CORPORATE RELEASE
AUGUST 20, 2024
Corporate Release No 760/2024
Page 1
Financial report for the period January 1 to June 30, 2024
Lundbeck raised financial guidance following strong growth
(+19% CER) from strategic brands, on path towards
becoming a Focused Innovator
Key highlights
Lundbeck’s total revenue grew by +10% CER
1
(+8% DKK) to DKK 10,741 million in the first six months of 2024, with all
regions contributing to growth
• United States: DKK 5,307 million (+11% CER; +11% DKK)
• Europe: DKK 2,517 million (+10% CER; +8% DKK)
• International Markets: DKK 2,795 million (+8% CER; +2% DKK)
The revenue of Lundbeck’s strategic brands increased by +19% CER (+18% DKK), reaching DKK 7,799 million,
representing 73% of total revenue
• Rexulti®: DKK 2,381 million (+13% CER; +12% DKK)
• Brintellix®/Trintellix®: DKK 2,351 million (+11% CER; +9% DKK)
• Abilify Maintena®/Asimtufii: DKK 1,725 million (+9% CER; +9% DKK)
• Vyepti®: DKK 1,342 million (+78% CER; +77% DKK)
Adjusted EBITDA
2
increased to DKK 3,365 million (+5% CER; +1% DKK) reflecting the strong revenue growth across all
strategic brands. Adjusted EBITDA margin reached 31.3% equivalent to a decrease of 2.1 percentage points due to
higher raw material and manufacturing costs, increasing share of Vyepti® on cost of sales as well as unfavorable
currency and hedging effects.
Adjusted earnings per share (EPS) reached DKK 2.64 (+7%).
Lundbeck’s President and CEO, Charl van Zyl said:
”I am pleased to present an excellent performance for the first half of 2024, driven by the continued strong performance
of our strategic brands allowing us to raise the guidance. I am particularly pleased with the performance of Vyepti® and
Rexulti® as well as with the scientific innovation that we continue to drive with the aim of discovering new treatments
for neuro-rare and neuro-specialty conditions. Recently, the FDA accepted the brexpiprazole PTSD submission and Lu
AG13909 has advanced into the second investigational study with the initiation of a trial in Cushing's disease.”
Key figures
1
Change at CER (Constant Exchange Rates) does not include effects from hedging.
2
EBITDA refers to Earnings Before Interest, Taxes, Depreciation and Amortization. Adjusted EBITDA is defined as EBITDA adjusted by certain items, for details see section 4
Notes, note 3 Adjusted EBITDA.
DKK million
H1 2024
H1 2023
Change
(CER)
1
Change
(DKK)
Q2 2024
Q2 2023
Change
(CER)
1
Change
(DKK)
Revenue
10,741
9,982
10%
8%
5,453
4,938
13%
10%
EBITDA
3,217
3,078
9%
5%
1,471
1,334
17%
10%
Adjusted EBITDA
3,365
3,338
5%
1%
1,619
1,493
14%
8%
EPS (DKK)
1.79
1.49
20%
0.78
0.60
30%
Adjusted EPS (DKK)
2.64
2.47
7%
1.26
1.11
14%
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 2
Recent events
On July 31, 2024, Lundbeck announced that in support of its Focused Innovator strategy aiming to create financial
flexibility and reallocate resources to other growth opportunities, it has been agreed with Takeda Pharmaceutical
Company Limited (Takeda) to modify the current collaboration in the U.S. from a co-promotion, cost-sharing, revenue-
sharing, and royalty setup to a royalty-based model effective January 1, 2025. Consequently, effective from January 1,
2025, Lundbeck will cease all promotional efforts for Trintellix® (vortioxetine) in the U.S. This will enable Lundbeck to
fully reallocate resources to other growth opportunities, including Rexulti® in the U.S. and thereby further accelerate
growth for these products. As part of the agreement, Lundbeck will receive a fixed, undisclosed royalty rate based on
net sales in the U.S. for 2025 and 2026. This agreement does not impact any other geographies where Trintellix® is
marketed. The agreement is expected to have only a limited impact on revenue and adjusted EBITDA and will therefore
not change the financial guidance for 2024 nor is it expected to change Lundbeck’s mid-term targets as communicated
in February 2023.
On June 25, 2024, Lundbeck and Otsuka Pharmaceutical Co., Ltd. announced the U.S. Food and Drug Administration
(FDA) has determined that the supplemental New Drug Application (sNDA) for brexpiprazole in combination with
sertraline for the treatment of adults with post-traumatic stress disorder (PTSD) is sufficiently complete to permit a
substantive review. The FDA has assigned the application for a Prescription Drug User Fee Act (PDUFA) target action
date of February 8, 2025. If approved, brexpiprazole in combination with sertraline could represent an important
advancement over the current standard of care for PTSD patients and their caregivers.
On June 19, 2024, it was announced that Lundbeck has explored a new area in neurohormonal dysfunctions by initiating
a phase II trial using Lu AG13909 as a potential treatment for Cushing’s disease, a serious condition which can have
debilitating effects if left untreated. This marks a significant step in the advancement of Lundbeck’s pipeline to deliver
innovative solutions to serve areas of high unmet need. Earlier on June 3, 2024, Lundbeck presented the first in human
trial of Lu AG13909 for the treatment for congenital adrenal hyperplasia (CAH), a rare debilitating disease with excess
morbidity and mortality, at ENDO 2024 in Boston. The development of Lu AG13909, a first-in-class monoclonal
antibody, demonstrates Lundbeck's ability to harness our industry-leading understanding of biology and disease
pathways within brain health to lead to the innovation of breakthrough medicines in complex areas such as neuro-rare.
Financial guidance 2024 raised
On August 20, 2024, Lundbeck communicated that the full year revenue and adjusted EBITDA outlook at CER have
been raised.
The revenue growth is expected to be 11% to 14% at CER, previously 7% to 10% at CER, when compared to revenue of
the prior year excluding the effect from hedging. The adjusted EBITDA growth is expected to be 15% to 20% at CER,
previously 10% to 16% at CER, when compared to adjusted EBITDA of the prior year excluding effects from hedging.
Further details are available in section 2.8 Outlook.
Conference call
Tomorrow at 13.00 CET, Lundbeck will be hosting a conference call for the financial community. You can find dial-ins
and a link for webcast online at www.lundbeck.com under the Investor section.
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 3
CONTENT
1 Financial highlights .................................................................................................................... 4
2 Business performance ............................................................................................................... 5
2.1 Revenue by product .................................................................................................................... 5
2.2 Revenue by geographical area ..................................................................................................... 7
2.3 Gross profit ................................................................................................................................ 8
2.4 EBIT and adjusted EBITDA ........................................................................................................... 9
2.5 Net profit and adjusted EPS ...................................................................................................... 10
2.6 Cash flow and balance sheet .................................................................................................... 11
2.7 Summary of key developments in the second quarter of 2024 ..................................................... 12
2.8 Outlook ................................................................................................................................... 13
2.9 Lundbeck’s development portfolio ............................................................................................ 15
2.10 Sustainability update .............................................................................................................. 17
2.11 General corporate matters ...................................................................................................... 18
3 Condensed financial statements ............................................................................................... 22
4 Notes ....................................................................................................................................... 27
Financial calendar 2024 ............................................................................................................... 29
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 4
1 FINANCIAL HIGHLIGHTS
DKK million
H1 2024
H1 2023
Change
(CER)
1
Change
(DKK)
Revenue
10,741
9,982
10%
8%
Gross profit
8,676
7,803
14%
11%
Gross margin
80.8%
78.2%
Adjusted gross profit
2
9,515
8,975
8%
6%
Adjusted gross margin
88.6%
89.9%
Sales and distribution costs
3,794
3,501
10%
8%
S&D ratio
35.3%
35.1%
Administrative expenses
738
564
31%
31%
Administrative expenses ratio
6.9%
5.7%
Research and development costs
1,862
1,665
12%
12%
R&D ratio
17.3%
16.7%
EBIT (profit from operations)
2,282
2,073
17%
10%
EBIT margin
21.2%
20.8%
EBITDA
3
3,217
3,078
9%
5%
EBITDA margin
30.0%
30.8%
Adjusted EBITDA
4
3,365
3,338
5%
1%
Adjusted EBITDA margin
31.3%
33.4%
Net financials, (income)/expenses
(25)
138
-
118%
Profit before tax
2,307
1,935
-
19%
Income taxes
531
455
-
17%
Effective tax rate (reported)
23.0%
23.5%
Net profit
1,776
1,480
-
20%
Adjusted net profit
2,621
2,457
-
7%
Other key numbers
Assets
39,087
37,242
-
5%
Equity
23,222
21,572
-
8%
Cash flows from operating and investing activities
(free cash flow)
1,933
1,384
-
40%
Net cash flow for the period
1,149
134
-
757%
Return on invested capital – rolling four quarters
11.8%
11.2%
Net debt/EBITDA – rolling four quarters
(0.3)
0.3
-
(200%)
Number of shares for the calculation of EPS (millions)
991.7
992.5
-
0%
Earnings per share, basic (EPS) (DKK)
1.79
1.49
-
20%
Adjusted earnings per share, basic (DKK)
2.64
2.47
-
7%
1
Change at CER (Constant Exchange Rates) does not include effects from hedging.
