest known cost at the balance sheet
date, which is equivalent to cost computed according to
the FIFO method. Work in progress and finished goods
manufactured by the Group are measured at cost, i.e.,
the cost of raw materials, goods for resale, consumables
and direct labour and indirect costs of production.
Indirect costs of production include materials and
labour, maintenance of and depreciation on the
machines, factory buildings and equipment used in the
manufacturing process as well as the cost of factory
administration and management. Indirect costs of
production are allocated based on the normal capacity
of the production plant.
Inventories are written down to net realisable value if it
is lower than the cost price. The net realisable value of
inventories is calculated as the selling price less costs of
completion and costs incurred to execute the sale. The
net realisable value is determined by marketability,
obsolescence and expected selling price developments.
Receivables and contract assets
Current receivables comprise trade receivables and
other receivables arising in the Group’s normal course of
business. Other receivables recognised in financial
assets are financial assets with fixed or determinable
cash flow that are not quoted on an active market and
are not derivative financial instruments.
Contract assets comprise the Group’s right to
consideration regarding completed services which have
not been invoiced at the reporting date.
On initial recognition, receivables and contract assets
are measured at fair value, subsequently at amortised
costs.
Impairments for lifetime expected credit losses (ECL) are
recognised in the income statement upon initial
recognition of the receivable/contract asset. The
expected credit losses are calculated on the portfolio of
receivables/contract assets grouped by shared credit risk
characteristics. Provision matrices are established based
on historical developments in trade receivables/contract
assets and the historical credit losses, adjusted for
forward-looking factors specific to the debtors and the
economic environment.
An impairment loss or reversal of prior impairment loss
is recognised in the income statement.
Prepayments
Prepayments comprise prepaid costs which are
measured at cost.
Securities
On initial recognition, securities including the bond
portfolio, which are included in the Group’s investment
strategy for excess liquidity, or bonds with a term to
maturity of less than one year, are recognised under
current assets and measured at cost, corresponding to
fair value. The securities are subsequently measured at
fair value at the balance sheet date. The fair value is
based on publicly quoted prices of the invested assets.
Both realised and unrealised gains and losses are
recognised in the income statement.
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 123
Material accounting policy information - continued
Note 36
Equity
Authorised grants
Grants are considered equity movements and are
recognised as a liability at the time when the grant has
been authorised by the Board of Directors and
announced to the recipient. Authorised grants not yet
disbursed are recognised in non-current or current
liabilities, respectively.
Reserve for future grants
In accordance with the Danish Act on Commercial
Foundations, a reserve for future grants has been set up
in order for Board of Directors to be able to donate
grants during the period until the approval of the
annual report for the subsequent financial year. The
reserve does not have to be used, but is continuously
reduced with donated grants. Every year at the annual
meeting, the Board of Directors will re-evaluate the size
of the reserve.
Hedging reserve
Hedge transactions that meet the criteria for hedging
future cash flows, and for which the hedged transaction
has yet to be realised, are recognised in equity through
other comprehensive income under the hedging reserve.
Foreign exchange adjustments concerning hedging
transactions used to hedge the Group’s net investment
in such entities are recognised in equity through other
comprehensive income under the hedging reserve.
Currency translation reserve
Foreign exchange adjustments arising on the
translation of financial statements for subsidiaries and
associates which are not part of Lundbeckfonden’s
investment strategy and have a functional currency
other than DKK, and foreign exchange adjustments
relating to financial assets and liabilities representing a
part of the Group’s net investment in such entities, are
recognised in equity through other comprehensive
income under the currency translation reserve.
On full or partial realisation of a net investment, foreign
exchange adjustments are recognised in the income
statement.
Treasury shares in subsidiaries
Acquisition and sale of treasury shares held by
subsidiaries as well as dividends are recognised directly
in equity under retained earnings.
Non-controlling interests
The proportionate shares of the profit and equity of
subsidiaries attributable to non-controlling interests are
recognised as a separate item under equity. On initial
recognition, non-controlling interests are recognised as
described under ‘Business combinations’.
