Annual Report
2024
Making a fundamental difference
for those who need us most in
medical dermatology
Highlights
Letter from the Chair and the CEO
At a glance
Business model
highlights
Key figures
Our business
LEO Pharma’s transformation and strategy
Growth
Pipeline
Profitability
People & culture
Sustainability
Financial review & outlook
Financial review and outlook
Corporate matters
Board of Directors
Board committees
Global Leadership Team
Risk management
Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
Consolidated financial statements
Income statement
Statement of comprehensive income
Balance sheet
Statement of changes in equity
Cash flow statement
Notes to the consolidated financial statements
Management's statement
and Auditor's reports
Statement of the Board of Directors and
Executive Management
Independent Auditor's report
Independent Auditor’s Limited Assurance Report
on the selected ESG data
Parent Company financial statements
Income statement
Balance sheet
Statement of changes in equity
Notes to the Parent Company financial statements
Glossary
About this report. The sustainability statement on pages 40-66
represents LEO Pharma's compliance with the statutory disclosure
pursuant to Sections 99a and 99d of the Danish Financial
Statements Act.
Management’s review Financial statements
Pictures. To highlight the experiences of people
suffering from chronic hand eczema, the majority of
pictures used in this Annual Report feature hands and
the various situations in daily life where we use them.
Table of contents
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We are grateful to our partners
worldwide and the close to 100
million patients who trust the
LEO Pharma brand.
Another year of growth strengthens
our impact as a global leader in
medical dermatology
LETTER FROM THE CHAIR AND THE CEO
THE BURDEN OF SKIN DISEASES is increasing, and there is a high
unmet need among the millions of people worldwide suffering
from one or more of the , known indications within medical
dermatology.
At LEO Pharma, we remain committed to making a fundamental
difference for those who need us most in medical dermatology.
That is why we embarked on an ambitious transformation journey
in involving bold strategic choices to align our strengths with
market opportunities. Those choices are starting to pay off.
Today, we leverage our global commercial infrastructure and
deep expertise in skin biology to serve close to million patients
worldwide. At the same time, we are actively seizing external
innovation opportunities to accelerate the development of break
-
through treatments. By inlicensing or acquiring promising therapies
and, where appropriate, outlicensing rights or making strategic
With an innovative portfolio demonstrating significant commercial
potential, we are building a growth platform that offers substantial
value creation opportunities, positioning us for significantly improved
profitability in .
partnerships, we aim to expand our reach and transform the
standard of care for people living with skin conditions.
Adtralza
®
/Adbr y
®
is driving high growth today and is marketed for
atopic dermatitis (AD). Anzupgo
®
for chronic hand eczema (CHE)
is poised to drive future growth. With the ongoing launch of this
first-to-market topical treatment for moderate-to-severe CHE, LEO
Pharma is at an inflection point. Anzupgo
®
has broad expansion
opportunities beyond moderate-to-severe CHE. Together with
current growth drivers Adtralza
®
/Adbr y
®
, these therapies constitute
an innovative portfolio fueling above-market growth.
In , the financial state of the company required attention.
Over the last few years, we have focused on optimizing our
commercial operations for growth, rebuilding our leadership
and organization, and instilling a culture of accountability and
strategic clarity. One of the most profound structural changes
Highlights
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has been our shift from an R&D model predominantly focused
on in-house discovery to an enhanced focus on sourcing inno
-
vation externally. With the world as our lab, we tap into a much
broader set of opportunities, identified by our leading scientists,
for bringing innovative treatments to patients through our proven
ability to develop and commercialize new medicines.
LEO Pharma’s strategy was firmed up in and is anchored in
three key areas: growth, pipeline and profitability. Additionally,
our organizational capabilities and sustainability efforts act as
enablers to enhance the robustness of the business and strategy
implementation.
Based on the financial results in and the guidance for ,
LEO Pharma’s performance over the transformation period is on
track to meet the ambitions for sustainable, profitable growth
and innovation.
Growth
LEO Pharma delivered strong organic revenue growth of % at
constant exchange rates (CER) in . Dermatology revenue
grew by % (CER) with significant contributions from Adtralza
®
and Adbry
®
, particularly in the U.S.
Leveraging our strengths as a pharma organization, Anzupgo
®
became available in the first European markets in the fourth
quarter of , and in the U.S., our ambitions were underpinned
by the FDA accepting the filing of our New Drug Application (NDA)
for delgocitinib in July. If approved, delgocitinib will become the
first treatment in the U.S. specifically indicated for adults with
moderate-to-severe CHE.
Geographically, all regions contributed positively, with North
America at the forefront. The U.S. is now our largest affiliate by
revenue, further strengthening our market position and driving
growth.
In the Thrombosis business, we strengthened our position by
establishing a new leadership team and partnering with Junshi
Biosciences to commercialize toripalimab in Europe. This comple
-
ments LEO Pharma’s existing treatments for cancer-associated
thrombosis.
These key growth drivers, including Anzupgo
®
and externally
sourced innovation, are set to drive long-term revenue growth.
Additionally, our established portfolio contributes to profitability
and funds further innovation. Overall, we anticipate revenue
growth of -% in (CER).
The strategic partnership between LEO Pharma and Gilead Sciences,
announced in January 2025, highlights our scientific expertise and
the potential of our pipeline in medical dermatology and beyond.”
Pipeline
While the burden of skin disease continues to rise, we are encour-
aged by the rapid scientific progress in medical dermatology.
This progress is driven by a growing number of targeted therapies
that modulate key immune responses, with potential applica
-
tions across a wide range of inflammatory and immunological
diseases.
At LEO Pharma, we see this as an exciting opportunity to leverage
our deep expertise in the mechanisms driving skin diseases and
to source innovation externally. Our updated innovation model,
which places greater emphasis on partnerships and mergers and
acquisitions (M&A), is a commitment to enhancing the impact
of our global platform and accelerating the pace at which we
bring innovation to patients. In dermatology, our goal is to shape
early-stage research, identify high-potential opportunities, and
advance them through development and commercialization.
Anzupgo
®
exemplifies the potential of our innovation model. We
acquired the development and commercial rights to delgocitinib
from JT in . Leveraging our strengths in innovative topicals,
we reformulated delgocitinib from an ointment into a cream and
developed it for an area of high unmet need, achieving market
approval for CHE. Recognizing Anzupgo
®
as a "pipeline in a
drug," we have also identified opportunities to further expand its
impact, including indication expansion. This underscores why LEO
Pharma is the ideal home for medical dermatology assets with
proven mechanisms of action.
Similarly, we recognize that our own pipeline assets may have
potential beyond our core focus in dermatology. To maximize their
impact and value, we seek to establish strategic partnerships.
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and building an attractive pipeline of late-stage assets, we are
laying the foundation for long-term financial strength, with
marking LEO Pharma's return to delivering a positive net profit
going forward.
Uniting as one team
Our leadership team and skilled employees play vital roles in our
transformation. Despite a year of continuous changes across
the organizaton, we have fostered a collaborative and dynamic
culture. We are earning increasing recognition as an innovative
and rewarding place to work. Initiatives such as the Winning
Behaviors framework, diversity programs and employee develop
-
ment opportunities have enhanced engagement and retention.
Our global leadership has provided a clear strategic focus,
fostering a high-performance culture aligned with our goals. With
the inclusion of members from Thrombosis and Strategy in the
Global Leadership Team, we have established a strong team with
the right competencies to execute LEO Pharma's strategy and
capitalize on current and future opportunities.
Leaving a legacy
LEO Pharma’s sustainability agenda is integral to our purpose.
In , we reached % renewable electricity sourcing across
our facilities and advanced CO
reduction initiatives. We have
committed to setting an ambitious, science-based target for our
total CO
emissions across our value chain. This is aligned with the
Corporate Net-Zero Standard and supported by interim targets
for . Beyond environmental impact, we have made strides in
gender equity and diversity, enhancing equal gender representa
-
tion across leadership levels. These efforts reflect our belief that a
diverse and inclusive workplace fosters innovation and resilience.
Building on a strong foundation
As we enter , we are poised to build on our momentum. With
a focused strategy, solid market position, innovative portfolio
and committed team, LEO Pharma is well positioned to continue
advancing the standard of care for people with skin diseases
while delivering long-term, profitable growth.
We want to express our appreciation to all our colleagues for
their commitment during another transformative year. As we said
goodbye to valued employees, our continued dedication to our
purpose has been crucial in navigating this period and delivering
solid results.
Jesper Brandgaard
Chair of the Board of Directors
Christophe Bourdon
CEO
We have thoroughly evaluated our existing pipeline using the
same criteria we apply to external opportunities. As a result,
we have decided to seek partners for those of our promising
programs that have greater potential outside of LEO Pharma. This
approach allows us to maximize the impact of these programs
while concentrating our resources on opportunities where we see
the greatest potential for applying LEO Pharma’s unique capa
-
bilities, such as expanding Anzupgo
®
and advancing early-stage
assets toward clinical development.
The strategic partnership between LEO Pharma and Gilead
Sciences, announced in January , exemplifies the potential
for mutually beneficial collaboration. This partnership highlights
our scientific expertise and the potential of our pipeline in medical
dermatology and beyond. It also demonstrates our commitment
to selecting the best options to accelerate the development of
our therapies for the benefit of patients.
Profitability
In , LEO Pharma improved earnings significantly, with the
adjusted EBITDA margin reaching %. Adjusted EBITDA improved
to DKK million from DKK million in . Moreover, the
strategic closure of activities in underperforming markets and
the focus on a higher return innovation model have optimized our
approach to delivering value.
The pace of improvement exceeded our initial expectations, and
we are encouraged by the significant improvement in free cash
flow, which, while nearly at break-even for the year, turned posi
-
tive at DKK million for the second half of .
The trajectory is encouraging, and we are committed to achieving
a significantly improved EBITDA margin of -% in . By
maintaining financial discipline, delivering consistent high growth
We have committed to setting an ambitious, science-based
target for our total CO
2
emissions across our value chain.
This is aligned with the Corporate Net-Zero Standard and
supported by interim targets for 2030.”
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2021 2022 2023 2024
7,259
8,133
9,039
10,008
2,698
2,508
2,353
2,445
9,957
10,641
11,392
12,453
2021 2022 2023 2024
-1,731 -1,253
626
895
-17%
-12%
5%
7%
Thrombosis and other
Dermatology
Revenue
CER growth
Adj. EBITDA
Adj. EBITDA margin
2021 2022 2023 2024
918
1,117
1,667
2,234
-15%
10%
64%
35%
At a glance
LEO Pharma is a global company dedicated to advancing the standard of care through innovation
for the benefit of people with skin conditions. LEO Pharma is co-owned by the LEO Foundation, the
majority shareholder, and, since , Nordic Capital.
10%
Group revenue growth
(CER)
12%
Dermatology revenue growth
(CER)
20
Adtralza
®
/Adbry
®
available
in markets
Group revenue
DKK million
Adjusted EBITDA and
adjusted EBITDA margin
DKK billion/%
North America revenue
DKK million/%
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HQ
Ballerup
Denmark
Esbjerg
Denmark
Dublin
Ireland
Cork
Ireland
Vernouillet
France
Segrate
Italy
Production sites
18%
Share of revenue, North America
% revenue growth in (CER)
55%
Share of revenue, Europe
% revenue growth in (CER)
27%
Share of revenue, Rest of World
% revenue growth in (CER)
Our geographic
footprint
~4,000
Dedicated employees
in countries
70+
Markets ( affiliate &
partner markets)
~100m
Patients in treatment with
LEO Pharma products annually
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Our expertise in
medical dermatology
~100m
People use LEO Pharma
products annually
26
Peer-reviewed
scientific publications
in
25,000
Units of medicine
donated to charity
in
The value we
bring to society
The resources
we depend on
Diverse
talent
Global
presence
Raw materials,
water and
energy
Financial
resources
Partners
Business model
LEO Pharma creates value by
bringing differentiated solutions to
patients with high unmet needs
Co-shape & insource innovation
Deliver high-quality finished goods
- production sites
Drive differentiation through development
Commercialize broad portfolio
- ,+ FTEs in + markets
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2024 highlights
January
Acquisition of TMB- for congenital ichthy-
osis from Timber Pharmaceuticals following
its chapter bankruptcy filing. In August,
trial results showed no statistically significant
difference between the active treatment and
the vehicle
January
Results of the successful DELTA FORCE trial
comparing delgocitinib to current standard
of care
May
Q: Revenue up % (CER) with dermatology
growth of % (CER). Positive revision to
outlook
Q1 Q2
March
Strong presence at the AAD (U.S.) congress
with eight accepted abstracts and two late-
breaking abstracts
March
Reached % renewable electricity sourcing
across our production sites
May
Successful Enstilar
®
Phase trial results in
China
Photo by kiryl on Unsplash
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July
FDA approval of Adbry
®
mg single-dose
autoinjector for adult patients. Launched in
September
July
Publication of results from pivotal DELTA
and DELTA trials with delgocitinib in The
Lancet
August
H: Revenue up % (CER) with dermatology
growth of % (CER). Positive revision to
outlook
September
European Commission approval of Anzupgo
®
for adults with moderate-to-severe CHE
September
U.S. filing of delgocitinib NDA for the treat-
ment of CHE accepted by FDA
September
NDA for Enstilar
®
for adults with plaque
psoriasis submitted in China
October
Q: Revenue up % (CER) with dermatology
growth of % (CER)
October
Anzupgo
®
launch in Germany and Denmark
December
Marketing authorisation for Anzupgo
®
in the
UK granted by MHRA
Q3 Q4
2025
LEO Pharma and Gilead Sciences enter into
strategic partnership to accelerate develop
-
ment of oral STAT program with potential in
multiple inflammatory diseases
2025
LEO Pharma partners with Junshi Biosciences
for commercialization of toripalimab in
Europe
September
Most extensive program to date at the Euro-
pean EADV congress, with five late-breaking
abstracts and posters sharing clinical and
real-world data
October
Commitment to net-zero greenhouse gas
emissions by
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(DKK million) 2024 2023 2022 2021 2020
Income statement
Group revenue , , , , ,
Of which dermatology revenue , , , , ,
Gross profit , , , , ,
R&D costs , , , , ,
Adjusted EBITDA
1
(,) (,)
Operating profit before depreciation and amortization
(EBITDA)
1
(,) (,)
Operating profit/(loss) (EBIT) (,) (,) (,) (,) ()
Net financial items () (,) () () ()
Profit/(loss) before tax (,) (,) (,) (,) (,)
Net profit/(loss) for the year (,) (,) (,) (,) ()
Balance sheet
Investments in property, plant and equipment ,
Non-current assets , , , , ,
Current assets , , , , ,
Total assets , , , , ,
Equity , , , , ,
Net interest-bearing debt
2
, , , , ,
Cash flow
Cash flow from operating activities (,) (,) (,) ()
Free cash flow () (,) (,) (,)
Operating net working capital
3
, , , , ,
Net working capital
3
, , , , ,
1
Reference to Note . Non-IFRS measures, page .
2
Reference to Note . Financial risks, page .
3
Reference to Glossary, page .
2024 2023 2022 2021 2020
Key ratios %
Revenue growth % % % (%) (%)
Revenue growth at CER
1
% % % (%) (%)
Dermatology revenue growth % % % % (%)
Dermatology revenue growth at CER
1
% % % % (%)
Gross margin
3
% % % % %
R&D costs (% of revenue) % % % % %
Adjusted EBITDA margin
1
% % (%) (%) %
EBITDA margin
1
% % (%) (%) %
Operating profit/(loss) margin
3
()% (%) (%) (%) (%)
People No.
Average number of full-time employees (FTE)
3
, , , , ,
Number of full-time employees (FTE) at year-end , , , , ,
Environmental, social and governance Unit
Number of patients served thousands , , , , ,
Total CO
e
(Scope and , market-based) tonnes , , , , ,
Scope supplier engagement % % % % % -
Share of renewable electricity % % % % % %
Employee turnover rate % % % % % %
Lost-time injury (LTI) rate LTI rate . . . . .
Employees completing global annual
Code of Conduct training % % % % % -
Gender diversity - all managers ratio men/women / / / / /
Gender diversity - Board of Directors ratio men/women / ./. ./. ./. /
Key figures
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LEO Pharma’s transformation and strategy
Growth
Pipeline
Profitability
People & culture
Sustainability
Our
business
02.
LEO Pharma is a global leader in medical
dermatology. The direction forward is clear, and
in we took additional steps to deliver on
our strategy.
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LEO Pharma’s transformation
and strategy
LEO PHARMA has undergone a profound transformation
in recent years, reaffirming our commitment to making
a fundamental difference for those who need us most in
medical dermatology. Today, we use our global commer
-
cial infrastructure and deep skin biology expertise to serve
patients worldwide, and we are seizing external innovation
opportunities to accelerate the development of break
-
through solutions. At the same time, we are optimizing
operations and equipping our teams with the capabilities
necessary to drive sustainable growth and profitability.
Our path toward becoming a sustainable company was
further strengthened through the formation of a partnership
between our majority shareholder, the LEO Foundation,
and Nordic Capital, a global private equity firm with deep
experience in the pharma industry. Together, they provided
a solid backbone for a revised five-year strategy with clear
ambitions for profitable growth, innovation and organiza
-
tional recalibration.
LEO Pharma’s strategy was firmed up in , and is
anchored in three key areas: growth, pipeline and prof
-
itability. Additionally, the areas "Unite as One Team" and
"Leave a Legacy" act as enablers to enhance the robust
-
ness and sustainability of the business. Progress and prior-
itites for each of the five areas are detailed on the following
pages.
Continue global launch of
Anzupgo
®
Grow Adtralza
®
/Adbry
®
through
differentiation and execution
Maximize value-add of established
dermatology portfolio
Further strengthen thrombosis
operations and leverage
commercial infrastructure
Realize the full potential of
Anzupgo
®
through indication
expansion
Create an attractive late-stage
pipeline
Bring in medical dermatology
assets with proven mechanism of
action
Serve as integrator within the
dermatology innovation ecosystem
Continue margin expansion
Re-invest in growth and innovation
Foster partnerships to accelerate
de-risked innovation
Maintain cost management
discipline
Growth
Our strategy and priorities
Pipeline Profitability
Unite as one team
Wire organization for sustainable growth
Elevate leadership and strategic capabilities
Leave a legacy
Execute sustainability strategy
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Based on the financial results in and the
guidance for , LEO Pharma’s performance
over the transformation period is on track to
meet the ambitions for profitable growth, inno
-
vation and organizational capabilities. This is
attributable to solid operational performance –
especially driven by the dermatology portfolio
– the capture of efficiencies and savings, as
well as the strengthened global footprint, with
U.S. now being the largest affiliate.
As a result, progress on the key financial indica
-
tors for the transformation has been as follows:
Transformation to sustainable growth
and profitability on track
2021
Strategically challenged position
Large commercial investments with limited
ROI and delayed U.S. entries
R&D spend spread across many projects
Several years of almost stagnating revenue
(% net sales compound annual growth rate (CAGR) -)
Inflated cost base leading to negative
adjusted EBITDA margin (-% in )
~, employees
Today
Progress against clear set of strategic ambitions
True global platform, with U.S. now being
the largest affiliate
New R&D model guided by unmet needs and commercial poten
-
tial. Increased focus on also leveraging external innovation with
a Search & Develop approach
High-growth financial profile with double-digit revenue growth in
and , and an outlook of -% revenue growth in
Significantly improved top and bottom line, adjusted
EBITDA margin improved to %, with an outlook of -% in
~, employees
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GROWTH
Expanding options for
people with skin diseases
LEO Pharma delivered strong revenue growth of % (CER) in .
Dermatology revenue grew by % (CER) with significant contributions
from Adtralza
®
and Adbry
®
, particularly in the U.S. Additionally, the
established brands continued their solid growth.
Anzupgo
®
/delgocitinib
In September, the European Commission
approved LEO Pharma’s Anzupgo
®
(delgocitinib)
for adults with moderate- to- severe chronic hand
eczema (CHE). Anzupgo
®
is the first topical treat-
ment across the EU to be specifically indicated
for adult patients with moderate-to-severe CHE
for whom topical corticosteroids are inadequate
or inappropriate. The approval follows a positive
opinion from the European Medicines Agen
-
cy’s (EMA) Committee for Medicinal Products
for Human Use (CHMP) and is based on results
from the DELTA Phase program. Anzupgo
®
was
launched in Germany in October as the first
country in the world, followed by Denmark.
LEO Pharma is also advancing its ambitions for
delgocitinib in the U.S., with the FDA accepting
the filing of the company’s NDA. If approved,
delgocitinib is expected to become the first
treatment in the U.S. specifically indicated for
adults with moderate- to- severe CHE.
Established brands
LEO Pharma’s established brands remain an
impactful value driver, and a cornerstone in
the treatment paradigm for diseases such as
psoriasis and AD. Brands such as Protopic
®
and
Enstilar
®
account for a significant share of Group
revenue, and the established brands delivered
revenue growth of % across our affiliates and
Alliance partner markets. An NDA for Enstilar
®
was
filed in China for use in adults with stable plaque
psoriasis. Thrombosis revenue increased by %
(CER), driven by sales across European markets
and with a positive impact from adjustments to
rebate accruals in southern Europe.
Geographies
Regionally, revenue increased in all regions.
North America grew by % (CER) to DKK ,
million, while Europe grew by % (CER) to DKK
, million. Revenue in Rest of World grew by
% (CER) to DKK , million.