2
Adjusted gross profit is the gross profit excluding depreciation and amortization and other adjustments linked to sales.
3
EBITDA refers to Earnings Before Interest, Taxes, Depreciation and Amortization.
4
EBITDA refers to Earnings Before Interest, Taxes, Depreciation and Amortization. Adjusted EBITDA is defined as EBITDA adjusted by certain items, for details see section 4
Notes, note 3 Adjusted EBITDA.
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 5
2 BUSINESS PERFORMANCE
2.1 REVENUE BY PRODUCT
Revenue reached DKK 10,741 million representing a
growth of +10% CER (+8% DKK). All regions
contributed to the strong growth in strategic brands of
+19% CER (+18% DKK) reaching DKK 7,799 million and
equivalent to 73% of total revenue. Approximately 67%
of the strategic brand growth can be attributed to the
strong performance of Brintellix
®
in Europe of +16%
CER (+14% DKK) and U.S. growth for Vyepti
®
+68% CER
(+68% DKK) and Rexulti
®
+11% CER (+11% DKK) based
on overall demand and market share growth. The
largest markets for the strategic brands are the U.S.,
Canada, Spain, Italy and France.
DKK million
H1 2024
H1 2023
Growth
(CER)
Growth
(DKK)
Q2 2024
Q2 2023
Growth
(CER)
Growth
(DKK)
Rexulti
®
2,381
2,135
13%
12%
1,266
1,075
18%
18%
Brintellix
®
/Trintellix
®
2,351
2,156
11%
9%
1,183
1,079
12%
10%
Abilify Maintena
®
/Asimtufii
1,725
1,584
9%
9%
866
799
8%
8%
Vyepti
®
1,342
757
78%
77%
725
406
78%
79%
Strategic brands
7,799
6,632
19%
18%
4,040
3,359
21%
20%
Cipralex
®
/Lexapro
®
1,116
1,200
1%
(7%)
498
536
1%
(7%)
Other pharmaceuticals
1,704
2,024
(13%)
(16%)
854
951
(8%)
(10%)
Mature brands
2,820
3,224
(8%)
(13%)
1,352
1,487
(5%)
(9%)
Other revenue
157
132
20%
19%
87
69
28%
26%
Total revenue before hedging
10,776
9,988
10%
8%
5,479
4,915
13%
11%
Effects from hedging
(35)
(6)
(26)
23
Total revenue
10,741
9,982
10%
8%
5,453
4,938
13%
10%
Strategic brands
Rexulti
®
(brexpiprazole) is approved as an adjunctive
therapy for the treatment of adults with major
depressive disorder (MDD), for the treatment of adults
with schizophrenia as well as agitation associated with
dementia due to Alzheimer’s disease (AADAD) in the
U.S. Rexulti
®
is approved as an adjunctive therapy for
the treatment of adults with MDD and schizophrenia in
Brazil and Canada. In Canada, the product is
additionally approved for the treatment of Agitation
associated with Alzheimer’s Disease. Moreover,
Rexulti
®
is approved for schizophrenia in Australia and
Europe. Revenue reached DKK 2,381 million
representing a growth of +13% CER (+12% DKK). In the
U.S., revenue growth was driven by robust underlying
demand growth in MDD partially attributed to the
reinitiation of the Direct-to-consumer (DTC) campaign
at the end of February 2024 and continued strong
uptake in AADAD which now constitutes
approximately 14% of sales in the U.S. In Europe and
International Markets, sales growth was primarily
driven by increased demand and market share gains in
countries such as Canada and Brazil. The revenue
distribution by region was 92%, 1% and 7% in the U.S.,
Europe and International Markets, respectively. The
largest markets are the U.S., Brazil, Canada, Australia
and Mexico.
Brintellix
®
/Trintellix
®
(vortioxetine) is approved for the
treatment of MDD. Revenue reached DKK 2,351 million
representing a growth of +11% CER (+9% DKK),
contributed by all regions, with strong performance
primarily in Europe and International Markets, mainly
driven by continued higher demand in markets such as
Spain, Italy and Japan. In the U.S., sales growth was
driven by the effect of price increase and higher
inventory levels, partially offset by lower demand. The
revenue distribution by region was 31%, 36% and 33%
in the U.S., Europe and International Markets,
respectively. The largest markets for the product are
the U.S., Spain, Canada, Italy and Brazil.
Abilify Maintena
®
(aripiprazole) is approved for the
treatment of schizophrenia in Europe and for both
schizophrenia and bipolar I disorder as a once-
monthly injection in the U.S., Canada and Australia. In
April 2023, FDA approved aripiprazole as an every-two-
months injection branded as Abilify Asimtufii
®
which
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 6
was launched in the U.S. in June 2023. In March 2024,
the European Commission approved Abilify
Maintena
®
960 mg (aripiprazole) as a once-every-two-
months long-acting injectable formulation for the
maintenance treatment of schizophrenia in adult
patients stabilized with aripiprazole. This applies to all
European Union members as well as Iceland, Norway
and Liechtenstein. Revenue for Abilify Maintena
®
and
Abilify Asimtufii
®
reached DKK 1,725 million
representing a growth of +9% CER (+9% DKK)
contributed by all regions. In the U.S., sales growth
was primarily driven by a combination of continued
higher demand and price increase as well as positive
trend in Abilify Asimtufii
®
. In Europe, sales growth was
driven by higher demand with solid contribution from
Spain, France, Belgium and Poland. The continued
demand uptake in Canada and Australia also
contributed strongly to International Markets sales
growth. The revenue distribution by region was 37%,
45% and 18% in the U.S., Europe and International
Markets, respectively. The largest markets are the
U.S., Spain, Canada, Australia and Italy.
Vyepti
®
(eptinezumab) is approved as a preventive
treatment of migraine in adults and has established a
global presence since its initial U.S. launch in April
2020. Vyepti
®
continued to deliver strong growth in the
first six months of 2024 and revenue reached DKK
1,342 million following an increase of +78% CER (+77%
DKK) across all regions. Vyepti
®
sales growth was
mainly driven by continued demand uptake with strong
performance in the U.S., France and Canada, followed
by launches across the world. In the U.S., Vyepti
®
had
8.7% of the prevention market by late May. Vyepti
®
has
been launched in approximately 30 markets
worldwide. Vyepti
®
expanded access for Canadian
patients with migraine in October 2023. The revenue
distribution by region was 88%, 8% and 4% in the U.S.,
Europe and International Markets, respectively.
Mature brands
Cipralex
®
/Lexapro
®
(escitalopram) is approved for the
treatment of MDD. Revenue reached DKK 1,116 million
representing a growth of +1% CER (-7% DKK) mainly
due to strong in-market sales in China and price
increase in Turkey due to inflation, partially offset by
continued erosion in Japan and Switzerland. The
revenue distribution by region was 70% and 30% in
International Markets and Europe, respectively. The
largest markets are China, Brazil, Italy, South Korea
and Saudi Arabia.
Revenue from Other pharmaceuticals, which
comprises the remainder of Lundbeck’s products,
reached DKK 1,704 million representing a decline of
-13% CER (-16% DKK), mainly due to lower sales of
certain mature products such as Northera
®
,
Sabril
®
and
Deanxit
®
. As of January 1, 2024, Sabril
®
is being
reported together with Other pharmaceuticals,
comparative figures for 2023 have been adjusted
accordingly. The largest markets for Other
pharmaceuticals are the U.S., China, France, South
Korea and Mexico.
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 7
2.2 REVENUE BY GEOGRAPHICAL AREA
DKK million
H1 2024
H1 2023
Growth
(CER)
Growth
(DKK)
Q2 2024
Q2 2023
Growth
(CER)
Growth
(DKK)
United States
Rexulti
®
2,189
1,980
11%
11%
1,171
1,001
16%
17%
Vyepti
®
1,180
704
68%
68%
636
376
68%
69%
Trintellix
®
727
695
5%
5%
369
357
3%
3%
Abilify Maintena
®
/Asimtufii
641
580
11%
11%
340
298
13%
14%
Strategic brands
4,737
3,959
20%
20%
2,516
2,032
23%
24%
Mature brands
570
828
(31%)
(31%)
293
418
(30%)
(30%)
Revenue – United States
5,307
4,787
11%
11%
2,809
2,450
14%
15%
Europe
Brintellix
®
847
745
16%
14%
424
374
15%
13%
Abilify Maintena
®
780
715
8%
9%
380
360
5%
6%
Vyepti
®
103
27
281%
281%
58
15
287%
287%
Rexulti
®
35
28
29%
25%
17
15
20%
13%
Strategic brands
1,765
1,515
17%
17%
879
764
16%
15%
Mature brands
752
818
(3%)
(8%)
390
395
3%
(1%)
Revenue – Europe
2,517
2,333
10%
8%
1,269
1,159
11%
9%
International Markets
Brintellix
®
/Trintellix
®
777
716
13%
9%
390
348
17%
12%
Abilify Maintena
®
304
289
7%
5%
146
141
4%
4%
Rexulti
®
157
127
31%
24%
78
59
42%
32%
Vyepti
®
59
26
127%
127%
31
15
107%
107%
Strategic brands
1,297
1,158
16%
12%
645
563
18%
15%
Mature brands
1,498
1,578
1%
(5%)
669
674
6%
(1%)
Revenue – International
Markets
2,795
2,736
8%
2%
1,314
1,237
12%
6%
Other revenue
157
132
20%
19%
87
69
28%
26%
Total revenue before hedging
10,776
9,988
10%
8%
5,479
4,915
13%
11%
Effects from hedging
(35)
(6)
(26)
23
Total revenue
10,741
9,982
10%
8%
5,453
4,938
13%
10%
Lundbeck’s largest markets are the U.S., China,
Canada, Spain and Italy constituting 68% of the total
revenue.
