Annual Report
2024
Gao Lei, living with migraine
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
2
Patient perspective 4
2024 in brief
Financial key figures 7
Sustainability key figures 8
Key events 9
Letter from the Chair and CEO 10
Business and strategy
Strategy update 14
Business model and value chain 17
Markets and products 19
Science and innovation 22
Pipeline 28
Business performance
Financial performance review and outlook 2025 30
Business performance 31
Summary for the group 2020-2024 37
Sustainability performance 40
Corporate governance
Governance framework 42
Board of Directors 45
Executive Management 48
Risk management 50
Key risks 52
Internal controls 53
The Lundbeck share 55
Sustainability Statement
General information 59
Environment 73
Social 101
Governance 129
List of appendices 138
Consolidated Financial Statements 146
Financial Statements of the Parent Company 202
Management Statement 216
Independent Auditor’s Reports 218
Additional information
(part of Management Review)
Adjusted EBITDA Reconciliation 227
Contents
Management Review
Financial Statements
Cover page: Gao Lei, living with migraine. Read her story on page 4.
Photos: Søren Svendsen and Lundbeck
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Advancing
brain health.
Transforming lives.
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“To my colleagues, I am known for my focus and
dedication to work. However, few people know that
I have been suffering from migraine for more than
20 years.”
Gao Lei recalls the very first time she was attacked
by a headache. It was during her senior year of high
school.
“During the intense preparation for the college en-
trance exams, I suddenly felt dizzy, as if the world
was spinning, and it was accompanied by a particu-
larly severe headache. At that time, I thought it was
just due to the stress and fatigue from studying.
After lying in bed for about 1 or 2 hours, the symp-
toms gradually eased, so I didn't think much
of it.”
Later, as a medical student, Gao Leis studies were
extremely demanding, with numerous exams to pre-
pare for. The headaches continued to plague her,
causing immense suffering during her graduate
studies and later, when she started her career and
settled down with a family.
A 10-year-late diagnosis
Many people attribute headaches to excessive stress
or fatigue, leading to delayed treatment.
“After enduring nearly a decade of torment and gain-
ing access to professional knowledge through my
medical studies, I was finally diagnosed with mi-
graine in a specialized hospital.”
Patient perspective
20 years on painkillers
Gao Lei, aged 42, lives in Beijing in China. She graduated in medicine and
works as a brand manager at a company where she is responsible for or-
ganizing and hosting conferences. She is a mother and a migraine patient
for more than 20 years.
Gao Lei, living with migraine
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
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After being diagnosed with migraine, Gao Lei
explored various treatment options and tried differ-
ent painkillers, but the results were less than satis-
factory.
Her coping mechanism became a mix of painkillers
and a quiet space to alleviate the pain. This reliance
on painkillers continued for another 10 years.
Preventive migraine treatment
Two years ago, Gao Lei learned about a clinical trial
of a monoclonal antibody medication for migraine
and applied to join. It is a migraine preventive treat-
ment that is injected, and she underwent this treat-
ment for about nine months with very good out-
comes.
Previously, she had frequent headache attacks and
she often needed to use painkillers for more than 10
days each month. After the treatment, she had no
significant attacks except for four or five days before
and after her menstrual period.
The unbearable headaches were gone.
“In the past, painkillers were my life-saving medica-
tion. Now, after preventive treatment, my migraine
symptoms have been greatly relieved, and I have
gradually resumed normal work and life. I hope that
those who suffer from migraine like me
acknowledge and face the disease, and believe that
with improved diagnosis and treatment, we can bet-
ter live our lives.”
Read more about Gao Lei on
www.lundbeck.com
I hope that society can give us
more understanding, tolerance,
and support, and recognize the
efforts we put in to transform
our lives.
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Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
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In this section
2024 in brief
07 Financial key figures
08 Sustainability key figures
09 Key events of 2024
10 Letter from the Chair and CEO
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Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
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Mirza, caregiver of Alzheimer’s disease patient
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Financial key figures
1
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1 Unless otherwise stated, information is at reported rates. 2 Change at CER (Constant Exchange Rates) does not include effects from hedging. 3 For details of the non-IFRS measure ‘adjusted EBITDA’, see Adjusted EBITDA Reconciliation. 4 For definition of the measure ‘EBITDA’, see Summary for the
Group 2020-2024.
Total revenue
DKKm
22,004
22,004
19,912
2024 2023
Revenue from strategic
brands
DKKm
16,462
21% CER
2
Adjusted EBITDA
3
DKKm
6,347
16,462
13,733
2024 2023
6,347
5,652
2024 2023
EBITDA
4
DKKm
5,146
5,146 5,207
2024 2023
Net profit
DKKm
3,143
Net debt
DKKm
(12,182)
Debt position impacted by acquisition of Longboard Pharmaceuti-
cals as of 2 December 2024.
3,143
2,290
2024 2023
(12,182)
711
2024 2023
14% CER
2
( 11% DKK)
20% CER
( 12% DKK)
Adjusted EBITDA margin 28.8%
37%
21% CER
( 20% DKK)
7% CER
( -1% DKK)
Adjusted EBITDA margin 23.4%
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Management Review2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
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Sustainability key figures
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1 Reduction in Scope 1 & 2 greenhouse gas emissions vs. 2019 Science Based Targets Initiatives (SBTi) target baseline. 2 Increase in Scope 3 greenhouse gas emissions from purchased goods and services, upstream transportation and distribution, and business travel vs. 2019 SBTi target baseline. 3
Estimated patient years, based on 2024 sales data for Lundbeck products, excluding partner products. No comparative 2023 figure due to new accounting policy 4 Senior management is defined as Executive Vice Presidents, Senior Vice Presidents, and Vice Presidents.
Business ethics compliance
100%
Share of employees who completed
the annual e-learning on our Code of
Conduct, compared to 99.9% in 2023.
.
Patients we serve
7.2 million
Estimated full-year patients reached
3
.
Underrepresented gender
35%
Gender split for senior managers globally of
35% women and 65% men, compared to 36%
and 64% in 2023
4
.
Climate action
-38%
Reduction in Scope 1 &
2 GHG emissions since
2019
1
.
18%
Increase in Scope 3
GHG emissions since
2019
2
.
Health and Safety
3.2
Frequency of lost time accidents per 1 mil-
lion working hours for all employees glob-
ally, compared to 2.8 in 2023.
Chemical recycling
62%
Recovery of selected organic solvents used
in chemical production, compared to 59% in 2023.
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February
CEO Charl van Zyl announced the compo-
sition of Lundbeck’s new executive man-
agement team.
March
The potential first-in-class therapy for mi-
graine prevention entered an advanced
clinical stage with a clinical phase IIb
dose-finding trial. The PROCEED trial will
assess the efficacy and safety of subcuta-
neously administered Lu AG09222 in mi-
graine prevention.
June
Presentation of an innovative first-in-hu-
man trial design of the monoclonal anti-
body Lu AG13909 for the potential treat-
ment of congenital adrenal hyperplasia
(CAH) a rare debilitating disease with ex-
cess morbidity and mortality.
The phase Ib trial using Lu AG13909 as a
potential treatment for Cushing’s disease
was initiated. Lu AG13909 is a first-in-
class monoclonal antibody (mAb) that
targets the adrenocorticotropic hormone
(ACTH). By binding to ACTH with high af-
finity, Lu AG13909 aims to reduce ele-
vated ACTH levels, potentially providing
therapeutic benefits for individuals with
neurohormonal dysfunctions.
Lundbeck and Otsuka announced FDA ac-
ceptance of sNDA filing for brexpiprazole
in combination with sertraline for the
treatment of adults with post-traumatic
stress disorder (PTSD). FDA plans to host
a Psychopharmacologic Drugs Advisory
Committee anticipated during the first
half of 2025. If approved, the brexpipra-
zole and sertraline combination treat-
ment will be the first FDA-approved phar-
macological treatment for PTSD in more
than 20 years.
September
Lundbeck and Iambic Therapeutics, a
clinical-stage biotechnology company de-
veloping novel therapeutics using its
unique AI-driven discovery platform, en-
tered a strategic research collaboration
to focus on the discovery of a small mole-
cule therapeutic for the treatment of mi-
graine.
October
The clinical trial for Lu AG22515 in Thy-
roid Eye Disease was initiated, taking one
further step in developing treatments for
indications in the neuroimmunology and
neuroinflammatory space with the initia-
tion of the first clinical trial of its CD40L
blocker, Lu AG22515, in patients.
The proposed acquisition of Longboard
Pharmaceuticals was announced. The
strategic deal will enhance Lundbeck’s
neuroscience pipeline and represent a
significant step forward in the Focused
Innovator Strategy, adding a highly inno-
vative and complementary product in
late-stage development for Developmen-
tal and Epileptic Encephalopathies (DEEs)
- an area of high unmet medical need.
Lundbeck announced positive results
from the phase III pivotal trial (SUNRISE)
of Vyepti
®
(eptinezumab), confirming effi-
cacy and meeting the primary endpoint
with statistically significant reductions in
mean monthly migraine days compared
with placebo. Vyepti
®
also met all key sec-
ondary efficacy endpoints in the SUNRISE
trial, and the treatment was generally
well-tolerated.
November
Lundbeck launched MASCOT, a phase III
trial to assess the efficacy and safety of
amlenetug in the treatment of Multiple
System Atrophy (MSA). MASCOT is a ran-
domized, double-blind trial, and builds on
the encouraging results of the AMULET
phase II trial, showing a consistent trend
towards amlenetug slowing clinical pro-
gression in MSA patients.
December
Lundbeck completed the previously an-
nounced transaction to acquire Long-
board Pharmaceuticals that subsequently
became a wholly owned subsidiary of
Lundbeck. The acquisition enhances and
complements Lundbeck’s capabilities and
presence within neuro-rare conditions,
and the lead asset, bexicaserin, holds
blockbuster potential. In January 2025,
Lundbeck announced positive results
from the 12-month open-label extension
of the PACIFIC trial evaluating bexi-
caserin in participants with Developmen-
tal and Epileptic Encephalopathies. The
treatment with bexicaserin demonstrated
favorable safety and tolerability, and bex-
icaserin achieved an overall median sei-
zure reduction in countable motor sei-
zures of 59.3 percent.
The RESOLUTION trial demonstrated the
efficacy of Vyepti
®
in patients with a dual
diagnosis of chronic migraine and medi-
cation-overuse headache. With the pla-
cebo-controlled phase IV trial, Lundbeck
found that the patients rapidly benefitted
from the treatment with Vyepti
®
.
Key events of 2024
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We are proud to advance brain health, and 2024 has
been a transformative year laying the foundation for
a promising future for Lundbeck and for the patients
we serve.
Our contribution to the fight against brain disorders
is access to health for those who need our treat-
ments. We are patient-driven in everything we do.
Our research and development efforts pursue clear
biology and defined patient populations to create
maximum impact. We promote equitable accessibil-
ity, enhance cultural acceptability of mental disor-
ders, and we provide efficacious medical products.
In 2024, our people excelled in generating the high-
est revenue ever recorded, notably while further
strengthening our pipeline of innovative and promis-
ing late-stage assets. Lundbeck continues to deliver
solid growth, driven by the strong performance of
our strategic brands.
We see a growing neuroscience market and expect it
to continue at an 8% annual growth rate. In the U.S.
and Europe, neuroscience is in the top three for new
drug approvals. Adding rapidly evolving science and
technologies that will fuel our innovation at a new
pace, and a range of new drug modalities which will
expand our treatment opportunities, we see a very
promising future ahead of us, patients, people and
society.
Towards sustainable profitability
At the beginning of 2024, we launched our Focused
Innovator Strategy which will drive long-term sus-
tainable growth for Lundbeck.
The strategy answers three fundamental questions:
How we grow with our base business, how we con-
tinue to strengthen our pipeline, and how we allo-
cate capital to fund our growth ambitions. We are
grateful to see that the choices we have made are
generating very positive results and driving the fu-
ture transformation of our company.
Entering 2025, we stand on a strong foundation of
strategic brands that reached double-digit growth
rates. We expect our strategic brands to continue to
maximize growth into 2027, driven primarily by in-
vestments in our key markets and brands globally,
including Vyepti
®
and Rexulti
®
in the U.S. The growth
will bridge the upcoming loss of exclusivity on Brin-
tellix
®
/Trintellix
®
by the end of 2026 in the U.S. and
2025 in Canada, and the loss of exclusivity on Rex-
ulti
®
by the end of the decade.
Treatments advancing brain health
Lundbeck markets treatments that transform the
lives of people living with psychiatric or neurological
diseases. Globally, migraine is the third most com-
mon disease and is more prevalent than diabetes,
epilepsy, and asthma combined.
Our preventive treatment of migraine in adults,
Vyepti
®
, has already been launched in 31 markets
worldwide reducing the number of migraine days.
We continue the roll-out expanding into new mar-
kets, and we expect Vyepti
®
to triple sales in the
coming years, helping people suffering from mi-
graine around the globe.
In the field of depression, 280 million people world-
wide live with this life-devastating disease
3
.
Letter from the Chair and CEO
A transformative year for Lundbeck
As one of few pharmaceutical companies solely focusing on brain health,
the world depends on Lundbeck more than ever. Neurological conditions
are the leading cause of disability and second leading cause of death, glob-
ally, affecting 3.4 billion people
1
and accounting for nearly 19 million deaths
per year
2
.
1 IHME Brain Health Atlas. 2 Journal of Global Health, 2023. 3 WHO, 2023.
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Two of our strategic brands, Brintellix
®
and Rexulti
®
,
are indicated for the treatment of major depressive
disorder (MDD) and have made a huge difference to
people over the years.
Rexulti
®
was first marketed in 2015, indicated for ad-
junctive therapy for the treatment of MDD and schiz-
ophrenia. The 2023 expansion in the U.S. of indica-
tions for Rexulti
®
in AADAD, agitation associated with
dementia due to Alzheimer’s disease – presents a
significant growth opportunity. We see that AADAD
now contributes to 19% of demand for Rexulti
®
in
the U.S., and we assume that this will continue with
expected peak sales of USD 1 billion.
Likewise, we expect the Abilify Asimtufii
®
2-month in-
jection for the treatment of schizophrenia and bipo-
lar I disorder in adults to be a new launch that would
minimize disruption to patients suffering from these
chronic diseases avoiding the monthly administra-
tion.
While building on our 70-year long experience in
psychiatry and neurology, we are increasing our
strategic focus on neuro-specialty and neuro-rare
disease areas.
Promising pipeline
Sustainable financial growth will depend on our ca-
pacity to improve productivity in R&D. Alongside
substantial investments, effective changes to our
R&D processes have created enthusiasm across the
R&D department as we implement an approach of
‘listen-to-the-biology’ and ‘kill your darlings in phase
I’. Now, we advance other potential molecules or in-
dications if one does not prove itself in phase I, and
we have a transformed pipeline of assets targeting
new biology. 90% of our development pipeline is in
neuro-rare and neuro-specialty, and it demonstrates
significant potential in advancing treatments in ar-
eas with high unmet needs. Our late-stage projects
are promising with emerging scientific develop-
ments, and we aim to have four phase III programs
by 2026.
Subsequently, we expect to be filing a new therapy
for migraine prevention and the first disease-modify-
ing therapy in Multi System Atrophy (MSA). Adding
our newly acquired bexicaserin in Developmental
and Epileptic Encephalopathies (DEEs) and an up-
coming new molecular entity in Cushing’s disease
and Congenital Adrenal Hyperplasia we are well un-
derway establishing a neuro-rare franchise.
Looking at our early pipeline, we have de-risked our
development activities through innovative ways of
working, e.g., by using new biomarkers.
We would like to take this opportunity to thank our
R&D colleagues for their active support in transform-
ing and strengthening our development activities,
positioning us to be best suited to deliver innovative
solutions in the field of neuroscience.
We want to take this opportunity to thank
Lundbeck’s employees. Their hard work and
dedication are transforming the lives of people
living with brain disorders.
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A sustainable future
At Lundbeck, sustainability refers not only to our
growth as a company, but also towards our commit-
ments to stakeholders, society, and the environ-
ment. Our most important contribution to sustaina-
ble development is easing the global burden for
those living with neurological and psychiatric dis-
eases, making access to health a core element of our
sustainability strategy.
In 2024, our treatments reached 7.2 million full-year
patients
1
, and we have continued to donate products
and fund psychosocial support to low- and middle-
income countries and those affected by war and civil
unrest. This year, Lundbeck also launched a global
platform to provide medical education to healthcare
professionals.
Lundbeck relies on attracting and retaining a skilled
and diverse workforce, and we value a diverse, equi-
table, and inclusive workplace. To us, this includes a
commitment to be a neurodiverse workplace. In
2024, we integrated this commitment into the
Lundbeck behaviors that are supporting our Focused
Innovator Strategy. Company-wide training is in
place, aiming at ensuring that all employees feel free
to share their perspectives. In the coming years, this
training will expand to include initiatives on different
subjects such as bias reduction.
We have also continued working towards Lundbeck’s
environmental goals, acting and making investments
as we set out in our climate transition plan towards
net-zero. A major milestone this year has been the
start of construction of a new chemical recovery unit
at one of our sites.
2024 also marks the first year that Lundbeck pre-
sents an integrated annual report with extensive
sustainability disclosures in accordance with the Eu-
ropean Corporate Sustainability Reporting Directive.
We fully support the European Green Deal and be-
lieve that sustainability frontrunners like Lundbeck
benefit from the new requirements. Despite its im-
perfections, the new regulations accelerate much
needed transparency and comparability within ESG
reporting.
Continuous business improvement
In 2024, we began the largest capital reallocation
program in the company’s history. It will allow us to
optimize our business and fund our growth ambi-
tions. We invest in maximizing our strategic brands
in specific markets, further boosting our pipeline,
and in modifying our operational models in both the
commercial function and Production & Supply. We
also envisage targeted divestments to source capital
for investments.
Behind this excellent 2024 execution of our Focused
Innovator Strategy lies a truly amazing team effort
by our dedicated people, along with disciplined deci-
sion-making in the areas where we will engage, as
much as the areas where we will not. Setting the di-
rection and leading the way to becoming a focused
innovator is a priority for the new management
team.
The Executive Management team was in place by Au-
gust 2024 with new colleagues heading People &
Culture, Corporate Communications & Public Affairs,
Commercial Operations, and Commercial & Corpo-
rate Strategy. Each individual member of the Execu-
tive Management brings vast international experi-
ence, and we join forces as a team, unified in pro-
moting a sense of shared ownership.
We want to take this opportunity to thank
Lundbeck’s employees. Their hard work and dedica-
tion are transforming the lives of people living with
brain disorders. We thank everyone for supporting
the excellent execution of our objectives and for con-
tinuing to innovate to advance brain health.
1 Estimated number of full-year patients, based on 2024 sales data for Lundbeck products, excluding partner products.
While building on our 70-year long experience in
psychiatry and neurology, we are increasing our
strategic focus on neuro-speciality and neuro-rare
disease areas.
Charl van Zyl
President and CEO
Lars Søren Rasmussen
Chair of the Board of Directors
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Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
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In this section
Business and strategy
14 Strategy update
17 Business model
18 Value chain
19 Markets
20 Products
22 Science and innovation
28 Pipeline
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
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Kazuko, living with Depression
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During 2024, we launched the Focused Innovator
Strategy, which will help us win in neuro-rare and
specialist-treated disease areas. The strategy ad-
dresses three main action points:
• Securing mid-term growth: We stand on a strong
foundation of strategic brands that have reached
double-digit growth rates.
• Leading with focused innovation: We continued
our transformation of R&D building an innovative
pipeline scaling our position in neuro-specialty
and establishing a neuro-rare franchise.
• Delivering sustainable profitability: We have put
continual efforts into reallocating finances and re-
sources to ensure focused innovation and long-
term growth.
Investing to grow
Throughout 2024, we had a disciplined focus on
maximizing our existing resources through invest-
ments. This way we improved our profitability, while
investing more in R&D and our key brands, i.e., the
launches of Rexulti
®
in agitation associated with de-
mentia in Alzheimer’s disease (AADAD) and Vyepti
®
in migraine prevention.
We aim to establish solutions for patients that pro-
vide differentiation over the standard of care, and
we constantly evaluate our strategic choices as to
where to invest our capital to achieve our long-term
goals.
Looking at our global presence, we have highly spe-
cialized employees in more than 50 countries. They
market our strategic brands, which account for 75%
of our revenue. In 2024, they delivered very strong
results, with growth exceeding expectations.