2024 progress
Adtralza
®
/Adbry
®
LEO Pharma's revenue growth in was
largely driven by Adtralza
®
/Adbr y
®
, now
launched in markets. Revenue from
Adtralza
®
/Adbr y
®
increased by % (CER),
driven by continued uptake across markets,
particularly in North America.
Our pre-filled Adtralza
®
/Adbr y
®
pen was
launched in markets, offering patients an
improved treatment experience, and the pen is
now available in markets. Notably, the auto
-
injector was approved by the FDA for treating
adult patients with moderate- to- severe AD
in the U.S. The approval expands the options
available for the estimated . million adults in
the U.S. who live with moderate-to- severe AD.
Share of revenue based on
Geography, DKK million
6,836
(55%)
2,234
(18%)
3,383
(27%)
North America
Rest of World
Europe
Adtralza
®
/Adbr y
®
Offers a treatment option for
patients with moderate-to-
severe atopic dermatitis whose
condition is inadequately
controlled with topical
therapies or for whom such
therapies are not advisable.
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Established brands
Alliance markets are the key growth drivers
for the established dermatology brands. With
a focus on core strengths and leveraging our
deep dermatology expertise, we aim to maxi
-
mize the value of the commercial operating
model. We will seek to leverage the strong
performance of the established brands while
expanding both the established and strategic
brands.
Thrombosis
The thrombosis business has established a
strong commercial platform within thrombosis,
oncology and critical care across Europe. LEO
Pharma will further strengthen operations to
focus on high-value segments and explore
potential new revenue streams, leveraging
existing commercial infrastructure.
In January , we entered a distribution and
marketing partnership with Junshi Biosciences
for toripalimab in Europe. Toripalimab is a
monoclonal antibody targeting PD-, designed
to treat multiple malignant tumors. The part
-
nership strengthens our thrombosis business
by complementing our existing heparin-based
therapies, and by leveraging our commercial
platform, it will drive synergies and support
continued growth.
Priorities
Strategic brands
The imminent strategic priority remains to
leverage our more than years of experience
in medical dermatology and strong global
commercial platform to maximize the growth
potential of the strategic brands, while the
value contribution from the established brands,
including thrombosis, supports reinvestment in
sales. Adtralza
®
/Adbr y
®
and Anzupgo
®
are the
key near-term growth drivers, with a particular
focus on capturing the significant growth
potential in the U.S.
Adtralza
®
/Adbr y
®
has outperformed expecta-
tions in . In the context of an increasingly
competitive market, further market share gains
will be targeted through enhanced rollout and
refinement of positioning and differentiation,
clear messaging, salesforce execution, and
emphasizing its long-term efficacy and safety
profile in the treatment of moderate-to-severe
AD that is hard to treat with topical therapies.
It is our ambition that Anzupgo
®
will drive
growth toward through its continued
global launch, not least in key European
markets and in the U.S., subject to approval by
relevant authorities. Given the strong clinical
data, we are also assessing options to expand
Anzupgo
®
to other indications.
→
FDA filing accepted. LEO
Pharma is advancing its ambi-
tions for delgocitinib in the U.S.,
with the FDA accepting the filing
of the company’s NDA.
Anzupgo
®
First topical treatment to
be specifically indicated for
adult patients living with
moderate-to-severe CHE
across the EU for whom topical
corticosteroids are inadequate
or inappropriate.
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16
PIPELINE
Each skin disease demands
safe, effective treatment
2024 progress
Over the last few years, LEO Pharma has implemented significant
changes to its innovation model, with an emphasis on external
sourcing and collaboration on differentiated assets where signifi
-
cant value can be added. We have transformed our research and
early development into a Science, Search and Innovation unit.
Furthermore, operational and executional aspects of CMC and
global clinical development capabilities have been externalized
in line with previous changes within Regulatory, exemplified by our
partnership with IQVIA, a leading healthcare analytics firm. At the
same time, strategic and knowledge-based capabilities, such
as portfolio strategy, program leadership, CRO management,
clinical data science and regulatory competencies, have been
retained and significantly strengthened.
We will continue to build on our differentiated innovation capabil
-
ities, such as search and evaluation, skin biology and formulation,
as well as on our reputation as a strategic alliance partner within
medical dermatology, to bring innovative treatments to patients
living with skin diseases who have significant unmet needs, and
where there is potential to change standard of care. The strategic
partnership with Gilead Sciences is an example of such an alli
-
ance.
In July, The Lancet published data from the pivotal DELTA and
DELTA trials, confirming that LEO Pharma is at the forefront of
offering innovation within medical dermatology. The DELTA and
DELTA trials investigated the safety and efficacy of delgocitinib
in adult patients with moderate- to- severe CHE. Earlier in the
year, the DELTA FORCE trial data showed that topical treatment
with delgocitinib was superior on all primary and secondary
points at week compared to the only other currently
approved treatment specifically for CHE, an oral, systemic treat
-
ment for adult patients with severe CHE.
In September, nine-month interim data from the TRACE study
was presented, showing that tralokinumab reduced the severity
of moderate- to- severe AD in the head and neck region of the
body.
The successful results of the Enstilar
®
Phase trial in China
further confirmed LEO Pharma’s commitment to expanding its
presence in China. This milestone represents a fundamental step
in providing Chinese patients living with psoriasis with additional
treatment options. Based on the results, we have submitted the
Chinese NDA file and received confirmation of its acceptance.
During the year, LEO Pharma decided to discontinue its IL-A
PPI program (LP) due to preclinical findings in a four-week
non-rodent GLP toxicity study. Additionally, the results of the
double-blind part of the Phase trial of TMB- in congenital
ichthyosis were analyzed, revealing no statistically significant
difference between treatment with TMB- and the vehicle.
LEO Pharma enters
strategic partnership with
Gilead Sciences on STAT6
• On January 11, 2025, LEO Pharma and Gilead formed
a strategic partnership to advance LEO Pharma's
preclinical small molecule oral STAT6 programs for
inflammatory diseases.
• The promising STAT6 program has potential across
multiple inflammatory diseases; the partnership with
Gilead broadens the program beyond LEO Pharma’s
strategic focus on dermatology.
• Gilead will have exclusive global rights to the oral
STAT6 program, while LEO Pharma retains the option to
co-commercialize the oral program for dermatological
indications outside the U.S.
• LEO Pharma maintains full global rights to the topical
formulations of the STAT6 program in dermatology.
• LEO Pharma is eligible to receive up to USD 1.7 billion in
total payments, including an upfront payment of USD
250 million as well as up to mid-teens royalties on sales
of the oral STAT6 products.
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17
Project Description Indications Partners Pre-clinical Phase 1 Phase 2 Phase 3 Filing Regions
Delgocitinib
1
LP0133
Topical
pan-JAK inhibitor
Chronic hand
eczema
JT
Global
Calcipotriol
LP0053
Calcipotriene and beta-
methasone diproronate foam
Plaque
psoriasis
LEO Pharma
China
2
Tralokinumab
3
LP0162
Anti-IL-
monoclonal antibody
Atopic dermatitis
(pediatrics)
AstraZeneca
Global
Atopic dermatitis
(AD on hands)
AstraZeneca
Global
Temtokibart
LP0145
Anti-IL-RA
monoclonal antibody
Atopic
dermatitis
Argenx
Global
IL-1RAcP
LP0189
Anti-IL- RacP
monoclonal antibody
Inflammatory skin
diseases
MorphoSys
Global
STAT6
4
Oral program Inflammatory
diseases
Gilead
Global
STAT6
5
LP0208
Topical program Inflammatory skin
diseases
Gilead
Global
Project compounds in our pipeline are investigational and have not been approved in the listed indications and regions by regulatory authorities.
1
Approved in the EU for Chronic Hand Eczema.
2
Approved in the EU and U.S. for plaque psoriasis.
3
Approved in the EU and U.S. for AD in adults and adolescents.
4
Partnership announced January, : Gilead controls the global rights to the oral STAT program and is in full control of the clinical development. LEO Pharma will have the option to co-commercialize oral programs for dermatology ex-U.S.
5
LEO Pharma holds an exclusive license from Gilead for STAT topical products.
←
Search and develop innovation
model. LEO Pharma is lever-
aging its strengths in clinical
dermatology, skin biology
and formulation science to
drive innovation. This includes
broad expansion opportunities
for Anzupgo
®
and promising
next-generation assets in the
early pipeline, along with a wide
range of business development
opportunities.
Consequently, the results did not warrant a
submission of an NDA to the U.S. FDA.
Priorities
LEO Pharma is actively building the capabilities
needed to bring external innovation into the
company in alignment with its strategic prior
-
ities. This also means that some assets may
hold greater potential outside of LEO Pharma.
In the near term, we aim to create a de-risked
late-stage pipeline. In the longer term, our
ambition is to serve as a vital integrator within
the dermatology innovation ecosystem. By
leveraging our deep disease insights and skin
biology expertise, we seek to define problems
and collaborate with partners to develop
effective solutions, as exemplified by our stra
-
tegic partnership with Gilead Sciences.
For the strategic brands, there are various ways
to maximize commercial potential by enhancing
the value of current assets with a reasonable
time to impact. These include label extensions,
indication expansions and reformulations. Over
the coming years, we will pursue these paths,
leveraging our pharmaceutical expertise. Our
focus will be on generating evidence to further
differentiate our portfolio from alternatives
and on exploring opportunities to expand the
impact of Anzupgo
®
/delgocitinib.
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18
PROFITABILITY
Ensuring the financial strength
to reinvest in innovation
2024 progress
In , LEO Pharma made significant progress
in enhancing profitability, laying a robust foun
-
dation for pursuing strategic opportunities
aligned with the company’s growth objectives.
With a clear strategic direction that leverages
the company’s strengths and a committed and
capable leadership team, LEO Pharma took
important steps to prioritize and right-size oper
-
ations as well as improve capital allocation.
The adjusted EBITDA margin reached %, an
increase of percentage points on the previous
year. This positive development was primarily
the result of revenue growth and the closure of
projects with limited commercial potential.
These initiatives led to redundancies affecting
up to positions in . While difficult, these
measures were necessary to improve profitability
and were executed without compromising the
company's ability to deliver growth and innova
-
tion.
Despite the significant improvement in EBITDA
margin, LEO Pharma still trails behind its peers
and remains loss-making. This underscores the
strong need to continue enhancing our finan
-
cial performance to achieve sustainable growth
and drive the company toward profitability.
Priorities
We remain committed to balancing cost reduc-
tions with targeted investments that drive future
growth. In , we aim to improve profita
-
bility, targeting an EBITDA margin of -%.
The company plans to achieve this through
further operating expense reductions, primarily
by reorienting the pipeline and refining the
commercial presence. The cost base reduction
will allow LEO Pharma to continue investing
in key growth drivers such as Anzupgo
®
and
Adtralza
®
/Adbr y
®
.
In operations, the focus will be on supply excel
-
lence, managing external manufacturing and
optimizing logistics. Elimination of inefficiencies,
realization of strategic improvement projects
and reducing upstream costs are integral to the
strategy.
R&D efforts are focused on implementing our
enhanced innovation strategy, which leverages
external innovation and LEO Pharma’s ability to
sustainably identify and secure new assets for
our pipeline.
Through disciplined financial management and
operational excellence initiatives, LEO Pharma
is well positioned to enhance profitability and
achieve its long-term strategic objectives.
→
LEO Pharma's compounding
business model aims to deliver
high growth, significant margin
expansion and accelerated
cash conversion.
15-18%
adjusted EBITDA margin outlook in
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19
PEOPLE & CULTURE
Uniting as one team
LEO Pharma wants to be an
inspiring place to work that
attracts, retains and develops
top talent. This requires
leadership and strategic
capabilities throughout the
organization and a governance
model that enables effective
cross-functional decision-
making.
WINNING BEHAVIORS is an organizational frame-
work designed to promote collaboration,
efficient decision-making and accountability.
By inspiring every leader and employee to unite
as one team and strive for impact, Winning
Behaviors nurtures a strong value-based
culture that drives the organization toward our
strategic goals.
Culture – nurturing Winning Behaviors
After thorough implementation, Winning
Behaviors is now rooted in the company’s
culture and serves as a shared reference for
how the organization works together effec
-
tively, aligning with our corporate values and
supporting LEO Pharma’s business objectives.
Monthly global townhall meetings continue to
keep the close link between the leadership and
the business, to effectively communicate the
strategy and allow for questions to achieve
strategic clarity.
Team diversity
The commitment to fostering a diverse and
inclusive culture has remained a top priority
in . Building on previous initiatives, the
approach to ensuring diversity within teams has
been expanded to include a wider range of key
metrics: gender, nationality and generation.
Currently, % of our teams meet our criteria
for being diverse, which requires a balance
across these dimensions – no more than %
representation of one gender, nationality or
generation within a team, and at least a full
generational gap between the oldest and
youngest members. Achieving at least two
of these criteria qualifies a team as diverse,
supporting our commitment to fostering a
dynamic and inclusive work environment,
driving innovation and strengthening LEO Phar
-
ma’s ability to achieve its business objectives.
Our winning
behaviors
Collaborate and put
LEO Pharma first
• Work and think as one
team
• Feedback is a gift - to
give and receive
Prioritize and simplify
• Ruthlessly prioritize
• Simplify and say no
Be accountable
and own it
• If you see it, you own it
• Always strive for impact
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20
Engagement – retention
and development
As an employer, LEO Pharma provides attrac-
tive benefits due to its size and focus on
employee engagement. The company is large
enough to have an impact and small enough
to be agile, fostering versatile roles and oppor
-
tunities for professional growth. A flat structure
empowers employees to make visible contri
-
butions, and each year, approximately % of
employees experience substantial changes in
their roles, providing flexibility and development
opportunities. Additionally, a structured devel
-
opment process ensures clear goal-setting and
regular feedback, supporting each employee’s
growth and alignment with overall business
objectives. The process applies to both part-
time and full-time employees.
Employee engagement has shown positive
momentum in , with a voluntary turnover
rate of .%, down from .% in .
LEO Pharma has made significant progress
in identifying and mapping critical positions,
ensuring they are filled by top talent to effec
-
tively deliver on the company’s strategy. The
Global Leadership Team has been deeply
involved in developing this robust approach to
defining and assessing critical positions.
LEO Pharma has also established a graduate
program designed to give early talents the
opportunity to make a real business impact and
76%
Overall employee engagement score
81%
Overall response rate
create affinity with the company. The program
offers three positions every year and provides
the talents with a strong toolbox through
hands-on experience in various functions,
working with teams across the value chain, and
gaining a deep understanding of LEO Pharma
and the pharmaceutical industry.
Employee engagement will continue to be
highly prioritized by providing further devel
-
opment opportunities, enhancing feedback
mechanisms and refining retention strategies to
create a supportive, high-performance work
-
place.
Employee Share
Purchase Plan
Since 2021, all LEO Pharma
employees have been invited
to invest in employee shares
through two separate rounds. In
the most recent round in 2023,
41% enrolled in the program. The
aim is to enable all employees
to benefit from the expected
future value creation in the
company and recognize their
role in its success.
Employee engagement survey
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21
SUSTAINABILITY
Leaving a legacy the next
generation will be proud of
THE COMMITMENT to sustainability is embedded
in LEO Pharma’s aim to leave a legacy the next
generation can be proud of. This is more than
a statement; it is a core strategic enabler that
defines how LEO Pharma operates and meas
-
ures success, with key aspects integrated into
performance metrics, incentive programs and
corporate loan facilities.
As a company dedicated to all the people
living with a skin disease and to the health
-
care community that treats them, LEO Pharma
focuses on making a meaningful difference,
bringing positive impacts to patients, people
and the protection of the planet.
In , LEO Pharma conducted its first CSRD-
aligned double materiality assessment (DMA) to
identify sustainability- related risks and impacts
across the value chain, guiding its sustainability
efforts and reporting. Internally, we reaffirmed
our commitment to sustainability and estab
-
lished a sustainability network for employees
with a special interest in this area, fostering
knowledge sharing and upskilling within the
organization.
Delivering better for
patients’ unmet needs
LEO Pharma’s commitment to addressing
patients’ unmet needs sets the company apart.
Understanding the daily realities of living with
a skin disease drives every business decision –
from identifying which diseases to address to
developing treatments with lasting impact. This
approach creates value for patients, health
-
care professionals and society at large.
In , LEO Pharma assessed its maturity in
patient engagement across the organization.
Simultaneously, the approach for measuring
this maturity was tested and externally eval
-
uated, enabling the establishment of targets
and a standardized method for tracking
improvements.
Our ambition is to create transparency and
provide clear direction on how and where LEO
Pharma engages with patients in developing
treatments. This will help advance the standard
of care for more people with skin conditions and
drive business value.
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22
Diversity
LEO Pharma embraces diversity and inclusion
as foundational elements of its culture. The
goal is to foster a workplace that encourages
all employees to bring their true selves to work.
This philosophy is reflected at every level, from
inclusive and transparent recruitment processes
to inclusive language workshops that have
engaged employees across the organization.
The company is also committed to achieving
gender diversity in leadership, with ongoing
efforts to support balanced representation at
all levels. At the end of , a male/female
gender distribution of / and / within
senior and middle management respectively
was achieved. With a commitment to fostering
gender diversity across all management levels,
LEO Pharma is well on track to meet its
target of at least a % representation of the
KPI:
Net-zero
CO
emissions in
LEO Pharma has committed to
achieving a net-zero climate target
by . This involves developing
an extensive decarbonization
plan across the company’s
operations, aligning with the Paris
Agreement and climate science
recommendations to limit global
warming to .°C.
underrepresented gender at both manage
-
ment levels.
Beyond gender, LEO Pharma recognizes the
importance of diverse experiences and back
-
grounds, including age, geography and educa-
tion. By nurturing an inclusive work environment,
LEO Pharma attracts and retains talent with
diverse perspectives and insights.
Environment
In , LEO Pharma committed to long- term
company- wide emission reductions in line with
the Science Based Targets initiative (SBTi) and
the Paris Agreement. This means that by ,
no greenhouse gas emissions should result from
LEO Pharma’s business activities and value
chain (Scope , and ). This ambitious target
requires thorough integration of climate consid
-
erations into business decisions.
100%
Share of renewable electricity at
production sites
55/45%
(M/F) gender diversity in senior management
KPIs:
LEO Pharma has already set near- term targets
to reduce Scope and Scope CO
e emis-
sions by more than % by . In , Scope
and CO
e emissions were reduced by %
compared to .
Engagement with suppliers is recognized
as essential to meeting the climate targets.
Currently, % of suppliers (by emissions) have
set targets validated by the SBTi or announced
CO
reduction commitments, representing
a slight decrease of percentage points
compared to . LEO Pharma’s current target
is that at least % of suppliers will have set
such targets by . Toward , LEO Pharma
will collaborate with suppliers to support our
net-zero commitment.
In , LEO Pharma attained the goal of using
% renewable electricity to power facilities
worldwide, up from % in . The company
also began implementing new car procurement
policies locally, focusing on battery electric
vehicles (BEVs) only, to reduce emissions from its
car fleet.
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23
LEO PHARMA STORIES – CHRONIC HAND ECZEMA
“If I could get my CHE under control,
I’d feel like I could do anything...".
She has to consider every touch she makes,
but Emma refuses to let her CHE hold her
back.
For most people, their hands are integral to almost everything
they do. Every touch. Every task. But for people living with CHE
– approximately in – every such moment is cause for hesita
-
tion: Will this hurt? Will anyone notice? Will my CHE hold me back?
Skin conditions such as CHE significantly impact quality of life:
the pain, itchiness and swelling affect performance and mean
lost days in school or at work, and having visibly affected hands
contributes to a considerable psychological burden, including
anxiety and low self-esteem.
How would you describe living with CHE?
Emma: "From the moment I wake up, I'm conscious of the fact that
my hands either hurt or are itchy, almost as if you’ve got little bugs
all over your hand that you desperately want to get off. It makes
you feel insane...".
How does your CHE affect your everyday life?
Emma: “I find that I can’t pick things up anymore. I’m constantly
applying moisturizer, and my hands are really sticky all the time. I
can’t write and work. I can’t do my e-mails. Sometimes I can’t write
on paper, because my hands are just swollen."
"If I want to cook a meal for my family, I’ve got to think, how much
will this hurt me? How much will this trigger my eczema?"
"When I have a flare-up on my hands, I really don't want anyone to
touch me. I don't want them to come near my hands. It's just really
invasive.”
What do you do to take your mind off your CHE?
Emma: “For me, going in the water feels so exhilarating. It's freezing
usually, so that takes over everything else in your brain. It can sting
a lot if you go in the sea with your eczema, but it feels like total
escape.”
→
Emma: age 23,
has lived with CHE
for nine years.
#1000papercuts
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24
Financial review and outlook
Financial review
& outlook
03.
In , LEO Pharma delivered a solid
operational performance, fueled by strong
growth, cost reduction measures and enhanced
financial discipline.
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25
Europa
North America
Rest of world
Revenue growth (CER)
Total revenue by region and
revenue growth
DKK million
2021 2022 2023 2024
9,957
10,641
11,392
12,453
-1%
4%
10%
10%
Financial review and outlook
In , LEO Pharma delivered another year of strong progress, with both sales growth and
adjusted EBITDA margin exceeding the initial outlook for the year. The approval and launch
of Anzupgo
®
, along with new efficiency initiatives implemented in , have positioned
LEO Pharma for continued growth and significantly improved profitability in .