United States revenue reached DKK 5,307 million
representing a growth of +11% CER (+11% DKK). The
strategic brands reached DKK 4,737 million increasing
+20% CER (+20% DKK), representing 89% of the
revenue. The revenue growth is mainly driven by the
continued demand uptake of Rexulti
®
following the
AADAD approval and the strong performance of
Vyepti
®
, offset by erosion of mature brands such as
Northera
®
, Onfi
®
and Sabril
®
.
Europe revenue reached DKK 2,517 million
representing a growth of +10% CER (+8% DKK). The
strategic brands reached DKK 1,765 million increasing
+17% CER (+17% DKK), representing 70% of revenue.
The revenue growth is mainly driven by higher demand
for Brintellix
®
and Abilify Maintena
®
as well as
continued strong performance of Vyepti
®
across the
region mainly in France and Spain. Mature brands have
been impacted by ongoing erosion of certain brands
such as Cipralex
®
in Switzerland, Cipramil
®
and
Cisordinol
®
. The largest markets in Europe are Spain,
Italy, France, Switzerland and U.K.
International Markets comprises all Lundbeck’s
markets outside the U.S. and Europe. Revenue
reached DKK 2,795 million representing a growth of
+8% CER (+2% DKK). The strategic brands reached
DKK 1,297 million increasing by +16% CER (+12%
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 8
DKK), representing 46% of revenue. The revenue
growth is mainly driven by higher demand across all
four brands with solid contribution from the biggest
markets. Mature brands have been impacted by
ongoing erosion of certain brands such as Lexapro
®
in
Japan following the entry of generic competition since
the end of 2022 as well as the erosion of Deanxit
®
in
China. The biggest markets are China, Canada, Brazil,
Australia and South Korea. China and Canada
constitute approximately 43% of the regional revenue.
Effects from hedging
Lundbeck hedges a significant part of the currency risk
for a period of 12 – 18 months. Hedging had a negative
impact of DKK 35 million in the first six months of 2024,
compared to a negative impact of DKK 6 million in the
same period last year.
2.3 GROSS PROFIT
DKK million
H1 2024
H1 2023
Change
(CER)
Change
(DKK)
Q2 2024
Q2 2023
Change
(CER)
Change
(DKK)
Revenue
10,741
9,982
10%
8%
5,453
4,938
13%
10%
Cost of sales
2,065
2,179
(3%)
(5%)
1,056
1,138
(5%)
(7%)
thereof adjustments
(2)
260
101%
101%
(2)
159
101%
101%
thereof amortization of product rights
731
789
(7%)
(7%)
363
385
(6%)
(6%)
thereof depreciation/amortization
110
123
(11%)
(11%)
57
63
(10%)
(10%)
Gross profit
8,676
7,803
14%
11%
4,397
3,800
18%
16%
Gross margin (%)
80.8%
78.2%
80.6%
77.0%
Adjusted gross profit
9,515
8,975
8%
6%
4,815
4,407
12%
9%
Adjusted gross margin (%)
88.6%
89.9%
88.3%
89.2%
Cost of sales reached DKK 2,065 million, decreasing
by -3% CER (-5% DKK) mainly driven by lower
amortization due to fully amortized product rights
since the beginning of 2024. Moreover, the first six
months of 2023 was impacted by the negative effect of
Vyepti
®
inventory obsolescence of DKK 245 million and
restructuring costs of DKK 15 million due to the closure
of the sterile manufacturing line in France. Excluding
the effect of those extraordinary items in the first six
months of 2023, cost of sales increased +10% CER
(+8% DKK) primarily driven by continued sales growth
as well as higher raw materials and manufacturing
costs due to inflation and increasing share of Vyepti®
on cost of sales.
Gross profit reached DKK 8,676 million, increasing by
+14% CER (+11% DKK). The gross margin was 80.8%
representing an increase of 2.6 percentage points. This
increase was primarily driven by sales growth and
lower amortization costs, offset by higher raw material
and manufacturing costs and increasing share of
Vyepti® on cost of sales in the first six months of 2024.
Additionally, gross margin in the first six months of
2023 was impacted by the negative effect of Vyepti
®
inventory obsolescence of DKK 245 million and
restructuring costs of DKK 15 million due to the closure
of the sterile manufacturing line in France.
Adjusted gross profit is the gross profit excluding
depreciation and amortization and other adjustments
linked to sales. The adjusted gross margin was 88.6%
representing a decrease of 1.3 percentage points. This
decrease is primarily driven by higher raw material and
manufacturing costs and increasing share of Vyepti®
on cost of sales.
Amortization of product rights was DKK 731 million,
decreasing by -7% CER (-7% DKK).
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 9
2.4 EBIT AND ADJUSTED EBITDA
DKK million
H1 2024
H1 2023
Change
(CER)
Change
(DKK)
Q2 2024
Q2 2023
Change
(CER)
Change
(DKK)
Revenue
10,741
9,982
10%
8%
5,453
4,938
13%
10%
Gross profit
8,676
7,803
14%
11%
4,397
3,800
18%
16%
thereof adjustments
(2)
260
101%
101%
(2)
159
101%
101%
thereof depreciation/amortization
841
912
(8%)
(8%)
420
448
(7%)
(6%)
Sales and distribution costs
3,794
3,501
10%
8%
2,005
1,828
11%
10%
thereof depreciation/amortization
44
47
(4%)
(6%)
22
23
0%
(4%)
S&D ratio
35.3%
35.1%
36.8%
37.0%
Administrative expenses
738
564
31%
31%
479
306
56%
57%
thereof adjustments
150
-
-
-
150
-
-
-
thereof depreciation/amortization
10
10
0%
0%
5
5
0%
0%
Administrative expenses ratio
6.9%
5.7%
8.8%
6.2%
Research and development costs
1,862
1,665
12%
12%
909
826
10%
10%
thereof depreciation/amortization
40
36
11%
11%
20
18
11%
11%
R&D ratio
17.3%
16.7%
16.7%
16.7%
Total operating expenses
6,394
5,730
13%
12%
3,393
2,960
15%
15%
OPEX ratio
59.5%
57.4%
62.2%
59.9%
EBIT (profit from operations)
2,282
2,073
17%
10%
1,004
840
31%
20%
Depreciation/amortization
935
1,005
(7%)
(7%)
467
494
(5%)
(5%)
EBITDA
3,217
3,078
9%
5%
1,471
1,334
17%
10%
EBITDA margin (%)
30.0%
30.8%
27.0%
27.0%
Restructuring expenses
(2)
15
113%
113%
(2)
15
113%
113%
Other adjustments
150
245
(39%)
(39%)
150
144
4%
4%
Adjusted EBITDA
3,365
3,338
5%
1%
1,619
1,493
14%
8%
Adjusted EBITDA margin (%)
31.3%
33.4%
29.7%
30.2%
Total operating expenses (OPEX) reached DKK 6,394
million corresponding to an increase of +13% CER
(+12% DKK). The OPEX ratio reached 59.5%, increasing
by 2.1 percentage points, primarily driven by continued
investments in R&D to support the pipeline in progress
as well as higher administrative expenses due to higher
legal costs, investments in Lundbeck’s strategy
implementation as well as higher personnel costs.
Sales and distribution costs reached DKK 3,794
million corresponding to an increase of +10% CER
(+8% DKK) in line with revenue growth. The S&D ratio
reached 35.3%, representing a slightly increase of 0.2
percentage points, reflecting the continued
investments in sales and promotion activities in
strategic brands such as Rexulti
®
and Vyepti
®
in the U.S.
and the global roll-out of Vyepti
®
.
Administrative expenses reached DKK 738 million
increasing by +31% CER (+31% DKK). The
administrative expense ratio reached 6.9%, increasing
by 1.2 percentage points, primarily driven by higher
legal costs, investments in Lundbeck’s strategy
implementation as well as higher personnel costs.
Research and development costs reached DKK
1,862 million with an R&D ratio of 17.3% increasing
+12% CER (+12% DKK). The main increase in R&D
costs comes from the progression of the phase IIb
dose finding trial for anti-PACAP, phase III
preparations for Lu AF82422 (anti-a-synuclein mAb) as
well as general higher discovery and development
costs across early-stage programs during the first six
months of 2024, offset by significantly lower Vyepti
®
phase IV trial costs. Further details are available in
section 2.9 Lundbeck’s development portfolio.
EBIT reached DKK 2,282 million, increasing by +17%
CER (+10% DKK) reflecting gross profit development
and continued investments in sales and promotion
activities in strategic brands, planned investments in
R&D and higher administrative expenses due to higher
legal costs, investments in Lundbeck’s strategy
implementation as well as higher personnel costs.