Share-based payments
Share-based incentive programmes in which shares are
granted to employees and in which employees may opt
to buy shares in H. Lundbeck A/S and ALK-Abelló A/S,
and in which shares are granted to employees (equity-
settled programmes), are measured at the equity
instruments’ fair value at the date of grant and
recognised under employee costs, as and when the
employees obtain the right to receive/buy the shares.
The offsetting item is recognised directly in equity,
under retained earnings.
Share price-based incentive programmes in which
employees have the difference between the agreed price
and the actual share price settled in cash (cash-settled
programmes) are measured at fair value at the date of
grant and recognised in the income statement under
employee costs, as and when the employees obtain the
right to such difference settlement. The cash-settled
programmes are subsequently remeasured on each
balance sheet date and upon final settlement, and any
changes in the fair value of the programmes are
recognised under employee costs. The offsetting item is
recognised under liabilities until the time of the final
settlement.
Retirement benefit obligations and similar obligations
Payments to defined contribution plans are recognised
in the income statement at the due date, and any
contributions payable are recognised in the balance
sheet under current liabilities.
The present value of the Group’s liabilities relating to
future pension payments under defined benefit plans is
measured on an actuarial basis once a year based on the
pensionable period of employment up to the time of
the actuarial valuation. The calculation of present value
is based on assumptions of future developments of
salary, interest, inflation, mortality and disability rates
and other factors. Present value is computed exclusively
for the benefits to which the employees have earned
entitlement through their employment with the Group.
Pension expenses, finance costs and administration fees
are recognised in the income statement under
employee costs. Actuarial gains and losses are
recognised in other comprehensive income as they are
calculated and cannot subsequently be recycled through
profit or loss.
The present value of the defined benefit plan liability is
recognised less the fair value of the plan assets, and any
net obligation is recognised in the balance sheet under
non-current liabilities. Any net asset is recognised in the
balance sheet as a financial asset, considering, where
relevant, the provisions of IFRIC 14 The Limit on a
Defined Benefit Asset, Minimum Funding Requirements
and their Interaction.
Provisions
Provisions mainly consist of provisions for discounts and
rebates, product returns, pending lawsuits,
environmental, integrations and restructuring and
integration provisions. A provision is a liability of
uncertain timing or amount.
Unsettled discounts and rebates are recognised as
provisions when the timing or amount is uncertain.
Where absolute amounts are known, the discounts and
rebates are recognised as trade payables.
Return obligations imposed on the Group are
recognised as provisions in the balance sheet.
Amounts relating to provisions are recognised when the
outflow is probable and the amount is measured as the
best estimate of the costs required to settle the
liabilities at the balance sheet date.
In connection with restructurings in the Group,
provisions are made only for liabilities set out in a
specific restructuring plan based on which the parties
affected can reasonably expect that the Group will carry
out the restructuring, either by starting to implement
the plan or announcing its main components.
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 124
Material accounting policy information - continued
Note 36
Contract liabilities
Prepayments mainly include accrued subscriptions and
prepayment according to contracts. Contract liabilities
also comprise the recalculated transaction price from
predetermined price reductions, where the service is
transferred over time, and are recognised at the same
average consideration over the term of the contract.
Debt
Mortgage debt, bank debt and bond debt are recognised
at the time of the raising of a loan/issuing of bonds at
the fair value of the proceeds received less transaction
costs paid. In subsequent periods, the financial liabilities
are measured at amortised cost, which is equivalent to
the capitalised value when the effective rate of interest
is used. The difference between the proceeds and the
nominal value is recognised in the income statement
under financial items over the loan period. Debt
included in the short-term financial liquidity is
measured at amortised cost in subsequent periods.
Repo debt relates to bonds included in repo
transactions. Repo debt is recognised at amortised cost,
and accumulated repo interest has been accrued.
Other payables
Other payables include employee costs payables,
contingent consideration, derivative financial
instruments, debt to public authorities, etc.
Contingent consideration is recognised as part of the
business combination and is recognised at fair value
considering the passage of time and changes in the
applied probability of success. The fair value is assessed
at each reporting date and the effect of any
adjustments relating to the timing of payment and the
probability of success is recognised under financial
income or financial expenses.