Revenue for the LEO Pharma Group
Group sales increased by % to DKK ,
million in . At constant exchange rates
(CER), Group sales growth was %, driven
entirely by organic growth. Dermatology, now
accounting for % of Group sales (up from %
in ), delivered solid double-digit growth
for the second consecutive year, driven by the
continued strong uptake of Adtralza
®
/Adbr y
®
.
Exchange rates had a slight negative impact on
reported sales growth, primarily due to certain
Rest of World (RoW) currencies, including TRY
and JPY, versus DKK.
Revenue by therapeutic area
Sales in dermatology grew by % to
DKK , million, corresponding to %
growth (CER). The continued strong uptake
of Adtralza
®
/Adbr y
®
, now available in
markets, drove a % increase in sales (CER)
for the product and accounted for most of the
growth in dermatology sales. Across markets,
Adtralza
®
/Adbr y
®
is benefiting from increased
familiarity among prescribers and the growing
adoption of biologic treatments for atopic
dermatitis, with recent competitor launches
also contributing to heightened awareness. The
introduction of a pre-filled Adtralza
®
/Adbr y
®
pen, now available in markets, has further
strengthened uptake.
Anzupgo
®
was launched in its first two markets,
Germany and Denmark, during Q. While initial
feedback has been positive, the launch did not
significantly impact full-year revenue.
Beyond Adtralza
®
/Adbr y
®
and Anzupgo
®
, the
established dermatology brands recorded
combined sales growth of % (CER). This growth
was driven by Protopic
®
, which achieved solid
double-digit growth for the second consecu
-
tive year, benefiting from strong performance
in multiple markets. Kyntheum
®
and Skinoren
®
also contributed, while sales for the rest of the
established brands remained largely stable.
Sales in thrombosis increased by % to DKK ,
million, corresponding to % growth (CER). This
growth was positively impacted by an extraor
-
dinary reversal of prior-year sales discounts.
Adjusted for this, the underlying growth in throm
-
bosis sales was % (CER). The Innohep
®
portfolio
continued to account for the majority of throm
-
bosis sales, with underlying growth driven by
strong performance in Germany, Canada and
Italy. However, growth was adversely affected
by price reforms in the UK and Ireland.
Other revenues from contract manufacturing
of divested products totaled DKK million in
, an expected deviation compared to DKK
million in .
Revenue by region
Geographically, sales grew most strongly in
the North American region, increasing by %
to DKK , million, corresponding to %
growth (CER). This robust growth marked a key
milestone as the U.S. became LEO Pharma’s
largest market by revenue in , driven by the
continued strong uptake of Adbry
®
. Canada
also contributed significantly to the regional
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2021 2022 2023 2024
7,259
8,133
9,039
10,008
7%
9%
15%
12%
Total dermatology revenue
DKK million
Strategic brands
Established brands
Dermatology growth (CER)
performance, achieving double-digit growth
(CER) for the year. However, currency fluctu
-
ations had a percentage point negative
impact on regional revenue growth in DKK, as
CAD was weaker against DKK compared to
.
Sales in Europe increased by % to DKK ,
million, corresponding to % growth (CER). The
regional growth was led by Germany, which
achieved double-digit growth (CER) for the
year. Italy, Greece, the UK, Turkey and France
also contributed significantly, with mid- to high-
single-digit growth (CER). The continued uptake
of Adtralza
®
was the main growth driver for the
region, complemented by significant contribu
-
tions from Protopic
®
and Kyntheum
®
, as well as
higher thrombosis sales in some markets.
Sales in the Rest of World region increased by
% in to DKK , million, corresponding
to % growth (CER). Key markets driving this
growth included the UAE, Saudi Arabia and
Australia, all of which delivered double-digit
growth (CER). However, sales in Japan were
negatively impacted by pricing pressures.
China contributed moderately to growth, as low
consumer confidence affected both online and
offline retail channels, particularly in the second
half of the year. Regional growth was driven
by Adtralza
®
, as well as Protopic
®
, Enstilar
®
,
Kyntheum
®
and Skinoren
®
in some markets.
Exchange rates had a percentage point
negative impact on regional revenue growth in
DKK, reflecting the depreciation of currencies
investments in the launch of Anzupgo
®
and the
continued rollout of Adtralza
®
/Adbr y
®
.
Research and development costs
Research and development costs amounted
to DKK , million in , compared to DKK
, million in . The costs included
non-recurring expenses of DKK million related
to the transformation and restructuring of the
organization. Excluding these non-recurring
items, research and development costs as
a percentage of Group sales stood at %,
broadly similar to . Adjusting also for
impairment charges, the cost ratio was % for
, compared to % in . Key investment
projects for the year included trial costs primarily
related to tralokinumab and delgocitinib.
Administrative costs
Administrative costs amounted to DKK ,
million in , down from DKK , million
in . The costs included non-recur
-
ring expenses of DKK million related to the
transformation and restructuring of the organ
-
ization. Excluding these non-recurring items,
administrative costs as a percentage of Group
sales stood at %, compared to % in
(adjusted for DKK million in restructuring
costs incurred in ). The improved efficiency
reflects operating leverage from increased
sales as well as absolute savings implemented
during the year.
Other operating income
Other operating income was DKK million in
, compared to DKK million in .
including JPY, RUB, TRY, CNY and BRL against
DKK.
Gross profit
Gross profit increased by % to DKK , million
in , resulting in a gross margin of %,
compared to % in . The gross profit
included non-recurring costs of DKK million
for transformation and restructuring, while the
gross profit included DKK million in
impairment charges. Adjusted for these items,
the gross margin declined from % in
to % in . The margin was negatively
impacted by delayed effects from increased
raw material prices procured in previous years
and provisions related to the renegotiation
of certain supplier contracts. These negative
effects more than offset the positive underlying
impact of increased sales.
Costs
Sales and distribution costs
Sales and distribution costs amounted to
DKK , million in , compared to DKK
, million in . The decrease of DKK
million was primarily due to extraordinarily high
impairment charges in , partially offset by
non-recurring costs of DKK million related
to the transformation and restructuring of the
organization in . Excluding these non-re
-
curring items, sales and distribution costs as
a percentage of Group sales stood at % for
the year versus % in (adjusting also
for impairment charges in , the cost ratio
was % for , compared to % in ).
This higher efficiency was achieved despite
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27
Operating result
Operating profit before depreciation and
amortization, excluding non-recurring items
(adjusted EBITDA), amounted to DKK million
for , up % from . This represents
a percentage point improvement in the
adjusted EBITDA margin, reaching % for .
The margin improvement was driven by sales
growth and reduced operating costs. However,
exchange rate fluctuations had a slight nega
-
tive impact on the adjusted EBITDA margin.
Transformation and restructuring costs
excluded from adjusted EBITDA were DKK
million in . Including these non-recurring
items, EBITDA for the year totaled DKK
million, compared to DKK million in ,
corresponding to a % margin in both years.
Depreciation and amortization totaled DKK
, million for , including DKK million
in impairments, compared to DKK , million
in , which included DKK million in
impairments.
The operating profit/(loss) (EBIT) improved
by DKK million compared to but
remained negative at DKK , million for
. This corresponds to an EBIT margin of
negative % for the year, up from negative %
in . The margin improvement was driven
by sales growth, enhanced operational perfor
-
mance and reduced impairment of balance
sheet items.
Financial items and tax
Financial items showed a net expense of DKK
million, compared to DKK , million in .
This improvement was due to a DKK million
decrease in interest expenses, resulting from
lower interest rates and a reduction in average
interest-bearing debt during the year. Addition
-
ally, financial expenses related to the fair value
remeasurement of non-cash share-based
incentive programs amounted to DKK million
in , down from DKK million in .
Total tax for the year resulted in an income of
DKK million, compared to an expense of
DKK million in .
The changed net impact from tax was primarily
driven by the revaluation of the deferred tax
asset in LEO Pharma A/S, which increased by
DKK million and was accounted for as tax
income. In contrast, the tax asset decreased
by DKK million in , resulting in a tax
expense for that year. Additionally, the joint
taxation scheme with the main owner the LEO
Holding A/S, allowed LEO Holding A/S to offset
its profit with the tax losses from LEO Pharma
A/S, resulting in a tax income of DKK million
for LEO Pharma A/S in , compared to DKK
million in .
Net profit
The net loss for the year amounted to DKK ,
million, compared to a loss of DKK , million
in . This represents an improvement of DKK
, million, driven by better EBIT, net financial
items and tax expenses.
Balance sheet and cash flow
Balance sheet
Total assets decreased to DKK , million as
of December , , from DKK , million as
of December , . This decline was mainly
due to a reduction in intangible assets of DKK
, million, primarily driven by amortization of
DKK , million.
Net working capital was DKK , million as
of December , , equivalent to % of
revenue, down from DKK , million as of
December , , which was % of revenue.
The decrease in net working capital was mainly
the result of an increase in payables.
Equity stood at DKK , million at year-end,
down from DKK , million the previous
year. The decrease of DKK , million was
primarily due to the net loss for the year of DKK
, million. Other movements included other
comprehensive losses of DKK million, as well
as an increase in the reserve for share-based
payments and minor capital increases.
Net interest-bearing debt was DKK , million
as of December , , compared to DKK
, million as of December , . Available
liquidity remained largely unchanged at DKK
, million as of December , , compared
to DKK , million as of December , .
Notably, this figure excludes the significant posi
-
tive impact on net debt and available liquidity
from the DKK . billion upfront payment received
from Gilead in January (see “Subsequent
events” for additional details).
Cash flow
Operating activities generated a net cash
inflow of DKK million in , compared
to an outflow of DKK , million in . This
improvement of DKK , million was driven
by an improved operating result adjusted
for non-cash items, including a net increase
in provisions of DKK million. Additionally,
operating cash flow was positively impacted by
an inflow of DKK million from lower working
capital, compared to an outflow of DKK
million for working capital investments in .
Furthermore, a decrease of DKK million in
income taxes paid benefited the cash flow for
the year.
Cash flow from investment activities was nega
-
tive DKK million, compared to negative DKK
million in . The reduced cash outflow
was primarily due to lower investments in intan
-
gible assets and production facilities.
In , free cash flow was an outflow of DKK
million, compared to an outflow of DKK ,
million in . This improvement was primarily
driven by better cash flow from operating
activities. Notably, free cash flow generation
improved significantly during , resulting in
an inflow of DKK million in the second half
of the year, following an outflow of DKK
million in the first half. Cash flow from financing
activities resulted in an inflow of DKK million,
primarily due to net borrowings of DKK
million, partially offset by the repayment of
lease liabilities amounting to DKK million.
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Subsequent events
On January , , LEO Pharma announced
a strategic partnership with Gilead to accel
-
erate the development of LEO Pharma’s STAT
program. Gilead will have exclusive global rights
to the oral STAT program and will be respon
-
sible for its development, while LEO Pharma
retains an option to co-commercialize the oral
program for dermatological indications outside
the U.S. LEO Pharma maintains global rights to
topical formulations of the STAT program in
dermatology. Upon entering into the partner
-
ship, LEO Pharma received an upfront payment
of DKK . billion (USD million) and is eligible
for up to DKK . billion (USD . billion) in
total payments. LEO Pharma may also receive
tiered royalties ranging from high single-digit to
mid-teens on sales of oral STAT products, while
Gilead may receive similar royalties on sales of
topical STAT products.
On January , , LEO Pharma entered into
a distribution and marketing partnership with
Junshi Biosciences. Under this agreement, LEO
Pharma will commercialize Junshi Biosciences’
anti-PD- LOQTORZI in up to European
countries, leveraging LEO Pharma’s existing
commercial platform for heparin-based
anti-coagulation treatments for cancer-asso
-
ciated thrombosis and other specialty patients.
LEO Pharma made an upfront payment of DKK
million (EUR million) in January .
No other significant events have occurred after
the balance sheet date.
Follow-up on 2024 outlook
The financial performance in was in line with
the most recent outlook, updated in August, which
projected revenue growth of -% (CER) and an
adjusted EBITDA margin of -%. This outlook had been
revised upwards following the publication of the H
results. Consequently, the full-year performance
exceeded the initial outlook provided in the Annual
Report, which anticipated revenue growth of -% (CER)
and an adjusted EBITDA margin in the mid-single digits.
Additionally, LEO Pharma delivered significant
improvements in both EBIT and net result, although
both remained negative for the year. This performance
was in line with the outlook provided in the Annual
Report, which was maintained throughout the year.
2025 outlook
Revenue growth in is expected to be -% (CER).
Given current exchange rates versus the Danish krone
(as of February ), revenue growth reported in
DKK is expected to be percentage point higher than
at CER. Growth at constant exchange rates is expected
to be driven by strong double-digit increases for
Adtralza
®
/Adbr y
®
and the launch of Anzupgo
®
in addi-
tional markets, including the U.S. in the second half of
the year, pending FDA approval. Group revenue growth
at constant exchange rates is expected to be higher in
the second half of the year compared to the first half,
due in part to the increasing impact from the launch of
Anzupgo
®
.
The adjusted EBITDA margin is expected to improve
to -% in , up from % in , driven by sales
growth and efficiency gains from restructuring initiatives
implemented in . Adjusted EBITDA excludes the DKK
. billion one-time upfront payment from the strategic
partnership with Gilead announced on January , as
well as other non-recurring items.
Reported net profit is expected to be positive for the
year, and free cash flow (excluding M&A) is also antici-
pated to be positive.
The above outlook is subject to risks and uncertainties.
Various factors could significantly alter the outlook,
including but not limited to the impact of potential
BD/M&A activities, changes in the geopolitical and
macroeconomic environment, significant demand shifts
and/or price reforms in key markets such as the U.S. and
China, regulatory changes or delays, supply disrup-
tions, and developments in raw material and other input
costs.
Outlook
Financial
guidance 2025
Forward-looking statements
This annual report may
contain forward-looking
statements, related to future
operating, financial and
sustainability performance
and results, as well as busi-
ness-related events. Such
statements are subject
to risks, uncertainties and
assumptions, both general
and specific, and actual
results may differ materially
from those contemplated,
expressed or implied by any
forward-looking statement.
Various factors may affect
future results, some of which
are beyond LEO Pharma’s
control, including but not
limited to; interest rate and
exchange rate fluctuations,
changes in the geopolitical
and macroeconomic envi-
ronment, significant demand
shifts and/or price reforms
in key markets, introduction
of competing products,
exposure to product liability,
supply disruptions, devel-
opments in raw material
and other input costs, and
changes in laws and regula-
tions, including on reimburse-
ment.
6-9%
Group revenue growth (CER)
15-18%
Adjusted EBITDA margin
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29
Board of Directors
Board committees
Global Leadership Team
Risk management
04.
Our proactive and transparent
governance structure promotes
sustainable business behavior and
long-term value creation.
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→ Corporate matters
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30
LEO Pharma Annual Report 2024 Management's review Highlights
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Financial review & outlook
→ Corporate matters
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31
Board of Directors
LEO Pharma Annual Report 2024 Management's review Highlights
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→ Corporate matters
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32
Board of Directors
LEO Pharma Annual Report 2024 Management's review Highlights
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Financial review & outlook
→ Corporate matters
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33
LEO Pharma Annual Report 2024 Management's review Highlights
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Financial review & outlook
→ Corporate matters
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34
LEO Pharma Annual Report 2024 Management's review Highlights
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Financial review & outlook
→ Corporate matters
Sustainability statement
35
Global Leadership Team
LEO Pharma Annual Report 2024 Management's review Highlights
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→ Corporate matters
Sustainability statement
36
risks to LEO Pharma. In our sustainability statement, we outline a
LEO Pharma Annual Report 2024 Management's review Highlights
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Financial review & outlook
→ Corporate matters
Sustainability statement
37
LEO Pharma Annual Report 2024 Management's review Highlights
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Financial review & outlook
→ Corporate matters
Sustainability statement
38
LEO Pharma Annual Report 2024 Management's review Highlights
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Financial review & outlook
→ Corporate matters
Sustainability statement
39
General information
Environmental information
Social information
Governance information
Appendix
LEO Pharma Annual Report 2024 Management's review
40
Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
41
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
42
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
43
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
44
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
45
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
46
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
47
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
48
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
49
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
50
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
51
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
52
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
53
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
54
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
55
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
56
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
57
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
58
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
59
LEO Pharma Annual Report 2024 Management's review Highlights
Our business
Financial review & outlook
Corporate matters
→ Sustainability statement
General information
Environmental information
Social information
Governance information
Appendix
60
LEO Pharma Annual Report 2024 Management's review Highlights
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Financial review & outlook
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→ Sustainability statement
General information
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Social information
Governance information
Appendix
61
Accounting policies
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Appendix
63
Accounting policies
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Appendix
64
Accounting policies
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Appendix
65
Consolidated
financial
statements
06.
Income statement
Statement of comprehensive income
Balance sheet
Statement of changes in equity
Cash flow statement
Notes to the consolidated financial statements
LEO Pharma Annual Report 2024 Financial statements
66
→ Consolidated financial statements
Statements
Parent Company financial statements
Income statement
January - December
Statement of comprehensive income
January - December
(DKK million) Note 2024 2023
Revenue . 12,453 11,392
Cost of sales ., ., . (4,935 ) (4,192 )
Gross profit 7,518 7,200
Sales and distribution costs ., ., . (4,922 ) (5,098 )
Research and development costs ., ., . (2,270 ) (2,122 )
Administrative costs
., ., .,
., ., ., . (1,482 ) (1,720 )
Other operating income, net . 13 41
Operating profit/(loss) (1,143 ) (1,699 )
Financial income . 132 47
Financial expenses . (946 ) (1,140 )
Profit/(loss) before tax (1,957 ) (2,792 )
Income tax . 181 (815 )
Net profit/(loss) for the year (1,776 ) (3,607 )
(DKK million) Note 2024 2023
Net profit/(loss) for the year (1,776 ) (3,607 )
Other comprehensive income
Remeasurement of defined benefit plans . 27 (38 )
Tax . (4 ) 8
Items that will not be reclassified subsequently to
the income statement 23 (30 )
Foreign exchange adjustments, subsidiaries . (31 ) (80 )
Fair value adjustment of cash flow hedges . (127 ) (93 )
Cash flow hedges reclassified to financial expenses . 5 64
Tax . 27 6
Items that may be reclassified subsequently to
the income statement (126 ) (103 )
Total other comprehensive income/(loss) after tax (103 ) (133 )
Total comprehensive income/(loss) (1,879 ) (3,740 )
LEO Pharma Annual Report 2024 Financial statements
67
→ Consolidated financial statements
Statements
Parent Company financial statements
Balance sheet
at December
(DKK million) Note 2024 2023
Assets
Intangible assets . 4,942 6,099
Property, plant and equipment . 4,445 4,516
Right-of-use assets . 208 306
Deferred tax assets . 1,482 1,157
Pensions . 206 145
Other financial assets . 194 49
Non-current assets 11,477 12,272
Inventories . 4,973 4,866
Trade receivables . 2,368 2,142
Tax receivables 553 545
Other receivables 553 910
Cash and cash equivalents 227 216
Current assets 8,674 8,679
Assets 20,151 20,951
(DKK million) Note 2024 2023
Equity and liabilities
Share capital . 383 383
Reserves (271 ) (183 )
Retained earnings 2,592 4,325
Equity 2,704 4,525
Loans and credit institutions ., . 10,414 10,404
Deferred tax liabilities . 37 30
Pensions . 75 77
Provisions . 307 131
Lease liabilities ., ., . 164 238
Tax payables 65 130
Other non-current liabilities 464 461
Non-current liabilities 11,526 11,471
Loans and credit institutions ., . 502 265
Trade payables 1,440 1,243
Provisions . 1,164 925
Lease liabilities ., ., . 82 87
Tax payables 112 285
Other payables . 2,621 2,150
Current liabilities 5,921 4,955
Liabilities 17,447 16,426
Equity and liabilities 20,151 20,951
LEO Pharma Annual Report 2024 Financial statements
68
→ Consolidated financial statements
Statements
Parent Company financial statements
Statement of changes in equity
January - December
Note 2024 2023
Reserves Reserves
(DKK million)
Share
capital
Currency
translation
Cash flow
hedges
Other
capital
Retained
earnings Total
Share
capital
Currency
translation
Cash flow
hedges
Other
capital
Retained
earnings Total
Equity at January 383 (264 ) 20 61 4,325 4,525 321 (184 ) 43 34 1,732 1,946
Comprehensive income for the year
Net profit/(loss) for the year - - - - (1,776 ) (1,776 ) - - - - (3,607 ) (3,607 )
Other comprehensive income/(loss)
for the year . - (31 ) (95 ) - 23 (103 ) - (80 ) (23 ) - (30 ) (133 )
Total comprehensive income/(loss)
for the year - (31 ) (95 ) - (1,753 ) (1,879 ) - (80 ) (23 ) - (3,637 ) (3,740 )
Transactions with owners
Capital increase - - - - 29 29 62 - - - 6,238 6,300
Purchase of treasury shares - - - - (9 ) (9 ) - - - - (8 ) (8 )
Share-based payment - - - 38 - 38 - - - 27 - 27
Total transactions with owners - - - 38 20 58 62 - - 27 6,230 6,319
Equity at December 31 383 (295 ) (75 ) 99 2,592 2,704 383 (264 ) 20 61 4,325 4,525
LEO Pharma Annual Report 2024 Financial statements
69
→ Consolidated financial statements
Statements
Parent Company financial statements
Cash flow statement
January - December
(DKK million) Note 2024 2023
Operating profit/(loss) (1,143 ) (1,699 )
Depreciation, amortization and impairment ., ., . 1,742 2,250
Adjustments for non-cash operating items etc. . 319 (48 )
Changes in working capital . 474 (509 )
Interest etc., received 91 27
Interest etc., paid (857 ) (916 )
Income tax paid . (361 ) (1,058 )
Cash flow from operating activities 265 (1,953 )
Investments in intangible assets . (61 ) (207 )
Investments in property, plant and equipment . (259 ) (349 )
Proceeds from sale of property, plant and equipment 3 19
Cash flow from investing activities (317 ) (537 )
Cash flows from operating and investing activities (free cash flow) (52 ) (2,490 )
(DKK million) Note 2024 2023
Proceeds from loans 1,170 2,750
Repayment of loans . (1,160 ) (750 )
Overdraft facilities and other financing etc. 171 (69 )
Issuance of loans (12 ) (87 )
Proceeds from issue of shares . 29 746
Purchase of treasury shares (9 ) (8 )
Repayment of lease liabilities ., . (110 ) (115 )
Cash flow from financing activities 79 2,467
Net cash flow for the period 27 (23 )
Cash and cash equivalents, January 216 270
Foreign exchange adjustments (16 ) (31 )
Cash and cash equivalents at December 31 227 216
LEO Pharma Annual Report 2024 Financial statements
70
→ Consolidated financial statements
Statements
Parent Company financial statements
Notes to the consolidated financial statements
1 Basis of reporting
. Basis of preparation
. Accounting policies
. Non-IFRS measures
2 Operating profit and tax
. Revenue
. Employee costs
. Other operating income and expenses
. Tax
3 Invested capital
. Intangible assets
. Property, plant and equipment
. Leases
. Pensions
4 Operating assets and liabilities
. Trade receivables
. Inventories
. Other payables
. Provisions
5 Capital structure and financing
. Financial income and expenses
. Financial risks
. Derivative financial instruments
. Financial assets and liabilities by category
. Share capital
. Other comprehensive income
6 Other disclosures
. Management remuneration
. Share-based payment
. Guarantees, contingencies and commitments
. Fees to statutory auditors
. Other cash flow specifications
. Related party transactions
. Events after the balance sheet date
. Company overview
LEO Pharma Annual Report 2024 Financial statements
71
→ Consolidated financial statements
Statements
Parent Company financial statements
Note 1.1 Basis of preparation
LEO Pharma A/S is domiciled in Denmark. These consolidated financial
statements comprise the Parent Company and its subsidiaries (together
referred to as the 'Group' or 'LEO Pharma').