To maximize growth moving forward while ensuring
that we meet patients’ needs, we will be focusing in-
vestments into key growth markets. We do so to off-
set loss of exclusivities in some psychiatry disease ar-
eas by the end of the decade.
In the U.S., we have been boosting investments in
Rexulti
®
and Vyepti
®
and witnessed a very successful
acceleration of these two growth engines with sales
of strategic brands up by 23%. In parallel, we agreed
with Takeda Pharmaceutical that by 1 January 2025
we move from a co-promotion, cost-sharing, and
revenue-sharing model to a royalty-based model of
the marketing of Trintellix
®
. This has enabled us to
allocate more resources and focus on the marketing
of Rexulti
®
and Vyepti
®
.
In Europe and International Operations, we have de-
cided to modify our organizational structure to cre-
ate new regional units, where individual markets are
grouped according to market characteristics, size,
and geography.
This way, we ensure that we have the right setup
and capabilities for a more focused and specialty-ori-
ented approach across our markets. In parallel, this
focus on optimization will also be applied to the rest
of our organization.
We continued to
advance brain health,
impacting patients,
people, and society.
Strategy update
Impacting patients, people, and society
In 2024, we launched the Focused Innovator Strategy in support of our pur-
pose to advance brain health and transform lives by aiming to secure mid-
term growth, lead with focused innovation, and deliver on sustainable prof-
itability. With the acquisition of Longboard Pharmaceuticals, we have signifi-
cantly enhanced our neuroscience pipeline.
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Building our innovative pipeline
Neuroscience is at the forefront of scientific break-
throughs with rapid technological, medical and regu-
latory advances driving the development of new
treatments.
Lundbeck is a strong innovation- and science-led or-
ganization. Our core strengths in neurology and psy-
chiatry have been developed over the past 70 years
and are evidenced by the more than 30 treatments
we have launched to date, improving the lives of mil-
lions of people living with brain disorders. As we con-
tinue to advance brain health and transform lives,
we are expanding our focus to include neuro-rare
and neuro-specialty conditions characterized by high
unmet needs.
In October 2024, we announced the acquisition of
Longboard Phamaceuticals, and we closed the deal
in December 2024. The phase III bexicaserin in De-
velopmental and Epileptic Encephalopathies (DEEs) is
the anchor asset and an important addition to our
amlenetug program, where Lu 82422 – a potential
first disease-modifying therapy in MSA – is progress-
ing to phase III. Longboard is a perfect strategic fit
to our efforts in building a robust neuro-rare fran-
chise, and it will leverage our global expertise in epi-
lepsy among both our R&D scientists and colleagues
in Commercial.
We have a transformed pipeline of assets targeting
new biologies. We have de-risked our early develop-
ment efforts, and during the last couple of years, we
have progressed two programs to phase II, am-
lenetug and Anti-PACAP in migraine prevention. We
are aiming for four phase III programs by 2026, add-
ing amlenetug, Anti-PACAP and Anti-ACTH in Cush-
ing’s disease and Congenital Adrenal Hyperplasia to
our newly acquired asset in DEEs, bexicaserin.
Advancing brain health and
sustainability
In 2024, we continued to make strides in advancing
brain health, impacting patients, people, and society.
Our efforts are closely linked to our sustainability
strategy, where access to health is core, including
taking action through awareness building, advocacy,
and fighting stigma.
In 2024, Lundbeck continued its ‘Let the patient
speak’ events to integrate patients’ perspectives into
our development programs. We invite patients and
caregivers to share their insights, aiding Lundbeck in
innovation and evidence generation. We also collab-
orate with partners to gain deeper insight into un-
met patient needs, and work to further enhance the
diversity of our clinical trials.
This year, our treatments reached more than seven
million people worldwide
1
. Improving access to
health holds the opportunity of making Lundbeck’s
medical innovations accessible to more patients who
need them. We have defined long-term aspirations
to make innovative treatment available through
R&D, promote equitable accessibility, enhance cul-
tural acceptability, and provide efficacious medical
products.
We believe that this will enhance health outcomes
and improve the quality of life for patients. It will
also improve the productivity of people suffering
from neurological and psychiatric conditions, ad-
dressing the UN Sustainable Development Goals
(SDG) of “Good Health and Wellbeing for all”.
In addition to access to health, Lundbeck also recog-
nizes the importance of doing right by our people,
minimizing impacts on the environment, and con-
ducting our business ethically. We continuously work
to maintain a culture of respect and safe working
conditions for both employees, value chain partners
and patients. The 100% completion rate of our an-
nual e-learning on our Code of Conduct is a testa-
ment to this.
In 2024, Lundbeck continued to work towards our
climate and circularity aspirations, including continu-
ously expanding the collaboration with suppliers on
the challenging task of lowering our collective cli-
mate footprint. This year, we have started the con-
struction of a new chemical recovery unit at one of
To maximize growth moving
forward while ensuring that we
meet patients’ needs, we will be
focusing investments into
key growth markets.
1 Estimated number of full-year patients, based on 2024 sales data for Lundbeck products, excluding partner products.
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16
our sites. This will both increase recycling rates and
reduce our greenhouse gas emissions when it be-
comes operational following the expected comple-
tion of its construction in late 2025.
We are committed to integrating sustainable prac-
tices throughout our operations, driving both short-
term actions and long-term aspirations towards a
sustainable future.
Culture as an enabler of
transformation
At Lundbeck, our culture is rooted in a legacy of
commitment to positively impacting people, pa-
tients, and society. Globally, our employees feel a
strong connection to our purpose, which enhances
collaboration across our organization. Our people
are our greatest asset, driving our purpose forward.
In 2024, culture, which is part of the foundation of
our Focused Innovator Strategy, was identified as an
important enabler of the transformation to ensure
success. With that, a new people strategy was intro-
duced aimed at cultivating a culture that attracts and
retains talent while expanding our capabilities, e.g.,
within AI and sustainability.
Our strategy is built on three essential behaviors:
• Curiosity: Encouraging exploration and challeng-
ing the status quo to foster creativity and innova-
tion.
• Adaptability: Nurturing cross-functional collabora-
tion to embrace change and enhance problem-
solving.
• Accountability: Prioritizing our patients and ensur-
ing our actions align with our mission to make a
positive societal impact.
As we embrace these behaviors, we strengthen our
culture and commitment to advancing brain health
and transforming lives. Together, we lead the way
for a brighter future as a Focused Innovator.
For further information on our Sustaina-
bility Strategy, please see page 62.
Patients
Our singular purpose is to fulfil the large
unmet medical need and bring hope to indi-
viduals living with brain disorders enabling
them to live their best lives.
People
With better patient treatment we ease the
burden on families and relatives who are of-
ten affected, not only emotionally, but also
financially related to medical care, caregiv-
ing responsibilities etc.
Society
By bringing forward transformative treat-
ments to patients, we positively impact the
personal, medical and economic burden on
society caused by brain disorders.
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Business model
1 ESRS 2, SBM-1 paragraph 40(a)iii (see page 111). *Subject to limited assurance. 2 Estimated 7.2 million full-year patients, based on 2024 sales data for Lundbeck products, excluding partner products.
We focus our innovation within
psychiatry and neurology
We are one of the few biopharmaceutical
companies in the world working exclusively within
neuroscience.
• Psychiatry covers psychotic disorders like schizophrenia, mood and
anxiety disorders like depression, bipolar disorder, and post-trau-
matic stress disorder.
• Neurology covers disorders like migraine, dementia, and movement
disorders like Parkinson’s disease, epilepsy, and multiple system atro-
phy (MSA).
• Neuroscience is an exciting growing area with large unmet medical
needs. We see growth and rapidly evolving technologies and method-
ologies.
We work in partnerships to fight stigma and
address the large unmet medical needs.
Business model and value chain
At Lundbeck, we discover, develop, and commercialize treatments that make a difference
to people affected by psychiatric and neurological disorders.
We cover the full value chain
We have more than 70 years of experience in
neuroscience and in improving the lives of people
with brain disorders.
• We research to build a strong pipeline consisting of promising mole-
cules and antibodies.
• We develop our drug candidates into new medicines.
• We manufacture medicines at highly advanced production sites and
continue to supply our drugs to patients in need.
• We make our medicines available through healthcare systems in
more than 100 countries.
We ensure positive outcomes to people
and societies
Everywhere we operate, we strive to create long-
term value and make a positive contribution to
people and societies.
• +7 million patients around the world are helped by our medicines
daily
2
.
• We reinvest around 20% of our revenue in R&D to continue our devel-
opment of new, innovative drugs.
• Throughout our value chain, we incorporate patient insights by talk-
ing to and learning from those with lived experiences.
• We create shareholder value ensuring sustainable and profitable
growth.
We act to improve health equity for the patients we
serve and the communities we are part of.
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Value chain
1 ESRS 2 SBM-1, paragraph 42(a). 2 ESRS 2 SBM-1, paragraph 42(b). 3 ESRS 2 SBM-1, paragraph 42(c). *Subject to limited assurance.
Input
1
Transformation
1
Output and outcome
2
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1 ESRS 2, SBM-1 paragraph 40(a)ii. 2 ESRS 2, SBM-1, paragraph 40(b). *Subject to limited assurance. 3 The figures exclude other revenue of DKK 366 million and negative hedging effects of DKK 52 million.
U.S.
Europe
International Operations
U.S.
Revenue (DKKm)
11,325
Revenue from
strategic brands (DKKm)
10,275
Share of group revenue
3
52%
Strategic brands
Abilify LAI franchaise
Trintellix
®
Rexulti
®
Vyepti
®
Europe
Revenue (DKKm)
5,146
Revenue from
strategic brands (DKKm)
3,650
Share of group revenue
3
24%
Strategic brands
Abilify LAI franchaise
Brintellix
®
Rexulti
®
/Rxulti
®
Vyepti
®
International Operations
Revenue (DKKm)
5,219
Revenue from
strategic brands (DKKm)
2,537
Share of group revenue
3
24%
Strategic brands
Abilify
LAI franchaise
Brintellix
®
/Trintellix
®
Rexulti
®
Vyepti
®
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Products
Strategic brands
Abilify Maintena
®
(aripiprazole once monthly) has been mar-
keted since 2013 as a monthly intramuscular injection indi-
cated for the treatment of schizophrenia and bipolar I disor-
der in adults.
Abilify Asimtufii
®
(aripiprazole every two months) was
launched as an intramuscular injection every two months in
the U.S in 2023. In March 2024, the European Commission
approved Abilify Maintena
®
960mg. The product is launched
either alone or in collaboration with Otsuka Pharmaceutical.
(vortioxetine)
Indicated for the treatment of major depressive disorder
(MDD) Lundbeck markets Brintellix
®
/Trintellix
®
in Europe and
International Operations. Takeda is our co-promotion part-
ner in the U.S. and Japan. Launched in the first markets in
2014, it is now available in approximately 60 countries.
(brexpiprazole)
Indicated for adjunctive therapy for the treatment of adults
with MDD and as a treatment for adults with schizophrenia.
In 2023, it was further approved for the treatment of agita-
tion associated with dementia due to Alzheimer's disease.
Launched in the U.S. in 2015 in collaboration with Otsuka
Pharmaceutical, and subsequently in several other coun-
tries.
(eptinezumab)
Indicated for the preventive treatment of migraine in adults.
Lundbeck markets Vyepti
®
across all 3 regions in the U.S., EU
and International Operations. Launched in the U.S. at the
beginning of 2020, it is now available in 24 countries across
the world.
Revenue (DKKm)
3,504
% of total revenue
16%
Revenue (DKKm)
4,847
% of total revenue
22%
Revenue (DKKm)
5,202
% of total revenue
24%
Revenue (DKKm)
2,909
% of total revenue
13%
10%
CER
16%
CER
72%
CER
1 ERSR 2, SBM-1 paragraph 40(a)i. *Subject to limited assurance. 2 Abilify long-acting injectable (LAI) franchise comprises following products: Abilify Maintena
®
, Abilify Maintena
®
960 mg and Abilify Asimtufii
®
.
14%
CER
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21
9%
CER
Products
Mature brands
(escitalopram)
Indicated for the treatment of depression. First launched in
2002, and is now available in close to 100 countries around
the world.
Revenue (DKKm)
2,048
Revenue (DKKm)
3,180
Northera
®
(symptomatic neurogenic orthostatic hypoten-
sion (nOH)), Onfi
®
(epilepsy), Sabril
®
(refractory complex par-
tial seizures (rCPS) and infantile spasms (IS)), Ebixa
®
(demen-
tia), Azilect
®
(Parkinson’s disease), Xenazine
®
(chorea),
Deanxit
®
(depression), Cipramil
®
(depression and anxiety),
and Cisordinol
®
(psychosis) are among the biggest of our
other mature brands.
% of total revenue
9%
% of total revenue
14%
1 ESRS 2, SBM-1 paragraph 40(a)i. *Subject to limited assurance.
2%
CER
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Lundbeck is dedicated to neuroscience. We have the
heritage, expertise, and passion to translate leading
science into transformative treatments. Opportuni-
ties to make a difference are huge: The unmet needs
of patients are enormous, and the number of af-
fected people is rising. At the same time, neurosci-
ence is at the forefront of scientific breakthroughs,
with rapid technological, medical, and regulatory ad-
vances which drive innovation of new treatments.
With the Focused Innovator Strategy, we have fur-
ther narrowed our focus. Lundbeck has a founda-
tional strength in psychiatry and neurology, and we
build upon this core. We reinforce our neuro-spe-
cialty position, and we establish a neuro-rare fran-
chise.
We are successfully progressing our pipeline
through a rigorous development process defining
how we operate by letting the biology, the molecule,
and the patient speak.
Our R&D organization focusses on promising biol-
ogy, and we work with innovative discovery research
using e.g., CLiPr and Blood Brain Barrier shuttle. All
in all, this approach allows us to de-risk our early de-
velopment efforts. In addition, we are de-risking the
early pipeline by having an adequate number of
phase I programs. Like this, we can bring promising
projects quickly forward to early clinical proof of con-
cept, and we invite patients to guide us in the late
development phase on our way from unmet needs
to transformative treatments.
Executing the R&D strategy
With technology expanding the target landscape and
new drug modalities increasing treatment opportu-
nities, the use of new biomarkers, and a regulatory
evolution that accelerates the approvals in neurosci-
ence, we lead with focused innovation. Over the past
year, we continued to build our pipeline as the en-
gine for sustainable growth.
In January 2024, Lundbeck’s AMULET phase II trial
with amlenetug (Lu AF82422) showed convincing
trends of slowing Multiple System Atroph (MSA).
Lundbeck is committed to addressing the unmet
needs of MSA patients with amlenetug and has pro-
gressed the program in dialogue with health author-
ities.
In March 2024, Lundbeck’s potential first-in-class
therapy for migraine prevention, the Lu AG09222
(anti-PACAP mAb) program, entered an advanced
clinical stage with a clinical phase IIb dose-finding
trial. This trial will assess the efficacy and safety of
subcutaneously administered Lu AG09222 in
Science and innovation
Driving innovation of new treatments
In 2024, we continued to build our pipeline on rigorous development pro-
cesses, combining our strong competencies and new technologies with dis-
ciplined selection and progression in our innovative programs that combine
internal innovation and external partners’ research.
Four biological clusters
Through pursuit of novel targets within 4 biological
clusters, Lundbeck advances innovative solutions
to areas of significant unmet medical needs within
neuroscience.
The four biology clusters are:
Hormonal / neuropeptide signaling:
Targeting selected pathways of pain signaling,
stress and other neurohormonal responses.
Circuitry / neuronal biology:
Targeting neurotransmission / synaptic dysfunc-
tion to restore brain circuits and reduce neurologi-
cal, psychiatric, and pain symptoms.
Neuroinflammation / neuroimmunology:
Targeting neuronal loss due to an overactive im-
mune system, relevant across many niche and rare
neurological disorders.
Protein aggregation, folding and clearance:
Targeting neurodegenerative proteinopathies in-
volved in a range of neurodegenerative conditions,
e.g., Alzheimer’s dementia and Parkinson’s disease,
as well as rare diseases characterized by protei-
nopathy, such as multiple system atrophy (MSA).
Read more on the following pages.
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migraine prevention aiming to establish the optimal
dose for future global pivotal trials.
In June 2024, Lundbeck initiated a first trial with Lu
AG13909 in patients with Cushing’s disease (CD).
In June 2024, the U.S. Food and Drug Administration,
FDA, accepted a supplemental new drug application,
sNDA, filing for brexpiprazole in combination with
sertraline for the treatment of adults with post-trau-
matic stress disorder (PTSD). The FDA plans to host a
Psychopharmacologic Drugs Advisory Committee
meeting to seek input on issues related to the sNDA.
The meeting is anticipated to occur during the first
half of 2025. If the application, is approved, the brex-
piprazole and sertraline combination treatment
would be the first FDA-approved pharmacological
treatment for PTSD in more than 20 years.
In October 2024, Lundbeck initiated the first clinical
trial of its CD40L blocker, Lu AG22515, in patients.
The proof-of-concept (PoC) trial will evaluate the effi-
cacy, safety, and tolerability of Lu AG22515 as a po-
tential treatment for Thyroid Eye Disease, an autoim-
mune disease causing a debilitating, disfiguring, and
potentially blinding periocular condition. Blocking
CD40L inhibits both B and T cell activations without
direct clearance of B cell populations and holds
strong promise in treating a wide range of autoim-
mune-related CNS disorders.
In October, Lundbeck announced positive results
from the SUNRISE phase III pivotal trial of Vyepti
®
(eptinezumab) in migraine prevention. Vyepti
®
con-
firmed efficacy, meeting the primary and all key sec-
ondary endpoints. SUNRISE was predominantly con-
ducted in Asia, evaluating the efficacy and safety in
patients with chronic migraine. Based on the trial re-
sults, Lundbeck plans to initiate discussions with rel-
evant regulatory authorities with the aim of making
Vyepti
®
available for people suffering from migraine
across Asia.
Epilepsy back in the pipeline
In 2024, Lundbeck acquired Longboard Pharmaceu-
ticals with the lead asset bexicaserin which holds
blockbuster potential. In September 2024, a global
phase III trial was initiated by Longboard Pharma-
ceuticals, evaluating bexicaserin for the treatment of
seizures associated with Dravet Syndrome, one of
the rare epilepsies. In November, Longboard Phar-
maceuticals initiated a second phase III to evaluate
the efficacy of bexicaserin in Developmental and Epi-
leptic Encephalopathies (DEEs).
Bexicaserin has shown encouraging anti-seizure ef-
fects to date in preclinical and clinical studies, with
its next-generation superagonist mechanism specifi-
cally targeting 5-HT
2C
receptors, supporting bexi-
caserin’s potential to offer a highly differentiated
and best-in-class profile. It complements perfectly
our late-stage internal pipeline and our Focused In-
novator ambition to build a neuro-rare franchise and
reestablish Lundbeck’s strong presence in the epi-
lepsy space.
There is a strong unmet need across a broad range
of epilepsy indications, including Developmental and
Epileptic Encephalopathies (DEEs). Among the more
than 20 known DEEs, only 4 have approved treat-
ments so far. The innovative potential of bexicaserin,
with its unique 5-HT
2C
super-agonist mechanism of
action, positions us to address significant unmet
needs in severe epilepsies across DEEs including
Dravet and Lennox-Gastaut syndromes.
Bexicaserin has the potential to address all DEEs,
and compared to the treatments currently available,
e.g., fenfluramine, bexicaserin has greater selectivity
and specificity, designed to only bind 5-HT
2C
recep-
tors. On 30 January 2025, Lundbeck announced the
headline results of the bexicaserin PACIFIC phase
1b/2a 12 months Open-Label-Extension study evalu-
ating bexicaserin in patients with Developmental
and Epileptic Encephalopathies (DEEs) demonstrat-
ing a sustained, durable response in seizure reduc-
tion and a favorable safety and tolerability profile
across a broad range of DEE patients. These data
provide further support to bexicaserin’s potential to
offer a highly differentiated and best-in-class profile.