Other debts, which include trade payables and debt to
public authorities etc., are measured at amortised cost.
Lease liabilities
On initial recognition, lease liabilities are measured as
the present value of future payments, including
payments relating to reasonably certain extensions. The
lease payments contain fixed payments less any lease
incentives receivable and variable lease payments that
depend on an index or a rate.
On subsequent recognition, lease liabilities are
measured at amortised cost. The difference between the
present value and the nominal value of lease payments
is recognised in the income statement over the term of
the lease as a finance charge.
If the interest rate cannot be determined in the
agreement, the lease payments are discounted using
the Group’s incremental borrowing, adjusted for the
functional currency and length of the lease term. The
lease liability is remeasured if, or when, the future
payment or lease term changes.
Changes to lease agreements after initial recognition
are accounted for either as a modification to an existing
agreement, a separate agreement or a partial disposal,
depending on the nature of the change. Changes will
result in changes to both the lease liability and the
right-of-use asset.
Short-term lease expenses and low value assets are not
recognised as part of lease liabilities. They are
recognised in the income statement when incurred as
an operating expense.
Cash flow statement
The consolidated cash flow statement is presented in
accordance with the indirect method and shows the
composition of cash flows, divided into operating,
investing and financing activities, and cash and cash
equivalents at the beginning and at the end of the year.
Cash flows include cash flows from companies acquired
as from the date of acquisition and cash flows from
companies divested until the date of divestment.
Cash comprises cash and cash equivalents.
Cash flows denominated in foreign currencies, including
cash flows in foreign subsidiaries, are translated at the
average exchange rates for the year as they
approximate the actual exchange rates at the date of
payment. Cash and cash equivalents at year-end are
translated at the exchange rates at the balance sheet
date, and the effect of exchange gains/losses on cash
and cash equivalents is shown as a separate item in the
cash flow statement.
Key figures
The key figures are calculated according to the Danish
Finance Society’s Recommendations & Financial Ratios.
Operating profit:
Defined as the profit before
special items, financial items
and tax
Operating profit margin:
Operating profit x 100 / Revenue
Return on equity:
Profit for the year x 100 / Average
equity
Net wealth
Lundbeckfonden’s net wealth is estimated based on fair
value at the balance sheet date. For the valuation of
Lundbeckfonden’s investment activities, please refer to
the accounting policies above under financial assets.
The fair value of Lundbeckfonden’s shares in H.
Lundbeck A/S and ALK-Abelló A/S is based on market
prices. The fair value of Lundbeckfonden’s shares in
other strategic ownerships are an estimated value based
on a trading multiple model using historical accounting
numbers for the relevant company and a peer group.
Note 37
Events after the balance sheet date
No events of importance to the annual report have
occurred during the period from the balance sheet date
until the presentation of the consolidated financial
statements.
Management review
Financial statements Consolidated financial statements Parent financial statements Notes Reports
Lundbeck Foundation Annual Report 2024 Page 125
Parent financial
statements
Management review
Financial statements Consolidated financial statements Parent financial statements Notes Reports
Lundbeck Foundation Annual Report 2024 Page 126
Income statement 127
Balance sheet 128
Statement of changes in equity 129
Notes 130
1. Accounting policies 130
2. Financial income and expenses 130
3. Employee costs 131
4. Total operating costs of Lundbeckfonden
and Lundbeckfond Invest A/S 131
5. Fees to auditors appointed at the annual
meeting 131
6. Tax on profit for the year 131
7. Proposed distribution of profit 132
8. Intangible assets 132
9. Tangible assets 132
10. Investments in subsidiaries 132
11. Other securities and investments 133
12. Capital base 133
13. Pension obligations 133
14. Financial instruments 134
15. Grants 134
16. Contractual obligations 134
17. Related parties 134