The consolidated financial statements have been prepared in accordance with
IFRS Accounting Standards (IFRS) as adopted by the EU, and the additional
requirements of the Danish Financial Statements Act for Class C (large) compa-
nies. On February , the Board of Directors and Executive Management
considered and approved the Annual Report of LEO Pharma A/S. The
Annual Report will be presented to the shareholders of LEO Pharma A/S for
approval at the ordinary Annual General Meeting on March , .
The consolidated financial statements are presented in Danish kroner (DKK),
which is also the functional currency of the Parent Company. The presenta-
tion is in million, unless otherwise stated.
Reclassification in prior-year figures
LEO Pharma has updated the assessment of the functional split of costs
in the income statement. LEO Pharma's Management believes that these
updates improve the comparability of the financial statements and align LEO
Pharma's reporting practice with industry standards and best practices. The
updated allocation of operational costs among the functions impacts the
following line items in the income statement for :
• Cost of sales decreased from DKK ,m to DKK ,m
• Sales and distribution costs increased from DKK ,m to DKK ,m
• Research and development costs increased from DKK ,m to DKK
,m
• Administrative costs decreased from DKK ,m to DKK ,m
The reassessment has no impact on the operating profit/(loss).
Global market and climate uncertainties
Management continuously assesses the overall geopolitical uncertain-
ties, supply situation and macroeconomic indicators, such as inflation
and interest rates, that may impact LEO Pharma's financial performance.
Similarly to the statements, the ongoing global market and climate
uncertainties have not significantly impacted LEO Pharma's activities.
The company remains vigilant and proactive in monitoring these factors
to mitigate potential risks and ensure sustainable growth.
Key accounting estimates
Key accounting estimates are based on quantitative and qualitative
factors that could significantly impact the values of assets and liabilities
in the reporting period.
Accounting estimates are based on historical experience and assump-
tions that are reasonable under the circumstances and in the current
situation. The actual amounts may therefore differ from the estimated
amounts as more detailed information becomes available.
Example: estimate of useful life of intangible assets considering contrac-
tual terms, economic factors etc.
Key accounting judgments
Accounting judgments refer to the decisions made by Management
when applying the Group's accounting policies, which could significantly
affect the amounts recognized in the consolidated financial statements.
These judgments are typically made based on guidance and information
available at the time of application.
Example: judgments to assess whether or not there are indications of
impairment for intangible assets.
Key accounting estimates and judgments
The preparation of the consolidated financial statements requires Manage-
ment to make assumptions, estimates and judgments that impact the
reported assets and liabilities, and affect the application of the accounting
policies. Any changes in accounting estimates are applied to the current
and future periods. Estimates and underlying assumptions are reviewed on
an ongoing basis.
Below is an overview of the key estimates and judgments that significantly
impact the amounts recognized in the financial statements:
Application of materiality
In the preparation of the consolidated financial statements, LEO Pharma
aims to focus on information that is material and relevant to the users of the
consolidated financial statements. The consolidated financial statements
are the result of aggregating large numbers of transactions into classes of
similar items, according to their nature or function. If a line item is not indi-
vidually material, it is aggregated with other items of a similar nature in the
consolidated financial statements or in the notes.
Note Key accounting estimates and judgments Estimates/judgments Potential impact
3.1 Intangible assets Useful lives and valuation of intangible assets;
Impairment testing of intangible assets
Estimate
Judgment
High
4.4 Provisions Provisions for sales deductions Estimate Medium
4.2 Inventories Cost of inventories and provision for obsolescence Estimate Medium
2.4 Tax: Deferred tax Valuation of deferred tax assets
Recoverability of deferred tax assets
Estimate
Judgment
Medium
LEO Pharma Annual Report 2024 Financial statements
73
→ Consolidated financial statements
Statements
Parent Company financial statements
Note 1.2 Accounting policies
Material accounting policies
LEO Pharma’s material accounting policies are described in the individual
notes to the consolidated financial statements.
Consolidation
The consolidated financial statements include the financial statements of
the Parent Company, LEO Pharma A/S, and its subsidiaries in which LEO
Pharma A/S exercises control, as at December , . The consolidated
financial statements are prepared by combining the financial statements
of the Parent Company and all its subsidiaries, with subsequent elimination
of intercompany transactions, intercompany shareholdings and balances
as well as unrealized profits from intercompany transactions. The financial
statements of all companies have been prepared by applying the Group’s
accounting policies.
Foreign currency translation
Each entity's financial statement items in the Group are measured in the
currency of its main financial environment. Transactions in other currencies
are considered foreign currency transactions. On initial recognition, trans-
actions in foreign currencies are translated at the exchange rates at the
transaction date.
Receivables, payables and other monetary items in foreign currencies are
translated at the exchange rates at the balance sheet date. Any differences
between the exchange rate at the balance sheet date and the exchange
rate at the time when the receivable or the payable arises, or on recognition
in the most recent financial statements, are recognized in financial income
or financial expenses in the income statement.
On consolidation of foreign subsidiaries with a functional currency other
than DKK, income statements are translated into DKK at the exchange
rates at the transaction date and balance sheet items are translated at
the exchange rates at the balance sheet date. The previous month-end
exchange rate is used as the exchange rate at the transaction date to
the extent that this does not significantly distort the presentation of the
underlying transactions. Foreign exchange differences from translating the
opening balance of equity and income statements at different exchange
rates are recognized in other comprehensive income. Adjustments of
balances with foreign entities that are considered part of the investment are
also recognized in other comprehensive income under a separate transla-
tion reserve in the consolidated financial statements.
Cash flow statement
The cash flow statement is prepared according to the indirect method
based on operating profit/(loss). The statement shows cash flows from oper-
ating, investing and financing activities as well as cash and cash equivalents
at the start and end of the year.
Cash flows from operating activities are calculated as the Group’s operating
profit/(loss), adjusted for non-cash operating items such as depreciation,
amortization and impairment losses, as well as changes in working capital.
Working capital includes inventories, trade receivables, trade payables and
other similar items.
Cash flows from investing activities comprise payments from acquisitions
and disposals of intangible assets and property, plant and equipment as
well as net investments in securities.
Cash flows from financing activities comprise payments from the raising
and repayment of current and non-current debt and payments to and from
shareholders. Cash solely comprises cash at bank and in hand.
Implementation of new and amended standards and interpretations
Effective from January , , LEO Pharma implemented all new or
changed accounting standards and interpretations. Amendments to IAS
Statement of Cash Flows and IFRS Financial Instruments; Amendments to
IAS Presentation of Financial Statements, Amendments to IFRS Leases.
The adoption had no material impact on the disclosures or the amounts
reported in the consolidated financial statements.
New and revised IFRS issued, but not yet effective, that are relevant to
the Group
IASB has issued new or amended accounting standards and interpreta-
tions that have not yet become effective: IFRS , which replaces IAS and
introduces new requirements for presentation of income statement and
disclosures of Management-defined performance measures. IFRS will be
effective from reporting periods beginning on or after January , .
LEO Pharma has not yet assessed the implications of applying the new
standard to the Group's consolidated financial statements. LEO Pharma
expects to adopt the IFRS standards and interpretations when they become
mandatory.
LEO Pharma Annual Report 2024 Financial statements
74
→ Consolidated financial statements
Statements
Parent Company financial statements
Note 1.3 Non-IFRS measures
The consolidated financial statements and the Financial review & outlook
section include financial performance measures that are not defined
according to IFRS Accounting Standards. These measures are considered to
provide relevant information to stakeholders and Management. Since other
companies might calculate these differently from LEO Pharma, they may
not be comparable to the measures calculated by other companies. These
financial measures should therefore not be considered a replacement for
performance measures as defined under IFRS, but rather as supplementary
information.
The following non-IFRS measures are presented in the Annual Report:
'Reported' refers to the income statement in accordance with IFRS
Accounting Standards.
Revenue growth at constant exchange rates (CER) (%)
Revenue growth at constant exchange rates (CER) excludes the effect of
changes in exchange rates when comparing revenue for the current year
(period) with the revenue for the prior year (period).
The revenue for the current year (period) is recalculated using a set of
constant foreign exchange rates and compared with revenue for the prior
year (same period of the prior year), recalculated using the same set of
constant foreign exchange rates.
(DKK million) 2024 2023
Reported revenue , ,
Effect of exchange rates
Revenue at constant exchange rates (calc.) 12,484 11,641
Prior year's revenue at current year's
constant exchange rates (calc.) , ,
Revenue growth at constant exchange rates
(CER) 10% 10%
(DKK million) 2024 2023
Reported revenue, Dermatology (see Note
. Revenue) , ,
Effect of exchange rates
Revenue at constant exchange rates (calc.) 10,043 9,312
Prior year's revenue at current year's
constant exchange rates (calc.) , ,
Revenue growth, Dermatology at constant
exchange rates (CER) 12% 15%
EBITDA and EBITDA margin (%)
EBITDA is the reported operating profit/(loss), adjusted for depreciation,
amortization and impairment, and therefore presenting the earnings before
financial income and expenses, tax, depreciation, amortization and impair-
ment. EBITDA margin is EBITDA as a percentage of reported revenue.
(DKK million) 2024 2023
Reported revenue , ,
Reported operating profit/(loss) (EBIT) (,) (,)
Depreciation, amortization and impairment (,) (,)
EBITDA 600 551
EBITDA margin 5% 5%
Adjusted EBITDA and adjusted EBITDA margin (%)
Adjusted EBITDA is considered to best reflect the Group's underlying opera-
tional profitability, as it excludes impact from significant non-recurring items
that Management assesses are not representative of the ordinary course of
the business.
To arrive at adjusted EBITDA, EBITDA is adjusted for significant transfor-
mation and restructuring costs, extraordinary non-recurring income or
expenses, capital transaction costs and M&A, including integration costs.
Adjusted EBITDA margin is adjusted EBITDA as a percentage of reported
revenue.
In , the Group announced a restructuring program involving redundan-
cies and related legal fees of DKK m. All expenses subject to adjustment
are presented under cost of sales, sales and distribution costs, research and
development costs, and administrative costs in the income statement.
(DKK million) 2024 2023
EBITDA 600 551
Restructuring expenses () ()
Other expenses () ()
Adjusted EBITDA 895 626
Adjusted EBITDA margin 7% 5%
LEO Pharma Annual Report 2024 Financial statements
75
→ Consolidated financial statements
Statements
Parent Company financial statements
Note 2.1 Revenue
LEO Pharma is engaged in manufacturing of pharmaceutical products,
mainly in the therapeutic areas of dermatology and thrombosis.
The Group's gross revenue from sale of products is reduced by various
deductions, estimated and recognized in the same period that the reve-
nues are recognized. Specific bonus and incentive programs in the form
of rebates and commercial agreements for product returns are the main
variable considerations and as such reduce the sale price. The estimated
rebates and returns are based on information related to expected orders
and on customer- and product-specific experience. For further information
on key accounting estimates, please refer to Note . Provisions.
In , revenue from sales-based royalties amounted to DKK m
(: DKK m).
The Group updated its reporting split of revenue areas in , introcucing
"Established brands" and "Strategic brands" for the Dermatology busi-
ness. The disclosure in the following table follows the internal reporting to
Management. To provide transparency, the Group discloses the compara-
tive figures according to the new split.
Accounting policies
Revenue comprises sales of goods, primarily from own production,
and sales-based royalty income.
Sales of goods
Revenue from sales of goods is recognized when LEO Pharma's
customers obtain control of the goods, which is typically at the time
of delivery.
Sales deductions, product returns
The amount of revenue recognized at the time of delivery is adjusted
for expected returns, which are estimated based on historical data
and other relevant factors for the specific product and market. A
refund liability is recognized in these circumstances and included in
provisions and/or other payables, depending on the type of product
return.
Sales-based royalties
Sales-based royalties from outlicensed products as well as milestone
payments are recognized when the subsequent sale occurs.
LEO Pharma sometimes receives upfront payments related to various
sales and distribution rights where the upfront payments are recog-
nized over time, resulting in contract liabilities. Contract liabilities
are recognized as revenue in line with fulfillment of the performance
obligation.
(DKK million) 2024 2023
Revenue by region
Europe , ,
North America , ,
Rest of the world , ,
Total 12,453 11,392
Revenue by area
Dermatology
Established brands , ,
Strategic brands , ,
Total Dermatology 10,008 9,039
Thrombosis , ,
CMO/Divested
Total 12,453 11,392
LEO Pharma Annual Report 2024 Financial statements
77
→ Consolidated financial statements
Statements
Parent Company financial statements
(DKK million) 2024 2023
Wages and salaries , ,
Pensions
Share-based payment
Social security costs
Other employee costs
Total employee costs for the year 3,954 3,935
Of which capitalized as intangible assets () ()
Total employee costs in the income
statement 3,932 3,901
Employee costs are included in the
following items in the income statement:
Cost of sales
Sales and distribution costs , ,
Research and development costs
Administrative costs
Total employee costs 3,932 3,901
Average number of full-time employees 4,184 4,490
Other operating income and expenses comprise items of a secondary
nature to the Group’s primary activities, i.e. gains and losses on divestments
of intellectual property rights and on sale of property, plant and equipment.
(DKK million) 2024 2023
Gain on sale of assets
Other income
Other operating income 40 58
Loss on sale of assets () ()
Other expenses () ()
Other operating expenses (27) (17)
Other operating income, net 13 41
Note 2.2 Employee costs Note 2.3 Other operating income
and expenses
In , the announced restructuring program in LEO Pharma impacted the
total employee costs by DKK m (: DKK m).
Members of Executive Management participate in short- and long-term
incentive programs that provide a bonus for the achievement of predeter-
mined targets. Please refer to Note . Management remuneration and Note
. Share-based payment.
LEO Pharma Annual Report 2024 Financial statements
78
→ Consolidated financial statements
Statements
Parent Company financial statements
Income tax for the year
(DKK million) 2024 2023
Current tax () ()
Change in deferred tax ()
Prior-year adjustments, current tax () ()
Prior-year adjustments, deferred tax ()
Total tax income/(expense) for the year 204 (801)
Tax for the year is included in:
Tax on profit/(loss) for the year ()
Tax in other comprehensive income
Total tax income/(expense) for the year 204 (801)
Note 2.4 Tax
Reconciliation of the Group's effective tax rate relative to the Danish corporate income tax rate
2024 2023
DKK million % DKK million %
Profit/(loss) before tax (1,957) (2,792)
Calculated tax, % (Danish corporate income tax) .% .%
Tax effect of:
Differences in the income tax rates of foreign subsidiaries compared to
the Danish corporate income tax rate .% .%
Non-deductible expenses/non-taxable income and other permanent differences .% () (.)%
Other taxes () (.)% () (.)%
Change in deferred tax as a result of change in income tax rates .% () (.)%
Change in valuation of net deferred tax assets () (.)% (,) (.)%
Prior-year tax adjustments () (.)% .%
Effective tax/tax rate for the year 181 9.2% (815) (29.2)%
Pilar II
In , the Danish Ministry of Taxation adopted the EU Minimum Tax Direc-
tive in Danish national legislation (Pillar II), effective January , . Under
the legislation, the Parent Company will be required to pay the top-up tax
on profits of its subsidiaries that are taxed at an effective tax rate of less
than %. For , it has been determined that all jurisdictions within the
Group meet one of the three Safe Harbour tests, so no top-up tax provision
is required and has been calculated. The determination is based on the
consolidated financial statements for .
The Group has applied the temporary exception from the accounting
requirements for deferred taxes in IAS issued by the Intenational
Accounting Standards Board (IASB) in May . Accordingly, the Group
neither recognizes nor discloses information about deferred tax assets and
liabilities related to Pillar II income taxes.
For specification of tax in other comprehensive income, reference is made to
Note . Other comperehensive income.
The Group did not register any material uncertain tax positions in .
LEO Pharma Annual Report 2024 Financial statements
79
→ Consolidated financial statements
Statements
Parent Company financial statements
Note 2.4 Tax (continued)
Prior-year adjustments primarily derive from the tax return true-up for
previous years in LEO Pharma A/S, LEO Pharma Inc, USA and LEO Laborato-
ries Ltd., Ireand.
Capitalized tax loss carryforwards are driven by LEO Pharma A/S with no
significant amounts related to its subsidiaries. The unused tax loss carryfor-
wards relating to LEO Pharma A/S do not expire. Tax losses not recognized in
the year amounted to DKK m (: DKK m).
The recognized deferred tax assets in LEO Pharma A/S at December ,
, amounted to DKK m (: DKK m).
The excess deferred tax assets in LEO Pharma A/S are subject to a valuation
allowance of DKK ()m in the current year and DKK ()m as prior-year
adjustments (: DKK (,)m).
Deferred tax
2024 2023
(DKK million)
Balance at
January 1
Exchange rate
adjustment
Prior-year
adjustments
Current-year
movements
Balance at
December 31
Balance at
January 1
Exchange rate
adjustment
Prior-year
adjustments
Current-year
movements
Balance at
December 31
Intangible assets , () , , () ,
Property, plant and equipment ()
Inventories () () () - ()
Provisions () ()
Other items ()
Special tax credits - - ()
Tax loss carryforwards , () , , () ,
Valuation allowances on deferred
tax assets (,) - () () (,) (,) - - (,) (,)
Total temporary differences 1,127 7 (53) 364 1,445 1,770 (1) 49 (691) 1,127
Deferred tax assets , () , , () () ,
Deferred tax liabilities () () - ()
Deferred tax assets/(tax liabilities) 1,127 7 (53) 364 1,445 1,770 (1) 49 (691) 1,127
LEO Pharma Annual Report 2024 Financial statements
80
→ Consolidated financial statements
Statements
Parent Company financial statements
Accounting policies
Income tax
Income tax for the year, which consists of the year’s current tax, the
change in deferred tax and adjustments in respect of previous years, is
recognized in the income statement at the amount that can be attributed
to the profit/(loss) for the year and in other comprehensive income at the
amount that can be attributed to items in other comprehensive income.
The change in deferred tax as a result of changed income tax rates or tax
rules is recognized in the income statement. Interest on tax cases that are
ongoing or have been settled during the year is reported under financial
items.
Current tax for the year is calculated on the basis of the income tax rates
and rules enacted at the balance sheet date. The Parent Company, the
Danish subsidiary and LEO Holding A/S are jointly taxed.
Deferred tax
Deferred tax is recognized on all temporary differences between the
carrying amounts of assets and liabilities and their tax bases, except for
temporary differences arising on initial recognition of a transaction that
is not a business combination, and with the temporary difference ascer-
tained at the time of initial recognition affecting neither the financial
result nor the taxable income.
Deferred tax is measured on the basis of the income tax rates and tax
rules enacted in the respective countries at the balance sheet date.
Deferred tax assets, including the tax assets on tax loss carryforwards,
are recognized in the balance sheet at the value at which the assets are
expected to be utilized.