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 10
Furthermore, EBIT for the first six months of 2023 was
negatively affected by the recognition of a provision of
DKK 245 million for Vyepti
®
inventory obsolescence
and restructuring costs of DKK 15 million due to the
closure of the sterile manufacturing line in France.
Amortization of product rights amounted to DKK 731
million corresponding to a decrease of -7% CER (-7%
DKK). Total amortization, depreciation and
impairment losses reached DKK 935 million
representing a decrease of -7% CER (-7% DKK) mainly
driven by a decrease in the amortization recognized in
the first six months of 2024 due to fully amortized
product rights since beginning of 2024.
Adjusted EBITDA reached DKK 3,365 million
representing an increase of +5% CER (+1% DKK)
reflecting the strong revenue growth driving by
performance of strategic brands. The adjusted
EBITDA margin was 31.3% representing a decrease of
2.1 percentage points primarily due to higher raw
material and manufacturing costs, increasing share of
Vyepti® on cost of sales as well as unfavorable
currency and hedging effects.
2.5 NET PROFIT AND ADJUSTED EPS
DKK million
H1 2024
H1 2023
Change
(DKK)
Q2 2024
Q2 2023
Change
(DKK)
EBIT (profit from operations)
2,282
2,073
10%
1,004
840
20%
Net financials, (income)/expenses
(25)
138
118%
4
55
(93%)
Profit before tax
2,307
1,935
19%
1,000
785
27%
Net profit
1,776
1,480
20%
770
600
28%
thereof other adjustments
148
260
(43%)
148
159
(7%)
thereof depreciation/amortization
935
1,005
(7%)
467
494
(5%)
thereof tax on adjustments
238
288
(17%)
135
151
(11%)
EPS (DKK)
1.79
1.49
20%
0.78
0.60
30%
Adjusted net profit
2,621
2,457
7%
1,250
1,102
13%
Adjusted EPS (DKK)
2.64
2.47
7%
1.26
1.11
14%
Net profit
Net financial (income)/expenses amounted to an
income of DKK 25 million equivalent to an increase of
118% reflecting the positive development in interest
income due to underlying change in net debt/cash
position as well as favorable currency impact.
The effective tax rate for the first six months of 2024
was 23.0% (23.5% for the first six months of 2023).
Net profit reached DKK 1,776 million corresponding to
a growth of 20%.
Adjusted net profit and EPS
Adjusted net profit is the net profit excluding
depreciation and amortization and other adjustments,
net of taxes. Adjusted net profit reached DKK 2,621
million, increasing +7%, reflecting the EBIT
development and the positive net financial result.
Adjusted EPS was DKK 2.64 corresponding to an
increase of +7%.
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 11
2.6 CASH FLOW AND BALANCE SHEET
DKK million
H1 2024
H1 2023
Q2 2024
Q2 2023
Profit from operations (EBIT)
2,282
2,073
1,004
840
Cash flows from operating activities
2,178
1,649
1,217
1,271
Cash flows from investing activities
(245)
(265)
(151)
(188)
Cash flows from operating and investing activities
(free cash flow)
1,933
1,384
1,066
1,083
Cash flows from financing activities
(784)
(1,250)
(24)
(295)
Net cash flow for the period
1,149
134
1,042
788
Cash flows from operating activities amounted to an
inflow of DKK 2,178 million compared to an inflow of
DKK 1,649 million in the first six months of 2023 mainly
driven by a combination of higher EBIT, lower inventory
build-up due to the completion of the fixed supply
agreement for Vyepti
®
in September 2023 and short-
term liabilities due to Rexulti
®
milestone paid-out in the
first quarter of 2023, offset by higher receivables.
Lundbeck’s net cash flows from investing activities
were an outflow of DKK 245 million compared to an
outflow of DKK 265 million in the first six months of
2023. The investing activities mainly include capital
expenditures in property, plant and equipment as well
as intangible assets.
Lundbeck’s net cash flows from financing activities
were an outflow of DKK 784 million compared to an
outflow of DKK 1,250 million in the first six months of
2023 mainly related to the repayment of the revolving
credit facility in 2023 offset by higher dividend paid in
March 2024.
The net cash inflow reached DKK 1,149 million
compared to an inflow of DKK 134 million in the first six
months of 2023.
Net debt has decreased from DKK 1,428 million at the
end of June 2023 to net cash of DKK 1,852 million at
the end of June 2024. Net debt/EBITDA ratio is -0.3x at
the end of June 2024 compared to 0.3x at the end of
June 2023. Interest-bearing debt was DKK 4,301
million at the end of June 2024 compared to DKK 5,091
million at the end of June 2023.
On June 30, 2024, Lundbeck’s total assets amounted
to DKK 39,087 million compared to DKK 37,407 million
at the end of 2023.
On June 30, 2024, Lundbeck’s equity amounted to
DKK 23,222 million.
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 12
2.7 SUMMARY OF KEY DEVELOPMENTS IN THE SECOND QUARTER OF 2024
For the quarter ended 30 June
DKK million
Q2 2024
Q2 2023
Change
(CER)
1
Change
(DKK)
Revenue
5,453
4,938
13%
10%
Gross profit
4,397
3,800
18%
16%
Gross margin
80.6%
77.0%
Adjusted gross profit
2
4,815
4,407
12%
9%
Adjusted gross margin
88.3%
89.2%
Sales and distribution costs
2,005
1,828
11%
10%
S&D ratio
36.8%
37.0%
Administrative expenses
479
306
56%
57%
Administrative expenses ratio
8.8%
6.2%
Research and development costs
909
826
10%
10%
R&D ratio
16.7%
16.7%
EBIT (profit from operations)
1,004
840
31%
20%
EBIT margin
18.4%
17.0%
EBITDA
3
1,471
1,334
17%
10%
EBITDA margin
27.0%
27.0%
Adjusted EBITDA
4
1,619
1,493
14%
8%
Adjusted EBITDA margin
29.7%
30.2%
Net financials, expenses
4
55
-
(93%)
Profit before tax
1,000
785
-
27%
Income taxes
230
185
-
24%
Effective tax rate (reported)
23.0%
23.5%
Net profit
770
600
-
28%
Adjusted net profit
1,250
1,102
-
13%
1
Change at CER (Constant Exchange Rates) does not include effects from hedging.
2
Adjusted gross profit is the gross profit excluding depreciation and amortization and other adjustments linked to sales.
3
EBITDA refers to Earnings Before Interest, Taxes, Depreciation and Amortization.
4
EBITDA refers to Earnings Before Interest, Taxes, Depreciation and Amortization. Adjusted EBITDA is defined as EBITDA adjusted by certain items, for details see
section 4 Notes, note 3 Adjusted EBITDA.
REVENUE
Revenue reached DKK 5,453 million representing a
growth of +13% CER (+10% DKK) in the second quarter
of 2024. The increase in revenue is mainly driven by
strong performance across the strategic brands
reaching DKK 4,040 million, representing a growth of
+21% CER (+20% DKK), equivalent to 74% of total
revenue (see section 2.1) in the second quarter of
2024.
The performance is mainly driven by higher demand for
Rexulti
®
and Vyepti
®
primarily in the U.S.
Brintellix
®
/Trintellix
®
revenue grew by contribution
from all regions especially with a strong performance
in Europe and International Markets driven by higher
demand, respectively, in Spain, Italy, Canada and
Japan. Abilify Maintena
®
/Asimtufii revenue growth is
mainly driven by higher demand in all regions and price
increase in the U.S. Mature brands decreased -5%
CER (-9% DKK) due to the continued generic erosion.
GROSS PROFIT
Cost of sales decreased to DKK 1,056 million
decreasing by -5% CER (-7% DKK) mainly driven by
lower amortization due to fully amortized product
rights. Moreover, the second quarter of 2023 was
impacted by the negative effect of Vyepti
®
inventory
obsolescence of DKK 144 million as well as
restructuring costs of DKK 15 million due to the closure
of the sterile manufacturing line in France. Excluding
the effect of those extraordinary items in the period,
cost of sales increased +10% CER (+8% DKK) primarily
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 13
driven by the sales growth as well as higher raw
materials and manufacturing costs.
In the second quarter of 2024, gross profit reached
DKK 4,397 million increasing by +18% CER (+16%
DKK).
The gross margin was 80.6% representing an increase
of 3.6 percentage points. Adjusted gross margin was
88.3% in the second quarter of 2024 representing a
decrease of 0.9 percentage point.
EBIT AND ADJUSTED EBITDA
Total operating expenses (OPEX) reached DKK 3,393
million corresponding to an increase of +15% CER
(+15% DKK). The OPEX ratio increased by 2.3
percentage points primarily driven by higher
administrative expenses due to higher legal costs,
investments in Lundbeck’s strategy implementation
as well as higher personnel costs.
Sales and distribution costs reached DKK 2,005
million corresponding to an increase of +11% CER
(+10% DKK). The S&D ratio was slightly lower in the
second quarter of 2024.