18. Events after the balance sheet date 134
Financial statements
Parent
Foundation
Contents
Notes
Management review
Financial statements Consolidated financial statements Parent financial statements Notes Reports
Lundbeck Foundation Annual Report 2024 Page 127
Income statement
For the period 1 January – 31 December
DKKm Note 2024 2023
Dividend from Lundbeckfond Invest A/S
1,545
-
Financial income 2 1,654
1,217
Financial expenses 2 -203
-154
Profit from investment activities
2,996
1,063
Employee costs
3
-51
-46
Other external costs 4-5 -40
-37
Depreciation and amortisation
-5
-5
Profit before tax
2,900
975
Tax on profit for the year 6 -78
-6
Profit for the year 7 2,822
969
Management review
Financial statements Consolidated financial statements Parent financial statements Notes Reports
Lundbeck Foundation Annual Report 2024 Page 128
Equity and liabilities, DKKm Note 2024 2023
Capital base 12
4,937 4,357
Reserve for future grants
1,500 1,500
Retained earnings
6,037 4,855
Equity
12,474 10,712
Pension obligations etc. 13 - 4
Provisions
- 4
Payable grants, long-term 15 1,738 1,382
Non-current liabilities
1,738 1,382
Payable grants, short-term 15 728 656
Income tax
69 -
Other payables
15 14
Current liabilities
812
670
Liabilities
2,550 2,052
Equity and liabilities
15,024 12,768
Balance sheet
At 31 December
Assets, DKKm Note 2024 2023
Other intangible assets
1 2
Intangible assets 8 1 2
Property and equipment
57 61
Tangible assets 9
57 61
Investments in subsidiaries 10 4,075 4,075
Receivables from subsidiaries
242 135
Other securities and investments 11, 14
9,967 5,874
Financial assets
14,284 10,084
Non-current assets
14,342 10,147
Receivables from subsidiaries
553 2,539
Income tax
- 1
Other receivables
27 19
Receivables
580 2,559
Cash and bank balances
102 62
Current assets
682 2,621
Assets
15,024 12,768
Management review
Financial statements Consolidated financial statements Parent financial statements Notes Reports
Lundbeck Foundation Annual Report 2024 Page 129
Statement of changes in equity
for the period 1 January – 31 December
DKKm Note Capital base
Reserve for
future grants
Retained
earnings
Total
Equity at 1 January 2024
4,357
1,500
4,855
10,712
Grants, net 15 -
-1,060
-
-1,060
Profit for the year 7 580
1,060
1,182
2,822
Equity at 31 December 2024 4,937
1,500
6,037
12,474
Equity at 1 January 2023 4,162
1,500
4,661
10,323
Grants, net 15 -
-580
-
-580
Profit for the year 7 195
580
194
969
Equity at 31 December 2023
4,357
1,500
4,855
10,712
Management review
Financial statements Consolidated financial statements Parent financial statements Notes Reports
Lundbeck Foundation Annual Report 2024 Page 130
Accounting policies - continued
Note 1
The financial statements for Lundbeckfonden (the
Parent Foundation) for 2024 have been prepared in
accordance with the Danish Financial Statements Act
for large reporting enterprises class C.
Other securities and investments are accounted for
using the fair value through the income statement and
accounted for in accordance with IFRS 9.
The financial statements are presented in Danish kroner
(DKK), which is also the functional currency of
Lundbeckfonden. All amounts have been rounded to
millions, unless otherwise indicated.
The accounting policies are unchanged from the
previous year.
Differences relative to the accounting policies for
the consolidated financial statements
The Parent Foundation’s accounting policies for
recognition and measurement are consistent with the
policies for the consolidated financial statements with
the exceptions stated below.
Investments in subsidiaries
Investments in subsidiaries are measured at cost. Costs
include the consideration at fair value plus direct
acquisition costs.
Subsequently, investments in subsidiaries that suffered
an impairment are reviewed for possible reversal of the
impairment at the end of each balance sheet date.
Reversal of impairment is recognised in financial
income.
If there is an indication of impairment, an impairment
test is performed. Where the carrying amount exceeds
the recoverable amount, the investments are written
down to this lower value. The recoverable amount is the
higher of fair value less costs to sell and value-in-use.
Dividends are recognised in the income statement.
Cash flow statement
With reference to section 86(4) of the Danish Financial
Statements Act and the consolidated financial
statements of Lundbeckfonden, the parent has not
prepared a cash flow statement.