Deferred tax assets and liabilities are offset if the Group has a legal right
to offset these and intends to settle these on a net basis or to realize the
assets and settle the liabilities simultaneously.
Key accounting estimates
Significant assumptions regarding the valuation of the recognized
deferred tax asset are both the ability to meet the objectives in the
strategy for the next five years and the return on the investment portfolio
within the joint taxation group. The return on the investment portfolio is
sensitive to general market fluctuations.
Management’s estimate of future income according to forecasts, busi-
ness plans and initiatives scheduled for the coming years forms the basis
for estimating the utilization of the deferred tax assets in future periods.
A forecast period of five years is applied to the estimated utilization of
deferred tax assets for LEO Pharma A/S and the companies under the
joint taxation scheme.
Key accounting judgments
Judgment concerning the recoverability of deferred tax assets and
whether to recognize deferred tax assets in relation to tax loss carryfor-
wards.
Note 2.4 Tax (continued)
LEO Pharma Annual Report 2024 Financial statements
81
→ Consolidated financial statements
Statements
Parent Company financial statements
Note 3.1 Intangible assets
2024 2023
(DKK million) Goodwill
Intellec-
tual
property
rights Software
Develop-
ment
projects
and soft-
ware in
progress
Total
intangible
assets Goodwill
Intellec-
tual
property
rights Software
Develop-
ment
projects
and soft-
ware in
progress
Total
intangible
assets
Cost at January , , , , , , ,
Exchange rate adjustment - () - - () - () - - ()
Additions - - - - - -
Disposals - - () () () - - () (,) (,)
Transfers - () - - - () ()
Cost at December 31 192 14,163 2,534 126 17,015 192 14,069 2,885 209 17,355
Amortization and impairment losses
at January - (, ) (,) () (,) - (,) (,) (,) (,)
Exchange rate adjustment - - - - - -
Amortization - () () - (,) - () () - (,)
Disposals - - - - , ,
Impairment - () () () () - () - () ()
Amortization and impairment
losses at December 31 - (10,325) (1,645) (103) (12,073) - (9,568) (1,679) (9) (11,256)
Carrying amount at December 31 192 3,838 889 23 4,942 192 4,501 1,206 200 6,099
Intellectual property rights
At December , , intellectual property rights comprise the following
individually significant intangible assets:
• Dermatology portfolio (mainly Skinoren
®
, Advantan
®
, Travocort
®
and
Travogen
®
) with a carrying amount of DKK ,m (: DKK ,m)
and remaining useful life of . years.
• Protopic
®
and Pimafucort
®
with a carrying amount of DKK m
(: DKK m) and remaining useful life of year.
• Tralokinumab with a carrying amount of DKK m (: DKK m)
and remaining useful life of - years.
Software
Software comprises both purchased and internally developed software for
production, reporting systems etc.
Development projects and software in progress
Development projects and software in progress, DKK m (: DKK m),
comprise development projects, DKK m ( : DKK m) and software in
progress, DKK m (: DKK m).
During the year the Group recognized DKK m in additions (: DKK
m) related to development projects and DKK m (: DKK m) related
to software projects.
At December , , development projects comprise Temtokibart DKK m
(: DKK m), Delgocitinib DKK m (: DKK m), and other develop-
ment projects, DKK m (: DKK m).
LEO Pharma Annual Report 2024 Financial statements
83
→ Consolidated financial statements
Statements
Parent Company financial statements
Note 3.1 Intangible assets (continued)
Impairment testing
Goodwill
LEO Pharma is considered as a single identifiable group of assets that
generates independent cash inflows, as Management makes decisions and
assesses business performance at the consolidated level.
In , the recoverable amount of LEO Pharma as a single cash-generating
unit (CGU) was based on a method of assessing the fair value less cost of
disposal. The fair value of LEO Pharma is based on the actual valuation of
the share price (enterprise value) of LEO Pharma compared with the carrying
amount of equity. Management has not identified any goodwill impairment at
December , .
Intellectual property rights and software
Intellectual property rights and Software are tested for impairment in two
steps. First, the Group performs a review for indications of impairment per
asset. If any indications of impairment are identified, the second step is to
compare the discounted future cash flow (value in use) generated by the
specfic asset with its carrying amount.
2024: No material impairment losses, or reversal of previous recognized
impairment losses, were recognized, based on the impairment test.
2023: Impairment losses of DKK m were recognized under sales and
distribution costs related to intellectual property rights for tralokinumab
within a specific geographical area. The recovarable amount of traloki-
numab before impairment amounted to DKK m. No reversals of impair-
ment losses from prior periods were recognized in .
Impact of changes in key assumptions
When preparing the impairment tests by using the discounted future cash
flows to determine the recoverable amount of an asset, Management
considers the sensitivity of changes in the key assumptions, to evaluate the
inherent risk in the valuation of the recoverable amount.
The Group conducted an analysis of the sensitivity of changes in the key
assumptions applied in the impairment tests in . Management believes
that any reasonably possible change in the key assumptions would not
cause the carrying amount to exceed the recoverable amount.
Development projects and software in progress
The Group performs annual impairment tests on single internal assets in
progress and acquired development assets that are not yet commercialized.
The recoverable amount of intellectual property rights and development
projects is based on the value in use of the discounted expected future cash
flows. The recoverable amounts of the specific assets are compared with the
carrying amount.
2024: The impairment losses recognized on development projects amounted
to DKK m and primarily relate to discontinuation of TMB- develop-
ment project of DKK m. The clinical project was terminated, as primary
and key secondary endpoints of the randomized, double-blind period
of the phase clinical trial were not met. Consequently, the recoverable
amount was determined at DKK m. Other impairment losses on develop-
ment projects amounted to DKK m, and relates to discontinuing of various
development projects.
The impairment losses of DKK m were recognized under research and
development costs. No reversals of impairment losses from prior periods
were recognized in .
2023: Impairment losses recognized on development projects amounted to
DKK m and primarily related to the Izuforant development project (DKK
m).
The impairment losses of DKK m were recognized under research and
development costs. No reversals of impairment losses from prior periods
were recognized in .
Research and development costs
In , research and development costs recognized in the income state-
ment amounted to DKK ,m (: DKK ,m), including impairment
losses of DKK m (: DKK m).
Specification of amortization
(DKK million) 2024 2023
Cost of sales
Sales and distribution costs
Research and development costs
Administrative costs
Total 1,098 1,089
LEO Pharma Annual Report 2024 Financial statements
84
→ Consolidated financial statements
Statements
Parent Company financial statements
Note 3.1 Intangible assets (continued)
Accounting policies
Intellectual property rights
Amortization is provided on a straight-line basis over the expected useful
life of the assets and recognized in sales and distribution costs and
research and development costs in the income statement. Costs relating
to the maintenance of patents etc. are expensed in the income statement
as incurred.
Software purchased or internally developed is amortized on a straight-line
basis over the expected useful life. Amortization and impairment losses
are recognized in the income statement as administrative costs.
The expected useful lives are as follows:
Intellectual property rights - years
Software - years
Development projects and software in progress
Acquired or internal development projects and software in progress are
recognized as intangible assets if the recognition criteria are met:
• The projects are clearly defined and identifiable.
• The Group intends to use the projects once completed.
• The future earnings from the projects are expected to cover the devel-
opment and administrative costs.
• The cost can be reliably measured.
R&D intangible assets are capitalized as a development project when
milestone payments related to acquired clinical intellectual rights are
made with the intention to market the product at a future stage and it is
probable that future earnings can cover production, sales and distribu-
tion, administrative, as well as research and development costs.
Research costs are expensed in the income statement. The costs of soft-
ware in progress include direct salaries, materials and other direct costs
attributable to the development activities.
Consistent with industry practice, internal and subcontracted develop-
ment costs are expensed as incurred, due to significant regulatory uncer-
tainties inherent in developing new products. Once marketing approval by
a regulatory authority is obtained or considered highly probable, devel-
opment costs are capitalized as intangible assets.
Development projects are not amortized, as the assets are not available
for use.
Impairment testing: Goodwill and intangible assets under construction
are tested for impairment annually or if there are indications of impairment
during the year. If an impairment need is identified, the carrying amount is
written down to the recoverable amount, which is the higher of fair value
less costs of disposal and value in use.
Development projects are assessed on an ongoing basis taking due
account of development progress, expected approvals and commercial
utilization.
When assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the
risks specific to the asset for which the estimates of future cash flows have
not been adjusted.
Research and development costs: Research and development costs
comprise internal and external costs related to studies, employee costs,
materials, costs for subcontracted development activities, depreciation,
amortization, impairment losses and other directly attributable costs.
Key accounting judgments
Impairment testing, indicators
Management makes judgments to assess if there are any indications of
impairment. To identify indications of impairment, Management considers
the following events:
• Changes in patent and license rights
• Changes in expected future cash inflows to and outflows from the Group
• Research and development results
• Technological changes
• Development of competing products.
Key accounting estimates
Valuation of intangible assets
To determine the recoverable amount of intangible assets, the future cash
flows are discounted to present value by applying a discount rate that
reflects the risks associated with the cash flow. The expected future cash
flows are based on budgets and target plans for the patent period or
other applicable period for marketable products. The budgets and target
plans are based on Management’s expectations of current market condi-
tions and future growth expectations. Key factors estimated in the valua-
tion include discount rates and growth rates, working capital etc.
Estimated useful life
The useful life and amortization period are estimated individually in each
case and are initially assessed when the assets are acquired or brought
into use. The main factors in consideration are contractual terms that may
limit the useful life, the useful life of other assets to which the intangible
asset may relate and economic factors. Management assesses intangible
assets for changes in useful life on an annual basis.
LEO Pharma Annual Report 2024 Financial statements
85
→ Consolidated financial statements
Statements
Parent Company financial statements
Note 3.2 Property, plant and equipment
2024 2023
(DKK million)
Land and
buildings
Plant and
machinery
Other fixtures
and fittings,
tools and
equipment
Assets under
construction
Total
property,
plant and
equipment
Land and
buildings
Plant and
machinery
Other fixtures
and fittings,
tools and
equipment
Assets under
construction
Total
property,
plant and
equipment
Cost at January , , , , , , , ,
Exchange rate adjustment - -
Additions
Disposals () () () - () () () () () ()
Transfers () - ()
Cost at December 31 2,598 3,411 494 2,437 8,940 2,672 3,271 544 2,355 8,842
Depreciation and impairment losses
at January (,) (,) () - (,) (,) (,) () - (,)
Exchange rate adjustment () () () - () () () - - ()
Disposals -
Depreciation () () () - () () () () - ()
Impairment () - () - () - () () () ()
Depreciation and impairment losses
at December 31 (1,658) (2,454) (383) - (4,495) (1,665) (2,267) (394) - (4,326)
Carrying amount at December 31 940 957 111 2,437 4,445 1,007 1,004 150 2,355 4,516
Assets under construction mainly relate to the construction of a new production plant in Ballerup,
Denmark, at a carrying amount of DKK ,m (: DKK ,m) and construction related to
expansion of an existing plant in Ireland at a carrying amount of DKK m (: DKK m).
For capital commitments, please refer to Note . Guarantees, contingencies and commitments.
As at December , , assets at the Ballerup site in Denmark were pledged as collateral for
loans. The carrying amount of these assets was DKK ,m (: DKK ,m).
LEO Pharma Annual Report 2024 Financial statements
86
→ Consolidated financial statements
Statements
Parent Company financial statements
Note 3.2 Property, plant and equipment (continued)
Specification of depreciation and impairment
(DKK million) 2024 2023
Cost of sales
Sales and distribution costs
Research and development costs
Administrative costs
Total 333 535
Accounting policies
For self-constructed assets, cost comprises the direct costs of
materials, subsuppliers and salaries etc. The total cost of an asset is
broken down into components that are depreciated separately if the
expected useful life of the individual components is not the same.
If the recoverable amount of an asset is estimated to be less than
the carrying amount, an impairment is recognized. Impairment losses
are recognized in the respective function that the asset belongs to
on recognition, such as cost of sales, sales and distribution costs,
research and development costs, and adminitrative costs.
Depreciation is provided on a straight-line basis over the expected
useful life. The useful life is reassessed once a year to ascertain that
the depreciation profile reflects the expected useful life and future
residual value of the assets. Land is not depreciated.
The expected useful lives are as follows:
Buildings - years
Plant and machinery - years
Other fixtures and fittings, tools and equipment - years
Leasehold improvements are depreciated over the term of the leased
assets.
LEO Pharma Annual Report 2024 Financial statements
87
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Statements
Parent Company financial statements
Note 3.3 Leases
LEO Pharma`s leases mainly consist of property leases of e.g. offices and
cars.
Lease contracts are negotiated on an individual basis and contain a wide
range of different terms and conditions. Lease contracts are typically
signed for fixed periods. If a rental contract includes an extension option for
LEO Pharma, Management asseses whether it is reasonably certain that the
extention option will be utilized.
Right-of-use assets
2024 2023
(DKK million) Properties Cars etc. Total Properties Cars etc. Total
Carrying amount at January
Additions -
Remeasurements () - () () - ()
Disposals () () () - ()
Depreciation () () () () () ()
Impairment () - () - - -
Exchange rate adjustment - () () ()
Carrying amount at December 31 135 73 208 235 71 306
Lease liabilities
(DKK million) 2024 2023
Current
Non-current
Total 246 325
For a contractual maturity analysis of lease liabilities, refer to Note . Finan-
cial risks, Contractual maturity analysis for financial liabilities.
The cash flow statement for lease liabilities was impacted by DKK m
(: DKK m), of which DKK m (: DKK m) impacted the oper-
ating cash flows and DKK m (: m) impacted the cash flow from
financing activities.
Amounts expensed in the income statement
(DKK million) 2024 2023
Other operating income, net ()
Depreciation and impairment of
right-of-use assets () ()
Interest expense on lease liabilities () ()
Total (103) (121)
Variable lease payments, short-term leases and leases of low-value assets
were not material in and .
Depreciation is included in sales and distribution costs in the income state-
ment.
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88
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Statements
Parent Company financial statements
Accounting policies
On initial recognition, right-of-use assets correspond to the lease liability
recognized, adjusted for any lease prepayments, and including disman-
tling and restoration costs.
The lease payments include fixed payments less any lease incentives
receivable and variable lease payments. Variable lease payments that
are not included in the measurement of the lease liability are recognized
as expenses in the income statement.
The lease payments are discounted using the interest rate implicit in the
contract if the rate can be determined, or otherwise using LEO Pharma's
incremental borrowing rate that the subsidiaries would have to pay to
borrow the funds necessary to obtain the assets with similar character-
istics to the leased assets, in a similar economic environment and with
similar terms and conditions.
The consideration in the contract is allocated to the lease and non-lease
components based on their relative standalone prices. For some prop-
erty agreements, where lease and non-lease components cannot be
separated, non-lease components, i.e. the service elements, will form
part of the right-of-use asset and lease liabilities recognized in the
balance sheet.
For contracts with a rolling term (evergreen leases), the lease term is esti-
mated at five years. Properties of strategic importance are estimated
based on the time frame necessary to vacate the premises. The esti-
mated lease term is reassessed at each reporting date.
Depreciation follows the straight-line method over the lease term or the
useful life of the right-of-use asset, whichever is shorter.
Properties - years
Cars etc. - years
The Group applies the short-term lease recognition exemption to lease
contracts that, at the commencement date, have a lease term of
months or less for all classes of underlying assets, and the exemption
for lease contracts for which the underlying asset is of low value. Lease
payments on short-term leases and leases of low-value assets are
recognized as expenses on a straight-line basis over the lease term.
Note 3.3 Leases (continued)
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89
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Statements
Parent Company financial statements
The Group operates a number of pension plans with different characteristics
for certain groups of employees in various countries. The vast majority of
these pension plans are defined contribution plans.
Defined contribution plans
These plans are externally funded through payments of premiums to insur-
ance companies and pension funds that are legally separate from the
Group. The Group’s responsibility to current or former employees is limited to
the payment of the premium. Further information about the Group's contri-
butions for the year is provided in Note . Employee costs.
Defined benefit plans
For these plans the Group is responsible for the pension obligation to the
employees, which exposes the Group to actuarial risks, such as mortality,
interest rate and salaries. The plans entitle the employees to an annual
pension on retirement based on service and salary level up to retirement.
The Group operates defined benefit plans in a few countries, of which the
most significant are in Ireland and the UK.
The plans in Ireland and the UK are funded and constituted under a trust
whose assets are legally separate from those of the Group. Under the UK
scheme-funding regime, the trustees are required to undertake regular
scheme-funding valuations for the plans and to establish a schedule of
contributions and a recovery plan if there is a shortfall in the plans.
Other financial assets of DKK m (: DKK m), including bonds and
cash, have been pledged for the pension fund in Ireland. (See Note .
Financial assets and liabilities by category).
Note 3.4 Pensions
2024 2023
(DKK million)
Present value
of pension
obligations
Fair value of
plan assets
Net
obligations
Present value
of pension
obligations
Fair value of
plan assets
Net
obligations
Value at January , , () , , ()
Effect of exchange rate adjustment () ()
Current and past service costs - - - -
Interest on obligation/asset () ()
Total amount recognized in the income statement 80 89 (9) 69 77 (8)
Actuarial (gains)/losses on changes in
demographic assumptions () - () () - ()
Actuarial (gains)/losses on changes in financial assumptions () - () -
Actuarial (gains)/losses on experience adjustments () - () -
Return on plan assets - () - ()
Total amount recognized in other comprehensive income (88) (61) (27) 91 53 38
Benefits paid to employees () () () () () ()
Employer contributions - () - ()
Value at December 31 1,374 1,505 (131) 1,446 1,514 (68)
Recognized as
Non-current assets
Non-current liabilities
Total (131) (68)
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Statements
Parent Company financial statements
Note 3.4 Pensions (continued)
Accounting policies
Defined contribution plans
Payments to defined contribution plans are recognized in the income
statement in the period to which they relate, and any amounts payable
are recognized as other payables under current liabilities in the balance
sheet.
Defined benefit plans
Under defined benefit plans, the Group has an obligation to pay a
defined benefit on retirement. The actuarially calculated present value
less the fair value of any plan assets is recognized under pensions in the
balance sheet.
The present value is calculated on the basis of assumptions relating to
future developments in salary, interest rates, inflation, mortality and other
factors. The present value is calculated solely for the benefits to which
the employees have earned a right through their employment in the
Group. Plan assets are recognized to the extent that the Group is able to
obtain future economic benefits in the form of reimbursement from the
pension scheme or reduction of future payments. Pension costs for the
year are recognized in the income statement on the basis of actuarial
estimates and financial expectations at the beginning of the year. Actu-
arial gains and losses are recognized in other comprehensive income.
Past service costs are recognized in the income statement as incurred.
The value of the defined benefit plans is based on valuations from
external actuaries. The valuation is based on a number of actuarial
assumptions, including discount rates, expected return on plan assets,
expected growth in wages and salaries, mortality and retirement bene-
fits. The discount rate is the most significant assumption used in the
calculation of the obligation concerning defined benefit plans.
Key assumptions and sensitivity analysis
The most significant assumptions used in the calculation of the obligation
concerning defined benefit plans are the discount rates.
The average discount rate applied is .% (: .%).
(DKK million) 2024
Sensitivity analysis
Decrease of .% in discount rate
Increase of .% in discount rate ()
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Statements
Parent Company financial statements
Note 4.1 Trade receivables
Trade receivables arise primarily from sales of goods produced in-house,
invoicing for the licensing of intellectual property and sales-based royalty
income. The amounts due from customers include the net value of prod-
ucts sold, taking into account commercial discounts and chargebacks as
contractually agreed compensation to LEO Pharma's contract partners, as
well as credit notes for returned products as per contractual agreements.
LEO Pharma’s contracts with customers have initial payment terms that
range from to days.
(DKK million) 2024 2023
Trade receivables , ,
Allowances for expected credit loss () ()
Trade receivables at December 31 2,368 2,142
Movements in write-downs, which are
included in trade receivables
(DKK million) 2024 2023
Write-downs at January
Write-down recognized
Realized loss
Write-down reversals () ()
Write-downs at December 31 32 31
Accounting policies
On initial recognition, trade receivables are
measured at fair value, and subsequently at
amortized cost, which usually corresponds to the
nominal value less write-downs to counter the
risk of losses. Write-downs are calculated using
the ‘lifetime expected credit losses’ method.
The write-down amount is recognized in the
income statement under sales and distribution
costs.
The table below details the risk profile for trade receivables based on
the Group’s provision matrix. The Group’s historical credit losses do not
show different patterns for different customer segments. Historical credit
losses are assessed by country of incorporation.
Maturity analysis of trade receivables
(DKK million)
Expected
credit
loss rate
Gross
carrying
amount
Write-
downs
Carrying
amount
2024
Not due % , ,
- days past due % ()
- days past due %
- days past due % ()
More than days past due % ()
Trade receivables at December 31 2,400 (32) 2,368
2023
Not due % , ,
- days past due % ()
- days past due %
- days past due % ()
More than days past due % ()
Trade receivables at December 31 2,173 (31) 2,142
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Statements
Parent Company financial statements
Note 4.2 Inventories
Accounting policies
Inventories are measured at the lower of costs or net realizable value and
are assigned using the first-in, first-out (FIFO) cost formula.
Finished goods and work in progress comprise the cost of raw mate-
rials, consumables, direct labor and indirect production costs. Indirect
production costs comprise indirect consumables and labor, as well as
maintenance and depreciation of the machinery, factory buildings and
equipment used in the manufacturing process, and the costs of factory
administration and management.