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 tar-
geting pituitary adenylate cyclase-activating poly-
peptide (PACAP). PACAP and its receptors are
broadly expressed in the nervous systems and in-
flammatory cells. By interfering with the PACAP sig-
naling, there is a potential to affect multiple symp-
toms 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-find-
ing phase IIb trial that will be conducted in Europe,
Japan and the U.S. It assesses 4 different doses of Lu
AG09222 versus placebo, administered subcutane-
ously once monthly for three months. The trial is in-
tended 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 approxi-
mately 498 patients and will assess the efficacy,
safety and tolerability of Lu AG09222.
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24
The target population for this trial is defined as pa-
tients diagnosed with migraine as outlined in the In-
ternational Classification of Headache Disorders
Third Edition (ICHD-3), and who failed to take 2-4 dif-
ferent preventive migraine medications in the past
10 years. Study completion is expected in the second
half of 2025.
Lu AG13909 – Phase I/II
Lu AG13909 is a first-in-class monoclonal antibody,
which has the potential to offer a treatment alterna-
tive to patients suffering from conditions related to
the hypothalmic-pituitary-adrenal (HPA) axis, leading
to increased levels of adrenocortotropic hormone
(ACTH). By binding to ACTH with high affinity, Lu
AG13909B aims to reduce elevated ACTH levels, po-
tentially providing therapeutic benefits for individu-
als with neurohormonal dysfunctions.
Lundbeck has initiated a first-in-human trial in pa-
tients with Congenital Adrenal Hyperplasia (CAH) in
December 2022, and a trial in Cushing’s disease (CD)
in June 2024.
Circuitry / neuronal biology
Brexpiprazole in Post-Traumatic Stress Disorder
(PTSD)
On 25 June 2024, Lundbeck announced that a sup-
plemental new drug application (sNDA) for brex-
piprazole in combination with sertraline for the
treatment of adults with post-traumatic stress disor-
der (PTSD) was accepted and filed by the FDA.
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-Ad-
ministered PTSD Scale (CAPS-5) total score for brex-
piprazole 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, and 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 ser-
traline 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 one 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 ser-
traline were consistent with Trials 061 and 071.
Across the three randomized trials, the combination
of brexpiprazole and sertraline in adult patients with
PTSD was generally well-tolerated, and no new
safety observations were identified.
FDA plans to host a Psychopharmacologic Drugs Ad-
visory Committee meeting anticipated during the
first half of 2025. If approved, the brexpiprazole and
sertraline combination treatment will be the first
FDA-approved pharmacological treatment for PTSD
in more than 20 years.
Brexpiprazole – phase III in adolescent patients
(13-17 years old) with schizophrenia
A Type II variation to apply for a pediatric schizo-
phrenia indication (for adolescents aged 13 to 17
years) was successfully submitted to the European
Medicines Agency (EMA) on 26 June 2024. The ex-
pected action date is in the second quarter of 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 pla-
cebo. 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).
Aripiprazole – 2-month long-acting injectable
(LAI) formulation
The new 2-month formulation is an innovative addi-
tion to the long-acting injectable (LAI) franchise and
has patent protection until the early part of the next
decade.
A supplemental New Drug Submission (sNDS) for the
2-month formulation has recently been approved by
Health Canada (January 2025).
Based on pharmacokinetic modelling, two supple-
mental New Drug Applications (sNDAs) to update the
Abilify Asimtufii
®
and Abilify Maintena
®
USPIs, with a
1-day initiation regimen (1-IR) in addition to the cur-
rently approved initiation regimens, were accepted
and filed by the FDA in August 2024, with a target
date for completion of the review of 30 March 2025
for both products. If approved, patients stabilized on
oral Abilify will be able to initiate the every-2-months
Abilify Asimtufii
®
treatment regimen in a single day
by administering one injection of Abilify Asimtufii
®
960 mg, one injection of Abilify Maintena
®
400 mg,
and a single oral dose of Abilify 20 mg. For Abilify
Maintena
®
, the 1-IR consists of two separate injec-
tions of Abilify Maintena
®
400 mg and a single oral
dose of Abilify 20 mg.
MAGLi program – phase I
Following the recent completion of a mechanism of
action phase I trial with Lu AG06474, emanating
from the acquisition of Abide, it has been decided to
write down part of the carrying amount of this asset
in the Financial Statements for 2024. There is still sig-
nificant potential value remaining from this acquisi-
tion, including an additional ongoing clinical pro-
gram and a unique discovery platform.
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25
Vortioxetine – Pediatric development program in
Major Depressive Disorder (MDD) in Japan
Given a large unmet medical need and no medicines
approved in Japan for treatment of MDD in children,
Lundbeck has decided to initiate a pediatric develop-
ment program in collaboration with its alliance part-
ner Takeda.
The phase III trial is a randomized, double-blind, pla-
cebo-controlled 10-weeks study evaluating the effi-
cacy and safety of flexible dose vortioxetine (10-
20mg) in MDD in adolescents aged 12-17 years, with
First-Patient-First-Visit planned for Q4 2025.
In August 2024, based on the development program,
Lundbeck and Takeda received a positive opinion
from the Japanese Pharmaceutical Affairs Council
Committee on Drug I of the Ministry of Health, La-
bour and Welfare, granting vortioxetine was granted
a 2-year extension until 2029 of the re-examination
period for the adult indication in MDD. This means
that vortioxetine’s loss of exclusivity in Japan will be
extended by two years. This extension is unrelated
to the phase III trial outcome.
Protein aggregation, folding,
and clearance
Lu AF82422 (amlenetug) – phase II
Lu AF82422 is a monoclonal antibody (mAb) target-
ing the pathological form of the protein alpha-synu-
clein that is believed to play a pivotal role in the
development and progression of neurodegenerative
diseases such as multiple system atrophy (MSA), Par-
kinson’s disease (PD), and other synucleinopathies.
By targeting pathological alpha-synuclein with an an-
tibody 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 bur-
den and function. A phase II randomized, double-
blind, placebo-controlled exploratory proof-of-con-
cept (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 the results of
the AMULET PoC trial. The trial included 61 MSA pa-
tients randomized 2:1 (40 on Lu AF82422 versus 21
on placebo) and treated for 48-72 weeks. The pri-
mary endpoint in the trial measured the slowing of
progression of MSA as measured by the Unified Mul-
tiple System Atrophy Rating Scale (UMSARS) Total
Score Part I and II, while the key secondary end-
points included Modified UMSARS Part I as well as
several other clinical outcome measures and bi-
omarkers. 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 sig-
nals of efficacy were observed across multiple
clinical and biomarker endpoints. Lu AF82422 was
generally well-tolerated. Consequently, Lundbeck ini-
tiated a phase III clinical trial in November 2024.
Orphan drug designation for MSA was granted by
the 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.
Commitment to diversity in clinical trials
Lundbeck understands that brain diseases wreak havoc
without bias. Whether it be genetics, age, race, sex, eth-
nicity, socioeconomics, or access to healthcare, under-
standing and fully evaluating the multitude of factors
that influence a person’s health are key to both the
development of good medicine and the equitable ad-
vances in brain health. As part of our ongoing commit-
ment to sustaining a diverse clinical trial infrastructure,
we have established the below Clinical Trial Diversity
Principles below and are committed to tracking and
monitoring progress against them.
Develop and execute a clear strategy to achieve
diversity in our trials globally
We aim for each trial to be designed with the intention
of ensuring participants mirror the full diversity of the
patient population in the country or region and the dis-
ease we are studying. This will require a concentrated
effort to involve underrepresented populations in our
marketed regions through focused patient-inclusion cri-
teria; attention to the diversity of clinical trial sites and
investigators, removal of barriers that could impede the
participation of certain groups in clinical trials and use
of real-world data to inform development efforts and
improve understanding of diseases and products.
Collaborate with patient advocacy groups choosing
to make diversity a priority
Lundbeck has a long-standing focus on community out-
reach, and we are committed to expanding partnerships
with organizations that possess a like-minded focus on
diversity. In collaboration with external partners, we
strive to establish trust with diverse patient and care-
giver populations, gain deeper insight into unmet pa-
tient needs, and build awareness about open clinical tri-
als to further enhance the diversity of our clinical trials.
Implement integrated oversight approach to inform,
analyze and act
We aim to continuously inform and evolve our internal
thinking and processes by actively monitoring clinical
trial diversity targets and utilizing real-world data to en-
sure we are driving the inclusion of underrepresented
populations in our clinical trials.
Lundbeck Annual Report 2024
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26
Neuroimmunology/
Neuro-inflammation
Lu AG22515 – phase Ib
Lu AG22515 is a CD40L/human serum-albumin Fab
bispecific fusion protein that blocks the CD40L/CD40
pathway through direct competition with CD40 of
CD40L, thereby affecting adaptive and innate im-
mune responses. Lu AG22515 is a promising thera-
peutic candidate being developed under a licensing
and collaboration agreement between Lundbeck and
AprilBio Co., Ltd.
Lu AG22515 exhibits high potency, an extended half-
life due to its SAFA technology, and an improved
safety profile compared to other immunosuppress-
ing MoAs. By targeting the CD40L pathway, which is
involved in the activation of complex T-cell mediated
autoimmune responses, Lu AG22515 represents a
novel approach in the treatment landscape of auto-
immune and neuro-immunological diseases.
Lundbeck has initiated a phase Ib trial to assess the
efficacy, safety, and tolerability of Lu AG22515 as a
potential treatment for Thyroid Eye Disease, an auto-
immune disease causing a debilitating, disfiguring,
and potentially blinding periocular condition. The
phase Ib trial is planned to enroll 19 patients.
Other projects
Lundbeck’s long experience and continuous work
within neuroscience have provided us with a global
network in preclinical and clinical research. It is es-
sential for us to maintain our strong internal R&D ca-
pabilities and to build external alliances to supple-
ment our internal capabilities. 70% of Lundbeck’s de-
velopment portfolio is externally sourced. We com-
bine internal and external innovation to create a
strong pipeline. Internal resources provide im-
portant competitive intelligence and insights into
R&D trends, and we are very inspired by external sci-
ence whether we work with academia or other in-
dustry partners.
With the support from the world-renowned Michael
J. Fox Foundation, Lundbeck is combining its bio-
marker discoveries with leading microfluidic experts
at the Danish Technical University (DTU) to develop a
state-of-the-art biomarker assay for Parkinson’s di-
sease (PD). With a second grant from the Michael J.
Fox Foundation, Lundbeck is leading the discovery of
a radioligand as a marker of neuroinflammation for
PD and other brain diseases in collaboration with ex-
perts in positron emission tomography (PET) at Aar-
hus University.
Driving innovation with AI
At Lundbeck, AI and digitization are pivotal drivers of
innovation. Several initiatives have been launched to
expedite AI and digital technology adoption.
Lundbeck has partnered with Iambic Therapeutics to
leverage their AI-powered drug discovery platform,
focusing on developing small molecule therapeutics
for migraine. Additionally, Lundbeck collaborates
with Logica, integrating Valo Health’s AI-powered
Opal Computational Platform™ and Charles River’s
drug discovery expertise to complement in-house
molecule discovery, applying AI to both small and
large molecule discovery projects.
In biologics, an in-house competitive improvement
to AlphaFold drives mAb discovery with an improved
prediction rate and speed. Effective AI use requires
scalable computer power, advanced analytical tools,
and FAIR (Findable, Accessible, Interoperable, and
Reusable) data. Lundbeck is committed to FAIR data
principles and establishing data governance prac-
tices for future-proof data reuse.
Lundbeck’s Science Cloud, a state-of-the-art platform
on Amazon Web Services (AWS), supports the Fo-
cused Innovator Strategy by providing on-demand
infrastructure for computing needs, facilitating daily
innovation.
R&D has developed Knowledge Graphs that inte-
grate external and internal data, unveiling insights
for gene-level exploration, protein targeting, and
drug repurposing. Lundbeck’s digital ecosystem for
clinical trials ensures real-time access to high-quality
trial data. Decentralized elements and digital health
technologies are incorporated to generate objective
measures and ensure patient-centric development.
Tools like Copilot and GenAI enhance personal
productivity across the organization. By 2025,
Lundbeck aims to deliver on three strategic AI initia-
tives:
• AI in Structured Content Generation,
• AI-enabled Literature Review, and
• Chat with external documentation to support stra-
tegic planning and decision-making.
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
27
Patients share their perspectives
In 2024, Lundbeck continued its ‘Let the patient
speak’ events focusing on innovative ways of inte-
grating patients’ perspectives into our development
programs. We invite patients and caregivers to share
their perspectives, ultimately helping Lundbeck to in-
corporate insights into innovation and integrated ev-
idence generation efforts.
Lundbeck’s development organization identified and
implemented internal frameworks that help the
company operationalize Patient-Focused Drug Devel-
opment by bringing the patient voice closer to re-
search and development efforts, describing how to
seek patient input to trial designs, informing patient-
centric outcome assessment strategies, and
fostering an integrated, patient-centered approach
to evidence development throughout the drug life
cycle.
In partnership with the Danish Knowledge Centre for
Headache, we aim to explore novel ways of generat-
ing real-world evidence directly from patients via
digital applications. The purpose of this pilot project
is to deliver scientific evidence to improve migraine
treatment in Denmark. Such an initiative enables
Lundbeck to learn and strengthen internal capabili-
ties to lead future innovative digital engagement ini-
tiatives developing patient-centered, real-world evi-
dence in support of our current and future portfolio.
Cooperation in neuroscience
Together with the European Health Data and Evi-
dence Network (EHDEN), we are actively engaged in
neuroscience research with European data partners
and several other pharmaceutical companies.
The EHDEN network provides Lundbeck with a
unique platform for collaboration with data partners
across Europe specializing in specific disease areas,
ensuring access to real-world data such as Electronic
Health Records from healthcare systems and regis-
tries. By actively engaging in research collaborations,
we can gain much deeper insight into disease pro-
gression, identify biomarkers for patient stratifica-
tion and monitor treatment responses and disease
outcomes, etc. The results of our first research col-
laboration will be published in the first half of 2025.
Rigorous development process
Transformative
treatments
Let the molecule speak
Initiating trials for anti-bodies or small
molecules in more than one indication
allows for early understanding of potential
in rare diseases and de-risks development.
Let the biology speak
Causal biology insights into patho-
physiology with unmet need drive project
initiation and indication decisions.
Let the patient speak
Patient feedback is an integrated part of our
development plans. We incorporate patient
review and input into clinical trial designs to
capture what matters for patients.
Unmet
needs
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
28
PROJECT
BIOLOGY
AREA
PHASE I
PHASE II
PHASE III
FILING / LAUNCH
Eptinezumab (anti-CGRP mAb)
1, 10
Hormonal/
neuropeptide
signaling
Migraine prevention
2
Lu AG09222 (anti-PACAP mAb)
3
Migraine prevention
Lu AG13909 (anti-ACTH mAb)
4
Neurohormonal dysfunctions
Brexpiprazole
5
Circuitry/
neuronal biology
PTSD
6
Bexicaserin (5HT2C agonist)
Developmental and Epileptic
Encephalopathies
Lu AF28996 (D1-D2 agonist)
7
Parkinson’s disease
MAGLi program
8
Neurology
Amlenetug (anti α-synuclein mAb)
Protein aggregation,
folding and clearance
Multiple System Atrophy
Lu AG22515 (CD40L blocker)
9
Neuroinflammation/neuroimmunology
Neurology
Pipeline
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 PACAP: Pituitary adenylate cyclase activating peptide. 4 ACTH: 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. 5 Acts as a partial agonist at 5-HT1A and dopamine D2 receptors at similar potency, and an antagonist at 5-HT2A and
noradrenaline alpha1B/2C receptors. 6 Post-traumatic stress disorder. 7 Dopamine receptor D1 and D2. 8 MAGLi: Monoacylglycerol lipase (“MAGlipase”) inhibitor. 9 Phase Ib trial ongoing in TED (Thyroid Eye Disease). 10 Cluster Headache not pursued.
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
29
In this section
Business performance
30 Financial performance review
and outlook 2025
31 Business performance
37 Summary for the group 2020-2024
40 Sustainability performance
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
29
Masashi, living with Anxiety
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
30
Revenue per region
• United States: DKK 11,325 million (+16%
CER; +15% DKK)
• Europe: DKK 5,146 million (+13% CER;
+11% DKK)
• International Operations: DKK 5,129
million (+10% CER; +5% DKK)
In 2024, Lundbeck delivered strong operational per-
formance and upgraded the growth outlook for the
year. The excellent performance delivered in 2024
provides us with clear momentum and we expect to
deliver another year of meaningful growth in 2025.
Accelerated revenue growth
Lundbeck’s total revenue grew by +14% CER (+11%
DKK) to DKK 22,004 million in 2024, with all regions
contributing to growth.
Strategic brands record
The revenue of Lundbeck’s strategic brands in-
creased by +21% CER (+20% DKK), reaching DKK
16,462 million, representing 75% of total revenue
and with all four products showing double-digit
growth rates both CER and reported.
Adjusted EBITDA
Adjusted EBITDA increased to DKK 6,347 million
(+20% CER; +12% DKK) reflecting the strong
revenue growth across all strategic brands.
Adjusted EBITDA margin (DKK) reached 28.8%
benefiting from the revenue growth offset by
increased R&D investments in the maturing
pipeline. EBITDA decreased to DKK 5,146 million
(+7% CER; -1% DKK), impacted by the transaction
and integration costs amounting to DKK 420
million of Longboard as well as an impairment loss
of DKK 547 million from one of the MAGLi projects
affecting R&D costs, while 2023 included a Vyepti
®
obsolescence provision.
Financial performance review
and outlook 2025
In 2024, Lundbeck reached record revenue of DKK 22 billion with acceler-
ated growth for strategic brands (+21% CER)
Key figures
DKKm
2024
2023
Change (CER)
Change (DKK)
Revenue
22,004
19,912
14%
11%
EBITDA
5,146
5,207
7%
(1%)
Adjusted EBITDA
6,347
5,652
20%
12%
EPS (DKK)
3.17
2.31
37%
Adjusted EPS (DKK)
5.31
4.22
26%
Revenue strategic brands
• Rexulti
®
: DKK 5,202 million (+16% CER;
+15% DKK)
• Brintellix
®
/Trintellix
®
: DKK 4,847 million
(+14% CER; +12% DKK)
• Abilify LAI franchise: DKK 3,504 million
(+10% CER; +10% DKK)
• Vyepti
®
: DKK 2,909 million (+72% CER;
+71% DKK)
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
31
Revenue reached DKK 22,004 million representing
growth of +14% CER (+11% DKK). All regions contrib-
uted to the strong growth in strategic brands of
+21% CER (+20% DKK) reaching DKK 16,462 million,
equivalent to 75% of total revenue.
Approximately 64% of the strategic brand growth
can be attributed to the strong performance of
Vyepti
®
in the U.S. and Europe and Rexulti
®
in the
U.S. Vyepti
®
sales in the U.S. and Europe grew +63%
CER (+62% DKK) and +210% CER (+210% DKK), re-
spectively. Rexulti
®
grew +15% CER (+14% DKK) in the
U.S. The largest markets for the strategic brands are
the U.S., Canada, Spain, Italy and Australia.
Strategic brands
Rexulti
®
(brexpiprazole) revenue reached DKK 5,202
million representing a growth of +16% CER (+15%
DKK). In the U.S., revenue continues to benefit from
a growing demand following the launch of Rexulti
®
for AADAD. Total prescriptions for Rexulti
®
in the U.S.
reached all-time high by the end of 2024, with Rex-
ulti
®
for AADAD constituting nearly 19% of total Rex-
ulti
®
prescriptions. In Europe and International Op-
erations, sales growth was primarily driven by
increased demand and market share gains in coun-
tries such as Canada and Brazil, which also benefit-
ted from overall market growth. The revenue distri-
bution by region was 92%, 2% and 6% in the U.S., Eu-
rope and International Operations, respectively. The
largest markets are the U.S., Brazil, Canada, Australia
and Mexico.
Brintellix
®
/Trintellix
®
(vortioxetine) revenue
reached DKK 4,847 million representing a growth of
+14% CER (+12% DKK), with strong performance pri-
marily in Europe and International Operations,
mainly driven by a continued increase in market
share across markets, and in particular Canada,
Spain, Italy and Japan, while the U.S. executes on
strategy by transitioning sales operation to Takeda
as part of the agreement signed in July 2024. Addi-
tionally, Lundbeck has successfully mitigated volume
erosion of Brintellix
®
in Brazil through the increase
of sales of Virtuosa brand in 2022. The revenue dis-
tribution by region was 33%, 36% and 31% in the
U.S., Europe and International Operations, respec-
tively. The largest markets for this product are the
U.S., Spain, Canada, Italy, Japan and Brazil.