Note 1
Accounting policies
Note 2
Financial income and expenses
DKKm 2024 2023
Financial income
Fair value adjustments on financial assets
1,391
988
Interest on financial assets 99
77
Interest on receivables from subsidiaries 100
70
Dividends from portfolio investments
58
55
Reversal of impairment of investments in subsidiaries -
27
Exchange gains 6
-
Total financial income 1,654
1,217
Financial expenses
Fair value adjustments on financial assets 187
145
Interest expenses 13
2
Exchange losses -
5
Other financial expenses 3
2
Total financial expenses 203
154
Management review
Financial statements Consolidated financial statements Parent financial statements Notes Reports
Lundbeck Foundation Annual Report 2024 Page 131
Employee costs - continued
Note 3
Members of Executive Management and the Board of
Directors, who also serve as board members in
subsidiaries also receive board remuneration directly
from such subsidiaries. For a complete description
hereof, see note 3 in the consolidated financial
statements.
Note 5
Fees to auditors appointed at the
annual meeting
Other external costs include fees to auditors appointed
by the Board of Directors.
Note 6
Tax on profit for the year
When calculating the taxable income, Lundbeckfonden
has deducted grants and tax provisions for future
grants. No deferred taxes are recognised for accounting
purposes concerning tax provisions for future grants
as these are not expected to materialise. Deferred tax
liabilities not recognised amounted to DKK 1,037m
(DKK 1,018m at 31 December 2023).
Note 3
Employee costs
DKKm 2024 2023
Wages and salaries
42.2 40.3
Pensions 8.3 5.0
Other social security costs
0.2 0.2
Total employee costs
50.7 45.5
Average number of employees during the year 32 28
Number of employees at year-end 34 30
DKKm 2024 2023
Remuneration of the Executive Management (excluding remuneration received from subsidiaries)
6.4 6.1
Fees to the Board of Directors, including committee fees (excluding fees received from subsidiaries) 4.4 4.5
Note 4
Total operating costs of Lundbeckfonden and Lundbeckfond Invest A/S
DKKm 2024 2023
Lundbeckfonden - Employee costs, other external costs, and depreciation and amortisation
96
88
Lundbeckfond Invest A/S - Employee costs and other external costs
70
74
Total costs 166
162
The costs can be allocated to Lundbeckfonden's activities as follows:
Grants & Prizes 36
31
Lundbeckfonden Invest 22
21
Lundbeckfonden BioCapital 24
29
Corporate functions 84
81
Total costs 166
162
DKKm 2024 2023
Statutory audit
0.4
0.3
Tax assistance 0.2
0.5
Other services 0.2
0.7
Total fees 0.8
1.5
DKKm 2024 2023
Current tax
78
8
Prior-year adjustments -
-2
Tax on profit for the year 78
6
Management review
Financial statements Consolidated financial statements Parent financial statements Notes Reports
Lundbeck Foundation Annual Report 2024 Page 132
Proposed distribution of profit - continued
Note 7
Note 8
Intangible assets
Vesper Bio ApS’ figures appear from the annual report
for the period 1 January –31 December 2023 as the
annual reports for 2024 has not been approved.