The net realizable value of inventories is calculated as the sales price less
the costs of completion and the expenses incurred to effect the sale, and
is determined allowing for marketability, obsolescence and development
in expected sales price. Obsolete goods, including slow-moving goods,
are written down.
Key accounting estimates
Cost of inventories
Management uses the standard cost method to measure cost and
performs a yearly assessment to determine if this results in approximate
cost. The standard cost is adjusted if there are significant deviations.
Indirect production overheads are calculated on the basis of relevant
assumptions concerning capacity utilization, production time and other
relevant factors and allocated on the basis of the normal production
capacity.
Inventory write-down
Inventory provision involves assessing the value of inventory to ensure
it is reported at the lower of cost or net realizable value. This estimate
requires significant assumptions and analysis and by that the Group
considers market conditions, product demand and potential obsoles-
cence.
(DKK million) 2024 2023
Raw materials and consumables , ,
Work in progress , ,
Finished goods and goods for resale , ,
Total 4,973 4,866
Write-down, provision end of the period
Cost of goods sold included under cost of sales , ,
Note 4.3 Other payables
(DKK million) 2024 2023
Employee-related
Sales deductions
Accrued clinical trial expenses
Deferred revenue -
Financial derivatives
Public authorities
Royalties
Accounts and other payables
Total 2,621 2,150
Accounting policies
Other payables include liabilities that are settled on an ongoing basis
and due less than one year from the balance sheet date.
Other payables include amounts owed to employees, amounts owed
for the purchase of research and development projects, accrued
clinical trial expenses and sales deductions related to customer
programs contracted with specific customers. They also include
preregistered returns where the absolute amounts are known.
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Statements
Parent Company financial statements
Provisions in LEO Pharma are mainly assessed for sales deductions, product returns, restructuring programs, legal
disputes and onerous contracts.
(DKK million)
Sales
deductions
Product
returns
Employee-
related
provisions
Other
provisions
2024
Total
2023
Total
Provisions at January , ,
Exchange rate adjustment () ()
Additions , , ,
Utilization (,) () () () (,) (,)
Reversals () () () () () ()
Transfer - - - - - ()
Provisions at December 31 773 253 307 138 1,471 1,056
Of which classified as:
Non-current liabilities
Current liabilities ,
Provisions at December 31 773 253 307 138 1,471 1,056
Sales deductions and product returns are expected to be settled within a period of - years from delivery of the
related products.
In , LEO Pharma announced a restructuring program, recognized under additions to employee-related provisions,
of DKK m. Employee-related provisions are expected to be realized in -.
Note 4.4 Provisions
Accounting policies
Provisions are recognized when the Group has a
legal or a constructive obligation as a result of past
events and it is probable that there may be an
outflow of economic resources to settle the obliga-
tion. Provisions are measured as the best estimate
of the costs expected to settle the liabilities at the
balance sheet date.
Provisions mainly consist of sales deductions,
product returns, restructuring, legal disputes and
onerous contracts.
Provisions for unsettled sales deductions and
product returns where the timing and amount are
uncertain are recognized at the time the related
revenue is recognized.
Sales deductions and returns where absolute
amounts are known are recognized as other pay-
ables.
Provisions for restructuring mainly include emplo-
yee-related costs. These are recognized when a
constructive obligation exists, detailed restructuring
plans are in place and a valid expectation of those
affected has been raised.
Other provisions consist of provisions for legal
disputes, onerous contracts and other restructuring
provisions.
Key accounting estimates
Provisions for sales deductions
Provisions for sales deductions represent estimates
of the related obligations. Management’s esti-
mate of sales discounts and rebates is based on a
calculation that includes a combination of historical
utilization data, and expectations in relation to the
development in sales and rebate rates. Further-
more, specific circumstances regarding the different
programs are considered.
Sales discounts and rebates are predominantly
issued in the U.S. in connection with various
commercial arrangements, managed healthcare
organizations, co-pay arrangements and govern-
ment programs such as Medicaid and Medicare.
Estimates for these programs are most at risk of
material adjustment because of the extensive time
delay between recording the provision and its final
settlement.
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Statements
Parent Company financial statements
5 Capital structure
and financing
. Financial income and expenses
. Financial risks
. Derivative financial instruments
. Financial assets and liabilities by category
. Share capital
. Other comprehensive income
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Statements
Parent Company financial statements
The Group's interest expenses decreased in as a result of a loan from related parties being converted to equity
in late and reduced expenses related to fair value adjustment of cash-settled share-based incentive programs,
offset by increased interest expenses to financial institutions.
Total interest expenses on financial liabilities measured at amortized cost were DKK m (: DKK m), and other
financial expenses primarily comprised commitment fees related to the syndicated facility agreement.
Financial income and expenses
(DKK million) 2024 2023
Interest income
Gain arising on forward foreign exchange contracts -
Interest hedges -
Other financial income
Financial income 132 47
Interest expenses, related parties -
Interest expenses, credit institutions
Interest expense on lease liabilities
Loss arising on forward foreign exchange contracts -
Fair value adjustment of cash-settled share-based incentive programs
Foreign exchange loss, net
Other financial expenses
Financial expenses 946 1,140
Note 5.1 Financial income and expenses
Accounting policies
Financial income and expenses comprise interest, realized and unrealized exchange rate adjustments, fair
value adjustment of cash-settled share-based incentives programs, and fair value adjustments of financial
assets and liabilities.
Fair value adjustments of currency derivatives reclassified from other comprehensive income and fair value
adjustments recognized for fair value hedges are presented under Gain arising on forward foreign exchange
contracts in financial income or Loss arising on forward foreign exchange contracts in financial expenses.
Interest income and expenses from financial assets and liabilities are calculated using the effective interest
method. For instance, the value of a loan, which includes any potential establishment costs, is measued at
amortized cost and serves as the basis for calculating the reported interest.
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Statements
Parent Company financial statements
Note 5.2 Financial risks
LEO Pharma's worldwide operations, investments and financing activities expose the Group to a variety of financial risks. The Group's overall risk management
programs focus on the credit risk associated with trade receivables and the unpredictability of financial markets, and seek to minimize the potential adverse
effects on the Group's financial performance. Financial risk management is undertaken by the Group's Treasury department, subject to the objectives and
policies approved by the Board of Directors. The Treasury policies cover funding, trade credit, foreign exchange and interest risks. The Group uses derivative
financial instruments to hedge some risk exposures. The use of derivative financial instruments for speculative purposes is prohibited. The Treasury policies were
updated in with regard to interest interest exposure and interest hedging.
Financial risk Exposure Risk management policy Mitigating actions in 2024 Risk
Credit risk • The exposure arises primarily from
trade receivables
• The Group's credit policy defines
credit terms for sales
• Credit management is governed by
Group Treasury
• Credit rating of customers
• Non-recourse factoring program
Low
Liquidity risk • Loans and credit facilities
• Loan covenant on EBITDA for
selected established brands in
the product portfolio
• The Group's funding policy regulates
minimum available liquidity and
potential refunding processes for
loan facilities
• Diversified funding portfolio (syndi-
cated, mortgage, bank loans)
Medium
Interest rate risk • The main loans and credit facilities
are regulated at floating interest
rates
• Net interest-bearing debt (NIBD)
• The Group's interest hedging policy
defines the fixed interest duration on
future NIBD and reduces the risk of
volatile interest expenses
• Portfolio of interest rate swaps and
interest collars
Low
Foreign exchange risk • Based on the Group's revenue and
cost structure, the primary foreign
exchange exposures are related to
USD, CAD, GBP and CNY
On a standalone basis, EUR repre-
sents a significant exposure in terms
of transaction volume, without
material impact on the Group's risk
exposure
• External financing is denominated
in DKK
• The Group's hedging policy for
foreign exchange rates defines
hedging of financial and commer-
cial FX risks to reduce the potential
adverse short-term (up to months)
impact of FX fluctuation on opera-
tional cash flow
• Ongoing hedge of substantial
proportions of expected net cash
flow in foreign currencies, to secure
the EBITDA contribution of the mate-
rial currencies for the next months.
• Review of minor currencies
Low
Credit risk
Credit risk primarily refers to the potential losses or reduction in cash flow
in the event that customers are unable to fulfill their obligations in a timely
manner.
LEO Pharma´s trade receivables are spread across many counterparties and
customers, the Group therefore has no significant concentration of credit risk.
For selected global customers, LEO Pharma has implemented a non-re-
course factoring program that includes a credit insurance component. At
year-end, the Group had settled trade receivables, without recourse, with
due dates after December , totaling DKK m (: DKK m). Histor-
ically, realized losses on trade receivables have been insignificant. Please
refer to Note . Trade receivables.
A financial counterparty risk also arises when Group entities hold deposits
at financial institutions. To mitigate this risk, surplus cash positions in the
subsidiaries are centralized by Treasury and held in the current accounts of
subsidiaries. If a financial institution has a rating below Investment grade,
Group Treasury adopts a stricter policy of maintaining the lowest possible
bank balance.
Temporary cash positions and transactions involving derivative financial
instruments, which potentially can hold a positive value, are exclusively
conducted with banks that participate in the Group's syndicated loan
facility.
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Statements
Parent Company financial statements
Liquidity risk
The Group maintains a financial reserve to cover contractual obligations,
and holds sufficient liquidity reserves and available resources to explore
investment opportunities.
Liquidity reserves
The Group's liquidity reserves at December 31
(DKK million) 2024 2023
Cash and cash equivalents
Unused financing facilities , ,
Total 4,147 4,290
Financing facilities
In , the Group renegotiated the loan terms for the existing syndicated
facility, resulting in both an increase in the available credit facility of DKK
,m and improved loan terms. The improvements included a decrease
in the effective interest rate during the lifetime of the new arrangement as
well as a postponement of the loan termination date to January , .
The renegotiated terms were not assessed to be substantially different to
the previous loan terms, as the fair value of the liability before and after
the modification was not significantly changed. Under IFRS , a gain or loss
is recognized equal to the difference between the present value of the
cash flows under the original and modified terms, discounted at the orig-
inal effective interest rate. A gain of DKK m was recognized as a result of
the modification. Fees of DKK m relating to the modification have been
capitalized on the liability and amortized in financial expenses over the
extended lifetime of the facility.
The Group's syndicated facilty agreement includes loan covenant terms.
The loan covenant includes financial metrics linked to EBITDA for selected
established brands in the product portfolio. EBITDA for selected estab-
lished brands is measured quarterly to ensure ongoing compliance. As at
December , the carrying amount of loans subject to this covenant was
DKK ,m (: DKK ,m).
Based on the Group's financial plans and strategy for the coming financial
year, LEO Pharma's Management does not anticipate any difficulties in
meeting the covenant over the next months.
LEO Pharma has consistently met all covenant requirements through the
year.
Note 5.2 Financial risks (continued)
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Statements
Parent Company financial statements
Borrowing proceeds
2024 2023
(DKK million)
Borrowings,
January 1 Proceeds Repayments
Other
non-cash
items
Borrowings,
December 31
Borrowings,
January 1 Proceeds Repayments
Debt
conversion
Other
non-cash
items
Borrowings,
December 31
Loans and credit institutions , , (,) , , , () - () ,
Lease liabilities - () - () - ()
Loan from related parties - - - - - , - - (,) -
Total borrowings 10,994 1,390 (1,270) 48 11,162 14,613 2,750 (934) (5,555) 120 10,994
Of which
Classified as non-current , ,
Classified as current
Other non-cash items mainly comprise accrued interest expenses and amortization of costs and fees that are directly attributable to recognition of loans and exchange rate adjustments.
Contractual maturity analysis for financial liabilities
2024 2023
(DKK million)
Contractual
amount
Less than
1 year 1-5 years
More than
5 years
Contractual
amount
Less than
1 year 1-5 years
More than
5 years
Loans and credit institutions , , , , , ,
Lease liabilities
Trade and other payables , , - - , , - -
Other non-current liabilities - - - -
Total non-derivative financial liabilities 17, 8 10 4,305 10,723 2,782 18,323 4,186 2,583 11,554
Derivative financial liabilities 113 66 47 - 15 15 - -
Total financial liabilities at December 31 17,923 4,371 10,770 2,782 18,338 4,201 2,583 11,554
The maturity analysis is based on non-discounted contractual cash flows, including interest. Future interest payments are determined based on market expectations at December .
The analysis assumes that derivatives will be settled according to their contractual terms.
Note 5.2 Financial risks (continued)
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Statements
Parent Company financial statements
Interest rate risk
LEO Pharma`s major non-current loan related to the syndicated facility has
a floating interest rate. Fluctuations in interest rates pose a risk for financial
expenses. To mitigate the interest rate risk, LEO Pharma enters into interest
rate swaps, caps and collars as hedge instruments, subject to the Treasury
policy. The weighted average effective interest rate, including the hedging
instruments, for the utilized syndicated facility was .% in (: .%).
LEO Pharma designates the hedging instruments for interest rate risk as cash
flow hedges. No ineffectiveness was observed in or . The interest
rates on mortgage loans will be renewed in .
Sensitivity analysis for interest rate risk
A percentage point increase in floating interest rates would result in a net
increase in interest expenses in the income statement for the year of DKK
m (: DKK m) and increase other comprehensive income by DKK
m (: DKK m). The calculation applied in the sensitivity analysis is
based on LEO Pharma's interest-bearing debt and the change in fair value
of the interest hedging instruments as at December .
Net interest-bearing debt (NIBD)
The net interest-bearing debt (NIBD) is the interest-bearing liabilities less
cash and cash equivalents. The definition of NIBD was refined in . To
provide transparency, the Group discloses the comparative figures for
according to the new definition.
(DKK million) 2024 2023
Loans and credit institutions, , ,
Lease liabilities
Other non-current liabilities, interest-bearing
Cash and cash equivalents () ()
Net interest-bearing debt (NIBD) 11,115 10,956
Other non-current liabilities of DKK m in the consolidated balance sheet
(: DKK m) include DKK m (: DKK m) interest-bearing and
DKK m (: DKK m) non-interest bearing liabilities.
Note 5.2 Financial risks (continued)
Interest-bearing loans with banking partners
2024
(DKK million) Currency
Expiry of
commitment Fixed/floating
Weighted avg.
effective
interest rate (%) Amortized cost Nominal value Fair value
Syndicated facility DKK Floating . , , ,
Mortgage loans DKK Fixed - years . , , ,
Mortgage loans DKK Fixed - years . , , ,
Total 10,916 11,002 11,083
2023
(DKK million) Currency
Expiry of
commitment Fixed/floating
Weighted avg.
effective
interest rate (%) Amortized cost Nominal value Fair value
Syndicated facility DKK Floating . , , ,
Mortgage loans DKK Fixed - years . , , ,
Mortgage loans DKK Fixed - years . , , ,
Total 10,669 10,772 10,841
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Statements
Parent Company financial statements
Note 5.2 Financial risks (continued)
Foreign exchange risk
LEO Pharma is exposed to foreign exchange risk, related to commercial
transactions, primarily in USD, CAD, GBP and CNY. The Group's general
policy is to minimize this exposure by matching inflows and outflows and by
hedging a proportion of the unmatched flow, balance and cash positions
denominated in foreign currencies according to the Treasury policy.
The Group primarily uses FX forward contracts to hedge cash flows and
foreign currency balance sheet items. Cash flow hedges are made on a -
month rolling basis. LEO Pharma designates foreign exchange derivatives
as either cash flow or fair value hedges. Please refer to Note . Derivative
financial instruments.
Sensitivity analysis for foreign exchange risk
The sensitivity analysis below illustrates the potential impact on LEO Phar-
ma's income statement and equity of fluctuations in the key currencies to
which LEO Pharma is significantly exposed as at the balance sheet date. The
sensitivity analysis assumes an increase of % in the key currencies - USD,
CAD, CNY and GBP - and assumes that all other variables, including as
well as interest rates, remain unchanged. The sensitivity analysis comprises
cash and cash equivalents, current receivables, trade payables, current
and non-current loans, intercompany balances and forward exchange rate
contracts as at December .
Foreign currency sensitivity analysis
Sensitivity of an immediate % increase in key currencies on December ,
versus DKK:
2024 2023
Profit
or loss Equity
Profit
or loss Equity
USD () - () ()
CAD () - ()
CNY () () ()
GBP () () () ()
An immediate decrease of % would have the opposite impact.
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Statements
Parent Company financial statements
Note 5.3 Derivative financial instruments
Foreign exchange contracts
LEO Pharma hedges the forecast sales and purchases in foreign currency in
a layered strategy by covering the net exposure in the first coming quarter
by % and gradually reducing the cover ratio to % for the fifth coming
quarter.
Cash flow hedges
Highly probable forecast sales and purchases are essential terms when
executing hedge contracts for future cash flows. LEO Pharma performs
both quantitative and qualitative assessment of the effectiveness of cash
flow hedges. It is expected that the value of the hedged items will change
systematically in opposite directions of the value of the cash flow hedge.
Hedge effectiveness is assessed both retrospectively and prospectively.
The financial contracts are expected to impact the income statement for
the next months as the cash flow hedges mature and the fair value is
transferred from other comprehensive income to either financial income
or financial expenses. In , no ineffectiveness was observed relating to
contracts under hedge accounting. (: DKK m, recognized in the income
statement in financial expenses under loss arising on financial assets and
liabilities).
Fair value hedges
In , a fair value gain on forward foreign exchange contracts of DKK m
was recognized in the income statement under financial income (: loss
of DKK m recognized in financial expenses).
To mitigate the currency risks described in Note . Financial risks, LEO Pharma has entered into FX forward contracts as hedging instruments, maturing within
months from the balance sheet date.
Foreign exchange contracts
2024 2023
(DKK million)
Average
hedge rate
Contract
amount, net*
Fair value,
assets/(liabilities)
Average
hedge rate
Contract
amount, net*
Fair value,
assets/(liabilities)
Cash flow hedges
CNH . () ,
CAD . . ()
Other currencies, net N/A () N/A ()
Fair value hedges
USD . () . () ()
Other currencies, net N/A () N/A ()
Foreign exchange contracts
at December 31 11 (15)
* Positive contract amounts represent a sale of currencies vs DKK and negative contract amounts represent a purchase.
Interest rate hedges
2024 2023
(DKK million)
Notional value,
active interest
hedge
Notional value,
interest hedge
with forward
start
Average fixed
interest rate
Fair value,
assets/
(liabilities)
Notional value,
active interest
hedge
Average fixed
interest rate
Fair value,
assets/
(liabilities)
Cash flow hedges
Interest rate swap , , .% () - - -
Cap - - - - , .%
Collar , .% - .% () , ,%-,% ()
Total (75) 30
The interest rate caps and collars outstandings as at December , are denominated in DKK and mature between and .
LEO Pharma Annual Report 2024 Financial statements
103
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Statements
Parent Company financial statements
Note 5.3 Derivative financial instruments (continued)
Fair value adjustment
(DKK million) 2024 2023
Cash flow hedge - foreign exchange
Fair value adjustment for the year recog-
nized in other comprehensive income ()
Reclassified from equity to the income
statement (financial income/expenses) ()
Cash flow hedge - interest rate
Fair value adjustment for the year recog-
nized in other comprehensive income () ()
Reclassified from equity to the income
statement (financial income/expenses)
Fair value hedge - foreign exchange
Recognized in the income statement (finan-
cial income/expenses) ()
Adjustment of cash flow hedges in other
comprehensive income (122) (29)
Cash flow and fair value hedges recog-
nized in the income statement 83 45
Accounting policies
Derivative financial instruments
Derivative financial instruments are used to manage the exposure to
interest rate and foreign exchange rate risk. On initiation of the contract,
LEO Pharma designates each derivative financial contract as either a
hedge of the fair value of a recognized asset or liability (fair value hedge)
or as a hedge of a future transaction (cash flow hedge).
All contracts are initially recognized at fair value and subsequently
remeasured at fair value at the end of the reporting period. The resulting
gain or loss is recognized in the income statement immediately, unless
the derivative is designated and effected as a cash flow hedging instru-
ment. In this case the timing of the recognition in the income statement
depends on the nature of the hedge relationship.
Forward foreign exchange contract assets and liabilities are presented
as either other receivables or other payables in the balance sheet.
Hedge accounting
The fair value adjustment of qualifying hedging instruments is recognized
in the income statement when the hedging instrument is designated as a
fair value hedge.
Value adjustments of the effective part of cash flow hedges are recog-
nized in equity through other comprehensive income. The cumulative
value adjustment of these contracts is reclassified from other compre-
hensive income to financial income/financial expenses in the income
statement.
Discontinuation of hedge accounting
When a hedging instrument expires or is terminated but the hedge still
meets the criteria for hedge accounting, any cumulative gain or loss
existing in equity at that time remains in equity and is reclassified to
financial income/financial expenses when the forecast transaction is
ultimately recognized in the income statement.
If a forecast transaction is no longer expected to occur, the cumulative
gain or loss that was reported in equity is immediately reclassified to the
income statement under financial income or financial expenses.