Abilify LAI franchise revenue reached DKK 3,504
million and grew +10% CER (+10% DKK). In the U.S.,
sales growth was primarily driven by a combination
of higher demand and price increase as well as in-
creasing conversion to Abilify Asimtufii
®
from oral ar-
ipiprazole, reaching 13% in the U.S. in December
2024, all of which drove the 12% CER growth of the
franchise. Abilify Maintena
®
960 mg has been
launched across some countries in Europe in 2024,
driving a notable portion of the growth due to
higher demand with robust contribution from Spain,
the UK, Portugal and Poland. Canada and Australia
contributed strongly to International Operations
sales growth through continued demand uptakes
owing to a stable increase in market share.
The revenue distribution by region was 37%, 45%
and 18% in the U.S., Europe and International Opera-
tions, respectively. The largest markets are the U.S.,
Spain, Canada, Australia and Italy.
Business performance
Total revenue
DKKm
2024
2023
Growth (CER)
Growth (DKK)
Rexulti
®
5,202
4,525
16%
15%
Brintellix
®
/Trintellix
®
4,847
4,324
14%
12%
Abilify LAI franchise
3,504
3,187
10%
10%
Vyepti
®
2,909
1,697
72%
71%
Strategic brands
16,462
13,733
21%
20%
Cipralex
®
/Lexapro
®
2,048
2,135
2%
(4%)
Other pharmaceuticals
3,180
3,580
(9%)
(11%)
Mature brands
5,228
5,715
(5%)
(9%)
Other revenue
366
327
12%
12%
Total revenue before hedging
22,056
19,775
14%
12%
Effects from hedging
(52)
137
Total revenue
22,004
19,912
14%
11%
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
32
Vyepti
®
(eptinezumab) delivered strong growth in
2024 and revenue reached DKK 2,909 million follow-
ing an increase of +72% CER (+71% DKK) maintaining
strong momentum across all regions. Vyepti
®
sales
growth was mainly driven by continued demand up-
take with strong performance in the U.S., France,
Canada and Germany, with notable growth contribu-
tions from other markets, such as Spain, U.A.E. and
Switzerland, following the launch in 2024.
In the U.S., Vyepti
®
had 10.9% of the prevention mar-
ket by late December, which constitutes an all-time
high market share. The revenue distribution by re-
gion was 88%, 8% and 4% in the U.S., Europe and In-
ternational Operations, respectively.
Mature brands
Cipralex
®
/Lexapro
®
(escitalopram) revenue reached
DKK 2,048 million representing a growth of +2% CER
(-4% DKK) supported by its established presence in
the Gulf Region and China and price increases in Tur-
key and Argentina as a result of the inflation. This is
offset by generic erosion, particularly in Japan, in
Canada, where sales were impacted by the generics
listing in Quebec, and in Switzerland, where a regula-
tory price cut was implemented. The revenue distri-
bution by region was 67% and 33% in International
Operations and Europe, respectively. The largest
markets are China, Italy, South Korea and Brazil.
Revenue from Other pharmaceuticals, which com-
prises the remainder of Lundbeck’s products,
reached DKK 3,180 million representing a decline of
-9% CER (-11% DKK), mainly due to the expected
lower sales of mature products such as Northera
®
,
Onfi
®
, Xenazine
®
and Deanxit
®
. As of 1 January 2024,
Sabril
®
is being reported together with Other phar-
maceuticals, comparative figures for 2023 have been
restated accordingly. The largest markets for Other
pharmaceuticals are the U.S., China, France, South
Korea and Spain.
Revenue by geographical area
Lundbeck’s largest markets are the U.S., China, Can-
ada, Spain and Italy constituting 70% of the total rev-
enue.
United States revenue reached DKK 11,325 million
representing growth of +16% CER (+15% DKK). The
strategic brands reached DKK 10,275 million, in-
creasing +23% CER (+22% DKK) and representing
91% of the revenue. The revenue growth is mainly
driven by the increasing market share as well as the
continued demand uptake of Rexulti
®
following the
AADAD approval and the strong performance of
Vyepti
®
, which continues to grow in market share
and its strong momentum, offset by erosion of ma-
ture brands such as Northera
®
, Onfi
®
and Xenazine
®
.
Europe revenue reached DKK 5,146 million repre-
senting a growth of +13% CER (+11% DKK). The stra-
tegic brands reached DKK 3,650 million, increasing
+19% CER (+18% DKK) and representing 71% of reve-
nue. The revenue growth is mainly driven by higher
Total revenue
DKKm
2024
2023
Growth (CER)
Growth
United States
Rexulti
®
4,811
4,206
15%
14%
Vyepti
®
2,557
1,578
63%
62%
Trintellix
®
1,596
1,432
12%
11%
Abilify LAI franchise
1,311
1,182
12%
11%
Strategic brands
10,275
8,398
23%
22%
Mature brands
1,050
1,431
(26%)
(27%)
Revenue – United States
11,325
9,829
16%
15%
Europe
Brintellix
®
1,750
1,507
17%
16%
Abilify LAI franchise
1,579
1,445
9%
9%
Vyepti
®
239
77
210%
210%
Rexulti
®
82
59
37%
39%
Strategic brands
3,650
3,088
19%
18%
Mature brands
1,496
1,540
0%
(3%)
Revenue – Europe
5,146
4,628
13%
11%
International Operations
Brintellix
®
/Trintellix
®
1,501
1,385
14%
8%
Abilify LAI franchise
614
560
11%
10%
Rexulti
®
309
260
31%
19%
Vyepti
®
113
42
171%
169%
Strategic brands
2,537
2,247
18%
13%
Mature brands
2,682
2,744
3%
(2%)
Revenue – International Operations
5,219
4,991
10%
5%
Other revenue
366
327
12%
12%
Total revenue before hedging
22,056
19,775
14%
12%
Effects from hedging
(52)
137
Total revenue
22,004
19,912
14%
11%
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
33
demand for Brintellix
®
and Abilify Maintena
®
as well
as continued strong performance of Vyepti
®
across
the region mainly in France, Spain and Germany. The
launch of Abilify Maintena
®
960 mg in many Euro-
pean markets further fueled the growth. Mature
brands have been impacted by ongoing erosion of
certain brands such as Cipralex
®
, Cipramil
®
and
Cisordinol
®
. The largest markets in Europe are Spain,
Italy, France, Switzerland and Greece.
International Operations comprises all Lundbeck’s
markets outside the U.S. and Europe. Revenue
reached DKK 5,219 million, representing growth of
+10% CER (+5% DKK). The strategic brands reached
DKK 2,537 million increasing by +18% CER (+13%
DKK) and representing 49% of revenue. The revenue
growth is mainly driven by higher demands across
all four brands with solid contribution from all key
markets, particularly Vyepti
®
in Canada and Brintel-
lix
®
in Japan and Canada, offset by an unfavorable
currency impact mainly driven by CNY, BRL and ARS.
Mature brands have been impacted by ongoing ero-
sion of certain brands such as Lexapro
®
in Japan fol-
lowing the entry of generic competition since the
end of 2022 and in Canada following the generics
listing in Quebec. The biggest markets are China,
Canada, Brazil, Australia and South Korea. China and
Canada constitute approximately 43% of the re-
gional revenue.
Effects from hedging
Lundbeck hedges a significant part of the revenue
currency risk for a period of 12-18 months. Hedging
had a negative impact of DKK 52 million on revenue
in 2024, compared to a positive impact of DKK 137
million in 2023.
Gross Profit
Cost of sales reached DKK 4,230 million, decreasing
by -4% CER (-6% DKK), mainly driven by lower amorti-
zation costs due to fully amortized product rights of
one of our products, offset by an increase in cost of
goods sold associated with the higher revenue.
Moreover, adjustments of DKK 327 million were
made in 2023 to account predominantly for the neg-
ative effect of Vyepti
®
inventory obsolescence of DKK
312 million. Excluding the effect of those extraordi-
nary items, cost of sales increased +4% CER (+2%
DKK), primarily driven by the increase in cost of
goods sold associated with the sales growth as well
as higher raw materials and manufacturing costs
due to the inflation impacting cost of sales in the
first half of 2024, offset by lower amortization costs.
Additionally, cost of sales was impacted by a provi-
sion for environmental matters in 2023.
Gross profit reached DKK 17,774 million, increasing
by +19% CER (+15% DKK). The gross margin was
80.8% representing an increase of 3.3 percentage
points. Gross margin has been impacted by inflation
as communicated in the first half of the year, offset
by lower amortization.
Adjusted gross profit is the gross profit excluding
depreciation and amortization and other adjust-
ments linked to sales and cost of sales. The adjusted
gross margin was 88.4% representing an increase of
0.1 percentage points.
EBIT and adjusted EBITDA
Total operating expenses (OPEX) reached DKK
14,504 million, corresponding to an increase of +19%
CER (+19% DKK). The OPEX ratio reached 65.9%, in-
creasing by 4.5 percentage points. The increase of
OPEX is primarily driven by the effect of the MAGLi
impairment loss of DKK 547 million, as communi-
cated in the third quarter of 2024, transaction and
integration costs related to the acquisition of Long-
board of DKK 420 million, as well as continued R&D
investments. The increase in the OPEX ratio was also
impacted by restructuring and integration costs and
higher administrative expenses, mainly due to
higher legal provisions in 2024. Adjusted for the
MAGLi impairment loss of DKK 547 million, the trans-
action and integration costs, restructuring costs, as
well as the legal provisions in 2023 and 2024, OPEX
increased +11% CER (+10% DKK).
Sales and distribution costs reached DKK 8,146 mil-
lion, corresponding to an increase of +10% CER (+9%
DKK). The S&D ratio reached 37.0%, representing a
decrease of 0.6 percentage points. The development
reflects the strong revenue growth, offset by the
continued investments in sales and promotional ac-
tivities in strategic brands such as Rexulti
®
and
Vyepti
®
in the U.S., including preparation for PTSD
commercialization for Rexulti
®
pending FDA review
and the global roll-out of Vyepti
®
. Furthermore, sales
and distribution costs in 2024 were negatively im-
pacted by the recognition of restructuring and inte-
gration costs.
Administrative expenses reached DKK 1,437 mil-
lion, increasing by +11% CER (+11% DKK). The admin-
istrative expense ratio reached 6.5% and is in line
with 2023. Main drivers of the increase are higher le-
gal costs mainly due to DKK 150 million of legal pro-
visions for ongoing litigations recognized in the sec-
ond quarter of 2024.
Research and development costs reached DKK
4,501 million, with an R&D ratio of 20.5% increasing
+30% CER (+30% DKK), which includes the impact of
the MAGLi impairment loss of DKK 547 million. Ad-
justed for the impairment loss of DKK 547 million,
R&D costs increased +14% CER (+14% DKK), mainly
driven by the progression of the phase IIb dose find-
ing trial for Lu AG09222 anti-PACAP, the progress of
phase III preparations for amlenetug (anti-a-synu-
clein mAb) as well as general higher discovery and
development costs across early-stage programs dur-
ing 2024, offset by lower Vyepti
®
phase IV trial costs.
Lundbeck Annual Report 2024
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34
EBIT reached DKK 3,270 million, increasing by +15%
CER (+2% DKK) and reflecting an improved gross
profit development driven by a higher gross margin
and lower sales and distribution ratio, offset by in-
creased R&D costs due to the continued pipeline
progression as well as the effect of the MAGLi im-
pairment loss of DKK 547 million, transaction and in-
tegration costs related to the acquisition of Long-
board of DKK 420 million, and higher administrative
expenses mainly related to legal provisions due to
ongoing litigations of DKK 150 million. Furthermore,
EBIT of 2023 was negatively affected by the recogni-
tion of a provision of DKK 312 million for Vyepti
®
in-
ventory obsolescence, DKK 69 million regarding legal
provisions for ongoing litigations and restructuring
costs of DKK 15 million due to the closure of the ster-
ile manufacturing line in France, of which DKK 2 mil-
lion was reversed during 2024.
Amortization of product rights amounted to DKK
1,432 million, corresponding to a decrease of -8%
CER (-8% DKK). Total amortization and deprecia-
tion reached DKK 1,876 million, representing a de-
crease of -6% CER (-7% DKK), mainly driven by a de-
crease in the amortization recognized in 2024 due to
fully amortized product rights of one of our products
since the beginning of 2024.
Adjusted EBITDA reached DKK 6,347 million repre-
senting an increase of +20% CER (+12% DKK) reflect-
ing the strong revenue growth driven by perfor-
mance of strategic brands. The adjusted EBITDA
margin was 28.8%, representing an increase of 0.4
percentage points primarily due to OPEX-ratio im-
provements of the strong revenue growth, partially
offset by higher R&D costs and unfavorable net cur-
rency and hedging effects.
Net profit
Net financial (income)/expenses amounted to an
income of DKK 449 million, equivalent to an increase
of 322% primarily driven by the gain from a hedging
transaction settled in connection with the acquisition
of Longboard.
The effective tax rate for 2024 was 15.5% (23.5% for
2023). The tax rate is positively impacted by the re-
versal of an uncertain tax position related to a tax
audit closed in the third quarter of 2024.
Net profit reached DKK 3,143 million, corresponding
to a growth of 37%.
Adjusted net profit and EPS
Adjusted net profit is the net profit excluding de-
preciation and amortization and other adjustments,
net of taxes. Adjusted net profit reached DKK 5,261
million, increasing +26% and reflecting the EBIT de-
velopment.
Adjusted EPS was DKK 5.31, corresponding to an in-
crease of +26%.
Cash flow
Cash flows from operating activities amounted to
an inflow of DKK 3,326 million compared to an inflow
of DKK 4,080 million in 2023. This decrease was
driven by the settlement of liabilities related to Long-
board's long-term incentive program and transac-
tion costs associated with the acquisition as well as
higher receivables, partially offset by a lower inven-
tory build-up due to the completion of the fixed sup-
ply agreement for Vyepti
®
in September 2023.
Lundbeck’s net cash flows from investing activi-
ties were an outflow of DKK 15,286 million com-
pared to an outflow of DKK 498 million in 2023. The
investing activities mainly include the acquisition of
Longboard, following by capital expenditures in
property, plant and equipment, offset by proceeds
from sales of financial assets.
Lundbeck’s net cash flows from financing activi-
ties were an inflow of DKK 11,629 million compared
to an outflow of DKK 2,085 million in 2023 mainly re-
lated to the proceeds of the loan facility for the ac-
quisition of Longboard, offset by the dividends paid
to shareholders. In addition, the cash flow from fi-
nancing activities in 2023 was impacted by a repay-
ment of debt.
The net cash outflow reached DKK 331 million com-
pared to an inflow of DKK 1,497 million in 2023.
Net debt decreased from a net cash position of DKK
711 million at the end of 2023 to net debt of DKK
12,182 million at the end of 2024 following the acqui-
sition of Longboard. The net debt/EBITDA ratio is
2.4x at the end of 2024 compared to -0.1x at the end
of 2023. Interest-bearing debt was DKK 16,846 mil-
lion at the end of 2024 compared to DKK 4,299 mil-
lion at the end of 2023. On 31 December 2024,
Lundbeck’s total assets amounted to DKK 56,976
million compared to DKK 37,407 million at the end of
2023, driven by the acquisition of Longboard.
On 31 December 2024, Lundbeck’s equity amounted
to DKK 25,010 million.
Dividend
The Board of Directors is proposing distribution of
dividends for 2024 of 30% (30% in 2023) of the net
profit for the year allocated to the shareholders,
equivalent to DKK 0.95 per share (DKK 0.70 per share
in 2023) or DKK 946 million (DKK 697 million in 2023),
inclusive of dividends on treasury shares. Total divi-
dends are based on the current share capital. The
dividend pay-out is subject to approval at the Annual
General Meeting on 26 March 2025.
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
35
Financial guidance 2025
Lundbeck is steadfast in its commitment to the Fo-
cused Innovator strategy, with a dedicated emphasis
on accelerating substantial growth from 2024
through our strategic products, Vyepti
®
and Rexulti
®
,
both of which are projected to continue their robust
double-digit growth into 2025.
During 2025, Lundbeck will encounter the first signif-
icant impact from loss of exclusivity (LoE) on strate-
gic brands. The growth of the Abilify Maintena LAI
franchise is projected to be driven by the continued
increased conversion to the two-month formulation,
offsetting the anticipated impact of generic entries
in Europe. Brintellix
®
/Trintellix
®
will be affected by
the modified collaboration with Takeda in the U.S. as
well as generic entry in Canada. Mature brands are
expected to continue their erosion, showing a mid-
single-digit revenue decline. Overall, Lundbeck’s rev-
enue growth is projected to be between 7% and 10%
at CER in 2025. Given the current exchange rates
against the Danish krone, sales growth reported in
DKK is expected to be approximately 1 percentage
points higher than at CER.
As a central component of our Focused Innovator
strategy, Lundbeck remains committed to investing
in research and development, advancing both our
late-stage and early development pipeline. In 2025,
we anticipate an acceleration of investments in R&D,
including the integration of Longboard and the pro-
gression of bexicaserin and amlenetug into phase III
clinical trials. Lundbeck anticipates increasing R&D
investments to between DKK 5 and 5.2 billion in
2025, compared to DKK 3,954 million in 2024 (ex-
cluding the MAGLi write-down). This significant in-
crease in R&D investments is financed by our dedi-
cated efforts towards capital reallocation initiatives
within Sales, Distribution and Production, as well as
additional contributions from accelerated revenue
growth. Adjusted EBITDA growth is expected to
range from 5% to 11% at CER in 2025. Given the cur-
rent exchange rates against the Danish krone,
growth reported in DKK is now expected to be ap-
proximately 2 percentage points lower than at CER.
The 2025 guidance underscores Lundbeck’s ability
and focus to sustain profitability while expanding
and progressing the pipeline.
Effects from hedging are expected to reach a loss of
DKK 425 to 450 million compared to DKK 52 million
for 2024. Depreciation, amortization, and impair-
ment losses are expected to be in the range of DKK
1.7 to 1.9 billion, compared to DKK 1,876 million in
2024. Lundbeck anticipates financial items (net) to
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. 4 Adjusted
EBITDA at CER for the period divided by adjusted EBITDA before hedging for the comparative period.
DKK
FY 2025 guidance
Total revenue growth at CER
7% to 10%
Adjusted EBITDA growth at CER
5% to 11%
Revenue at CER
DKK million
2024
2023
Total revenue (IFRS)
22,004
19,912
Effects from hedging
(52)
137
Total revenue (IFRS) before hedging
22,056
19,775
Effects from exchange rate
(344)
(645)
Total revenue at CER
22,452
20,420
Increase/(decrease) in total revenue (IFRS)
11%
9%
Increase/(decrease) in total revenue at CER
4
14%
8%
Adjusted EBITDA at CER
DKK million
2024
2023
Adjusted EBITDA
6,347
5,652
Effects from hedging
(52)
137
Adjusted EBITDA before hedging
6,399
5,515
Effects from exchange rate
(211)
(268)
Adjusted EBITDA at CER
6,610
5,783
Increase/(decrease) in adjusted EBITDA
12%
17%
Increase/(decrease) in adjusted EBITDA at CER
5
20%
7%
Other relevant financial information for FY 2025 at reported rates
Total revenue (IFRS) growth
1
Around 1 percentage point higher than at CER
Adjusted EBITDA growth
1
Around 2 percentage points lower than at CER
Adjusted gross margin
2
88% to 89%
R&D costs
DKK 5.0 to 5.2 billion
Depreciation & amortization
DKK 1.7 to 1.9 billion
Net financials, (expenses)/gains
DKK -435 to -485 million
Effects from hedging, (losses)/gains
DKK -425 to -450 million
Effective tax rate
21% to 24%
Net cash/(net debt)
3
DKK -9 to -10 billion
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
36
result in a loss of approximately DKK 435 to 485 mil-
lion following the acquisition of Longboard in 2024,
contrasting an income of DKK 449 million in 2024.
The effective tax rate for 2025 is expected to range
between 21% and 24%, compared to 15.5% in 2024.