Administrative expenses reached DKK 479 million
increasing by 56% CER (+57% DKK). The administrative
expense ratio reached 8.8%, increasing by 2.6
percentage points mainly driven by higher legal costs,
investments in Lundbeck’s strategy implementation
as well as higher personnel costs.
Research and development costs reached DKK 909
million corresponding to an increase of +10% CER
(+10% DKK) with an R&D ratio of 16.7%. The increase
in R&D costs is due to progression of phase II project
as well as phase III preparations of a project. The R&D
ratio is unchanged.
EBIT reached DKK 1,004 million increasing by +31%
CER (+20% DKK) reflecting the operating leverage
effect of higher revenue and higher administrative
expenses due to higher legal costs, investments in
Lundbeck’s strategy implementation as well as higher
personnel costs in the second quarter of 2024.
Furthermore, EBIT for the second quarter of 2023 was
negatively affected by the recognition of a provision of
DKK 144 million for Vyepti
®
inventory obsolescence
and restructuring costs of DKK 15 million due to the
closure of the sterile manufacturing line in France.
Amortization of product rights amounted to DKK 363
million corresponding to a decrease of -6% CER (-6%
DKK). Total amortization, depreciation and
impairment losses reached DKK 467 million
representing a decrease of -5% CER (-5% DKK) mainly
driven by lower product rights amortization.
Adjusted EBITDA reached DKK 1,619 million
representing an increase of +14% CER (+8% DKK)
reflecting the strong revenue growth driving by
performance of strategic brands. The adjusted
EBITDA margin was 29.7% representing a decrease of
0.5 percentage points primarily due to higher raw
material and manufacturing costs, increasing share of
Vyepti® on cost of sales as well as unfavorable
currency and hedging effects.
NET PROFIT AND ADJUSTED EPS
Net financial (income)/expenses reached DKK 4
million equivalent to a decline of 93% following a
decrease in interest expenses.
The effective tax rate for the second quarter of 2024
was 23.0%.
Net profit reached DKK 770 million corresponding to
an increase of +28%.
Adjusted net profit reached DKK 1,250 million,
representing an increase of +13%, reflecting the EBIT
development and lower financial expenses.
2.8 OUTLOOK
Financial guidance 2024
On August 20, 2024, Lundbeck communicated that the
full year revenue and adjusted EBITDA outlook at CER
have been raised.
The sales outlook for 2024 is updated, primarily
reflecting higher full year expectations for Rexulti® and
Vyepti® volumes sold in the U.S. as well as higher
Brintellix®/Trintellix® demand in Europe and Asia.
Lundbeck continues to expect increased investments
in R&D and sales and distribution for the year.
Lundbeck raised its full year guidance for 2024, where
revenue is expected to grow 11% to 14% at CER,
previously 7% to 10% at CER, when compared to
revenue of the prior year excluding effects from
hedging. Assuming the current exchange rates versus
DKK, the revenue growth reported in DKK is expected
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 14
to be around 3 percentage points lower than at CER.
Lundbeck expects revenue growth is mainly driven by
the demand of the strategic brands.
Lundbeck expects the most relevant generic erosion
impacts for the year coming from brands such as
Cipralex
®
/Lexapro
®
, Deanxit
®
and Sabril
®
. Although for
the coming quarters, Lundbeck expects slightly growth
of Cipralex
®
/Lexapro
®
and Sabril
®
as well as lower level
of erosion for Deanxit
®
.
Adjusted EBITDA is expected to grow 15% to 20% at
CER in 2024, previously 10% to 16% at CER, when
compared to adjusted EBITDA of the prior year
excluding effects from hedging. Assuming the current
exchange rates versus DKK, the adjusted EBITDA
growth reported in DKK is expected to be around 8
percentage points lower than at CER. The increase
reflects revised sales growth expectations, partially
offset by higher investments in R&D and sales as well
as distribution due to increased Vyepti
®
and Rexulti
®
promotion activities, including PTSD preparation for
Rexulti
®
pending FDA review.
Lundbeck mainly carries foreign currency risk in USD,
CNY, CAD, BRL and AUD. Other relevant financial
information for FY 2024 at reported rates presented
below has been monitored and reviewed considering
actual exchange rates for the period already incurred
and the following estimated exchanges rates for the
remaining period of the year: USD/DKK (6.97);
CNY/DKK (0.96); CAD/DKK (5.09); BRL/DKK (1.27);
AUD/DKK (4.64).
All the above expectations are based on assumptions
that the global or regional macroeconomic and
political environment will not significantly change
business conditions for Lundbeck during 2024,
including the impact of any potential material business
development activities and the potential implications.
In the table below, the expectations and additional
relevant information have been summarized.
Revenue at CER
DKK million
H1 2024
Total revenue (IFRS)
10,741
Effects from hedging
(35)
Total revenue (IFRS) before hedging
10,776
Effects from exchange rate
(230)
Total revenue at CER
11,006
Increase/(decrease) in total revenue
8%
Increase/(decrease) in total revenue at CER
1
10%
1
Total revenue at CER for the period divided by total revenue (IFRS) before hedging for the comparative period.
Financial guidance for 2024
Previous 2024 guidance
Revised 2024 guidance
Total revenue growth at CER
7% to 10%
11% to 14%
Adjusted EBITDA growth at CER
10% to 16%
15% to 20%
Other relevant financial information for FY 2024 at reported rates
Total revenue (IFRS) growth
1
Around 3 percentage points lower than at CER
Adjusted EBITDA growth
1
Around 8 percentage points lower than at CER
Adjusted gross margin
2
88% to 89%
R&D costs
DKK 3.9 to 4.1 billion
Depreciation & amortization
DKK 1.8 to 2.0 billion
Net financials, expenses
DKK 0 to 50 million
Effects from hedging
DKK -130 to -155 million
Effective tax rate
22% to 24%
Net cash/(net debt)
3
DKK 4.2 to 4.7 billion
1
Includes effects from hedging and exchange rate impact.
2
Adjusted gross margin is the gross margin excluding depreciation and amortization and other adjustments linked to sales.
3
Net cash/(net debt) is defined as Interest-bearing debt, cash, cash equivalents and securities, net.
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 15
Adjusted EBITDA at CER
DKK million
H1 2024
Adjusted EBITDA
3,365
Effects from hedging
(35)
Adjusted EBITDA before hedging
3,400
Effects from exchange rate
(124)
Adjusted EBITDA at CER
3,524
Increase/(decrease) in adjusted EBITDA
1%
Increase/(decrease) in adjusted EBITDA at CER
1
5%
1
Adjusted EBITDA at CER for the period divided by adjusted EBITDA before hedging for the comparative period.
Mid-term targets
Lundbeck’s mid-term targets communicated in
February 2023 remain unchanged. Lundbeck is in a
period with limited impact from major regional losses
of exclusivity and anticipates solid growth of its
strategic brands.
In 2024 and 2025, Lundbeck plans targeted
investments behind the potential blockbuster
opportunity for Rexulti
®
in the treatment of AADAD.
Based on organic growth, we expect revenue to show a
mid-single digit compound annual growth rate (CAGR)
over the next three years.
At the same time, we remain focused on driving
efficiencies and being prudent in our spending. Based
on these assumptions, we target an adjusted EBITDA-
margin of 30-32% for the current business, excluding
any material business development activities, by the
end of the mid-term period (2026).
Forward-looking statements
Forward-looking statements are subject to risks,
uncertainties, and inaccurate assumptions. This may
cause actual results to differ materially from
expectations. Various factors may affect future
results, including interest rates and exchange rate
fluctuations, delay or failure of development projects,
production problems, unexpected contract breaches
or terminations, governance-mandated or market-
driven price decreases for products, introduction of
competing products, Lundbeck’s ability to
successfully market both new and existing products,
exposure to product liability and other lawsuits,
changes in reimbursement rules and governmental
laws, and unexpected growth in expenses.
2.9 LUNDBECK’S DEVELOPMENT PORTFOLIO
Lundbeck is developing several new and promising
medicines for the treatment of brain diseases.
The pipeline developments are summarized below.
1
CGRP: Calcitonin gene-related peptide.
2
Two phase III clinical trials, supporting registration in Asia, including China and Japan: SUNRISE, and SUNSET trials.
3
Long-term safety
study.
4
PACAP: Pituitary adenylate cyclase activating peptide.
5
Adrenocorticotropic hormone. Two phase Ib trials are currently ongoing in Congenital Adrenal Hyperplasia and
Cushing’s Disease. For technical reasons, the latter has been officially categorized as a Phase II trial to adhere to local requirements in Georgia.
6
Acts as a partial agonist at 5-
HT
1A
and dopamine D
2
receptors at similar potency, and an antagonist at 5-HT
2A
and noradrenaline alpha1B/2C receptors.
7
Monoacylglycerol lipase inhibitor (“MAGlipase”).