LEO Pharma Annual Report 2024 Financial statements
104
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Statements
Parent Company financial statements
Note 5.4 Financial assets and liabilities by category
The financial assets and liabilities presented in the balance sheet can be categorized as follows:
(DKK million) 2024 2023
Financial assets
Cash and bank balances
Trade and other receivables , ,
Other financial assets
Financial assets at amortized cost 3,008 2,865
Other financial assets
Derivative instruments in designated fair
value hedging relationship
Financial assets at fair value
through profit or loss 134 108
Derivative instruments in designated cash
flow hedging relationship
Financial assets at fair value through other
comprehensive income 10 37
Total financial assets 3,152 3,010
(DKK million) 2024 2023
Financial liabilities
Trade and other payables , ,
Bank loans (current and non-current) , ,
Mortgage loans , ,
Lease liabilities (current and non-current)
Other non-current liabilities
Financial liabilities at amortized cost 15,311 14,820
Derivative instruments in designated fair
value hedge relationship
Financial liabilities at fair value
through profit or loss 7 18
Derivative instruments in designated cash
flow hedging relationship
Financial liabilities at fair value through
other comprehensive income 106 10
Total financial liabilities 15,424 14,848
Fair value measurements
The financial assets and liabilities measured or disclosed at fair value can be
categorized in the following table of fair value hierarchy:
(DKK million) Level 1 Level 2 Level 3
2024
Other financial assets - -
Derivative instruments - -
Total financial assets
at fair value 95 49 -
Bank loans - , -
Mortgage loans - , -
Derivative instruments - -
Total financial liabilities
at fair value - 11,196 -
2023
Other financial assets - -
Derivative instruments - -
Total financial assets
at fair value 102 43 -
Bank loans - , -
Mortgage loans - , -
Derivative instruments - -
Total financial liabilities
at fair value - 10,869 -
LEO Pharma Annual Report 2024 Financial statements
105
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Statements
Parent Company financial statements
Note 5.4 Financial assets and liabilities by category (continued)
Accounting policies
Transaction costs that are directly attributable to the acquisition or issue
of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit and loss) are added to or
deducted from the fair value of the financial assets or financial liabilities
on initial recognition.
Financial assets
Financial securities in LEO Pharma primarily consist of bonds. Investments
in bonds are subsequently measured at fair value through profit and loss.
Financial liabilities
LEO Pharma's liabilities to credit institutions and banks are recognized
at the borrowing date at fair value of the proceeds received less trans-
action costs paid. Subsequently, the financial liabilities are measured
at amortized cost, corresponding to the capitalized amount calculated
using the effective interest rate. The difference between the proceeds
and the nominal value is recognized in the income statement throughout
the duration of the loan.
Fair value hierarchy
Financial instruments measured at fair value can be divided into three
categories:
Level 1 Quoted prices (unadjusted) in active markets for identical assets
or liabilities. If a financial instrument is quoted in a market that is not
active, LEO Pharma bases its valuation on the most recent transaction
price. Adjustment is made for subsequent changes in market conditions,
for instance by including transactions in similar financial instruments
assumed to be motivated by normal business considerations.
Level 2 Observable input. If an active market does not exist, the fair value
of financial instruments is based on observable input for the asset or
liability, either directly (i.e. prices) or indirectly (i.e. derived from prices).
Forward foreign exchange contracts, interest rate swaps, currency swaps
and unlisted bonds are measured according to generally accepted valu-
ation techniques, where market-based parameters are used to measure
the fair value.
Level 3 Inputs for assets or liabilities that are not based on observable
market data.
LEO Pharma Annual Report 2024 Financial statements
106
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Statements
Parent Company financial statements
Note 5.5 Share capital
The Board of Directors and Executive Management regularly review LEO
Pharma's capital and debt structure. The overall goal is to maintain a
balance between debt and equity that ensures financial stability and opti-
mizes the company's cost of capital.
2024
The share capital comprises ,, shares at a nominal value of DKK
. The share capital is divided into ,, A-shares and ,,
B-shares. Each A-share carries votes and each B-share carries one vote.
During , a capital increase was recognized related to share-based
payments. The capital increase was due to subscription of new B-shares
under LEO Pharma's Employee Share Purchase Plan, not actual 'payments'.
Please refer to Note . Share-based payment.
No shares or shareholders have any additional special rights.
2023
The share capital comprised ,, shares at a nominal value of DKK .
The share capital was divided into ,, A-shares and ,,
B-shares. Each A-share carries votes and each B-share carries one vote.
During , capital increases were carried out through a capital injection
of DKK m and conversion of shareholder loans to equity, increasing
the share capital by ,, shares of DKK per share amounting to
DKK ,m, including share premium.
Share capital and treasury shares
Number of shares A-shares B-shares Total
2024
Number of shares at January ,, , , ,,
Capital increase - , ,
Number of shares at December 31 155,343,654 227,985,321 383,328,975
2023
Number of shares at January ,, ,, ,,
Capital increase ,, ,, ,,
Number of shares at December 31 155,343,654 227,70 0, 2 3 3 383,043,887
Treasury shares
(DKK million) 2024 2023
Number of treasury shares at January , -
Additions during the year , ,
Disposals during the year () -
Number of treasury shares at December 31 214,995 123,745
Acquisition of treasury shares relates to employee shares bought back from employees no longer
working at LEO Pharma. Total acquired treasury shares during the year amounted to DKK m
(: DKK m). As at December , the total holding of treasury shares amounted to .% (:
.%) of the total share capital.
Accounting policies
Equity reserves
Cash flow hedges: Includes the accumulated
net change in the fair value of cash flow hedges
qualifying for hedge accounting.
Currency translation: Includes foreign exchange
differences that arise when translating the
financial statements of foreign subsidiaries from
their functional currency to the presentation
currency of LEO Pharma (DKK). Also includes
foreign exchange adjustments of balances that
are considered part of the total net investment
in foreign entities.
Other capital: Includes fair value adjustment
of LEO Pharma's equity-settled share-based
payment arrangements.
Treasury shares: Cost of acquisition as well as
proceeds from sale of treasury shares are recog-
nized directly in equity as retained earnings.
LEO Pharma Annual Report 2024 Financial statements
107
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Statements
Parent Company financial statements
Note 5.6 Other comprehensive income
Other comprehensive income
2024 2023
(DKK million)
Currency
translation
Cash flow
hedges
Retained
earnings Total
Currency
translation
Cash flow
hedges
Retained
earnings Total
Remeasurement of defined benefit pension obligations - - - - () ()
Foreign exchange adjustments, subsidiaries () - - () () - - ()
Fair value adjustment of cash flow hedges - () - ( ) - () - ()
Cash flow hedges reclassified to financial expenses - - - -
Tax on other comprehensive income - () -
Other comprehensive income/(loss) for the year (31) (95) 2 3 ( 103) (80) (23) (30) (133)
LEO Pharma Annual Report 2024 Financial statements
108
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Statements
Parent Company financial statements
6 Other
disclosures
. Management remuneration
. Share-based payment
. Guarantees, contingencies and commitments
. Fees to statutory auditors
. Other cash flow specifications
. Related party transactions
. Events after the balance sheet date
. Company overview
LEO Pharma Annual Report 2024 Financial statements
109
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Statements
Parent Company financial statements
Note 6.1 Management remuneration
Remuneration of the Board of Directors and Executive Management
(DKK million) Salaries Bonus Pensions
Share-based
payments
Total
remune ration
excluding
severance
payments
Severance
payments
Total
remuneration
after
severance
payments
2024
CEO -
CFO -
Other members of
Global Leadership Team
Board of Directors - - - -
Total 38 42 5 14 99 6 105
2023
CEO -
CFO -
Other members of
Global Leadership Team
Board of Directors - - -
Total 41 35 6 16 98 68 166
For a list of members of the Board of Directors and Executive Management,
please refer to Section Corporate matters: Board of Directors and Global
Leadership Team.
Executive Management
Salaries include base salaries and various allowances for car, internet etc.
Bonus includes short-term incentives and extraordinary one-off bonuses.
The share-based incentive program is linked to successful transformation of
the company and an IPO.
Fair value remeasurement of financial liabilities from historical programs
(-) for key management, including Executive Management, totaled
DKK m (: DKK m). The total fair value remeasurement of finan-
cial liabilities, including employees other than Executive Management, is
included in Note . Financial income and expenses and Note . Related
party transactions.
Board of Directors
Members of the Board of Directors receive fixed remuneration.
Selected members of the Board of Directors have purchased and been
awarded warrants as part of the Management Incentive Program totaling
DKK m (: DKK m).
LEO Pharma Annual Report 2024 Financial statements
110
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Statements
Parent Company financial statements
Note 6.2 Share-based payment
Reconciliation of outstanding employee awards
2024 2023
Number of matching shares
ESPP
(equity-
settled)
EPSPP
(cash-
settled)
ESPP
(equity-
settled)
EPSPP
(cash-
settled)
Outstanding at January 1 617,175 40,075 740,920 45,504
Granted , , - -
Forfeited (,) (,) (,) (,)
Outstanding at December 31 811,013 64,284 617,175 40,075
Weighted average remaining contractual life (years)
Liability at December 31 (DKK million) - 4 - 2
LEO Pharma offers all employees the opportunity to participate in share-
based incentive programs. There is one program covering all employees
(Employee Share Purchase Program) and one for selected members of
Management (Management Incentive Program).
The intrinsic value at December , of the liability related to vested
phantom shares was DKK m (: DKK m). Total expenses recog-
nized in for share-based payment transactions in the income state-
ment amounted to DKK m (: DKK m), of which DKK m was fair
value adjustment to the cash-settled program recognized under financial
expenses (: DKK m). The cost of DKK m (: DKK m) arose from
equity-settled share-based payment transactions.
Employee Share Purchase Plan (ESPP & EPSPP)
The Group launched voluntary employee share-based programs in both
and , giving employees the opportunity to buy shares ('employee
shares'). To participate in the plan, the employees are required to invest % of
their base salary over months into shares and will receive matching shares
at vesting. In addition, employees receive the right to an additional matching
share for each employee share bought, subject to continued employment,
vesting toward a potential public listing. A further requirement for vesting is a
fair value of LEO Pharma of at least the same as the subscription price (
program: at least . times the subsciption price). In the event of non-listing,
the shares vest after eight years ( program: years) and will be cash-
settled. Management considers it more likely than not that a listing will
be completed within the coming years, and thus takes into consideration
matching shares that would otherwise not be cash-settled as equity-settled
programs.
Measurement of fair value of employee matching shares granted during the year
ESPP
(equity-
settled)
EPSPP
(cash-
settled)
Date of grant / /
Fair value at grant date (DKK/share) . .
Expected volatility (weighted average) .% .%
Expected life (years, weighted average)
Expected dividend - -
Risk-free interest rate . - .% . - .%
The programs are split into both equity-settled programs (ESPP) and
cash-settled programs (EPSPP); the latter are used where there are local
restrictions on employee shares or equity-settled programs. Both types
follow the same vesting conditions, vesting periods, requirements etc.
Measurement of fair value
The fair value of granted awards is estimated using a binomial valuation
model of market conditions considering the terms and conditions upon
which the awards were granted, except for vesting conditions. The inputs
used in the measurement of the fair values at the grant date of the share-
based payment plans and at the reporting date for cash-settled plans were
as follows:
LEO Pharma Annual Report 2024 Financial statements
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Statements
Parent Company financial statements
Note 6.2 Share-based payment (continued)
Accounting policies
For equity-settled share-based payment arrangements, the warrants
and shares granted are measured at fair value at grant date and
recognized as employee costs over the vesting period with a corre-
sponding entry in equity reserves. On initial recognition, an estimate
is made of the number of awards expected to vest. Subsequently,
the amount recognized is adjusted to reflect the number of awards
for which the service and non-market performance conditions are
expected to be met and awards expected to vest.
For cash-settled share-based payment arrangements, the awards
measured at grant value are recognized as employee costs over the
vesting period against a liability in the balance sheet. The liability is
remeasured at each reporting date and ultimately at settlement date
at fair value. Any changes in the liability as a result of the remeas-
urement to fair value are recognized in the income statement under
financial expenses.
Measurement of fair value
The fair value of awards is estimated using a binomial valuation model of
market conditions taking into account the terms and conditions. Expected
volatility has been based on an evaluation of the historical volatility of
comparable companies’ share prices. This was based on a standard devi-
ation of weekly returns over a five-year period. The expected term of the
instruments has been based on projected exit date and probabilities and
estimates assessed by Management.
Management Incentive Program (MIP & MIP Phantom)
Members of Management receive warrants as a part of their long-term
incentive program. They must remain employed by the Group until the
vesting date. The market condition of the warrants stipulates a fair value
increase in LEO Pharma shares of at least . times the subscription price
and an exercise cap of three times the subscription value. In the event of
non-listing, the warrants become exercisable after seven years and will be
cash-settled. Management considers it more likely than not that a listing
will be successful within the coming years. It is therefore concluded that the
warrants should be classified as equity-settled.
The programs are split into both equity-settled programs (MIP) and
cash-settled programs (MIP Phantom); the latter are used where there are
local restrictions on employee shares or equity-settled programs. Both types
follow the same vesting conditions, vesting periods, requirements etc.
Reconciliation of outstanding Management awards
2024 2023
Number of warrants
Average
exercise price
(EUR)
MIP
(equity-
settled)
MIP
Phantom
(cash-settled)
MIP
(equity-
settled)
MIP
Phantom
(cash-settled)
Outstanding at January . ,, ,, ,, ,,
Granted . , - ,, ,
Forfeited . (,) (,) (,) (,)
Outstanding at December 31 6.42 6,590,441 4,796,184 6,252,300 5,017,258
Number exercisable at December - - - -
Weighted-average remaining contractual life (years)
Liability at December 31 (DKK million) - 225 - 198
Measurement of fair value of Management awards granted during the year
MIP
(equity-
settled)
Date of grant /
Fair value at grant date (DKK/share) . to .
Expected volatility (weighted average) .%
Expected life (years, weighted average)
Expected dividend -
Risk-free interest rate .% - .%
LEO Pharma Annual Report 2024 Financial statements
112
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Statements
Parent Company financial statements
Note 6.3 Guarantees, contingencies and commitments Note 6.4 Fees to statutory auditors
Guarantees
The majority of the guarantees in LEO Pharma pertain to guarantees issued
to banks providing financing to LEO Pharma. The total guarantee commit-
ments for LEO Pharma amounted to DKK m at December , (:
DKK m).
Contractual obligations and commitments
The table below shows contractual obligations not recognized in the consol-
idated financial statements.
(DKK million) 2024 2023
Intangible assets
Property, plant and equipment
Total 131 559
The commitments related to intangible assets comprise milestone payments
concerning the development of new products and intellectual prop-
erty rights from acquisitions. Commercial milestones, royalties and other
payments based on a percentage of sales generated from sales of goods
following marketing approval are excluded from the contractual commit-
ments because of their contingent nature related to future sales.
The commitments regarding property, plant and equipment relate primarily
to the expansion of production facilities.
LEO Pharma has agreements with a number of Contract Manufacturing
Organizations (CMOs), whereby these organizations provide API and other
materials for LEO Pharma's products based on forecasts from LEO Pharma.
Should actual market demand fall short of these forecasts provided to
CMOs, LEO Pharma is obligated to pay for any surplus materials from the
CMOs or fees for excess capacity reservation.
LEO Pharma's Management continuously evaluates demand forecasts. If
materials at CMOs exceed the volumes expected to be used or the capacity
reserved exceeds submitted forecasts, LEO Pharma recognizes a provision.
Pending lawsuits
At the end of , there were pending lawsuits filed by and against LEO
Pharma concerning rights and claims related to products in LEO Pharma’s
portfolio. LEO Pharma does not expect these or other pending cases to have
any significant effect on the Group’s financial position.
LEO Pharma is involved in a number of legal proceedings. In the opinion of
Management, the outcome of these proceedings is not currently assessed
to have a material impact on the financial position or cash flows. Such
proceedings may, however, develop over time, and new proceedings may
occur which could have a material impact on LEO Pharma’s financial posi-
tion and/or cash flows.
Tax
As a global business, LEO Pharma will from time to time have tax audits, and
engages in discussions with tax authorities in various jurisdictions on a range
of tax matters, transfer pricing and indirect taxes.
Fees to statutory auditors
(DKK million) 2024 2023
Statutory audit
Other assurance services
Tax advisory services
Other services
Total 13 10
LEO Pharma Annual Report 2024 Financial statements
113
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Statements
Parent Company financial statements
Note 6.5 Other cash flow
specifications
Note 6.6 Related party transactions
(DKK million) 2024 2023
Other non-cash adjustments:
Gain/(loss) on sale of non-current assets () ()
Change in provisions ()
Change in other non-current liabilities
Change in provision for defined benefit
plans ()
Change in inventory write-downs ()
Change in provision for bad debt ()
Share-based payments ()
Other non-cash adjustments ()
Total 319 (48)
Change in working capital
Change in inventories () ()
Change in receivables, prepaid expenses
etc. ()
Change in trade payables and other
payables ()
Total 474 (509)
Transactions with related parties
(DKK million) 2024 2023
LEO Foundation
Interest payment by LEO Pharma - ()
Other income
LEO Holding A/S
Conversion of shareholder loan to equity - ,
Capital increase -
Tax settlement
Interest payment by LEO Pharma - ()
Receivables regarding joint taxation
Nordic Capital (Cidron Savanna SARL)
Capital increase -
Board of Directors
Reimbursement of travel expenses etc. () ()
Purchased and awarded warrants - ()
Other expenses ()
LEO Pharma A/S's controlling owner, LEO Holding A/S and the ultimate
parent of the Group, the LEO Foundation, own .% of the share capital
(% of the votes). Nordic Capital, through Cidron Savanna SARL, owns
.% of the share capital, representing % of the voting rights.
The LEO Pharma Group is included in the consolidated financial statements
of the LEO Foundation.
LEO Pharma owns % of the voting shares in Skinvision B.V. and thus has
significant influence over this company. The investment is classified as an
associate in the consolidated financial statements. There were no transac-
tions with Skinvision B.V. in or .
LEO Pharma A/S' related parties also comprise the members of the LEO
Foundation’s Board of Trustees and Executive Board, and of LEO Pharma
A/S’ and LEO Holding A/S’ Board of Directors and Executive Management,
as well as close relatives of these persons.
Selected members of the Board of Directors have purchased and been
awarded warrants as part of the Management Incentive Program Purchase
totaling DKK m (: DKK m).
Please refer to Note . Management remuneration and Note . Share-
based payment regarding other transactions with the Board of Directors.
LEO Pharma Annual Report 2024 Financial statements
114
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Statements
Parent Company financial statements
Note 6.7 Events after the
balance sheet date
Note 6.8 Company overview
On January , , LEO Pharma announced that the Group had entered
into a strategic partnership with Gilead, to accelerate development of LEO
Pharma’s STAT program. The upfront payment received in January
amounted to DKK .bn (USD m).
No other significant events have occurred after the balance sheet date.
Activities
Country
Share of
ownership (%)
Sales and
distribution Production
Marketing &
services Other
Parent Company
LEO Pharma A/S Denmark
Subsidiaries
SARL LEO Pharma
Algeria
LEO Pharma Pty Ltd Australia
LEO Pharma GmbH Austria
LEO Pharma N.V. Belgium
LEO Pharma LTDA Brazil
LEO Pharma Inc. Canada
LEO Pharma Consultancy Company Ltd. China
LEO Pharma Trading Company Ltd. China
LEO Pharma s.r.o. Czech Republic
Løvens Kemiske Fabriks Handelsaktieselskab Denmark
LEO Pharma OY Finland
Laboratoires LEO S.A.S France
LEO Pharma GmbH Germany
LEO Pharmaceutical Hellas S.A. Greece
DKLEO Pharma Private Limited
India
LEO Laboratories Ltd. Ireland
Wexport Ltd. Ireland
LEO Pharma Holding Ltd. Ireland
LEO Pharma Manufacturing Italy S.R.L. Italy
LEO Pharma S.p.A. Italy
LEO Pharma Annual Report 2024 Financial statements
115
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Statements
Parent Company financial statements
Activities
Country
Share of
ownership (%)
Sales and
distribution Production
Marketing &
services Other
LEO Pharma K.K. Japan
LEO Pharmaceuticals, S. de R.L. de C.V. Mexico
LEO Pharma LLC
Morocco
LEO Pharma BV Netherlands
LEO Pharma Ltd. New Zealand
LEO Pharma AS Norway
LEO Pharma Sp. z o.o. Poland
LEO Pharma Global Business Service Center Sp. z o.o. Poland
LEO Farmacêuticos Lda. Portugal
LEO Pharmaceutical Products LLC Russia
LEO Pharma Yuhan Hoesa South Korea
Laboratorios LEO Pharma S.A. Spain
LEO Pharma AB Sweden
LEO Pharmaceutical Products Sarath Ltd. Switzerland
LEO Pharma SARL
Tunisia
LEO Laboratories Ltd. United Kingdom
LEO Pharma Inc. USA
Timber Pharmaceuticals Inc. USA
LEO US Holding Inc. USA
Associates
SkinVision B.V. Netherlands
) Under liquidation.
Note 6.8 Company overview (continued)
LEO Pharma Annual Report 2024 Financial statements
116
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Statements
Parent Company financial statements
Statements08.