All the above expectations are based on assump-
tions that the global or regional macroeconomic and
political environment will not significantly change
business conditions for Lundbeck including impacts
from major healthcare reforms and legislative
changes as well as outcome of legal cases including
litigations, and that the currency exchange rates, es-
pecially the US dollar, will remain at the current level
versus the Danish krone. The guidance is also based
on assumptions in relation to the estimation of
gross-to-net developments in the U.S. gross sales. Fi-
nally, the guidance does not include the financial im-
plications of any new significant business develop-
ment transactions and significant impairments of in-
tangible assets during 2025.
Mid-term targets
Based on organic growth, the company expects rev-
enue to show a mid-single digit compound annual
growth rate (CAGR) over the mid-term period (2023
to 2027). The company maintains its target for ad-
justed EBITDA-margin of more than 30% at the end
of the mid-term period in 2027, to account for the
impact of the Longboard acquisition and excluding
any business development activities.
Lundbeck plans to ensure appropriate investments
in R&D and prelaunch activities for bexicaserin fol-
lowing the successful closure of the acquisition of
Longboard. Moreover, in accordance with the Fo-
cused Innovator strategy, Lundbeck has initiated its
most significant capital reallocation program in its
history to sustain the company’s growth with in-
creased focus on innovation.
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 re-
sults, including interest rates and exchange rate
fluctuations, delay or failure of development pro-
jects, production problems, unexpected contract
breaches or terminations, governance-mandated
or market-driven price decreases for products, in-
troduction of competing products, Lundbeck’s
ability to successfully market both new and exist-
ing products, exposure to product liability and
other lawsuits, changes in reimbursement rules
and governmental laws, and unexpected growth
in expenses.
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
37
Equity and liabilities (DKKm)
2024
2023
2022
2021
2020
Equity
25,010
22,045
20,779
18,279
16,973
Non-current liabilities
23,386
7,372
8,474
7,556
9,044
Current liabilities
8,580
7,990
8,199
8,818
10,012
Total equity and liabilities
56,976
37,407
37,452
34,653
36,029
Summary for the group 2020-2024
Statement of profit or loss (DKKm)
2024
2023
2022
2021
2020
Revenue
22,004
19,912
18,246
16,299
17,672
Gross profit
17,774
15,427
14,295
12,651
13,506
Adjusted gross profit
1, 2
19,453
17,580
16,133
14,173
15,101
Research and development costs
4,501
3,457
3,754
3,823
4,545
Profit from operations (EBIT)
3,270
3,195
2,852
2,010
1,990
Operating profit before depreciation and amortization
(EBITDA)
5,146
5,207
4,663
3,720
4,783
Adjusted operating profit before depreciation and amor-
tization (Adjusted EBITDA)
1, 2
6,347
5,652
4,823
3,990
5,681
Net financials, (income)/expenses
(449)
202
378
429
84
Profit before tax
3,719
2,993
2,474
1,581
1,906
Profit for the year
3,143
2,290
1,916
1,318
1,581
Assets (DKKm)
2024
2023
2022
2021
2020
Non-current assets
43,966
24,118
26,040
26,041
25,924
Inventories
3,983
4,427
4,046
3,031
2,163
Receivables
4,363
3,852
3,818
3,302
4,018
Cash, bank balances and securities
3
4,664
5,010
3,548
2,279
3,924
Total assets
56,976
37,407
37,452
34,653
36,029
1 For details of the non-IFRS measure ‘adjusted EBITDA’, see Adjusted EBITDA Reconciliation. 2 New key figures were introduced from 2023 and disclosed comparatively for 2022 and 2021. Pro forma calculations have been applied for 2020. 3. In 2020-2024, securities amounted to DKK 0.
Statement of cash flows (DKKm)
2024
2023
2022
2021
2020
Cash flows from operating activities
3,326
4,080
3,519
2,272
3,837
Cash flows from investing activities
(15,286)
(498)
(1,892)
(610)
(467)
Cash flows from operating and investing activities (free
cash flow)
(11,960)
3,582
1,627
1,662
3,370
Cash flows from financing activities
11,629
(2,085)
(387)
(3,336)
(2,394)
Interest-bearing debt, cash, bank balances and securi-
ties, net, year-end
3
(12,182)
711
(2,183)
(3,189)
(4,106)
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
38
Share data
2
2024
2023
2022
2021
2020
Earnings per share, basic (EPS) (DKK)²
3.17
2.31
1.93
1.33
1.59
Earnings per share, diluted (DEPS) (DKK)²
3.17
2.31
1.93
1.33
1.59
Adjusted Earnings per share, basic (EPS) (DKK)
1
5.31
4.22
3.74
2.88
4.76
Number of shares for the calculation of EPS (million)²
991.4
992.2
992.9
993.3
993.7
Cash flows from operating activities per share, diluted
(DKK)²
3.35
4.11
3.54
2.29
3.86
Proposed dividend per share (DKK)²
0.95
0.70
0.58
0.40
0.50
Dividend payout ratio (%)
30
30
30
30
31
Dividend yield (%)
2.4
2.2
2.2
1.2
1.2
Net asset value per share, diluted (DKK)²
25.23
22.22
20.93
18.40
17.08
Market capitalization (DKKm)
39,567
31,812
25,507
33,626
41,582
Summary for the group 2020-2024
Summary for the Group key figures
2024
2023
2022
2021
2020
Adjusted gross margin (%)
1
88.4
88.3
88.4
87.0
85.5
EBIT margin (%)
14.9
16.0
15.6
12.3
11.3
EBITDA margin (%)
23.4
26.2
25.6
22.8
27.1
Adjusted EBITDA margin (%)
1
28.8
28.4
26.4
24.5
32.1
Research and development ratio (%)
20.5
17.4
20.6
23.5
25.7
Return on equity (%)
13.4
10.7
9.8
7.5
9.4
Equity ratio (%)
43.9
58.9
55.5
52.7
47.1
Invested capital (DKKm)
37,192
21,334
22,962
21,468
21,079
Return on invested capital (%)
9.4
11.0
9.9
7.9
7.4
Net debt/EBITDA
2.4
(0.1)
0.5
0.9
0.9
Effective tax rate (%)
15.5
23.5
22.6
16.6
17.0
Purchase of intangible assets, gross (DKKm)
57
224
449
202
114
Purchase of property, plant and equipment, gross
(DKKm)
508
277
371
410
364
Purchase of financial assets, gross (DKKm)
-
-
-
-
17
Average number of employees
5,399
5,488
5,717
1 New key figures were introduced from 2023 and disclosed comparatively for 2022 and 2021. Pro forma calculations have been applied for 2020. 2 The calculation of EPS is based on a share denomination of DKK 1 as a result of the share split completed on 8 June 2022. Comparative figures have been
restated to reflect the change in trading unit from a nominal value of DKK 5 to DKK 1.
Lundbeck Annual Report 2024
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39
Summary for the group 2020-2024
Definitions
Interest-bearing debt
Debt and financial instruments (including financial leases) carrying interest.
Interest-bearing net cash
Cash, bank balances and securities less interest-bearing debt.
Adjusted gross profit
3
Adjusted gross profit is the gross profit excluding depreciation and amortization and other adjustments linked to sales.
Adjusted gross margin
Adjusted gross profit as a percentage of revenue.
EBIT margin
1
Profit from operations as a percentage of revenue.
EBITDA
Profit before interest, tax, depreciation, amortization and gain on divestment of properties.
EBITDA margin
EBITDA as a percentage of revenue.
Adjusted EBITDA
3
Adjusted EBITDA is defined as EBITDA adjusted by certain items.
Adjusted EBITDA margin
3
Adjusted EBITDA as a percentage of revenue.
Research and development ratio
Research and development cost as a percentage of revenue.
Return on equity
1
Net profit/(loss) for the year as a percentage of shareholders' equity (average).
Equity ratio
1
Shareholders' equity, year-end, as a percentage of total assets.
Invested capital
Shareholders' equity, year-end, plus net interest-bearing debt.
Return on invested capital
Profit from operations after tax as a percentage of average invested capital.
Net debt
Interest-bearing debt less cash, bank balances and securities.
Net debt/EBITDA
Net interest-bearing debt divided by EBITDA.
Earnings per share, basic (EPS)
1,2
Net profit/(loss) for the year divided by average number of shares, excl. treasury shares.
Earnings per share, diluted (DEPS)
1,2
Net profit/(loss) for the year divided by average number of shares, excl. treasury shares, incl. warrants, fully diluted.
Adjusted earnings per share, basic (EPS)
Adjusted earnings per share, basic (EPS) is defined as EPS, basic adjusted by certain items.
Cash flows from operating activities per share, diluted
1
Cash flows from operating activities divided by average number of shares, excl. treasury shares, incl. warrants, fully diluted.
Dividend payout ratio
Total dividends for the year as a percentage of net profit/(loss).
Dividend yield
Dividend per share as percentage of official price quoted on Nasdaq Copenhagen, year-end.
Net asset value per share, diluted
Shareholder's equity, year-end, divided by number of shares, year-end, excl. treasury shares, incl. warrants, fully diluted.
Market capitalization
1
Total number of shares, year-end, multiplied by the official price quoted on Nasdaq Copenhagen, year-end.
1 Definitions according to the Danish Finance Society's Recommendations & Financial Ratios. 2 The calculation of EPS is based on a share denomination of DKK 1 as a result of the share split completed on 8 June 2022. Comparative figures have been restated to reflect the change in trading unit from a
nominal value of DKK 5 to DKK 1. 3 For the definition of certain items, see Adjusted EBITDA Reconciliation.
Lundbeck Annual Report 2024
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40
Lundbeck’s Sustainability Strategy comprises four
pillars through which we prioritize our sustainability
efforts. Each year, we set ambitious targets within
each pillar, which align with our aspirations for 2030
(see page 63).
In 2024, we made progress on our sustainability ob-
jectives and achieved key milestones, even though
five targets were not met and one is not entirely on
track.
Lundbeck is committed to advancing its sustainabil-
ity performance while maintaining transparency
about challenges along the way.
• Access to health: Global platform for HCPs was
launched and the donation of treatment target
was achieved.
• Business ethics: Code of Conduct training and
employee confidence to address ethical concerns
targets were achieved.
• Climate change & circularity: Scopes 1 and 2 are
on track. Scope 3 is not on track and both circular-
ity targets were not achieved.
• People and communities: Targets for this pillar
were not achieved.
Sustainability performance
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
40
1 Absolute scope 3 GHG emissions from purchased goods and services, upstream transportation and distribution, and business travel. 2 New increased scope including all office sites in addition to production sites. 3 Upper management is defined as Executive Management and their direct reports
with people management responsibilities. 4 Senior management is defined as Executive Vice Presidents, Senior Vice Presidents, and Vice Presidents. 5 Top quartile Peakon benchmark. 6 The number stated in the 2023 report has been corrected from 2,000 to 2,500.
Pillars
2024 sustainability targets
2025 sustainability targets
SDG Impact
Access to
health
Donate treatment for at least 2,500
6
patients in low- and middle-income
countries through product donation partnerships.
Donate treatment for at least
3,000
patients in low- and middle-income
countries through product donation partnerships.
Launch global platform to provide access to healthcare professionals with
independent medical education through Lundbeck Institute activities.
N/A
Business
ethics
Annual Code of Conduct training completed by at least 98% of employees
at work globally.
Annual Code of Conduct training completed by at least
98% of employ-
ees at work globally.
Four out of five employees stating in the annual employee satisfaction sur-
vey (ESS) that they are confident in raising an ethical or compliance con-
cern.
Four out of five employees stating in the annual employee satisfaction
survey (ESS) that they are confident in raising an ethical or compliance
concern.
Climate
change &
circularity
Reduce carbon footprint across own operations, supply, and distribution
in line with our 15-year 1.5°C aligned target:
• Reduce scope 1 and 2 CO
2
e emissions by 65% in 2034 compared to 2019.
• Reduce scope 3 CO
2
e emissions by 40% in 2034 compared to 2019
1
.
Reduce carbon emissions in line with our Net-Zero SBTi-approved tar-
gets:
• Reduce scope 1 and 2 CO
2
e emissions by 42% in 2029 compared to
2019
• Reduce scope 3 CO
2
e emissions by 25% in 2029 compared to 2019
1
.
•
Reduce scope 1, 2 and 3 emissions by 90% in 2050.
Recycle 64% of the organic solvents used in chemical production.
Recycle 63% of the organic solvents used in chemical production.
Recycle 75% of general waste at production sites.
Recycle 70% of general waste at all sites globally
2
.
People and
communities
Increase in share of underrepresented gender at senior management
level
4
year on year.
Maintain an even gender balance in upper management
3
, closest to
40% but not exceeding
49%.
Reach an overall Inclusion score of 8.5
5
in
the annual employee satis-
faction survey (ESS).
Reduce lost time accident frequency ≤ 3.
Reduce lost time accident frequency ≤ 3.
Not more than two high consequence work-related accidents with absence.
N/A
Achieved Not achieved On track Not on track
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
41
In this section
Corporate governance
42 Governance framework
45 Board of Directors
48 Executive Management
50 Risk management
52 Key risks
53 Internal controls
55 The Lundbeck share
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
41
Maria, living with Schizophrenia
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
42
Shareholders & General Assembly
The supreme governing body of Lundbeck is the
General Assembly where Lundbeck’s shareholders
exercise their rights. The Lundbeck Foundation is
our majority shareholder with a 69% ownership
share (A- and B-share holdings).
Any shareholder has the right to vote, raise ques-
tions and present suggestions at General Assembly
meetings. Resolutions can generally be passed by a
simple majority. However, resolutions to amend the
Articles of Association require two-thirds of the votes
cast and capital represented, unless other adoption
requirements are imposed by the Danish Companies
Act.
Some matters are always handled by the General
Assembly, e.g., adoption and amending of the
Company’s Articles of Association, approval of the
annual report, and election of members of the Board
of Directors.
Lundbeck has a two-tier board structure consisting
of the Board of Directors and the Executive Manage-
ment. The two bodies are separated, and no person
serves as a member of both.
Following initial analysis and proposal from Execu-
tive Management, the Board of Directors assesses
Lundbeck’s need for capital on an ongoing basis, and
regularly reviewing Lundbeck’s capital structure.
1 ESRS 2, GOV-1 paragraphs 21 (a), (b), (c), (d), (e). and 22 (d). 2 ESRS 2, GOV-1 paragraph 22(c) i. *Subject to limited assurance.
Lundbeck is committed to serving all its stakeholders. Our governance frame-
work consists of rules and principles that support sustainable financial perfor-
mance and long-term value creation for our shareholders and society.
Lundbeck Annual Report 2024
Management Review 2024 in brief Business and strategy Business performance Corporate governance Sustainability Financial Statements
43
Evaluation procedure
The Board of Directors has established a self-evalua-
tion procedure covering, among other things, Board
of Directors composition, contribution and results,
agenda and discussions, cooperation between the
Board of Directors and Executive Management, as
well as committee work and structure.
Through the second half of 2024, the Board of Direc-
tors initiated the 2024 self-evaluation consisting of
36 survey questions and interviews between the
Chair and each Board of Directors / Executive Man-
agement member.
Survey questions followed the baseline questions
asked by an external vendor in 2022, and the survey
result average is on par with previous year results
(3.8 out of 5.0). Interviews between the Chair and
the Board of Directors / Executive Management
specify the partnership as effective, with a high level
of trust, openness and transparency.
More details regarding the work performed by the
Board of Directors, the evaluation procedure and re-
sults hereof can be found at www.lundbeck.com.
Committees of the Board
of Directors
The Board of Directors has set up three committees:
the Audit Committee, the Remuneration & Nomina-
tion Committee and the Scientific Committee.
The three committees advise the Board of Directors
on financial and sustainability information and re-
porting, the company’s nomination and remunera-
tion strategy, including the remuneration of the Ex-
ecutive Management, as well as R&D strategy and
pipeline evaluation, respectively.
Audit Committee
2
The Audit Committee provides advice to the Board of
Directors on internal controls in financial and sus-
tainability reporting procedures, financial, account-
ing and sustainability matters, as well as on the eval-
uation of financial reporting, tax, treasury, insurance
coverage, and risk management.
Additionally, the Audit Committee advises the Board
of Directors on sustainability reporting, overseeing
and monitoring processes related to internal con-
trols, accounting policies and other sustainability dis-
closures. The Audit Committee is responsible for
identifying and selecting Lundbeck’s external finan-
cial and sustainability auditor, and for providing ad-
vice to the Board of Directors, informed by the audi-
tors’ independent advice.
The charter for the Audit Committee can be found at
www.lundbeck.com.
1 Equal gender distribution is defined as the underrepresented gender being closest to 40% but not exceeding 49%. 2 ESRS 2, GOV-1 paragraph 22(b). *Subject to limited assurance.
Board of
Directors
Audit
Committee
Scientific
Committee
Remuneration &
Nomination Committee
Lars Søren Rasmussen
11/0
4/1
-
3/0
Lene Skole-Sørensen
11/0
-
3/0
3/0
Ilse Dorothea Wenzel
11/0
5/0
-
-
Jakob Riis
11/0
-
3/0
-
Jeffrey Berkowitz
11/0
-
3/0
3/0
Lars Erik Holmqvist
9/2
4/1
-
-
Santiago Arroyo
10/1
-
3/0
-
Camilla Gram Andersson
11/0
-
-
-
Hossein Armandi
10/1
-
-
-
Dorte Clausen
11/0
-
-
-
Lasse Skibsbye
11/0
-
-
-
The numbers indicate how many meetings the member have attended/not attended respectively.
Audit Committee: In March 2024, the Board of Directors re-elected Ilse Dorothea Wenzel as Chair and re-elected Lars
Søren Rasmussen and Lars Erik Holmqvist as members of the Audit Committee.
Scientific Committee: In March 2024, the Board of Directors elected Santiago Arroyo as Chair and Lene Skole-Søren-
sen, Jeffrey Berkowitz and Jakob Riis as members of the Scientific Committee.
Remuneration & Nomination Committee: In March 2024, the Board of Directors re-elected Lars Søren Rasmussen as
Chair and Lene Skole-Sørensen and Jefferey Berkowitz as members.
Lundbeck Annual Report 2024
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Disclosure regarding change of control
The EU Takeover Bids Directive, as partially implemented
in the Danish Financial Statements Act, requires listed
companies to disclose information about significant agree-
ments that may be affected in case of a completed takeo-
ver bid, particularly in relation to the disclosure of change-
of-control provisions. Lundbeck discloses that the Group
has a major partnership agreement in place under which
an acquiring entity must divest any competing product ac-
cording to an agreed process and, in the absence of such
divesture, Lundbeck’s partner may terminate the agree-
ment. In case Lundbeckfond Invest A/S holds less than
50% of the share capital or voting rights in H. Lundbeck
A/S (change of control), Lundbeck may be met with de-
mands for repayment on any existing debt portfolio. In the
event Lundbeck is acquired or merged, certain Executive
Management members may, depending on the impact on
their position, be entitled to terminate employment with
Lundbeck with three months’ notice and receive a com-
pensation of up to eighteen months’ remuneration. Given
the ownership structure of Lundbeck the risks are consid-
ered remote. For information about the ownership struc-
ture of Lundbeck, see pages 55-56.
Scientific Committee
Lundbeck’s Board of Directors has a Scientific Com-
mittee, whose purpose is to advise the Board of Di-
rectors on support for strategic research and devel-
opment, as well as pipeline evaluation.
The committee has a special focus on risk-balance in
the pipeline, review of the R&D budget and returns
on investments. A key role for the Committee is to
get an in-depth understanding of R&D strategic in-
vestments, to provide a better understanding of
these matters to the Board of Directors. Further, the
Committee reviews the scientific and technical as-
pects of pipeline business development deals that
will require the Board of Director’s approval for exe-
cution.
The charter for the Scientific Committee can be
found at www.lundbeck.com.
Remuneration & Nomination Committee
The Remuneration & Nomination Committee advises
the Board of Directors on remuneration and nomina-
tion decisions regarding members of Executive Man-
agement.
The Committee also advises on the company’s over-
all remuneration policy and prepares the remunera-
tion report. Additionally, the Committee handles as-
signments related to recruitment and appointment
to Lundbeck’s Board of Directors and to the senior
management, and it annually assesses the composi-
tion and performance of the Board of Directors, the
Executive Management and the Committees.
Remuneration Policy and Report
1
The terms of reference for the Remuneration &
Nomination Committee can be found at
www.lundbeck.com.
Executive Management
2
Lundbeck’s Executive Management is responsible for
the day-to-day management of the company, the de-
velopment and implementation of strategies and
policies (including the Sustainability Strategy), the
company’s operations and organization, as well as
the timely reporting to Lundbeck’s stakeholders and
the Board of Directors.
