Lundbeck raises its 2016 financial guidance based on improved sales and profitability

HIGHLIGHTS

• Revenue reached DKK 11,469 million in the first nine months of 2016 representing an increase of 6%  compared to the same period last year
  • Revenue in the US increased 33% (30% in local currency) to DKK 6,035 million
  • Revenue in International Markets was unchanged (increased 4% in local currencies) at DKK 2,988 million
  • Revenue in Europe declined 25% (24% in local currencies) to DKK 2,199 million
• Revenue from key products grew 90% (89% in local currencies) to DKK 4,680 million in the period representing 41% of total revenue
  • Abilify Maintena^® reached DKK 805 million, up 76% (77% in local currencies)
  • Brintellix^®/Trintellix reached DKK 773 million, up 85% (91% in local currencies)
  • Northera^® reached DKK 774 million, up 174% (173% in local currency)
  • Onfi^® reached DKK 1,773 million, up 43% (39% in local currency)
  • Rexulti^® was launched in the US in August 2015 and revenue reached DKK 555 million  
• EBIT improved significantly reaching DKK 1,541 million
• In the first nine months of 2016, the EBIT-margin reached 13.4% compared to a negative margin of 58.8% in the same period last year. In 2015, EBIT included an impairment loss and restructuring charges of close to DKK 7 billion, and the third quarter 2016 includes an impairment loss of DKK 140 million relating to idalopirdine
• The free cash flow reached DKK 1,889 million compared to a cash outflow of DKK 3,300 million last year. Net interest bearing debt is reduced to DKK 575 million
• Following the solid performance, Lundbeck now expects revenue to reach DKK 15.3-15.7 billion and profit from operations (EBIT) to reach DKK 2.1-2.3 billion for 2016 compared to previously DKK 14.6-15.0 billion and DKK 1.5-1.7 billion, respectively
• Carnexiv™ and the sNDA on Rexulti have received FDA approvals. The first phase III study investigating the efficacy of idalopirdine in patients with Alzheimer’s disease did not meet the prespecified efficacy endpoints

In connection with the financial report, Lundbeck’s President and CEO, Kåre Schultz said:

“I am pleased to see the continued solid momentum of our key products and the improvements we have achieved on our profitability which makes us able to raise the financial guidance for 2016. I am confident that our continued execution on our strategy will drive substantial long-term value creation.”

*For definition of the measures “Core Revenue” and “Core EBIT”, see note 3 Core reporting