Note 7
Proposed distribution of profit
DKKm 2024 2023
Capital base
580
195
Reserve for future grants 1,060
580
Retained earnings 1,182
194
Profit for the year 2,822
969
Other intangible assets,
DKKm 2024 2023
Cost at 1 January
9
8
Additions -
1
Cost at 31 December 9
9
Amortisation at 1 January -7
-6
Amortisation -1
-1
Amortisation at 31 December
-8
-7
Carrying amount at 31
December
1
2
Note 9
Tangible assets
Property and equipment,
DKKm
2024 2023
Cost at 1 January
100
100
Cost at 31 December 100
100
Depreciation at 1 January -39
-35
Depreciation -4
-4
Depreciation at 31 December -43
-39
Carrying amount at 31
December
57
61
Note 10
Investments in subsidiaries
DKKm
Lundbeckfon
d Invest A/S
Vesper Bio
ApS
Total
Cost at 1 January 2024
4,046 29 4,075
Cost at 31 December 2024 4,046 29 4,075
Carrying amount at 31 December 2024 4,046 29 4,075
Dividend received in 2024
1,545
-
1,545
DKKm
Lundbeckfond
Invest A/S
Vesper Bio
ApS
Total
Cost at 1 January 2023
4,046
29
4,075
Cost at 31 December 2023 4,046
29
4,075
Impairment at 1 January 2023 -
-27
-27
Reversal of impairment -
27
27
Impairment at 31 December 2023 -
-
-
Carrying amount at 31 December 2023 4,046
29
4,075
Subsidiaries, DKKm
Registered
office
Ownership
Profit for the
year 2024
Equity at
31 December
2024
Lundbeckfond Invest A/S Copenhagen
100% 2,001
28,207
Vesper Bio ApS Copenhagen
75% -53
-113
Management review
Financial statements Consolidated financial statements Parent financial statements Notes Reports
Lundbeck Foundation Annual Report 2024 Page 133
Other securities and investments - continued
Note 11
Note 13
Pension obligations
Note 11
Other securities and investments
DKKm
Bonds and
corporate
loans
Equities
Unlisted
investment
funds
Derivative
financial
instruments
Total
Carrying amount at 1 January 2024
1,580
4,113
181
-
5,874
Additions 2,709
2,572
-
12
5,293
Disposals -1,241
-1,106
-36
-21
-2,404
Value adjustments 77
1,105
12
10
1,204
Carrying amount at 31 December 2024 3,125
6,684
157
1
9,967
Recognised in:
Financial assets 3,125
6,684
157
1
9,967
Carrying amount at 31 December 2024 3,125
6,684
157
1
9,967
Carrying amount at 1 January 2023 2,742
3,136
113
-3
5,988
Additions 1,075
761
61
5
1,902
Disposals -2,277
-560
-8
-14
-2,859
Value adjustments 40
776
15
12
843
Carrying amount at 31 December 2023 1,580
4,113
181
-
5,874
Recognised in:
Financial assets 1,580
4,113
181
-
5,874
Carrying amount at 31 December 2023 1,580
4,113
181
-
5,874
Note 12
Capital base
DKKm 2024 2023 2022 2021 2020
Capital base at 1 January
4,357
4,162
3,901
3,461
3,236
Increase in capital base
580
195
261
440
225
Capital base at 31 December 4,937
4,357
4,162
3,901
3,461
DKKm 2024 2023
Obligations at 1 January
4
4
Adjustment for the year -4
-
Obligations at 31 December -
4
Management review
Financial statements Consolidated financial statements Parent financial statements Notes Reports
Lundbeck Foundation Annual Report 2024 Page 134
Financial instruments - continued
Note 14
Note 15
Grants
Payable grants, short-term amount to DKK 728m
(DKK 656m at 31 December 2023). Payable grants,
long-term amounts to DKK 1,738m (DKK 1,382m at
31 December 2023), of which DKK 230m (DKK 128m at
31 December 2023) is due after more than five years.
Note 16
Contractual obligations
Lundbeckfonden has contractual capital contribution
obligations amounting to DKK 27m at 31 December 2024
(DKK 27m at 31 December 2023).
Lundbeckfonden defines related parties as
Lundbeckfonden’s Board of Directors and Executive
Management, its wholly-owned investment and holding
company Lundbeckfond Invest A/S and this company’s
subsidiaries H. Lundbeck A/S, ALK-Abelló A/S, Falck A/S,
LFI Equity A/S, LFI Silva Investments A/S, DySIS Medical
Ltd., and Vesper Bio ApS, including their subsidiaries and
associates.
Lundbeckfond Invest A/S shares the same address as
Lundbeckfonden, and there is duality of membership
between the Executive Management, administration
(partly) and Boards of Directors. Lundbeckfonden
receives dividends from Lundbeckfond Invest A/S, which
are recognised in the income statement.
In 2024, Lundbeckfonden received dividend from
Lundbeckfond Invest A/S of DKKm 1,545m.