Further information about the composition and ex-
perience of the Executive Management can be found
on page 48-49.
Executive Management sustainability incentives
3
Further information about Lundbeck’s remuneration
schemes can be found in our remuneration report.
Read more about our governance at
lundbeck.com
4
1 ESRS 2, GOV-3 paragraph 29, 29(c), and 29(e). 2 ESRS 2, GOV-1 paragraph 20(a), 21 (a) and 22 (c). 3 ESRS 2, GOV-3 paragraph 29 (a), (b), (c) and (d), and ESRS E1 GOV-3. *Subject to limited assurance. 4 https://www.lundbeck.com/global/about-us/corporate-governance .
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Board of Directors
1
1 Per 31 December 2024. C = Chair, DC = Deputy Chair, M = Member. For more information about the Board of Directors and their competences, please visit lundbeck.com. 2 Board positions included in the position as CEO of the Lundbeck Foundation. 3 ESRS 2, GOV-1, para. 21(c). *Subject to
limited assurance.
Lars Søren
Rasmussen
Born 1959, Danish
Lene Skole-
Sørensen
Born 1959, Danish
Ilse Dorothea
Wenzel
Born 1969, German
Jakob Riis
Born 1966, Danish
Elected Chair 2013, considered independent.
Lundbeck Committees
Audit Committee (M).
Remuneration & Nomination Committee (C).
Directorships
Coloplast A/S (C); WS Audiology (C); Mabtech (C); Danish In-
dustry Committee on Diversity (C); Danish Committee of Cor-
porate Governance (C); Equalis (C); Life Science Council un-
der the Danish Ministry of Industry (C); Business & Financial
Affairs (C); Gyldendal A/S (M), Copenhagen University (M).
Holding of A-shares
20,000
Holding of B-shares
80,000
CEO, Lundbeck Foundation.
Elected 2015, considered non-independent.
Lundbeck Committees
Remuneration & Nomination Committee (M).
Scientific Committee (M).
Directorships
Ørsted A/S (C); ALK-Abelló A/S (DC)
2
; Falck A/S (DC)
2
; Nordea
Bank Abp (DC).
Holding of A-shares
None
Holding of B-shares
61,270
Elected 2021, considered independent.
Lundbeck Committees
Audit Committee (C).
Directorships
Dentsply Sirona Inc. (M); Servier Group (M); Gerrisheimer AG
(M).
Holding of A-shares
None
Holding of B-shares
None
CEO, Falck A/S and Adelca ApS.
Elected 2023, considered non-independent.
Lundbeck Committees
Scientific Committee (M).
Directorships
Danish Chamber of Commerce (M); Three directorships in
Falck A/S subsidiaries.
Holding of A-shares
None
Holding of B-shares
54,138
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Board of Directors
1
Jeffrey Berkowitz
Born 1966, U.S. citizen
Lars Erik
Holmqvist
Born 1959, Swedish
Santiago Arroyo
Born 1960, U.S. citizen
CEO, Real Endpoints.
Elected 2018, considered independent.
Lundbeck Committees
Scientific Committee (M).
Remuneration & Nomination Committee (M).
Directorships
Zealand Pharma A/S (M); Click Therapeutics (M);
Holding of A-shares
None
Holding of B-shares
None
Elected 2015, considered non-independent.
Lundbeck Committees
Audit Committee (M).
Directorships
Biovica International AB (C); the Lundbeck Foundation (M);
ALK-Abelló A/S (M); Vitrolife AB (M); Life Healthcare (M).
Holding of A-shares
None
Holding of B-shares
75,000
Chief Development Officer, Bicycle Therapeutics.
Elected 2021, considered independent.
Lundbeck Committees
Scientific Committee (C)
Directorships
GlycoEra AG (M).
Holding of A-shares
None
Holding of B-shares
None
1 Per 31 December 2024. C = Chair, DC = Deputy Chair, M = Member. For more information about the Board of Directors and their competences, please visit lundbeck.com.; 2 ESRS 2, GOV-1, para. 21(c). *Subject to limited assurance.
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Board of Directors
1
Camilla Gram
Andersson
Born 1972, Danish
Hossein Armandi
Born 1962, Danish
Dorte Clausen
Born 1984, Danish
Lasse Skibsbye
Born 1983, Danish
Senior Director, Corporate Health, Safety and Environment.
Employed at Lundbeck since 2005.
Elected by employees in 2022.
Directorships
Industrial Sectorial Board of Occupational Health and Safety
(DI) (M); Specialized Committee of Chemistry (DI) (M); Envi-
ronment, Health and Safety Expert Group (EFPIA) (M).
Holding of A-shares
202
Holding of B-shares
808
Research Technician.
Employed at Lundbeck since 1995.
Elected by employees in 2022.
Directorships
None
Holding of A-shares
None
Holding of B-shares
None
Clinical Trial Manager, Specialist, Psychiatry.
Employed at Lundbeck since 2012.
Elected by employees in 2022.
Directorships
Danish Union Pharmadanmark (M).
Holding of A-shares
220
Holding of B-shares
880
Principle Scientist.
Employed at Lundbeck since 2016.
Elected by employees in 2022.
Directorships
Danish Heart Association (M); Danish Pharmaceutical Soci-
ety, Biopharmacy (M).
Holding of A-shares
None
Holding of B-shares
2,583
1 Per 31 December 2024. C = Chair, DC = Deputy Chair, M = Member. For more information about the Board of Directors and their competences, please visit lundbeck.com.
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Executive Management
1,3
Charl van Zyl
Born 1967, British
Dianne Hol
Born 1973, Dutch
Joerg Hornstein
Born 1977, German
Per Johan Luthman
Born 1959, Swedish
President & CEO.
Joined Lundbeck in 2023.
Directorships
None
Holding of A-shares
None
Holding of B-shares
None
Executive Vice President, People & Culture.
Joined Lundbeck in 2024.
Directorships
None
Holding of A-shares
None
Holding of B-shares
None
CFO and Executive Vice President, Corporate Functions.
Joined Lundbeck in 2022.
Directorships
None
Holding of A-shares
None
Holding of B-shares
22,529
Executive Vice President, Research & Development.
Joined Lundbeck in 2019.
Directorships
Brain+ (M).
Holding of A-shares
26,049
Holding of B-shares
112,592
1 Per 31 December 2024. C = Chair, DC = Deputy Chair, M = Member. For more information about Executive Management and their competences, please visit lundbeck.com. 2 ESRS 2, GOV-1, para. 21(c). *Subject to limited assurance. 3 Dianne Hol (Executive Vice President, People & Culture), Maria
Alfaiate (Executive Vice President, Commercial and Corporate Strategy), Michala Fischer-Hansen (Executive Vice President, Head of Europe and International Operations) and Thomas Gibbs (Executive Vice President, Head of Lundbeck U.S.) are part of Executive Management in their respective roles
but are not members of Executive Management as registered with the Danish Business Authority.
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Executive Management
1,3
Lars Bang
Born 1962, Danish
Maria Alfaiate
Born 1975, Portuguese
Michala
Fischer-Hansen
Born 1974, Danish
Thomas Gibbs
Born 1971, U.S. citizen
Executive Vice President, Product Development & Supply.
Joined Lundbeck in 1988.
Directorships
None
Holding of A-shares
75,858
Holding of B-shares
303,432
Executive Vice President, Commercial and Corporate
Strategy.
Joined Lundbeck in 2024.
Directorships
None
Holding of A-shares
None
Holding of B-shares
None
Executive Vice President, Head of Europe and International
Operations.
Joined Lundbeck in 2024.
Directorships
None
Holding of A-shares
None
Holding of B-shares
None
Executive Vice President, Head of Lundbeck U.S.
Joined Lundbeck in 2023.
Directorships
None
Holding of A-shares
None
Holding of B-shares
None
1 Per 31 December 2024. C = Chair, DC = Deputy Chair, M = Member. For more information about Executive Management and their competences, please visit lundbeck.com. 2 ESRS 2, GOV-1, para. 21(c). *Subject to limited assurance. 3 Dianne Hol (Executive Vice President, People & Culture), Maria
Alfaiate (Executive Vice President, Commercial and Corporate Strategy), Michala Fischer-Hansen (Executive Vice President, Head of Europe and International Operations) and Thomas Gibbs (Executive Vice President, Head of Lundbeck U.S.) are part of Executive Management in their respective roles
but are not members of Executive Management as registered with the Danish Business Authority.
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Risk management governance
structure
Lundbeck is exposed to risks throughout the value
chain, from the initial stages of developing innova-
tive pharmaceuticals in our in-house facilities to the
proven pharmaceuticals reaching the patients.
Lundbeck’s risk management processes follow a sys-
tematic risk assessment approach, updated and
adapted to respond and monitor a changing envi-
ronment, as well as to match internal and external
requirements, in which risks related to research de-
velopment, global economic developments, geopoli-
tics and long-term forecasts are assessed as part of
Lundbeck’s long-term strategic planning. With this
understanding of the wider context and an accurate
and complete overview of Lundbeck’s activities and
resources, Executive Management has a clear basis
for decision-making on our overall risk exposure and
mitigating actions.
The Board of Directors is overall responsible for
ensuring that Lundbeck has implemented the neces-
sary risk management procedures. The oversight of
compliance within the established enterprise risk
management framework has been delegated to the
Audit Committee.
Risk management framework
At Lundbeck, enterprise risk management is consid-
ered an integral part of doing business, as reflected
in the risk management process.
The process starts in the decentralized teams within
each executive management area. The teams have
detailed and extensive knowledge of the risks within
their areas of responsibility. They systematically
identify, quantify, respond to and monitor risks. They
are ideally placed to mitigate our risk exposure in
the first instance. Each area shares the risks with the
central Risk Office when material updates occur, and
at least on a semi-annual basis.
The central Risk Office provides the risk framework,
accesses and understands the risks, and conducts in-
terviews with management, risk contributors, and
risk-responsible individuals. This represents an inte-
gral part in the alignment of risks reported to the
Risk Office. In cooperation with each executive man-
agement area, the Risk Office assesses the likelihood
of an event occurring and the potential impact on
the Group. The key risk overview is presented to Ex-
ecutive Management for their assessment and ap-
proval before it is reported to the Audit Committee
and approved by the Board of Directors.
The corporate risk register kept by the Risk Office
provides a consolidated overview of Lundbeck’s risk
exposure by detailing each risk, risk category, and
type. The risk descriptions provide details on the
event, its current status, mitigating actions, and the
likelihood and potential impact. Our reporting pro-
cess defines six risk categories:
• Research and development
• Market, commercial and strategy
• Supply, quality and product safety
• IT security
• Legal and compliance
• Financial
Lundbeck has developed a concise process covering
day-to-day risk identification, monitoring, mitigation
and reporting within each executive management
area all the way to the final reporting to Executive
Management. This process enables Executive Man-
agement to control Lundbeck’s risk appetite when
deciding strategy and practice, and when making
day-to-day decisions.
Risk management
Lundbeck’s risk management processes ensure close monitoring,
systematic risk assessment and the ability to identify, manage and
report internal and external risks in a changing environment.
1 ESRS 2, GOV-5 paragraph 36 (b). *Subject to limited assurance.
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In accordance with §99 (d) of the Danish Financial
Statements Act, Lundbeck has a global Data Eth-
ics Policy
2
. This policy sets out the principles
through which we comply with all applicable data
privacy laws and regulations, while ensuring the
ethical and responsible use of data. The Data Eth-
ics Policy builds upon the control procedures in
place for our data privacy requirements, covering
the processing of personal data from healthcare
professionals, partners and employees, as well as
non-personal data. Lundbeck data privacy special-
ists continuously assess new technologies to ad-
dress any risks and monitor compliance.
Enterprise risk management and
double materiality assessment
The enterprise risk management (ERM) and the dou-
ble materiality assessment (DMA) under the Corpo-
rate Sustainability Reporting Directive (CSRD) are in-
terlinked as they both focus on managing risks and
opportunities impacting financial performance and
sustainability. While the enterprise risk management
provides a structured approach for identifying, as-
sessing, and addressing risks that could affect an or-
ganization’s objectives, including environmental, so-
cial, and governance (ESG) risks, the CSRD’s DMA
complements the ERM by evaluating not only how
sustainability-related factors affect the financial posi-
tion, but also how the company’s activities impact so-
ciety and the environment. Together, these ap-
proaches ensure a comprehensive understanding of
risks and opportunities, integrating ESG considera-
tions into strategic decision-making and enhancing
transparency for stakeholders.
Governance of impacts, risks, and
opportunities under CSRD
1
The company’s sustainability governance is an-
chored with our Board of Directors and then cas-
caded through Lundbeck’s governance structure.
The Board of Directors defines and maintains over-
sight of the organization’s strategy and sustainability
matters, including sustainability-related impacts,
risks and opportunities. The Board of Directors ap-
proves the annual reporting including sustainability
disclosures.
1 ESRS 2 GOV-1 paragraph 23 (a) 23 (b), GOV-2. GOV-5 paragraph 36 (a), (b) and (e), and SBM-2 paragraph 45(d). *Subject to limited assurance. 2 https://www.lundbeck.com/content/dam/lundbeck-com/masters/global-site/pdf/sustainability/2022/02-feb/Data_Ethics_Policy.pdf .
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Key risks
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Risk area
Description
Potential consequences
Mitigating actions
Research and
development
Exposure to delays of regulatory approval or failure in the devel-
opment of new and innovative medicines.
Increased regulatory requirements for clinical trials.
Data requirements from production of non-clinical and clinical
studies.
Delays or failure of new products could impact patients who cannot benefit from these prod-
ucts and decrease earnings expectations for Lundbeck and its shareholders.
A delay in regulatory approval may impact the patient’s access to medicines.
Issues with data integrity could lead to delays in studies and production – ultimately leading
to withdrawals and failure to gain approval.
Clinical trials are run and evaluated throughout the research and development phase.
Ongoing evaluation of the product pipeline, regulatory requirements, and product benefit.
A robust quality management system is in place to ensure consistent quality, data integrity and the
compliance of clinical trials and clinical safety activities.
Market, commercial,
and strategy
Changes in market and economic dynamics derived from geopo-
litical instability
1
.*
Effects from mergers and acquisitions.
Market restrictions could impact patients’ access to Lundbeck products.
Changes in market and economic conditions and healthcare reforms could affect the pricing
landscape as well as rebates and discounts.
Differences in business performance and WACC
2
vs. assessment at the time of mergers and
acquisitions deals can lead to impairment losses.
These changes could decrease earnings for Lundbeck and its shareholders.
Understanding the price development in main markets.
Working with healthcare authorities around the world to document the value of our pharmaceuti-
cals.
Monitor political developments and requirements.
A robust merger and acquisitions implementation tracking processes.
Supply, quality, and
product safety
Loss of licenses to manufacture or sell pharmaceuticals.
Defects in product quality or safety.
Product shortage, not giving patients the needed access to the medicines they require.
Systems, policies, and procedures are in place to ensure product supply, quality, and safety.
Dual sourcing strategy and high level of safety stock of key products.
A robust pharmacovigilance system.
IT security
Cyber-attacks and cyber fraud.
System down-time.
Disruption or compromise of IT security could affect all parts of Lundbeck’s operations, and
product supply to patients.
Data loss, including patient-, employee-, proprietary business- and other sensitive data.
IT policies and procedures are in place to safeguard systems and data.
Cyber defenses are tested on a regular basis.
Annual testing of IT disaster recovery plan.
Legal and
compliance
Non-compliance with laws, industry standards, regulations, or our Code of Conduct could af-
fect our ‘license to operate’, result in litigations or investigations, expose Lundbeck to signifi-
cant fines, and impact our reputation and earnings for Lundbeck and its shareholders.
The Code of Conduct, Compliance Program and Global Compliance organization are in place to en-
sure our compliance culture.
Annual trainings to all employees.
Third parties are committed to observing our legal and ethical standards and are subject to due
diligence and audits.
A global Compliance Hotline and investigation procedure are in place for reporting and addressing
potential misconduct.
Financial
Fluctuations in interest rates and exchange rates incl. impact
from currency devaluations.
Lundbeck’s cash flow and earnings could be impacted in cases of fluctuations in
key currencies.
Treasury Policy.
Monitoring the financial exposure and hedging a significant part of Lundbeck’s currency risk up to
18 months in advance.
1 ESRS 2, GOV-5 paragraph 36 (c). *Subject to limited assurance. 2 Weighted average cost of capital.
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Internal control and risk mitigation
The risk management process and internal controls
aim to effectively identify, address, and mitigate
risks of errors in financial and sustainability report-
ing, ensuring that risks of material misstatements
and errors in these processes are minimized. Addi-
tionally, they support the operations of Lundbeck’s
complex business by emphasizing quality, efficiency,
and strong ethical principles in daily transactions
and decision-making.
Internal controls oversight structure
The Board of Directors has a supervisory duty and
the Executive Management the overall responsibility
for Lundbeck’s risk management and internal con-
trols in relation to the financial and sustainability re-
porting processes, including compliance with rele-
vant legislation and additional disclosure require-
ments pertaining to financial and sustainability re-
porting.
Control activities – overall structure
The control activities are based on a risk assessment
that is continuously updated. The objective of the
control activities is to ensure compliance with strate-
gies, policies, manuals, procedures etc. established
by the Board of Directors, the Executive Manage-
ment, and each business area, respectively, and to
comply with relevant legislation.
One key element of the control activity is the Internal
Control Framework addressing the key-risks for
Lundbeck’s financial and sustainability reporting. The
purpose of the framework is to mitigate the risks of
unintentional or intentional errors and fraud. The
framework is global in scope, incorporating both
fraud and financial statement risks. Additionally, hav-
ing a global framework standardizes controls across
all entities, enhancing efficiency in reporting pro-
cesses, and monitoring activities.
Once a year, and as needed, the Audit Committee re-
views the accounting policies and any changes
thereto, as well as critical estimates and judgments
related to the financial and sustainability reporting.
The Audit Committee reports any findings of these
assessments to the Board of Directors, which
approves the financial and sustainability reporting
processes and the findings of the assessments. In
connection with the financial and sustainability re-
porting processes, the Executive Management pro-
vides a separate statement that the consolidated re-
porting is consistent with Lundbeck’s guidelines and
policies.
Monitoring financial reporting control activities
Risk assessment and control activities are subject to
continuous monitoring. Within Group Finance,
Lundbeck has established a Financial Compliance di-
vision responsible for overseeing general financial
compliance matters and Enterprise Risk Manage-
ment. This department conducts financial compli-
ance audits, guided by a risk-based approach, which
encompass reviews of financial processes and inter-
nal controls with a primary focus on the Internal
Control Framework, along with other general finan-
cial compliance matters. The defined audit’s long-
form report is approved annually by the Audit Com-
mittee. Major weaknesses and non-compliance with
the internal guidelines are reported to the Audit
Committee, which is responsible for monitoring all
issues.
In addition, as part of their audit of the Financial
Statements, the external auditors appointed at the
annual general meeting, report on any major weak-
nesses in Lundbeck’s internal controls in the long-
form audit and assurance report to the Board of Di-
rectors, while less significant weaknesses are ad-
dressed in a management letter to the CFO. The
Board of Directors ensures that the Executive Man-
agement follows up on any outstanding issues, and
the Executive Management ensures that the subsidi-
aries follow up on any weaknesses. Once a year, the
subsidiary managers and financial controllers de-
clare that their reporting information is consistent
with Lundbeck’s guidelines.
Internal controls
1 ESRS 2, GOV-5 paragraph 36 (b) and 36 (e). *Subject to limited assurance.
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The Executive Management regularly assesses the
risks that Lundbeck is exposed to in relation to sus-
tainability reporting. For any changes that could af-
fect Lundbeck’s risk environment, the Executive Man-
agement will review and consider appropriate miti-
gating actions together with the Board of Directors.
The Audit Committee is informed about the progress
of the sustainability reporting internal control imple-
mentation and assesses whether the internal con-
trols related to the sustainability reporting processes
are effective to mitigate the risks identified.
Control activities for the Sustainability Reporting
1
Code of Conduct activities
Lundbeck’s Code of Conduct underpins compliance
efforts, ensuring adherence to international regula-
tions, pharmaceutical industry standards, and corpo-
rate reporting requirements. Regular audits align
processes and controls with recognized standards
for management practices, while ongoing updates
keep pace with evolving regulatory landscapes. Em-
ployees and third parties involved in product market-
ing are rigorously trained, ensuring accurate and
compliant product information dissemination.