Project
Area
Phase I
Phase II
Phase III
Filing/Launch
Hormonal / neuropeptide signaling:
Eptinezumab (anti-CGRP)
1
Migraine prevention
SUN-studies
2
Cluster headache
CHRONICLE
3
ALLEVIATE
Lu AG09222 (anti-PACAP mAb)
4
Migraine prevention
PROCEED
Lu AG13909 (anti-ACTH mAb)
5
Neuro-hormonal dysfunctions
Circuitry / neuronal biology:
Brexpiprazole
6
PTSD
MAGLi programs
7
Neurology
Lu AF28996 (D
1
/D
2
agonist)
Parkinson’s disease
Protein aggregation, folding and clearance:
Lu AF82422 (anti-α-synuclein mAb)
Multiple system atrophy
AMULET
Neuroinflammation / neuroimmunology:
Lu AG22515 (anti-CD40L blocker)
Neurology
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 16
Hormonal / neuropeptide signaling
Lu AG09222 – phase II
Lu AG09222 represents a potential new therapeutic
option for the treatment of migraine, which, unlike the
calcitonin gene-related peptide (CGRP) migraine
treatment drug class, is a monoclonal antibody
targeting pituitary adenylate cyclase-activating
polypeptide (PACAP). PACAP and its receptors are
broadly expressed in the nervous systems and
inflammatory cells. By interfering with the PACAP
signaling there is a potential to affect multiple
symptoms of headache disorders.
Lundbeck has initiated the PROCEED trial, a phase IIb
trial with subcutaneously administered Lu AG09222
that builds on the positive results of the HOPE trial.
PROCEED is an interventional, randomized, double-
blind, parallel-group, placebo-controlled, dose-
finding phase IIb trial that will be conducted in Europe,
Japan and the U.S. It assesses four different doses of
Lu AG09222 versus placebo, administered
subcutaneously once monthly for three months. The
trial is intended to establish the optimal dose for future
global pivotal trials designed to confirm the efficacy
and safety of Lu AG09222 as a migraine preventive
treatment. PROCEED is planned to enroll
approximately 498 patients and will assess the
efficacy, safety and tolerability of Lu AG09222.
The target population for this trial is defined as patients
diagnosed with migraine as outlined in the
International Classification of Headache Disorders
Third Edition (ICHD-3) and with failure to 2-4 different
preventive migraine medications in the past 10 years.
Study completion is expected in H2 2025.
Circuitry / neuronal biology
Brexpiprazole in Post-Traumatic Stress Disorder
(PTSD)
On June 25, 2024, Lundbeck announced that a
supplemental new drug application (sNDA) for
brexpiprazole in combination with sertraline for the
treatment of adults with post-traumatic stress
disorder (PTSD) was accepted and filed by the FDA,
with a target date (PDUFA date) for completion of the
review of February 8, 2025.
The sNDA is based on data from three randomized
clinical trials evaluating the safety and efficacy of
brexpiprazole in combination with sertraline in adult
patients with PTSD, namely the phase II trial 061 and
the two phase III trials 071 and 072.
The primary endpoint for all three trials was the change
from week 1 to week 10 in the Clinician-Administered
PTSD Scale (CAPS-5) total score for brexpiprazole and
sertraline combination therapy versus sertraline plus
placebo in patients diagnosed with PTSD according to
the Diagnostic and Statistical Manual of Mental
Disorders, Fifth Edition (DSM-5).
The trials were randomized, double blind, active-
controlled, and Trial 061 and 071 were flexible-dose
trials, while Trial 072 was a fixed-dose trial. In Trial 061
and 071, brexpiprazole in combination with sertraline
was associated with a statistically significant
reduction (p<0.05) in PTSD symptoms compared to
sertraline plus placebo, as measured by the change in
the CAPS-5 total score from week 1 to week 10
(primary endpoint). In Trial 072, while the primary
endpoint was not met, reductions in PTSD symptom
severity with brexpiprazole in combination with
sertraline were consistent with Trials 061 and 071.
Across the three randomized trials, the combination of
brexpiprazole and sertraline in adult patients with
PTSD were generally well-tolerated, and no new safety
observations were identified.
Brexpiprazole – phase III in adolescent patients (13-
17 years old) with schizophrenia
A Type II variation to apply for pediatric schizophrenia
indication (for adolescents aged 13 to 17 years old)
was successfully submitted to European Medicines
Agency (EMA) on June 26, 2024. The expected action
date is in Q2 2025.
The submission is based on the phase III trial 331-10-
234 in adolescent patients with schizophrenia
(NCT03198078) which demonstrated a significant
improvement for brexpiprazole compared to placebo.
In the trial, brexpiprazole was generally well tolerated,
and the safety profile was similar to that observed in
adult patients with schizophrenia. The trial forms part
of the brexpiprazole EMA Paediatric Investigation Plan
(PIP).
Protein aggregation, folding and clearance
Lu AF82422 – phase II
Lu AF82422 is a monoclonal antibody (mAb) targeting
the pathological form of the protein alpha-synuclein
that is believed to play a pivotal role in the
development and progression of neurodegenerative
diseases such as multiple system atrophy (MSA),
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 17
Parkinson’s disease (PD), and other
synucleinopathies. By targeting pathological alpha-
synuclein with an antibody that will inhibit aggregation
and potentially clear pathological alpha-synuclein
from the brain, the project aims to demonstrate delay
of disease progression and therapeutic effect on
disease burden and function. A phase II randomized,
double-blind, placebo-controlled exploratory proof-
of-concept (PoC) trial (AMULET) testing Lu AF82422 in
MSA patients was initiated in November 2021
(NCT05104476) in the U.S. and Japan.
In January 2024, Lundbeck announced results of the
AMULET PoC trial. The trial included 61 MSA patients
randomized 2:1 (40 on Lu AF82422 versus 21 on
placebo) and treated for 48-72 weeks. The primary
endpoint in the trial measured slowing of progression
of MSA as measured by Unified Multiple System
Atrophy Rating Scale (UMSARS) Total Score Part I and
II, while the key secondary endpoints included
Modified UMSARS Part I as well as several other
clinical outcome measures and biomarkers. The
primary statistical approach consisted of a Bayesian
slope analysis. While the trial did not reach statistical
significance on its primary endpoint, a trend towards
slowing MSA disease progression was observed in the
group exposed to Lu AF82422 compared to the
placebo group, and additional signals of efficacy were
observed across other clinical and biomarker
endpoints. Lu AF82422 was generally well tolerated.
Lundbeck plans to initiate a phase III study, following
further dialogue with health authorities.
Orphan drug designation for MSA was granted by EMA
in April 2021 and SAKIGAKE pioneering drug
designation was granted by the Japanese Health
Authorities in March 2023. In April 2024, Lundbeck also
obtained orphan drug designation for the Lu AF82422
in MSA by the FDA.
2.10 SUSTAINABILITY UPDATE
Lundbeck’s sustainability strategy aims to ensure that
we mitigate our most significant sustainability risks
and adverse impacts, while acting on the opportunities
to make a positive impact on the environment, patients
and the communities.
In this sustainability update, progress is presented for
Environmental, Social and Governance matters
supported by key performance metrics.
ENVIRONMENTAL PERFORMANCE
Category
1
H1 2024
H1 2023
2
Change (%)
Scope 1 GHG emissions (Tonne CO₂ₑ)
11,464
11,314
1%
Scope 2 GHG emissions (Market Based) (Tonne CO₂ₑ)
2,068
1,845
12%
Scope 1+2 GHGs (Tonne CO2e)
13,532
13,159
3%
Energy consumption (MWh)
56,905
55,603
2%
1
See Lundbeck Sustainability Report 2023 for accounting policies and definitions.
2
All comparative figures were updated to reflect changes in estimates.
Climate Action
Lundbeck is committed to protecting the environment
and believes that a healthy environment is a
precondition for good health and wellbeing. Lundbeck
has targets to reduce its total carbon footprint across
its own operations, supply chain, and distribution.
In the first six months of 2024, Scope 1 + 2 GHG
emissions increased by 3%, compared to the first six
months of 2023. Scope 1 increased by 1%, mainly due
to an increase in emissions from the U.S. car fleet,
offset by a reduction in emissions from the production
sites. Scope 2 emissions increased by 12% primarily
due to the commencement of operation of a new
production unit at the production site in Padova (Italy).
Despite the increased emissions in the first six months
of 2024, Lundbeck remains on track to meet its climate
targets, as the planned actions in the low carbon
transition plan will come into effect.
Other topics
In 2022, traces of PFAS (per- and polyfluoroalkyl
substances) were found at Lundbeck’s Lumsås
production facility. The pollution stems from the use of
fire-retardant foam containing the PFAS type PFOS
(perfluorooctane sulfonate) until 2011, in compliance
with national fire safety and environmental regulations
at the time. Lundbeck switched to a supply of PFOS-
free fire-retardant foam more than 11 years ago.
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 18
Since the pollution was detected, Lundbeck has been
engaged in a close and recurring dialogue with the
Danish Environmental Protection Agency (EPA) and
local authorities regarding the mapping and
remediation possibilities of the pollution. Lundbeck
continues this close dialogue with the authorities and
affected stakeholders and is also conducting
additional testing to determine more precisely the
extend of the pollution.
Lundbeck has received orders from the EPA requiring
the installation of a pump and treat solution for subsoil
water. The implementation work has been initiated,
and it is estimated that the pump and treat solution will
be operational in the second half of 2025 or first half of
2026.
SOCIAL PERFORMANCE
Category
1
H1 2024
H1 2023
Change
2
Gender balance (women % in senior management)
35.3%
38.2%
(2.9)
1
See Lundbeck Sustainability Report 2023 for accounting policies and definitions.
