Lundbeck has presented annual accounts in which all of the financial results meet the financial guidance announced by the company in March 2008. For the first time ever, revenue exceeded DKK 11 billion in 2008, and Lundbeck's management considers the results highly satisfactory.
- Revenue generated in 2008 is the highest ever in Lundbeck's history
- Growth driven by double-digit growth rates for Cipralex®, Ebixa® and Azilect®
- Lundbeck meets all of its financial forecasts for 2008
- Lundbeck expects continuing growth in 2009 and increases its R&D investments
- Management has defined five strategic focus areas which will contribute to developing Lundbeck and securing growth in the medium and long term
- Financial guidance for 2009 including Ovation will be presented in connection with the quarterly results for second quarter 2009 at the latest
Revenue continued to rise in 2008 driven primarily by Lundbeck's products Cipralex® (18% increase), Ebixa® (14% increase) and Azilect® (57% increase). Europe reported the strongest growth rate of 13% (14% at constant exchange rates), with Cipralex®, Ebixa® and Azilect® continuing to win market shares. In the International Markets segment, revenue was up 10% (17% at constant exchange rates) driven especially by sales of Cipralex®, which consistently won market shares throughout the year. In the USA, revenue was impacted by a reduction of Lexapro® inventories, which pushed down revenue by DKK 256 million. Net of this reduction, Lexapro® revenue would have increased by 5%.
Exclusive of non-recurring items
- Revenue: DKK 11,282 million (+7%)
- Profit from operations (EBIT): DKK 2,833 million (+7%)
- Investments in R&D: 22.3% of revenue and DKK 2,511 million (+15%)
- EBIT margin: 25.1%
In connection with the annual report, Lundbeck's President and CEO Ulf Wiinberg says: "In 2008, our financial performance was highly satisfactory and showed strong growth. Our ambition is for Lundbeck to be the company that makes the biggest difference worldwide in the treatment of patients suffering from central nervous system disorders. Lundbeck is to be a growth company and the upcoming takeover of Ovation and the in-house initiatives we have launched at Lundbeck provide us with a good starting point for accomplishing that ambition - during the period 2012-14 as well."
Financial forecast for 2009
The pharmaceutical industry is inherently less cyclical than most other industries. Neither Lundbeck's operations nor its financial position were adversely affected by the global economic crisis in 2008.
At present, however, we cannot rule out that Lundbeck may be affected. Our financial guidance for 2009 is presented with the reservation that the future scope of the economic crisis remains unknown and that our expectations are based exclusively on the knowledge we have today.
On 9 February, Lundbeck announced that the company is acquiring the US company Ovation Pharmaceuticals, Inc. (Ovation). The acquisition of Ovation is subject to the approval of the US competition authorities, which is expected to be granted in March 2009. Consequently, the financial guidance provided at this time only includes Lundbeck.
The financial guidance for 2009 includes an income of DKK 124 million concerning the divestment of shares in LifeCycle Pharma A/S to LFI a/s (The Lundbeck Foundation ) at the beginning of 2009.
Lundbeck expects that revenue for 2009 will rise to DKK 12-12.5 billion, and that profit from operations (EBIT) will amount to DKK 3.0-3.2 billion.
Lundbeck will increase spending on research and development, which is expected to account for 23-24% of revenue in 2009.
About Lundbeck
H. Lundbeck A/S (LUN.CO, LUN DC, HLUKY) is an international pharmaceutical company engaged in the research and development, production, marketing and sale of pharmaceuticals for the treatment of psychiatric and neurological disorders. In 2008, the company's revenue was DKK 11.3 billion (approximately EUR 1.5 billion or USD 2.2 billion). The number of employees is approx 5,500 globally. For more information, please visit www.lundbeck.com.