Our efforts in risk reporting, management, and com-
pliance underscore our commitment to safeguarding
Lundbeck’s reputation and operational integrity.
1 ESRS 2, GOV-5 paragraph 36 (a) and paragraph 36 (d). ESRS 2, GOV-1 paragraph (c) iii. *Subject to limited assurance.
Lundbeck’s Code of Conduct (link), corporate
culture and compliance governance & over-
sight procedures are specified in the Busi-
ness Conduct section on page 131.
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At the outset of the year, the Lundbeck share price
began at DKK 28.70 for A-shares and DKK 32.76 for
B-shares, based on the closing prices at the end of
2023 (ref. Bloomberg). Throughout the year, the
B-share price reached its peak at DKK 49.38 on 17
October 2024, and its lowest point was recorded at
DKK 31.74 on 8 February 2024. By the close of the
year, the B-share price ended at DKK 41.32 marking
a 26% increase over the course of the year. In con-
trast, the Danish OMXC25 index experienced a de-
cline of 3%, while MSCI World Index increased by
18%.
Turnover
Total trading in Lundbeck A-shares amounted to
DKK 703 million in 2024, while the average daily
turnover was DKK 2.8 million. Total trading in
Lundbeck B-shares amounted to DKK 5.8 billion in
2023, while the average daily turnover was DKK 23.1
million.
Share capital
Lundbeck shares are listed on the Copenhagen Stock
Exchange, Nasdaq Copenhagen. The shares are ne-
gotiable and there are no restrictions on their trans-
ferability. At the end of 2024, Lundbeck’s total share
capital amounted to DKK 996 million, which is equiv-
alent to 996 million shares.
Composition of shareholders
According to the Lundbeck share register, the com-
pany had approximately 50,000 shareholders at the
end of 2024, representing approximately 99% of the
outstanding shares.
The Lundbeck Foundation (Lundbeckfond Invest A/S)
is the Company’s largest shareholder and holds ap-
proximately 80% of the A-shares and approximately
66% of the B-shares. The total share capital held by
the foundation is approximately 69% and the total
voting rights held by the foundation in Lundbeck is
approximately 76%.
The Lundbeck Foundation is the only shareholder to
report a holding in excess of 5% of the share capital.
At the end of 2024, investors in North America held
27% of the free float compared to 34% in 2023;
European (excl. Danish) investors held 53% com-
pared to 46% in 2023; Danish investors held 18%
compared to 18% in 2023; rest of the world held 2%,
compared to 2% in 2023.
In order to fund our long-term share-based incentive
programs, Lundbeck has 4,513,633 shares held as
treasury shares at the end of 2024. The holding is
split in 348,816 A-shares and 4,164,817 B-shares.
At the end of 2024, Lundbeck’s Board of Directors
and Executive Management held a total of 122,329
Lundbeck A-shares and a total of 713,232 B-shares
compared to a total of 127,049 Lundbeck A-shares
and a total of 700,147 B-shares at the end of 2023.
The total number of shares in 2024 corresponds to
0.06% of the total A-shares outstanding and 0.09% of
the total B-shares outstanding.
The Lundbeck share
2024 was an exciting year for Lundbeck with significant achievements,
strong financial performance, and solid progression in our R&D pipeline.
However, it is important to acknowledge that the year also brought
increased geopolitical uncertainties that significantly influenced the global
financial markets, and which are outside our control.
Financial calendar 2025
26 March 2025
Annual General Meeting 2025
31 March 2025
Dividends for 2024 at the disposal of shareholders (if approved)
14 May 2025
Financial statements for the first three months of 2025
20 August 2025
Financial statements for the first six months of 2025
12 November 2025
Financial statements for the first nine months of 2025
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Lundbeck and the equity market
Within Lundbeck, our Investor Relations (IR) function
is dedicated to maintaining transparent and accu-
rate communication with both prospective and exist-
ing shareholders, as well as equity analysts. We
achieve this through a continuous dialogue, provid-
ing in-sights into our vision, objectives, business seg-
ments and financial progress.
In the year 2024, Lundbeck's Investor Relations team
successfully conducted over 250 meetings both in
the form of face-to-face meetings and through inter-
actions via digital platforms, including Teams and
Zoom. Lundbeck also hosted a well-attended Capital
Market Event in Valby/Copenhagen in October 2024
following up on the R&D Event hosted in London in
November 2023. Additionally, Lundbeck actively
engaged in 12 investor conferences, primarily in
person.
Lundbeck is currently covered by 15 sell-side ana-
lysts, including leading global investment banks.
These analysts regularly publish research reports on
Lundbeck, and a comprehensive list of these analysts
is accessible on our website. Following the release of
our interim and full-year reports, key members of
Lundbeck's Executive Management and Investor
Relations team embark on roadshows to update
investors and analysts on the latest developments
within the company. Our investor presentations are
available for download at www.lundbeck.com.
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Composition of ownership, end 2024
Composition of free float, end 2024
69%
7%
10%
4%
0%
10%
The Lundbeck Foundation
North America
Europe, excl. Denmark
Denmark, excl. the Lundbeck Foundation
Rest of the world
Others, incl. private
Lundbeck’s total number of voting rights
and total share capital
Number of
shares (nomi-
nal value of
DKK 1 each)
Nominal
value (DKK)
Number of votes
A-shares
199,148,222
199,148,222
1,991,482,220
B-shares
796,592,888
796,592,888
796,592,888
Total
995,741,110
995,741,110
2,788,075,108
34%
46%
18%
2%
North America
Europe, excl. Denmark
Denmark, excl. the Lundbeck Foundation
Rest of the world
Stock performance A- and B-shares 2024
Stock performance 2020-2024
0
10
20
30
40
50
60
HLUNB HLUNA
Stock performance 2024
0
20
40
60
80
100
120
140
160
180
OMXC25 Index Lundbeck B-share MSCI World
80
90
100
110
120
130
140
150
160
OMXC25 Index Lundbeck B-share MSCI World
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Share data
2024
2023
2022
2021
2020
Share price (A-shares), year-end (DKK)
33.40
28.70
23.88
-
-
Share price (A-shares), high (DKK)
41.55
37.90
37.70
-
-
Share price (A-shares), low (DKK)
27.80
23.52
22.49
-
-
Share price (B-shares), year-end (DKK)
41.32
32.76
26.05
-
-
Share price (B-shares), high (DKK)
49.38
39.50
37.86
-
-
Share price (B-shares), low (DKK)
31.74
25.35
24.24
-
-
Share price (old share structure), year-end (DKK)
-
-
168.85
208.80
Share price (old share structure), high (DKK)
-
-
258.10
302.40
Share price (old share structure), low (DKK)
-
-
152.45
178.15
Share facts
Number of A-shares, year-end
199,148,222
Number of B-shares, year-end
796,592,888
Total
995,741,110
Share capital, year-end (DKK)
995,741,110
Nominal value per share (DKK)
1
Number of treasury A-shares
348,816
Number of treasury B-shares
4,164,817
Total number of treasury
shares
4,513,633 (0.45%)
Free float (%)
31%
IPO
18 June 1999
Stock exchange
Nasdaq Copenhagen
ISIN code
DK0061804697 (A), DK0061804770 (B)
Ticker
HLUNa / HLUNb (Reuters), HLUNA DC / HLUNB DC (Bloomberg)
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+ + Patient voice
- - Inequality in access to health
- - Product safety and quality
- - Responsible and ethical marketing
- - Business ethics
- - Responsible sourcing
- - Animal welfare
- - Risk of pricing, reimbursement, and access
- - Risk of failure of pharmacovigilance
- - Business ethics and Code of Conduct breach
1 For further details on the Double Materiality Assessment (DMA) see pages 64-77. 2 (+) Potential/actual positive impact / financial opportunity. (-) Potential/actual negative impact / financial risk.
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3
and waste manage-
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3
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3
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E1
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1 The renewable electricity share for the four production sites in Valby and Lumsås (Denmark), Padova (Italy), and Valbonne (France), as well as in Krakow (Poland), La Jolla, Deerfield, and Seattle (USA), is 75% in 2024.
E1
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Baseline 2019
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E1
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E1 E1
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E1
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E2
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E5
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E5
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E5
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E5
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E5
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S1
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S1
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S1 S1
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S1 S1
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S1
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S1
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S2
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S2
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S2
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S4
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S4
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S4
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S4
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health.
and will support price decision-making.
S4 S4
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S4
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1. The comparative figures for 2023 are not subject to limited assurance.
S4
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In this section
Financial Statements
146 Consolidated Financial Statements
202 Financial Statements of the Parent
Company
216 Management statement
218 Independent Auditor’s Reports Reports
Hei, living with Parkinson’s
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Statement of profit or loss 147
Statement of comprehensive income 147
Statement of financial position 148
Statement of changes in equity 149
Statement of cash flows 150
Adjusted EBITDA Reconciliation (part of Management Review
– not audited) 227
1 Basis of preparation 151
2 Business combination 154
3 Revenue and segment information 156
4 Employee costs 157
5 Financial income and expenses 159
6 Income taxes 159
7 Intangible assets 163
8 Property, plant and equipment 166
9 Right-of-use assets and lease liabilities 168
10 Inventories 169
11 Trade receivables 170
12 Cash and cash equivalents 170
13 Equity 171
14 Retirement benefit obligations and similar obligations 174
15 Incentive programs 177
16 Provisions 178
17 Contingent assets and contingent liabilities 178
18 Bank debt, bond debt and borrowings 181
19 Other payables 183
20 Financial instruments 183
21 Audit fees 189
22 Contractual obligations 190
23 Related parties 190
24 List of subsidiaries 191
25 Subsequent events 192
26 Material accounting policy information 193
Consolidated Financial Statements
Contents
Notes
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2024
2023
Notes
DKKm
DKKm
Revenue
3
Cost of sales
4
Gross profit
Sales and distribution costs
4
Administrative expenses
4
Research and development costs
4
Other operating expenses, net
2
Profit from operations (EBIT)
Financial income
5
Financial expenses
5
Profit before tax
Tax on profit for the year
6
Profit for the year
Earnings per share, basic (EPS) (DKK)
13
Earnings per share, diluted (DEPS) (DKK)
13
2024
2023
Notes
DKKm
DKKm
Profit for the year
Actuarial gains/losses
14
(24 )
Tax
13
Items that will not be reclassified subsequently to profit or loss
(20 )
Exchange rate gains/losses on investments in foreign subsidiaries
(336 )
Exchange rate gains/losses on additions to net investments in foreign subsidi-
aries
(7 )
Hedging of net investments in foreign subsidiaries
20
Deferred gains/losses on cash flow hedge, exchange rate
20
(378 )
Deferred gains/losses on cash flow hedge, interest rate
20
(7 )
(21 )
Deferred gains/losses on cash flow hedge, price
20
(14 )
(78 )
Exchange gains/losses, hedging (transferred to revenue)
20
(137 )
Income tax related to adjustments in other comprehensive income
13
Items that may be reclassified subsequently to profit or loss
(422 )
Other comprehensive income
(442 )
Total comprehensive income
Statement of profit or loss
1 January – 31 December
Statement of comprehensive income
1 January – 31 December
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2024
2023
Notes
DKKm
DKKm
Intangible assets
7
Property, plant and equipment
8
Right-of-use assets
9
Other financial assets
Other receivables
Deferred tax assets
6
Financial and other assets
Non-current assets
Inventories
10
Trade receivables
11
Income taxes receivable
Other receivables
Prepayments
Receivables
Cash and cash equivalents
12
Current assets
Assets
2024
2023
Notes
DKKm
DKKm
Share capital
13
Foreign currency translation reserve
Hedging reserve
20
(208 )
Retained earnings
Equity
Retirement benefit obligations
14
Deferred tax liabilities
6
Provisions
16
Bank debt and bond debt
18
Lease liabilities
9
Other payables
19
Non-current liabilities
Retirement benefit obligations
14
Provisions
16
Trade payables
Lease liabilities
9
Income taxes payable
Other payables
19
Current liabilities
Liabilities
Equity and liabilities
Statement of financial position –
assets
At 31 December
Statement of financial position –
equity and liabilities
At 31 December
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Share capital
Foreign
currency
translation
reserve
Hedging
reserve
Retained
earnings
Total equity
Notes
DKKm
DKKm
DKKm
DKKm
DKKm
2024
Equity at 1 January
Profit for the year
Other comprehensive income
13
(271 )
Comprehensive income
(271 )
Distributed dividends, gross
13
(697 )
(697 )
Dividends received, treasury shares
13
Buyback of treasury shares
13
(46 )
(46 )
Incentive programs
15
Tax on other transactions in equity
6
Other transactions
(687 )
(687 )
Equity at 31 December
(208 )
Share capital
Foreign
currency
translation
reserve
Hedging
reserve
Retained
earnings
Total equity
Notes
DKKm
DKKm
DKKm
DKKm
DKKm
2023
Equity at 1 January
Profit for the year
Other comprehensive income
13
(329 )
(93 )
(20 )
(442 )
Comprehensive income
(329 )
(93 )
Distributed dividends, gross
(578 )
(578 )
Dividends received, treasury shares
Buyback of treasury shares
13
(43 )
(43 )
Incentive programs
15
Tax on other transactions in equity
5
(1 )
(1 )
Other transactions
(582 )
(582 )
Equity at 31 December
Statement of changes in equity
At 31 December
Lundbeck Annual Report 2024
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150
2024
2023
Notes
DKKm
DKKm
Profit from operations (EBIT)
Adjustment for non-cash items:
Amortization and depreciation
Impairment losses
Incentive programs
Change in provisions
Other adjustments
Change in working capital:
Change in inventories
(760 )
Change in receivables
(630 )
(167 )
Change in short-term debt
(77 )
(2 )
Adjustments related to acquisition of business
2
(2,756 )
Cash flows from operations before financial receipts and payments
Financial receipts
Financial payments
(91 )
(156 )
Cash flows from ordinary activities
Income taxes paid
(583 )
(466 )
Cash flows from operating activities
Acquisition of business, net of acquired cash
2
(15,704 )
Purchase of intangible assets
7
(57 )
(224 )
Purchase of property, plant and equipment
8
(508 )
(277 )
Sale of property, plant and equipment
Proceeds from securities and other financial assets
Cash flows from investing activities
(15,286 )
(498 )
Cash flows from operating and investing activities (free cash flow)
(11,960 )
2024
2023
Notes
DKKm
DKKm
Proceeds from loans and issue of bonds
18
Repayment of bank loans and borrowings
18
(1,377 )
Repayment of lease liabilities
9
(89 )
(89 )
Buyback of treasury shares
13
(46 )
(43 )
Dividends paid in the financial year, net
(694 )
(576 )
Cash flows from financing activities
(2,085 )
Net cash flows for the year
(331 )
Cash and cash equivalents at 1 January
Unrealized exchange gains/losses on cash and cash equivalents
(15 )
(35 )
Net cash flows for the year
(331 )
Cash and cash equivalents at 31 December
Statement of cash flows
At 31 December
Lundbeck Annual Report 2024
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151
Note 1
Lundbeck Annual Report 2024
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152
1 Basis of preparation - continued
Note 1
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153
1 Basis of preparation - continued
Note 1
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
154
Note 2
Lundbeck Annual Report 2024
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155
2 Business combination – continued
Note 2
Lundbeck Annual Report 2024
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156
®
Note 3
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
157
3 Revenue and segment information - continued
Notes 3-4
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
158
4 Employee costs - continued
Note 4
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
159
Notes 5-6
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
160
6 Income taxes – continued
Note 6
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
161
6 Income taxes – continued
Note 6
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
162
6 Income taxes – continued
Note 6
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
163
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
164
7 Intangible assets - continued
®
Note 7
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165
7 Intangible assets - continued
Note 7
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
166
7 Intangible assets – continued
Note 7-8
Lundbeck Annual Report 2024
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167
8 Property, plant and equipment– continued
Note 8
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168
Notes 9
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169
Notes 10
Lundbeck Annual Report 2024
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170
Note 11-12
Lundbeck Annual Report 2024
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171
12 Cash and cash equivalents - continued
Notes 12-13
Lundbeck Annual Report 2024
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172
13 Equity - continued
Note 13
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173
13 Equity - continued
Note 13
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
174
Note 14
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
175
14 Retirement benefit obligations and similar obligations – continued
Note 14
Lundbeck Annual Report 2024
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176
14 Retirement benefit obligations and similar obligations – continued
Note 14
Lundbeck Annual Report 2024
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177
Note 15
Lundbeck Annual Report 2024
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178
Notes 16-17
Lundbeck Annual Report 2024
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179
17 Contingent assets and contingent liabilities - continued
®
Note 17
Lundbeck Annual Report 2024
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180
17 Contingent assets and contingent liabilities - continued
1)
Note 17
1) Legal case not related to the Parent Company.
Lundbeck Annual Report 2024
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181
Note 18
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
182
18 Bank debt, bond debt and borrowings - continued
Note 18
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
183
Notes 19-20
Lundbeck Annual Report 2024
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184
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
185
20 Financial instruments - continued
Note 20
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186
20 Financial instruments - continued
Note 20
Lundbeck Annual Report 2024
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187
20 Financial instruments - continued
Note 20
Lundbeck Annual Report 2024
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188
20 Financial instruments - continued
Note 20
Lundbeck Annual Report 2024
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189
20 Financial instruments - continued
Notes 20-21
Lundbeck Annual Report 2024
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190
Notes 22-23
Lundbeck Annual Report 2024
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191
Note 24
Lundbeck Annual Report 2024
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192
24 List of subsidiaries – continued
Notes 24-25
Lundbeck Annual Report 2024
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193
Note 26
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194
26 Material accounting policy information – continued
Note 26
Lundbeck Annual Report 2024
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195
26 Material accounting policy information – continued
Note 26
Lundbeck Annual Report 2024
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196
26 Material accounting policy information – continued
Note 26
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197
26 Material accounting policy information – continued
Note 26
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198
26 Material accounting policy information – continued
Note 26
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199
26 Material accounting policy information – continued
Note 26
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
200
26 Material accounting policy information – continued
Note 26
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
201
26 Material accounting policy information – continued
Note 26
Lundbeck Annual Report 2024
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202
Statement of profit or loss 203
Statement of financial position 204
Statement of changes in equity 205
1 Revenue 206
2 Employee costs 206
3 Investments in subsidiaries 207
4 Financial income and expenses 207
5 Income taxes 208
6 Distribution of profit 209
7 Intangible assets 209
8 Property, plant and equipment 210
9 Right-of-use assets and lease liabilities 210
10 Inventories 211
11 Provisions 211
12 Contingent assets and contingent liabilities 212
13 Bank debt and bond debt 212
14 Payables to subsidiaries 212
15 Financial instruments 212
16 Audit fees 213
17 Contractual obligations 213
18 Related parties 213
19 Subsequent events 213
20 Material accounting policy information 214
Financial Statements of the Parent Company
Contents
Notes
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
203
2024
2023
Notes
DKKm
DKKm
Revenue
1
15,703
14,117
Cost of sales
2
3,144
3,633
Gross profit
12,559
10,484
Sales and distribution costs
2
4,776
4,313
Administrative expenses
2
1,073
941
Research and development costs
2
4,144
3,066
Other operating expenses, net
205
-
Profit from operations (EBIT)
2,361
2,164
Income from investments in subsidiaries
3
332
2,155
Financial income
4
1,168
564
Financial expenses
4
764
736
Profit before tax
3,097
4,147
Tax on profit for the year
5
584
456
Profit for the year
6
2,513
3,691
Statement of profit or loss
1 January – 31 December
Lundbeck Annual Report 2024
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204
2024
2023
Notes
DKKm
DKKm
Intangible assets
7
7,183
8,493
Property, plant and equipment
8
1,951
1,720
Right-of-use assets
9
146
157
Investments in subsidiaries
3
11,840
10,468
Receivables from subsidiaries
16,316
5,918
Other financial assets
66
98
Other receivables
4
4
Financial assets
28,226
16,488
Non-current assets
37,506
26,858
Inventories
10
3,085
3,226
Trade receivables
800
776
Receivables from subsidiaries
5,141
3,810
Other receivables
348
349
Prepayments
158
120
Receivables
6,447
5,055
Cash and cash equivalents
3,936
4,341
Current assets
13,468
12,622
Assets
50,974
39,480
2024
2023
Notes
DKKm
DKKm
Share capital
996
996
Proposed dividends
946
697
Hedging reserve
(127)
144
Retained earnings
18,314
16,744
Equity
20,129
18,581
Deferred tax liabilities
5
1,417
1,182
Provisions
11
369
219
Bank debt and bond debt
13
16,174
3,714
Lease liabilities
9
137
147
Payables to subsidiaries
14
5,307
8,827
Other payables
12
12
Non-current liabilities
23,416
14,101
Provisions
11
308
77
Trade payables
1,808
1,796
Lease liabilities
9
13
12
Payables to subsidiaries
4,046
4,112
Income tax payables
138
74
Other payables
1,116
727
Current liabilities
7,429
6,798
Liabilities
30,845
20,899
Equity and liabilities
50,974
39,480
Statement of financial position –
assets
At 31 December
Statement of financial position –
equity and liabilities
At 31 December
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
205
Share
capital
Proposed
dividends
Hedging re-
serve
Retained
earnings
Equity
Notes
DKKm
DKKm
DKKm
DKKm
DKKm
Equity at 1 January
996
697
144
16,744
18,581
Profit for the year
6
-
946
-
1,567
2,513
Distributed dividends, gross
-
(697)
-
-
(697)
Dividends received, treasury shares
-
-
-
3
3
Deferred gains/losses on cash flow hedge, ex-
change rate
-
-
(378)
-
(378)
Deferred gains/losses on cash flow hedge, in-
terest rate
-
-
(7)
-
(7)
Deferred gains/losses on cash flow hedge, price
-
-
52
-
52
Exchange gains/losses, hedging (transferred to
revenue)
-
-
(14)
-
(14)
Buyback of treasury shares
-
-
-
(46)
(46)
Incentive programs
-
-
-
40
40
Tax on transactions in equity
5
-
-
76
6
82
Equity at 31 December
996
946
(127)
18,314
20,129
For further details, see note 13 Equity in the consolidated Financial Statements.