Lundbeckfonden received payment for administration
costs, net amount DKK 10m in 2024 (DKK 11m in 2023)
from Lundbeckfond Invest A/S. At 31 December 2024
Lundbeckfonden has a receivable from Lundbeckfond
Invest A/S of DKK 553m (DKK 2,539m at 31 December
2023) and a receivable from Vesper Bio ApS of DKK
242m (DKK 141m at 31 December 2023). Lundbeckfonden
received interest on receivables from Lundbeck Invest
A/S and Vesper Bio ApS of DKK 86m (DKK 61m in 2023)
and DKK 14m (DKK 9m in 2023), respectively.
For information on remuneration paid to the members
of the Executive Management and Board of Directors,
see note 3 in the consolidated financial statements.
Other than the above, there have only been a few
transactions of immaterial importance with related
parties.
The Foundation has not entered into any transactions
with related parties that were not on an arm’s length
basis.
Note 18
Events after the balance sheet date
No events of importance to the annual report have
occurred during the period from the balance sheet date
until the presentation of the financial statements.
Note 14
Financial instruments
Equity contracts, DKKm Contractual value
Share option
gains/losses
recognised in the
income statement
Market value
31 December
Expiry
2024
Options on shares -162
10
1
Jun-25
Equity contracts -162
10
1
DKKm 2024 2023
Grants for the year
1,074
592
Reversed grants/repayments -14
-12
Net grants for the year 1,060
580
Note 17
Related parties
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 135
The Executive Management and the Board of Directors
have today considered and adopted the annual report
of Lundbeckfonden for the financial year 1 January -
31 December 2024.
The consolidated financial statements is prepared in
accordance with IFRS Accounting Standards as adopted
by the EU and further requirements in the Danish
Financial Statements Act, and the Parent Foundation
Financial Statements have been prepared in accordance
with the Danish Financial Statements Act.
In our opinion, the Consolidated Financial Statements
and the Parent Foundation Financial Statements
give a true and fair view of the financial position at
31 December 2024 of the Group and the Parent
Foundation, and of the results of the Group’s and the
Parent Foundation’s operations and the Group’s cash
flows for 2024.
In our opinion, Management Review includes a true and
fair account of the development in the operations and
financial circumstances of the Group and the Parent
Foundation, of the results for the year and of the
financial position of the Group and the Parent
Foundation as well as a description of the most
significant risks and elements of uncertainty facing
the Group and the Parent Foundation.
We recommend that the Annual Report be adopted
at the Board of Directors Meeting.
Copenhagen, 12 March 2025
Manaement statement
Executive Management
Lene Skole
CEO
Board of
Directors
Steffen Kragh
Chair
Søren Skou
Deputy Chair
Lars Holmqvist
Michael Kjær
Susanne Krüger Kjær
Svend Andersen
Thomas Mears Werge
Henrik Sindal Jensen
Elected by the employees
Katja Barnkob
Elected by the employees
Mikkel Helmer Nielsen
Elected by the employees
Morten Egholm Aagaard
Elected by the employees
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 136
To the Board of Directors
of Lundbeckfonden
Opinion
In our opinion, the Consolidated Financial Statements
give a true and fair view of the Group’s financial position
at 31 December 2024 and of the results of the Group’s
operations and cash flows for the financial year 1
January to 31 December 2024 in accordance with IFRS
Accounting Standards as adopted by the EU and further
requirements in the Danish Financial Statements Act.
Moreover, in our opinion, the Parent Foundation
Financial Statements give a true and fair view of the
Parent Foundation’s financial position at 31 December
2024 and of the results of the Parent Foundation’s
operations for the financial year 1 January to 31
December 2024 in accordance with the Danish Financial
Statements Act.
We have audited the Consolidated Financial Statements
and the Parent Foundation Financial Statements of
Lundbeckfonden for the financial year 1 January - 31
December 2024, which comprise income statement,
balance sheet, statement of changes in equity and
notes, including material accounting policy information,
for both the Group and the Parent Foundation, as well
as statement of comprehensive income and cash flow
statement for the Group (“financial statements”).
