Restructuring programme develops as planned and Lundbeck sees continued strong growth in key products

HIGHLIGHTS

• The restructuring programme announced in August 2015 is progressing as planned and is still expected to reduce the cost base by approximately DKK 3 billion in 2017
• In the first nine months of 2015, core revenue reached DKK 10,748 million representing an increase of 5% (4% decline in local currencies). The performance was driven by the key products (Abilify Maintena^®, Brintellix^®, Northera^®, Onfi^®, Rexulti^®), mitigating the effect of generic erosion in Canada and Europe
• Revenue from key products  grew 188% (146% in local currencies) to DKK 2.5 billion in the first nine months representing 23% of total revenue
• Abilify Maintena sees strong growth reaching DKK 458 million for the period. The growth of 262% (226% in local currencies) was generated in all regions, but particularly in Europe
• Brintellix sales reached DKK 418 million, with non-US markets contributing DKK 140 million or 34%. Outside the US, Brintellix has now been launched in some 30 countries
• Northera was launched in Q3 2014 and achieved DKK 283 million in sales which was in line with expectations
• Onfi continues its solid performance growing 105% (73% in local currencies) to DKK 1,241 million
• Rexulti was approved by FDA in July 2015 and launched in the US in August 2015  
• Reported US revenue increased 75% (46% in local currency) and reached DKK 4,550 million, representing 42% of Lundbeck’s revenue
• International Markets, representing 27% of revenue, declined by 8% and reached DKK 2,973 million (declined 12% in local currencies) as generic erosion of Cipralex^® in Canada was partly mitigated by growth of other products such as Azilect^®
• Revenue in Europe declined 27% to DKK 2,924 million following generic erosion primarily on Cipralex
• Financial guidance for 2015 is slightly lifted. Lundbeck expects revenue of around DKK 14 billion. Expectations for core EBIT is changed to around DKK 0.7 billion and consequently reported EBIT is expected to be negative at around DKK 6.8 billion

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

“It is an interesting period Lundbeck is going through with strong growth for our new products and in the important US market. At the same time we see sharp deterioration of our European franchise following generic exposure and timing of market access. On that note, I am satisfied with the business performance and also with the progress of our restructuring programme initiated in August.”

*) For definition of the measures “Core Revenue”, “Core EBIT” and “Core EPS”, see page 16, and reconciliation to reported figures, see page 24