Statement of the Board of Directors and
Executive Management
Independent Auditor's report
Independent Auditor’s Limited Assurance Report
on the selected ESG data
Management's statement
and Auditor's reports
LEO Pharma Annual Report 2024 Financial statements Consolidated financial statements
→ Statements
Parent Company financial statements
117
Statement of the Board of Directors and
Executive Management
Registered Executive Management:
Board of Directors:
LEO Pharma Annual Report 2024 Financial statements Consolidated financial statements
→ Statements
Parent Company financial statements
118
Philip Eickhoff
Independent Auditor's report
LEO Pharma Annual Report 2024 Financial statements Consolidated financial statements
→ Statements
Parent Company financial statements
119
Identification No (MNE) m ne 25299
Identification No (MNE) m ne 34532
LEO Pharma Annual Report 2024 Financial statements Consolidated financial statements
→ Statements
Parent Company financial statements
120
LEO Pharma Annual Report 2024 Financial statements Consolidated financial statements
→ Statements
Parent Company financial statements
121
Business Registration No. 33 96 35 56
Identification No (MNE) m ne 25299
Identification No (MNE) m ne 34532
LEO Pharma Annual Report 2024 Financial statements Consolidated financial statements
→ Statements
Parent Company financial statements
122
Income statement
January - December
(DKK million) Note 2024 2023
Revenue . , ,
Cost of sales ., ., . (, ) (, )
Gross profit 3,939 3,517
Sales and distribution costs ., ., . (,) (,)
Research and development costs ., ., . (,) (,)
Administrative costs ., ., ., . () (,)
Other operating income, net
Operating profit/(loss) (3,079) (4,176)
Income from investments in subsidiaries . , ,
Financial income .
Financial expenses . () (,)
Profit/(loss) before tax (2,495) (3,390)
Income tax . ()
Net profit/(loss) for the year (1,801) (3,640)
LEO Pharma Annual Report 2024 Financial statements Consolidated financial statements
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124
Balance sheet
at December
(DKK million) Note 2024 2023
Assets
Intangible assets . , ,
Property, plant and equipment . , ,
Investments in subsidiaries . , ,
Deferred tax assets .
Pensions
Other financial assets
Non-current assets 13,791 13,266
Inventories . , ,
Loans to subsidiaries , ,
Trade receivables
Receivables from subsidiaries
Tax receivables
Other receivables
Prepaid expenses
Other securities
Cash
Current assets 6,395 6,673
Assets 20,186 19,939
(DKK million) Note 2024 2023
Equity and liabilities
Share capital
Net revaluation, subsidiaries , ,
Reserves
Retained earnings (,)
Equity 2,642 4,488
Loans and credit institutions . , ,
Provisions .
Tax payables
Other non-current liabilities
Non-current liabilities 10,938 10,921
Loans and credit institutions .
Trade payables
Provisions .
Loans from subsidiaries ,
Payables to subsidiaries , ,
Tax payables
Other payables . ,
Current liabilities 6,606 4,530
Liabilities 17,5 44 15,451
Equity and liabilities 20,186 19,939
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125
Statement of changes in equity
January - December
2024 2023
Reserves Reserves
(DKK million)
Share
capital
Net
revaluation,
subsidiaries
Cash flow
hedges
Other
capital
Development
projects
Retained
earnings Total
Share
capital
Net
revaluation,
subsidiaries
Cash flow
hedges
Other
capital
Development
projects
Retained
earnings Total
Equity at January , , , , (,) ,
Net profit/(loss) for the year - , - - - (, ) (,) - , - - - (, ) (,)
Foreign exchange rate adjustment,
subsidiaries - ( ) - - - - () - () - - - - ()
Dividend received from subsidiaries - () - - - - ( , ) , -
Other movements in subsidiaries - () - - - - - () - - - -
Capitalized development costs, net - - - - () - - - - - () -
Deferred gains/(losses) on financial
instruments - - () - - - ( ) - - () - - - ()
Remeasurement of defined benefit
obligations - - - - () - ( ) - - - () ()
Tax on changes in equity - () - - - - -
Transactions with owners
Capital increase - - - - - - - - , ,
Purchase of treasury shares - - - - - () () - - - - - () ()
Share-based payment - - - - - - - - - -
Total transactions with owners 0 - - 38 - 20 58 6 2 - - 27 - 6,23 0 6, 319
Equity at December 31 383 4,048 (75) 99 637 (2,450) 2,642 38 3 2,877 20 6 1 8 95 252 4, 48 8
LEO Pharma Annual Report 2024 Financial statements Consolidated financial statements
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126
1 Basis of reporting
. Accounting policies
2 Operating profit
. Revenue
. Employee costs
. Tax
. Proposed distribution of net profit/(loss)
for the year
3 Invested capital
. Intangible assets
. Property, plant and equipment
. Investments in subsidiaries
4 Operating assets and liabilities
. Inventories
. Other payables
. Provisions
5 Capital structure and financing
. Financial income and expenses
. Loans and credit institutions, and
other non-current liabilities
6 Other disclosures
. Share-based payment
. Guarantees, contingencies and commitments
. Contractual obligations
. Other notes
Notes to the Parent Company financial statements
LEO Pharma Annual Report 2024 Financial statements Consolidated financial statements
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127
Basis of preparation
The Parent Company’s financial statements are presented in accordance
with the Danish Financial Statements Act for companies in reporting class C
(large).
Adjustment to prior year
LEO Pharma A/S has updated the inventory value related to capital-
ized purchase price variances and direct and indirect production costs
presented in the balance sheet in . The updated assessment impacts
the following line items in the Parent financial statements:
• Assets: Investments in subsidiaries increased from DKK ,m to DKK
,m
• Assets: Inventories decreased from DKK ,m to DKK ,m
• Equity: Net revaluation, subsidiaries increased from DKK ,m to DKK
,m
• Equity: Retained earnings decreased from DKK m to DKK m
• Income statement: Cost of sales decreased from DKK ,m to DKK
,m
• Income statement: Income from investments in subsidiaries decreased
from DKK ,m to DKK ,m.
LEO Pharma has updated the assessment of the functional split of costs
in the income statement. LEO Pharma's Management believes that these
updates improve the comparability of our financial statements and align our
reporting practice with industry standards and best practices. The updated
allocation of operational costs among the functions impacts the following
line items in the income statement for :
• Cost of sales decreased from DKK ,m to DKK ,m
• Sales and distribution costs increased from DKK ,m to DKK.,m
• Research and development costs increased from DKK ,m to DKK
,m
• Administrative costs decreased from DKK ,m to DKK ,m.
The reassessment has no impact on the operating profit/(loss).
Accounting policies
The accounting policies of the Parent Company are consistent with the
accounting policies of the Group, except for IFRS Leases and the treat-
ment of goodwill. In addition, the policies described below have been imple-
mented for the Parent Company. The accounting policies are unchanged
from last year.
Genaral information
In accordance with the exemption clauses in Section () and Section ()
of the Danish Financial Statements Act, no separate cash flow statement or
disclosure of audit fee has been prepared for the Parent Company.
Goodwill
Goodwill is measured at cost less accumulated amortization and impair-
ment. Amortization is calculated using the straight-line method over the
expected useful life, estimated at years. This estimate was made on the
basis of the estimated useful lives of the other assets acquired in the trans-
action.
Investments in subsidiaries
In the Parent Company’s financial statements, investments in subsidiaries
and associates are recognized according to the equity method. The share
of the results of subsidiaries less unrealized intra-group gains is recognized
in the Parent Company’s income statement. Net revaluation of investments
in subsidiaries exceeding the dividend declared by such companies is
recognized in equity as reserve for net revaluation according to the equity
method.
Tax
The Parent Company, the Danish subsidiary and LEO Holding A/S are jointly
taxed. The Parent Company and its Danish subsidiary settle the tax with the
owner and the administration company, LEO Holding A/S. The current Danish
tax is allocated between the jointly taxed companies in proportion to their
taxable income.
Equity, reserve for development costs
The reserve for internal development costs comprises capitalized devel-
opment costs. This reserve cannot be used for dividends or distributions or
to cover losses. If the recognized development costs are sold or otherwise
excluded from the company’s operations, the reserve will be dissolved
and transferred directly to the distributable reserves under equity. If the
recognized development costs are written down, the part of the reserve
corresponding to the write-down of the development costs will be reversed.
If a write-down of development costs is subsequently reversed, the reserve
will be re-established. The reserve is reduced by amortization of capitalized
development costs on an ongoing basis.
Note 1.1 Accounting policies
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129
The specific regions presented below in the geographical revenue split are
based on the Group's model in the consolidated financial statements.
(DKK million) 2024 2023
Revenue by region
Europe , ,
North America , ,
Rest of world , ,
Total 13,298 11,497
Revenue by category
Products , ,
Sales-based royalties
Total 13,298 11,497
For a description of the Parent Company’s remuneration of the Board of
Directors and Executive Management, please refer to Note . Employee
costs and Note . Management remuneration in the consolidated financial
statements.
(DKK million) 2024 2023
Wages and salaries , ,
Pensions
Share-based payment
Social security expenses
Other employee expenses
Total employee costs for the year 1,292 1,460
Of which capitalized as intangible assets () ()
Total employee costs in the income state-
ment 1,273 1,432
Employee costs included in:
Cost of sales
Sales and distribution costs
Research and development costs
Administrative costs
Total 1,273 1,432
Average number of full-time employees 1,189 1,410
(DKK million) 2024 2023
Current tax for the year
Change in deferred tax ()
Prior-year adjustments, current tax ()
Prior-year adjustments, deferred tax
Total tax income/(expense) for the year 722 (242)
Tax for the year is included in:
Tax on profit/(loss) for the year ()
Tax on changes in equity
Total tax income/(expense) for the year 722 (242)
(DKK million) 2024 2023
Deferred tax assets/(liabilities) at January
Adjustment relating to previous years
Deferred tax on other
comprehensive income ()
Deferred tax on profit for the year ()
Deferred tax assets/(tax liabilities)
at December 31 746 373
Note 2.1 Revenue Note 2.2 Employee costs Note 2.3 Tax
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131
(DKK million) 2024 2023
Net revaluation for the year , ,
Retained earnings (,) (,)
Total (1,801) (3,640)
Note 2.4 Proposed distribution
of net profit/(loss)
for the year
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132
Note 3.1 Intangible assets
2024 2023
(DKK million) Goodwill
Intellec-
tual
property
rights Software
Develop-
ment
projects
and soft-
ware in
progress
Total
intangible
assets Goodwill
Intellec-
tual
property
rights Software
Develop-
ment
projects
and soft-
ware in
progress
Total
intangible
assets
Cost at January , , , , , ,
Additions - - - - - -
Disposals - - () () () - - () () ()
Transfers - () - - - () ()
Cost at December 31 192 14,012 2,534 121 16,859 192 13,912 2,885 209 17,198
Amortization and impairment losses
at January () (,) (,) () (,) () (,) (,) () (,)
Amortization () () () - (,) () () () - (,)
Impairment - - () () () - () - () ()
Disposals - - - -
Amortization and impairment
losses at December 31 (69) (10,256) (1,645) (103) (12,073) (56) (9,519) (1,679) (9) (11,263)
Carrying amount at December 31 123 3,756 889 18 4,786 136 4,393 1,206 200 5,935
(DKK million) 2024 2023
Amortization is specified as follows:
Cost of sales
Sales and distribution
Research and development costs
Administrative costs
Total 1,100 1,091
Please refer to Note . Intangible assets in the consolidated financial
statements.
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134
Note 3.2 Property, plant and equipment
(DKK million) 2024 2023
Depreciation and impairment losses are
specified as follows:
Cost of sales
Sales and distribution costs
Research and development costs
Administrative costs
Total 146 191
Fixed assets under construction mainly relate to the construction of a new
plant in Ballerup, Denmark, at a carrying amount of DKK ,m (: DKK
,m). The new plant is expected to start production in .
Assets pledged as collateral for loans amounted to DKK ,m (: DKK
,m).
2024 2023
(DKK million)
Land and
buildings
Plant and
machinery
Other
fixtures
and
fittings,
tools and
equipment
Assets
under con-
struction
Total
property,
plant and
equipment
Land and
buildings
Plant and
machinery
Other
fixtures
and
fittings,
tools and
equipment
Assets
under con-
struction
Total
property,
plant and
equipment
Cost at January , , , , , , , ,
Additions - - - -
Disposals - - () - () () () () - ()
Transfers - - () - ()
Cost at December 31 1,209 1,421 325 1,855 4,810 1,209 1,407 379 1,767 4,762
Depreciation and impairment
losses at January , () (,) () - (,) () (,) () - (,)
Disposals - - - -
Depreciation () () () - () () () () - ()
Impairment - - () - () - () () - ()
Depreciation and impairment
losses at December 31 (770) (1,170) (272) - (2,212) (745) (1,083) (295) - (2,123)
Carrying amount at December 31 439 251 53 1,855 2,598 464 324 84 1,767 2,639
LEO Pharma Annual Report 2024 Financial statements Consolidated financial statements
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135
(DKK million) 2024 2023
Cost at January , ,
Additions -
Disposals () ()
Other movements
Cost at December 31 1,408 1,379
Value adjustment at January , ,
Exchange rate adjustment () ()
Share of profit/(loss) for the year , ,
Dividend () (,)
Other movements () ()
Value adjustment at December 31 4,048 2,877
Carrying amount at December 31 5,456 4,256
Note 3.3 Investments in
subsidiaries
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136
(DKK million) 2024 2023
Raw materials and consumables
Work in progress , ,
Finished goods and goods for resale
Total 2,982 3,227
(DKK million) 2024 2023
Accrued clinical trial expenses
Employee-related
Sales deductions
Financial derivatives
Accrued interest
Royalties
Public authorities -
Accounts and other payables
Total other payables 1,315 988
Note 4.1 Inventories
Note 4.2 Other payables
Note 4.3 Provisions
(DKK million)
Employee-
related
provisions
Other
provisions
Sales
deductions
2024
Total
2023
Total
Provisions at January -
Exchange rate adjustment () - ()
Additions
Utilization () () () ()
Reversals - () - () ()
Transfer - - ()
Provisions at December 31 74 105 5 184 116
Of which classified as:
Non-current liabilities - -
Current liabilities
Provisions at December 31 74 105 5 184 116
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138
(DKK million) 2024 2023
Interest income, related parties
Other interest income
Gain arising on forward foreign exchange
contracts -
Interest hedges -
Other financial income
Financial income 253 126
Interest expenses, related parties
Interest expenses, credit institutions
Loss arising on forward foreign exchange
contracts -
Fair value remeasurement (non-cash) of
share-based incentive plans
Foreign exchange losses, net
Other financial expenses
Financial expenses 925 1,162
Other financial expenses primarily comprise commitment fees related to the
syndicated facility agreement.
(DKK million) 2024 2023
Bank loans , ,
Mortgage loans , ,
Other non-current liabilities
Total 11,209 10,991
Falling due:
In less than one year
Between one and five years ,
After five years , ,
Total 11,209 10,991
Cash resources and financing facilities
In , LEO Pharma renegotiated the loan terms in the existing syndicated
facility agreement, which resulted in both an increase of DKK ,m in
the available credit-facility and improved loan terms. The improvements
included a decrease in the effective interest rate as well as an extension of
the loan termination date to January , .
The renegotiated terms were not assessed to be substantially different to
the previous loan terms, as the fair value of the liability before and after the
modification was not significantly changed. Please refer to Note . Finan-
cial risks in the consolidated financial statements.
Note 5.1 Financial income
and expenses
Note 5.2 Loans and credit institutions,
and other non-current liabilities
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140
The description of share-based payment arrangements, including terms
and conditions, measurement of grant date fair value etc. for share-based
payment arrangements in LEO Pharma A/S, is the same as for the Group in
the consolidated financial statements.
Please refer to Note . Share-based payment in the consolidated financial
statements.
Financial impact
The intrinsic value at December , of the liability related to vested
phantom shares was DKK m (: DKK m).
Total expenses recognized in from share-based payment transactions
in the income statement amounted to DKK m (: DKK m), of which
DKK m was fair value adjustments of the cash-settled program recog-
nized under financial expenses (: DKK m). The cost of DKK m (:
DKK m) arose from equity-settled share-based payment transactions.
Note 6.1 Share-based payment
Reconciliation of outstanding employee awards
2024 2023
Number of matching shares
ESPP
(equity-
settled)
EPSPP
(cash-
settled)
ESPP
(equity-
settled)
EPSPP
(cash-
settled)
Outstanding at January , , , ,
Granted , , - -
Forfeited (,) (,) (,) (,)
Outstanding at December 31 481,675 12,944 380,564 8,275
Weighted average remaining contractual life (years)
Liability at December 31 (DKK million) - 1 - 0
Reconciliation of outstanding Management awards
2024 2023
Number of warrants
Average
exercise price
(EUR)
MIP
(equity-
settled)
MIP
Phantom
(cash-settled)
MIP
(equity-
settled)
MIP
Phantom
(cash-settled)
Outstanding at January . ,, ,, ,, ,,
Granted . , - ,, ,
Forfeited . (,) (,) (,) (,)
Outstanding at December 31 6.42 5,132,537 3,882,724 4,753,137 3,909,093
Number of exercisable at December - - - -
Weighted average remaining contractual life (years)
Liability at December 31 (DKK million) - 182 - 154
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142
Note 6.2 Guarantees, contingencies and commitments
Guarantees
The total guarantee commitment for the Parent Company amounted to DKK
m (: DKK m) at December , , including guarantees issued
to subsidiaries of DKK m (: DKK m), of which DKK m related to
pension obligations (: DKK m).
In addition to the guarantees for subsidiaries, the Parent Company has
issued guarantees related to various commercial activities.
Contractual obligations and commitments
The table below shows contractual obligations not recognized in the Parent
Company's financial statements.
(DKK million) 2024 2023
Intangible assets
Property, plant and equipment
Total 108 476
The commitments relating to intangible assets comprise milestone
payments concerning development of new products and intellectual prop-
erty rights from acquisitions. Commercial milestones, royalties and other
payments based on a percentage of sales generated from sales of goods
following marketing approval are excluded from the contractual commit-
ments because of their contingent nature related to future sales.
The commitments regarding property, plant and equipment relate primarily
to the construction of a new production plant in Ballerup, Denmark. At
December , , there were pending lawsuits filed by and against LEO
Pharma A/S concerning rights and claims related to products in LEO Phar-
ma’s portfolio. LEO Pharma A/S does not expect the pending cases to have
any significant effect on the Parent Company’s financial position.
LEO Pharma A/S is involved in a number of legal proceedings. In the opinion
of Management, the outcome of these proceedings will not have a mate-
rial impact on the financial position or cash flows. Such proceedings will,
however, develop over time, and new proceedings may occur which could
have a material impact on LEO Pharma’s financial position and/or cash
flows.
Tax
The Parent Company is jointly taxed with its Danish subsidiary and its owner,
LEO Holding A/S. The Parent Company is jointly and severally liable together
with the other companies in the joint taxation scheme for Danish corporate
taxes and withholding taxes on dividends, interest and royalties.
LEO Pharma A/S is jointly registered for VAT purposes with LEO Holding A/S
and Løvens Kemiske Fabriks Handelsaktieselskab and is therefore jointly
liable for the payment of VAT.
As a global business, LEO Pharma will from time to time have tax audits and
discussions with tax authorities in various countries regarding tax issues,
including transfer pricing and indirect tax issues. For a description of uncer-
tain tax positions, please refer to Note . Income tax in the consolidated
financial statements.
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143
Operating lease obligations
The Parent Company had lease obligations of DKK m (: DKK m), of
which DKK m related to lease of office premises from a subsidiary (:
DKK m).
For financial risks, please refer to Note . Financial risks in the consolidated
financial statements.
For disclosures on assets measured at fair value, please refer to Note .
Financial assets and liabilities in the consolidated financial statements.
For related party transactions, please refer to Note . Related party trans-
actions in the consolidated financial statements.
For events after the balance sheet date, please refer to Note . Events after
the balance sheet date in the consolidated financial statements.
Note 6.3 Contractual obligations Note 6.4 Other notes
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144
Financial terms used in the Annual Report
Organic revenue growth (%)
Please refer to Note . Non-IFRS measures.
Gross margin (%)
Reported gross profit as a percentage of revenue.
EBITDA and EBITDA margin (%)
Please refer to Note . Non-IFRS measures.
Adjusted EBITDA and adjusted EBITDA margin (%)
Please refer to Note . Non-IFRS measures.
Operating profit/(loss) (EBIT)
Reported operating profit: earnings before financial income and expenses
and tax.
Effective tax rate (%)
Income tax as a percentage of profit/(loss) before tax.
R&D costs as % of revenue
Research and development costs as percentage of revenue.
Operating net working capital
Inventories and trade receivables (before provision for bad debt) less trade
payables.
Net working capital
Current assets less current liabilities used in or necessary for the Group's
operations.
Net interest-bearing debt (NIBD)
Please refer to Note . Financial risks.
Free cash flow
Please refer to Cash flow statement.
Executive Management
Executive Management is defined as the CEO and direct reports with
management responsibilities who are part of the Global Leadership Team.
Please refer to Section Corporate matters, Global Leadership Team.
Average number of full-time employees (FTE)
Calculated as the average of the number of permanent employees at the
end of each month.
Sustainability statement – Average number of employees (headcount)
Calculated as the rolling months by calculating the headcount for each
end of a month during the reporting period. Includes all active employees
who are employed by LEO Pharma at the end of each month. Excludes
externals and employees on garden leave.
Sustainability statement – Total number of employees (headcount)
Calculated based on headcount as of December . Includes all active
employees who are employed by LEO Pharma on this day and excludes
externals and employees on garden leave.
Glossary
LEO Pharma Annual Report 2024 Financial statements
145
Consolidated financial statements
Statements
Parent Company financial statements
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