2
Variation in percentage points.
GOVERNANCE PERFORMANCE
Category
1
H1 2024
H1 2023
Change (%)
Due Diligence screenings of Suppliers and Third Parties (Number)
134
107
25%
1
See Lundbeck Sustainability Report 2023 for accounting policies and definitions.
Responsible Business Conduct
Responsible business conduct is crucial to Lundbeck
as a global pharmaceutical company. It translates into
how Lundbeck upholds stakeholder integrity and
minimizes the risk of financial repercussions.
The number of Due Diligence screenings conducted
in the first six months of 2024 increased by 25%,
compared to the first six months of 2023. This increase
is due to continued growing awareness across the
organization on the importance of ethical business
conduct in the value chain
2.11 GENERAL CORPORATE MATTERS
Pending legal proceedings
Lundbeck is involved in several legal proceedings,
including patent disputes, the most significant of
which are described below. Some of these involve
significant amounts and are subject to considerable
uncertainty. Management continuously assesses the
risks associated with the legal proceedings, and their
likely outcome. It is the opinion of the management
that, apart from items recognized in the financial
statements, the outcome of these legal proceedings
and disputes are not probable or cannot be reliably
estimated in terms of amount or timing. Such
proceedings may, however, develop over time, and
new proceedings may occur, in a way which could
have a material impact on the Group’s financial
position and/or cash flows.
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 19
In June 2013, Lundbeck received the European
Commission’s decision that agreements concluded
with four generic competitors concerning citalopram
violated competition law. The decision included fining
Lundbeck EUR 93.8 million (approximately DKK 700
million). Lundbeck paid and expensed the fine in the
third quarter of 2013. In March 2021, the European
Court of Justice rejected Lundbeck’s final appeal of the
European Commission’s decision. So-called “follow-
on claims” for reimbursement of alleged losses,
resulting from violation of competition law, often arise
when decisions and fines issued by the European
Commission are upheld by the European Court of
Justice. The below mentioned “follow-on claims” are
ongoing or threatened. Lundbeck disagrees with all
claims and intends to defend itself against them.
At the end of first quarter 2023, the UK health
authorities served their claim form on Lundbeck and
several generic companies, and Lundbeck filed its
defense in the third quarter of 2023. The hearing on
whether the claim is time-barred was held in the
second quarter of 2024 and the Competition Appeal
Tribunal has subsequently issued a decision in favor of
the UK health authorities. Lundbeck has been granted
permission to appeal the decision to the Court of
Appeal.
In late October 2021, Lundbeck received a writ of
summons from a German health care company
claiming compensation for an alleged loss of profit
plus interest payments, allegedly resulting from
Lundbeck’s conclusion of agreements with two of the
four generic competitors, which were comprised by
the EU Court of Justice ruling. Lundbeck filed its first
defense in May 2022 and the parties have
subsequently exchanged additional pleadings. The
first instance court hearing was held in the second
quarter of 2024, and Lundbeck currently expects that
additional procedural steps will be taken before a first
instance court ruling, currently expected in first half of
2025. The first instance court ruling may be appealed,
and it may take several years before a final conclusion
is reached by the German courts.
Lundbeck has been informed about potential claims in
several other European countries, however, it is still
uncertain whether the potential claims will be actively
pursued.
In Canada, Lundbeck is involved in three product
liability class-action lawsuits relating to
Cipralex
®
/Celexa
®
(two cases alleging various Celexa-
induced birth defects and one case against several
SSRI manufacturers (incl. Lundbeck) alleging that SSRI
(Celexa
®
/Lexapro
®
) induces autism birth defect), three
relating to Abilify Maintena
®
(alleging i.a. failure to warn
about compulsive behavior side effects) and one
relating to Rexulti
®
(also alleging i.a. failure to warn
about compulsive behavior side effects). The cases
are in the preliminary stages and as such there is
significant uncertainty as to how these lawsuits will be
resolved. Lundbeck strongly disagrees with the claims.
In 2018, Lundbeck entered into settlements with three
of four generic companies involved in an Australian
federal court case, in which Lundbeck was pursuing
patent infringement and damages claims over the sale
of escitalopram products in Australia. Lundbeck’s
case against the last of the four generic companies,
Sandoz Pty Ltd, went up to the High Court of Australia,
who has decided that Sandoz Pty Ltd infringed
Lundbeck’s escitalopram patent between 2009 and
2012. The High Court has sent the case back to the first
instance court for recalculation of the damages
awarded to Lundbeck in first instance which amounted
to AUD 26.3 million. In the meantime, Lundbeck’s
appeal of the Australian Patent Office’s decision to
grant Sandoz a license will be heard on August 24,
2024.
Lundbeck received a Civil Investigative Demand
(“CID”) from the U.S. Department of Justice (“DOJ”) in
March 2020. The CID seeks information regarding the
sales, marketing, and promotion (including the
promotional speaker program) of Trintellix
®
. Lundbeck
is cooperating with the DOJ. Otsuka and Lundbeck
have resolved the patent infringement litigation case
with Mylan and Viatris with respect to certain of the
patent listed for Abilify Maintena
®
in the U.S.
Otsuka and Lundbeck have received Paragraph IV
certification from Sun Pharma with respect to certain
of the patents listed for Abilify Maintena
®
in the U.S.
and commenced patent infringement proceedings
against Sun Pharma. The FDA will stay approval to Sun
until 30 months from receipt of the paragraph IV
certification or a court decision in Sun’s favor.
In June 2022 in the U.S., several entities created for the
purpose of receiving assignment of claims from payors
providing health insurance coverage pursuant to
Medicare Parts C and D and Medicaid filed a complaint
against Lundbeck and others. The complaint alleges
that Lundbeck and the other defendants conspired to
increase the unit price and quantity dispensed of
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 20
Xenazine
®
. The case was dismissed with prejudice
earlier in 2023 and is currently under appeal.
In June 2023 in the U.S., Humana Inc., an insurer, filed
a complaint against Lundbeck U.S. legal entities. The
complaint alleges that Lundbeck engaged in an illegal
kickback scheme to increase the sales and sale price
of Lundbeck’s Xenazine
®
. The complaint alleges that
Lundbeck’s activities targeted Humana Inc. and other
private Medicare insurers who were forced to bear the
costs of the alleged illegally subsidized drug sales.
Lundbeck denies the allegations in the complaint and
intends to defend itself.
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Registered Executive Management
Board of Directors
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Page 22
3 CONDENSED FINANCIAL STATEMENTS
CONDENSED STATEMENT OF PROFIT OR LOSS
DKK million
H1 2024
H1 2023
Q2 2024
Q2 2023
Revenue
Cost of sales
Gross profit
Sales and distribution costs
Administrative expenses
Research and development costs
Profit from operations (EBIT)
Net financials, (income)/expenses
(25 )
Profit before tax
Tax on profit for the period
Profit for the period
Earnings per share, basic (EPS) (DKK)
Earnings per share, diluted (DEPS) (DKK)
STATEMENT OF COMPREHENSIVE INCOME
DKK million
H1 2024
H1 2023
Q2 2024
Q2 2023
Profit for the period
Actuarial gains/losses
Tax
Items that will not be reclassified subsequently to profit or loss
Exchange rate gains/losses on investments in foreign subsidiaries
(125 )
Exchange rate gains/losses on additions to net investments in
foreign subsidiaries
(64 )
(40 )
(24 )
(39 )
Hedging of net investments in foreign subsidiaries
(1 )
Deferred gains/losses on cash flow hedge, exchange rate
(245 )
(135 )
(11 )
Deferred gains/losses on cash flow hedge, interest rate
(16 )
(7 )
Deferred gains/losses on cash flow hedge, price
(15 )
(41 )
Exchange gains/losses, hedging (transferred to the hedged items)
(23 )
Tax
(11 )
Items that may be reclassified subsequently to profit or loss
(87 )
(19 )
Other comprehensive income
(87 )
(19 )
Comprehensive income
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
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Page 23
CONDENSED STATEMENT OF FINANCIAL POSITION
DKK million
30.06.2024
31.12.2023
Assets
Intangible assets
Property, plant and equipment
Right-of-use assets
Other financial assets
Other receivables
Deferred tax assets
Non-current assets
Inventories
Receivables
Cash and cash equivalents
Current assets
Assets
Equity and liabilities
Share capital
Foreign currency translation reserve
Hedging reserve
(113 )
Retained earnings
Equity
Retirement benefit obligations
Deferred tax liabilities
Provisions
Bank debt and bond debt
Lease liabilities
Other payables
Non-current liabilities
Retirement benefit obligations
Provisions
Trade payables
Lease liabilities
Income taxes payable
Other payables
Current liabilities
Liabilities
Equity and liabilities
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
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STATEMENT OF CHANGES IN EQUITY
DKK million
Share
capital
Foreign
currency
translation
