In an unprecedented year, Lundbeck delivers sales growth of 4% and core EBIT of DKK 4.4 billion

HIGHLIGHTS

Growth continues across all regions, with revenue reaching DKK 17,672 million in 2020, a growth of 4% in local currencies when compared to 2019. The newest product in the portfolio, Vyepti^®, continues to gain momentum doubling revenue in each quarter since launch, despite the pandemic’s negative impact on Health Care Provider (HCP) administered drugs. Cash flow presents a substantial improvement from last year.

Growth continues to be driven by patient uptake due to the efficacy and reliability of the products in the portfolio, product launches in new markets and the continued resilience of mature brands.

Strategic brand performance:

• • Revenue of Abilify Maintena^® increased 16% to DKK 2,271 million (17% in local currencies)
  • Revenue of Brintellix^®/Trintellix^® increased 10% to DKK 3,102 million (13% in local currencies)
  • Revenue of Northera^® increased 10% to DKK 2,553 million (12% in local currency)
  • Revenue of Rexulti^®/Rxulti^® increased 15% to DKK 2,620 million (17% in local currencies)
  • Revenue of Vyepti reached DKK 93 million following the launch in the U.S. in April 2020

Market performance:

• • Revenue in North America increased 2% to DKK 9,790 million (4% in local currencies)
  • Revenue in International Markets increased 4% to DKK 4,057 million (10% in local currencies)
  • Revenue in Europe increased 3% to DKK 3,329 million (4% in local currencies)

Core EBIT reached DKK 4,436 million, in accordance with financial guidance of DKK 4.3 – 4.5 billion. Core EBIT margin reached 25.1%. Lundbeck also benefited from COVID-19 related cost avoidance throughout the year.

In connection with the financial report, Lundbeck’s President and CEO Deborah Dunsire said:

“Lundbeck showed resiliency in unprecedented times, delivering a strong performance in 2020. I am pleased that we met our original revenue guidance and exceeded our original core EBIT guidance for the year. We launched a new brand, Vyepti, which enables people impacted by migraine to take their lives back. Our pipeline also achieved notable progress in several studies throughout the year. These achievements drive forward our purpose to restore brain health, so everyone can be their best.”

Key figures:

For definition of the measures “Core Revenue”, “Core EBIT”, “Core EBIT margin” and “Core EPS”, see note 5 Core reporting

All key brands showed solid growth in 2020 although growth for some of the products has deaccelerated due to the COVID-19 pandemic. In the second half of the year, product sales have been significantly impacted by depreciation of main exchange rates.

Profitability was impacted by substantial investments in our brands which was partly mitigated by a lower activity level in the wake of the COVID-19 pandemic.

Cash flows from operating activities amounted to DKK 3,837 million in 2020 compared to DKK 2,609 million in 2019. The positive development primarily relates to reduced taxes paid and limited cash flow impact from working capital in 2020 while 2019 had significant negative impact from working capital.

For 2021, Lundbeck expects revenue to reach DKK 16.3 – 16.9 billion. Core EBIT is expected to reach DKK 3.1 – 3.6 billion and EBIT to reach DKK 1.8 – 2.3 billion. The Board of Directors proposes to pay a dividend of DKK 2.50 per share, equal to a pay-out ratio of approximately 31%.

H. Lundbeck A/S

Ottiliavej 9, 2500 Valby, Denmark

+45 3630 1311

info@lundbeck.com