Statement of changes in equity
At 31 December
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
206
1 Revenue
2024
2023
Revenue by region
DKKm
DKKm
Europe
5,267
4,759
United States
8,011
7,028
International markets
2,384
2,090
Total
15,662
13,877
Other revenue
93
103
Effects from hedging
(52)
137
Total revenue
15,703
14,117
2 Employee costs
2024
2023
Breakdown of employee costs
DKKm
DKKm
Short-term employee benefits
1,769
1,594
Retirement benefits
161
133
Social security costs
25
18
Equity- and cash-settled incentive programs
37
33
Severance and other employee costs from restructuring activities
115
59
Total
2,107
1,837
Employee costs for the year are included in the following functions in the statement of profit or loss:
2024
2023
Employee costs
DKKm
DKKm
Cost of sales
571
512
Sales and distribution costs
225
126
Administrative expenses
496
450
Research and development costs
815
749
Total
2,107
1,837
Information on employees
2024
2023
Number
Number
Average number of full-time employees in the financial year
1,919
1,822
Number of full-time employees at 31 December
1,962
1,875
Remuneration of the Registered Executive Management
See notes 4 Employee costs and 15 Incentive programs in the consolidated Financial Statements.
Remuneration of the Board of Directors
See note 3 Employee costs in the consolidated Financial Statements.
Incentive programs
See note 15 Incentive programs in the consolidated Financial Statements.
Notes 1-2
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
207
3 Investments in subsidiaries
2024
DKKm
Cost at 1 January
10,732
Capital contributions to subsidiaries
1,372
Cost at 31 December
12,104
Impairment at 1 January
264
Impairment at 31 December
264
Carrying amount at 31 December
11,840
In 2024, income from investments in subsidiaries relates to dividends of DKK 332 million. In 2023, income from
investments in subsidiaries related to dividends of DKK 2,155 million.
See note 24 List of subsidiaries in the consolidated Financial Statements for an overview of subsidiaries.
4 Financial income and expenses
2024
2023
DKKm
DKKm
Financial income
1,168
564
Financial expenses
764
736
Net financials, (income)/expenses
(404)
172
In 2024, out of total financial income and financial expenses, DKK 574 million (DKK 483 million in 2023) and
DKK 630 million (DKK 616 million in 2023) relate to intra-group interest income and expenses, respectively.
In 2024, financial income and financial expenses are impacted by a net exchange gain of DKK 106 million (loss
of DKK 4 million in 2023) relating to translation of receivables from and payables to subsidiaries that are con-
sidered part of the overall investment in subsidiaries.
Further, in 2024, financial income and financial expenses are not impacted (gain of DKK 17 million in 2023) by
the translation of external loans used for hedging net investments in foreign operations in the U.S.
Notes 3-4
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
208
5 Income taxes
Tax on profit for the year
2024
2023
DKKm
DKKm
Current tax, joint taxation contribution
332
164
Prior-year adjustments, current tax
(65)
6
Prior-year adjustments, deferred tax
32
(4)
Change in deferred tax for the year
203
263
Total tax for the year
502
429
Tax for the year is composed of:
Tax on profit for the year
584
456
Tax on transactions in equity
(82)
(27)
Total tax for the year
502
429
Deferred tax balances
Balance at
1 January
Adjustment of
deferred tax
at beginning
of year
Movements
during the year
Balance at
31 December
Temporary differences between assets and liabilities as stated in the
Financial Statements and in the tax base
DKKm
DKKm
DKKm
DKKm
Intangible assets
6,405
-
95
6,500
Property, plant and equipment
438
-
12
450
Inventories
481
(32)
29
478
Other items
(526)
5
(464)
(985)
Tax loss carry forwards etc.
(1425)
172
1,253
-
Total temporary differences
5,373
145
925
6,443
Deferred (tax assets)/tax liabilities
1,182
32
203
1,417
The major assumptions relating to the recognition and measurement of tax assets are described in
note 6 Income taxes in the consolidated Financial Statements.
2024
2023
Movements in deferred tax
DKKm
DKKm
Balance at 1 January
1,182
923
Movements related to transactions recognized in profit or loss
244
276
Movements related to transactions recognized in equity
(9)
(17)
Balance at 31 December
1,417
1,182
Note 5
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
209
6 Distribution of profit
2024
2023
Proposed distribution of profit for the year
DKKm
DKKm
Proposed dividends for the year
946
697
Transferred to/from distributable reserves
1,567
2,994
Total profit for the year
2,513
3,691
Proposed dividend per share (DKK)
0.95
0.70
See note 13 Equity in the consolidated Financial Statements for details on treasury shares.
7 Intangible assets
Product
rights¹⁾
Other
rights
Projects in
progress
Total intangible
assets
Intangible assets
DKKm
DKKm
DKKm
DKKm
Cost at 1 January
16,924
1,777
173
18,874
Transfers
-
106
(106)
-
Additions
-
29
25
54
Disposals
-
-
(3)
(3)
Cost at 31 December
16,924
1,912
89
18,925
Amortization and impairment losses at 1 January
8,676
1,705
-
10,381
Amortization
770
44
-
814
Impairment losses
547
-
-
547
Amortization and impairment losses at 31 December
9,993
1,749
-
11,742
Carrying amount at 31 December
6,931
163
89
7,183
1) At 31 December 2024, product rights not yet commercialized amounted to DKK 1,775 million (DKK 2,322 million at 31 December 2023).
For details on material product rights and impairment testing, see note 7 Intangible assets in the consolidated
Financial Statements.
Notes 6-7
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
210
8 Property, plant and equipment
Land and
buildings
Plant and
machinery
Other
fixtures
and fittings,
tools and
equipment
Prepayments
and assets
under
construction
Total
property,
plant and
equipment
Property, plant and equipment
DKKm
DKKm
DKKm
DKKm
DKKm
Cost at 1 January
3,432
1,067
564
416
5,479
Transfers
138
19
44
(201)
-
Additions
13
24
9
359
405
Disposals
(1)
(4)
(4)
-
(9)
Cost at 31 December
3,582
1,106
613
574
5,875
Depreciation and impairment losses at
1 January
2,381
891
487
-
3,759
Depreciation
107
41
25
-
173
Disposals
-
(4)
(4)
-
(8)
Depreciation and impairment losses at
31 December
2,488
928
508
-
3,924
Carrying amount at 31 December
1,094
178
105
574
1,951
Pledged assets
No land and buildings were mortgaged at 31 December 2024. No other assets have been pledged.
9 Right-of-use assets and lease liabilities
2024
2023
Land and buildings
DKKm
DKKm
Cost at 1 January
222
227
Additions
-
2
Disposals during the year
-
(1)
Adjustment to right-of-use assets during the year¹⁾
2
(6)
Cost at 31 December
224
222
Depreciation and impairment losses at 1 January
65
53
Depreciation
13
13
Depreciation and impairment on disposals
-
(1)
Depreciation and impairment losses at 31 December
78
65
Carrying amount at 31 December
146
157
1) Comprises reassessment of lease term and renewal of lease agreements.
2024
2023
Amounts recognized in profit or loss
DKKm
DKKm
Expense relating to short-term leases, not capitalized
2
1
Depreciation of right-of-use assets, land and buildings
13
13
Interest expense relating to lease liabilities
3
3
Total recognized in profit or loss
18
17
Notes 8-9
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
211
9 Right-of-use assets and lease liabilities - continued
2024
2023
Maturity analysis of lease liabilities
DKKm
DKKm
Within one year
13
12
Between one year and five years
52
50
After five years
85
97
Lease liabilities at 31 December
150
159
10 Inventories
2024
2023
DKKm
DKKm
Raw materials and consumables
173
192
Work in progress
2,301
2,540
Finished goods and goods for resale
611
494
Total
3,085
3,226
11 Provisions
2024
DKKm
Provisions at 1 January
296
Additional provisions recognized
655
Provisions used during the year
(270)
Reversal of unused provisions
(4)
Provisions at 31 December
677
The Parent Company has entered into agreements with individual subsidiaries, under which it will cover ex-
pected losses and obligations concerning restructuring programs and integrations costs related to the acqui-
sition of Longboard. The provisions in the Parent Company therefore cover such losses and obligations.
Notes 9-11
Lundbeck Annual Report 2024
Management Review Financial Statements Consolidated Financial Statements Financial Statements of the Parent Company Reports
212
12 Contingent assets and contingent liabilities
Pending legal proceedings
See Go to note 17 Contingent assets and contingent liabilities in the consolidated Financial Statements for details
on pending legal proceedings and environmental matters.
Joint taxation
The Parent Company is part of a Danish joint taxation scheme with Lundbeckfonden (Lundbeckfond Invest A/S
including subsidiaries), according to which the Parent Company partly has a joint and several liability and partly
a secondary liability with respect to corporate income taxes, etc. for the jointly taxed companies. In addition,
the Parent Company partly has a joint and several liability and partly a secondary liability with respect to any
obligations to withhold tax on interest, royalties and dividends for these companies. However, in both cases
the secondary liability is capped at an amount equal to the share of the capital of the company directly or
indirectly owned by the ultimate parent company. The total tax obligation under the joint taxation scheme is
shown in the Financial Statements of Lundbeckfond Invest A/S.
Letters of intent
The Parent Company has entered into agreements to cover operating losses in certain subsidiaries.
As collateral for bank guarantees, the Parent Company has issued letters of intent to the banks in the amount
of DKK 4 million (DKK 4 million at 31 December 2023) on behalf of subsidiaries.
13 Bank debt and bond debt
There is no bank debt or bond debt falling due after more than five years from the balance sheet date at
31 December 2024 and 2023, respectively.
14 Payables to subsidiaries
Payables to subsidiaries falling due after more than five years from the balance sheet date amounted to DKK
5,307 million at 31 December 2024 (DKK 8,827 million at 31 December 2023).
15 Financial instruments
Foreign currency management is handled by the Parent Company. See note 20 Financial instruments in the con-
solidated Financial Statements.
The fair value of derivatives at year-end is disclosed in note 20 Financial instruments in the consolidated Financial
Statements. The fair value adjustment recognized in equity is disclosed in the statement of changes in equity
in the Financial Statements of the Parent Company. All fair value adjustments are initially recognized in equity.
Notes 12-15
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213
16 Audit fees
2024
2023
DKKm
DKKm
Statutory audit
4
4
Assurance engagements other than audit
2
1
Other services
-
1
Fee to PricewaterhouseCoopers
6
6
The fee for non-audit services provided to the Parent Company by PricewaterhouseCoopers Statsautoriseret
Revisionspartnerselskab, Denmark, amounted to DKK 2 million (DKK 1 million in 2023) and consisted of limited
assurance of the sustainability statement, other assurance services, other accounting and tax advisory services.
17 Contractual obligations
Research and development milestones and collaborations
The Parent Company has entered into a number of agreements relating to research and development of new
products and intellectual property rights from acquisitions, as well as other collaborations. According to the
agreements, Lundbeck is committed to paying certain milestones. Such amounts entail uncertainties in relation
to the period in which payments are due because a proportion of the obligations is dependent on milestone
achievements.
At 31 December 2024, potential future milestone payments totaled DKK 1,029 million (DKK 1,106 million at
31 December 2023).
Sales milestones
The Parent Company is committed to paying certain commercial sales milestones, royalties or other payments
based on a percentage of sales generated from the sale of goods following marketing approval. These amounts
are excluded from the contractual obligations because of their contingent nature, being dependent on future
sales.
Other purchase obligations
The Parent Company has undertaken purchase obligations relating to property, plant and equipment in the
amount of DKK 627 million (DKK 688 million at 31 December 2023). Contractual obligations with intangible
assets, excluding commitments with R&D milestones and collaborations, amounted to DKK 24 million in 2024
(DKK 0 at 31 December 2023).
18 Related parties
For information on related parties exercising controlling influence on the Parent Company, see note 23 Related
parties in the consolidated Financial Statements.
The Parent Company is included in the consolidated Financial Statements of Lundbeckfonden.
The Parent Company had transactions with subsidiaries during 2024. The Parent Company’s share of ownership
of all subsidiaries is 100%. The Parent Company did not enter into any transactions with other related parties
that were not on an arm’s length basis.
19 Subsequent events
No subsequent events have occurred after the balance sheet date that required adjustment to or disclosure in
the Financial Statements of the Parent Company.
Notes 16-19
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20 Material accounting policy information
The Financial Statements of the Parent Company H. Lundbeck A/S have been prepared in accordance with the
Danish Financial Statements Act applying to enterprises in reporting class D. The Financial Statements are pre-
sented in Danish kroner (DKK). All amounts have been rounded to the nearest DKK million, unless otherwise
indicated.
Assets and liabilities are presented in the balance sheet according to a current/non-current classification.
The accounting policies for the Financial Statements of the Parent Company remain unchanged from the pre-
vious financial year.
Differences relative to the accounting policies for the consolidated Financial Statements
The Parent Company’s accounting policies for recognition and measurement are consistent with the accounting
policies for the consolidated Financial Statements with the exceptions stated below. For a description of the
accounting policies of the Group, please refer to the consolidated Financial Statements.
Statement of profit or loss
Income from investments in subsidiaries
Income from investments in subsidiaries includes dividends from subsidiaries, which are recognized in the Par-
ent Company’s statement of profit or loss when the Parent Company’s right to receive such dividends has been
approved. Further, income from investments in subsidiaries includes proceeds from liquidation of subsidiaries
and any impairment losses or reversals of impairment losses on investments in subsidiaries.
Exchange gains/losses
Exchange gains/losses on translation of receivables from and payables to subsidiaries that are considered part
of the overall investment in subsidiaries are recognized in profit or loss under financial income or financial
expenses.
Exchange gains/losses on that part of the bank debt in foreign currency which is used for hedging of the net
investments in subsidiaries and which provides an effective hedging of the exchange gains/losses of the net
investments, are recognized in profit or loss under financial income or financial expenses.
Statement of financial position
Investments in subsidiaries
Investments in subsidiaries are measured at cost in the Parent Company’s Financial Statements. Where the
recoverable amount of the investments is lower than cost, the investments are written down to this lower value.
In addition, cost is written down to the extent that dividends distributed exceed the accumulated earnings in
the subsidiary since the acquisition date.
Other financial assets
On initial recognition, investments are measured at cost, corresponding to fair value plus directly attributable
costs. Subsequently, they are measured at fair value at the balance sheet date. Any fair value adjustments on
equity investments recognized in other comprehensive income in the consolidated Financial Statements are
recognized under financial income or financial expenses in the Parent Company’s statement of profit or loss.
Provisions
Provisions mainly consist of provisions for discounts and rebates, product returns, pending lawsuits, environ-
mental, integration and restructuring obligations. A provision is a liability of uncertain timing or amount.
Unsettled discounts and rebates are recognized as provisions when the timing or amount is uncertain. Where
absolute amounts are known, the discounts and rebates are recognized as trade payables.
Return obligations imposed on the Group are recognized as provisions in the balance sheet.
Amounts relating to provisions are recognized when the outflow is probable and the amount is measured as
the best estimate of the costs required to settle the liabilities at the balance sheet date.
Note 20
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215
20 Material accounting policy information - continued
In connection with restructurings in the Group, provisions are made only for liabilities set out in a specific re-
structuring plan based on which the parties affected can reasonably expect that the Group will carry out the
restructuring, either by starting to implement the plan or announcing its main components.
Statement of changes in equity
Pursuant to the Danish Financial Statements Act, entries recognized in the statement of comprehensive income
in the consolidated Financial Statements are recognized directly in the statement of changes in equity in the
Parent Company’s Financial Statements, except for entries concerning exchange gains/losses on translation of
receivables from and payables to subsidiaries, entries providing an effective hedge against foreign exchange
gains/losses on the net investment and entries concerning other financial assets.
Statement of cash flows
In accordance with the exemption clause in section 86(4) of the Danish Financial Statements Act, no separate
statement of cash flows has been prepared for the Parent Company as it is included in the consolidated state-
ment of cash flows.
Note 20
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Management statement
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Registered executive management
Board of directors
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218
Report on the audit of
the Financial Statements
Independent Auditor’s Reports
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219
Independent Auditor’s Reports
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220
Independent Auditor’s Reports
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Independent Auditor’s Reports
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Independent Auditor’s Reports
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Independent Auditor’s Reports
Statsautoriseret Revisionspartnerselskab
CVR no. 33 7 7 12 31
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225
Independent auditor’s limited assurance
report on the Sustainability Statement
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226
Independent auditor’s limited assurance
report on the Sustainability Statement
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227
Adjusted EBITDA Reconciliation
(part of Management Review – not audited)
2024
2023
Reported
Adjusted
Reported
Adjusted
Adjusted EBITDA reconciliation
DKKm
DKKm
DKKm
DKKm
Revenue
22,004
22,004
19,912
19,912
Cost of sales
4,230
2,551
4,485
2,332
Gross profit
17,774
19,453
15,427
17,580
Sales and distribution costs
8,146
7,969
7,482
7,341
Administrative expenses
1,437
1,265
1,293
1,202
Research and development costs
4,501
3,872
3,457
3,385
Other operating expenses, net
420
-
-
-
Profit from operations (EBIT)
3,270
-
3,195
-
Depreciation/amortization
1,876
-
2,012
-
EBITDA
5,146
6,347
5,207
5,652
EBITDA margin
23.4%
28.8%
26.2%
28.4%
Adjustments to EBITDA
Integration costs
214
-
-
-
Restructuring expenses
84
-
64
-
Gains/losses on divestment of businesses
-
-
-
-
Acquisition expenses
206
-
-
-
Other adjustments
697
-
381
-
Adjusted EBITDA
6,347
6,347
5,652
5,652
Adjusted EBITDA margin
28.8%
28.8%
28.4%
28.4%
For financial guidance for 2023 and onwards, Lundbeck
focuses on revenue performance and adjusted EBITDA.
Adjusted EBITDA provides an improved and more con-
sistent indicator, measuring the underlying operational
profitability. Adjusted EBITDA enables a better under-
standing 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 costs
Gains/losses on divestment of businesses
Acquisition expenses
Other adjustments
Adjusted EBITDA is a non-IFRS performance measure.
Lundbeck Annual Report 2024
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228
Lundbeck Annual Report 2024
H. Lundbeck A/S
Ottiliavej 9
2500 Valby
Denmark
Global Communication & Public Affairs
Tel. +45 36 30 13 11
information@lundbeck.com
www.lundbeck.com
CVR number 56759913