reserve
Hedging
reserve
Retained
earnings
Total
equity
Equity at January 1, 2024
Profit for the period
Other comprehensive income
(176 )
Comprehensive income
(176 )
Distributed dividends, gross
(697 )
(697 )
Dividends received, treasury shares
Buyback of treasury shares
(46 )
(46 )
Incentive programs
Tax on other transactions in equity
Other transactions
(716 )
(716 )
Equity at June 30, 2024
(113 )
DKK million
Share
capital
Foreign
currency
translation
reserve
Hedging
reserve
Retained
earnings
Total
equity
Equity at January 1, 2023
Profit for the period
Other comprehensive income
(144 )
(87 )
Comprehensive income
(144 )
Distribution of dividends, gross
(578 )
(578 )
Dividends received, treasury shares
Buyback of treasury shares
(43 )
(43 )
Incentive programs
Tax on other transactions in equity
Other transactions
(600 )
(600 )
Equity at June 30, 2023
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Page 25
CONDENSED STATEMENT OF CASH FLOWS
DKK million
H1 2024
H1 2023
Q2 2024
Q2 2023
Profit from operations (EBIT)
Adjustments for non-cash items
Change in working capital
(1,172 )
(1,481 )
(286 )
(120 )
Cash flows from operations before financial receipts and
payments
Financial receipts and payments
(85 )
(34 )
Cash flows from ordinary activities
Income taxes paid
(293 )
(226 )
(185 )
(160 )
Cash flows from operating activities
Purchase and sale of intangible assets and property, plant and
equipment
(245 )
(265 )
(151 )
(188 )
Cash flows from investing activities
(245 )
(265 )
(151 )
(188 )
Cash flows from operating and investing activities
(free cash flow)
Repayment of bank loans and borrowings
(588 )
(274 )
Dividends paid in the financial year, net
(694 )
(576 )
Other financing activities
(90 )
(86 )
(24 )
(21 )
Cash flows from financing activities
(784 )
(1,250 )
(24 )
(295 )
Net cash flow for the period
Cash and cash equivalents at beginning of period
Unrealized exchange gains/losses on cash and bank balances
(6 )
(19 )
(2 )
(7 )
Net cash flow for the period
Cash and cash equivalents at end of period
Interest-bearing debt, cash, cash equivalents and securities, net,
is composed as follows:
Cash and cash equivalents
6,153
3,663
6,153
3,663
Interest-bearing debt
(4,301 )
(5,091 )
(4,301 )
(5,091 )
Net cash/(net debt)
(1,428 )
(1,428 )
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Page 26
STATEMENT OF PROFIT OR LOSS – ADJUSTED EBITDA RECONCILIATION (H1 AND Q2)
H1 2024
H1 2023
DKK million
Reported
Adjusted
Reported
Adjusted
Revenue
10,741
10,741
9,982
9,982
Cost of sales
2,065
1,226
2,179
1,007
Gross profit
8,676
9,515
7,803
8,975
Sales and distribution costs
3,794
3,750
3,501
3,454
Administrative expenses
738
578
564
554
Research and development costs
1,862
1,822
1,665
1,629
Profit from operations (EBIT)
2,282
-
2,073
-
Depreciation/amortization
935
-
1,005
-
EBITDA
3,217
3,365
3,078
3,338
EBITDA margin
30.0%
31.3%
30.8%
33.4%
Adjustments to EBITDA
Integration costs
-
-
-
-
Restructuring expenses
(2)
-
15
-
Gains/losses on divestment of businesses
-
-
-
-
Acquisition expenses
-
-
-
-
Other adjustments
150
-
245
-
Adjusted EBITDA
3,365
3,365
3,338
3,338
Adjusted EBITDA margin
31.3%
31.3%
33.4%
33.4%
Q2 2024
Q2 2023
DKK million
Reported
Adjusted
Reported
Adjusted
Revenue
5,453
5,453
4,938
4,938
Cost of sales
1,056
638
1,138
531
Gross profit
4,397
4,815
3,800
4,407
Sales and distribution costs
2,005
1,983
1,828
1,805
Administrative expenses
479
324
306
301
Research and development costs
909
889
826
808
Profit from operations (EBIT)
1,004
-
840
-
Depreciation/amortization
467
-
494
-
EBITDA
1,471
1,619
1,334
1,493
EBITDA margin
27.0%
29.7%
27.0%
30.2%
Adjustments to EBITDA
Integration costs
-
-
-
-
Restructuring expenses
(2)
-
15
-
Gains/losses on divestment of businesses
-
-
-
-
Acquisition expenses
-
-
-
-
Other adjustments
150
-
144
-
Adjusted EBITDA
1,619
1,619
1,493
1,493
Adjusted EBITDA margin
29.7%
29.7%
30.2%
30.2%
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Page 27
4 NOTES
4.1 BASIS OF PREPARATION
The interim condensed consolidated financial statements for the first six months ended June 30, 2024, have been
prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and additional Danish disclosure
requirements for interim financial reporting of listed companies. The interim condensed consolidated financial
statements do not include all the information and disclosures required in the annual financial statements and should
be read in conjunction with the Group’s annual consolidated financial statements at December 31, 2023, published
February 7, 2024. The accounting policies, judgements and significant estimates are consistent with those applied in
the Annual Report 2023.
Further IAS 34 disclosure requirements for interim financial reporting are included in section 2, Business Performance.
For disclosures regarding revenue and segment information see section 2.1 Revenue by product and section 2.2
Revenue by geographical area, for disclosures regarding inventory obsolescence see section 2.4 EBIT and adjusted
EBITDA and for disclosures regarding pending legal proceedings (contingent liabilities) see section 2.11 General
corporate matters.
A number of new amendments came into effect from January 1, 2024. The Group did not have to change its accounting
policies or make retrospective adjustments as a result of adopting these amended standards.
4.2 FAIR VALUE MEASUREMENT
Financial assets and financial liabilities measured or disclosed at fair value
DKK million
June 30, 2024
Level 1
Level 2
Level 3
Financial assets
Other financial assets
1
28
-
29
Derivatives
1
-
39
34
Total
28
39
63
Financial liabilities
Contingent consideration
1
-
-
365
Derivatives
1
-
216
-
Bond debt²
3,390
-
-
Total
3,390
216
365
1
Measured at fair value
2
Disclosed at fair value
The fair value of listed securities is based on publicly quoted prices of the invested assets. The fair value of derivatives
is calculated by applying recognized measurement techniques, whereby assumptions are based on the market
conditions prevailing at the balance sheet date. The fair value of contingent consideration is calculated as the
discounted cash outflows (DCF method) from future milestone payments, taking probability of success into
consideration. The fair value of other financial assets is calculated through the financial performance of the market
inputs (i.e. interest swap rates) and other market conditions prevailing at the balance sheet date.
4.3 ADJUSTED EBITDA
For the financial guidance 2024 and going forward, Lundbeck will focus on revenue and adjusted EBITDA at constant
exchange rates (CER), instead of revenue and adjusted EBITDA at reported rates, to provide a more focused view of the
underlying operational performance.
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Corporate Release No 760/2024
Page 28
Adjusted EBITDA provides an improved and more consistent indicator, measuring the underlying operational
profitability. Adjusted EBITDA enables a better understanding of the underlying operational performance, as the
operating result is adjusted to exclude depreciation and amortization, impairment losses and reversals of impairment
losses, as well as adjustments restricted to the following categories:
• Integration expenses,
• Restructuring expenses,
• Gains/losses on divestment of businesses,
• Acquisition expenses,
• Other adjustments.
Adjusted EBITDA, adjusted gross profit and adjusted EPS are non-IFRS performance measures.
FINANCIAL REPORT FOR THE PERIOD JANUARY 1 TO JUNE 30, 2024
Corporate Release No 760/2024
Page 29
FINANCIAL CALENDAR 2024
November 13, 2024: Financial statements for the first nine months of 2024
February 5, 2025: Corporate release for the full year 2024
February 5, 2025: Annual Report 2024
Lundbeck contacts
Investors:
Media:
Palle Holm Olesen
Thomas Mikkel Mortensen
Vice President, Investor Relations
Media Relations Lead
PALO@lundbeck.com
THMR@lundbeck.com
+45 30 83 24 26
+45 30 83 30 24
About Lundbeck
Lundbeck is a biopharmaceutical company focused exclusively on neuroscience, with more than 70 years of
experience in improving the lives of people with neurological and psychiatric diseases.
As a focused innovator, we strive for our research and development programs to tackle some of the most complex
challenges. We develop transformative medicines targeting people for whom there are few, if any, treatment options.
Our goal is to create long term value and make a positive contribution to people and societies, everywhere we operate.
We are committed to fighting stigma and discrimination, and we act to improve health equity for the people we serve
and the communities we are part of.
Too many people worldwide live with brain diseases – complex conditions often invisible to others that nonetheless
take a tremendous toll on individuals, families and societies. We are committed to fighting stigma and discrimination
against people living with brain diseases and advocating for broader social acceptance of people with brain health
conditions. Every day, we strive for improved treatment and a better life for people living with brain disease.
We have approximately 5,800 employees, and our products are available in around 80 countries. Our research
programs tackle some of the most complex challenges in neuroscience, and our pipeline is focused on bringing forward
transformative treatments for brain diseases for which there are few, if any therapeutic options. We have research
facilities in Denmark and the United States, and our production facilities are located in Denmark, France, and Italy.
For additional information, we encourage you to visit our corporate site www.lundbeck.com and connect with us on
Instagram (h_lundbeck) and via LinkedIn.