Basis for Opinion
We conducted our audit in accordance with
International Standards on Auditing (ISAs) and the
additional requirements applicable in Denmark. Our
responsibilities under those standards and
requirements are further described in the “Auditor’s
Responsibilities for the Audit of the Financial
Statements” section of our report. We are independent
of the Group in accordance with the International Ethics
Standards Board for Accountants’ International Code of
Ethics for Professional Accountants (IESBA Code) and
the additional ethical requirements applicable in
Denmark, and we have fulfilled our other ethical
responsibilities in accordance with these requirements
and the IESBA Code. We believe that the audit evidence
we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Statement on Management Review
Management is responsible for Management Review.
Our opinion on the financial statements does not cover
Management Review, and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial
statements, our responsibility is to read Management
Review and, in doing so, consider whether Management
Review is materially inconsistent with the financial
statements or our knowledge obtained during the audit,
or otherwise appears to be materially misstated.
Moreover, it is our responsibility to consider whether
Management Review provides the information required
under the Danish Financial Statements Act.
Based on the work we have performed, in our view,
Management Review is in accordance with the
Consolidated Financial Statements and the Parent
Foundation Financial Statements and has been
prepared in accordance with the requirements of the
Danish Financial Statement Act. We did not identify any
material misstatement in Management Review.
Management’s Responsibilities
for the Financial Statements
Management is responsible for the preparation of
Consolidated Financial Statements that give a true and
fair view in accordance with IFRS Accounting Standards
as adopted by the EU and further requirements in the
Danish Financial Statements Act and for the
preparation of Parent Foundation Financial Statements
that give a true and fair view in accordance with the
Danish Financial Statements Act, and for such internal
control as Management determines is necessary to
enable the preparation of financial statements that are
free from material misstatement, whether due to fraud
or error.
In preparing the financial statements, Management is
responsible for assessing the Group’s and the Parent
Foundation’s ability to continue as a going concern,
disclosing, as applicable, matters related to going
concern and using the going concern basis of
accounting in preparing the financial statements unless
Management either intends to liquidate the Group or
the Parent Foundation or to cease operations, or has no
realistic alternative but to do so.
Auditor’s Responsibilities for the Audit
of the Financial Statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free
from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit
conducted in accordance with ISAs and the additional
requirements applicable in Denmark will always detect a
material misstatement when it exists. Misstatements
can arise from fraud or error and are considered
material if, individually or in the aggregate, they could
reasonably be expected to influence the economic
decisions of users taken on the basis of these financial
statements.
As part of an audit conducted in accordance with ISAs
and the additional requirements applicable in Denmark,
we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement
of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error as fraud may involve
collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Independent Auditor’s Report
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 137
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness
of the Group’s and the Parent Foundation’s internal
control.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by Management.
• Conclude on the appropriateness of Management’s
use of the going concern basis of accounting in
preparing the financial statements and, based on the
audit evidence obtained, whether a material
uncertainty exists related to events or conditions that
may cast significant doubt on the Group’s and the
Parent Foundation’s ability to continue as a going
concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our
auditor’s report to the related disclosures in the
financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or
conditions may cause the Group and the Parent
Foundation to cease to continue as a going concern.
• Evaluate the overall presentation, structure and
contents of the financial statements, including the
disclosures, and whether the financial statements
represent the underlying transactions and events in a
manner that gives a true and fair view.
• Plan and perform the group audit to obtain sufficient
appropriate audit evidence regarding the financial
information of the entities or business units within
the group as a basis for forming an opinion on the
Consolidated Financial Statements. We are responsible
for the direction, supervision and review of the audit
work performed for purposes of the group audit. We
remain solely responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.
Hellerup,
12 March 2025
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No 33 77 12 31
Lars Baungaard
State Authorised Public Accountant
mne23331
Torben Jensen
State Authorised Public
Accountant
mne18651
Management review
Financial statements Consolidated financial statements Notes Parent financial statements Reports
Lundbeck Foundation Annual Report 2024 Page 138
Lundbeckfonden
Scherfigsvej 7
2100 København Ø
CVR 11814913
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