Update on Lundbeck Inc. (USA)
Management has completed its initial review of the business opportunities in the US and has completed the first integration phase. We are pleased to announce that Lundbeck Inc. is expected to provide significant revenue contribution to Lundbeck and as a point of reference is expected to have sales exceeding USD 500 million in 2011. Related to this the Lundbeck Supervisory Board has approved a special performance based LTI programme that will vest in 2012. The programme is designed to help retain key employees and secure achievement of the business plan. The total grant value will be USD 8.3 million to be paid in 2012 assuming continued employment and ambitious critical milestones being met. Lundbeck has established a long term incentive plan for all employees in Lundbeck Inc. who are employed on 10 June 2009, together with the head of Lundbeck's US research unit. The employees are awarded Lundbeck Stock Appreciation Rights (SAR) and/or Restricted Cash Units (RCU) which can only be settled in cash. The cash amount on exercise of the SARs represents the difference between the closing price of the H. Lundbeck share on NASDAQ OMX Copenhagen (all trades) at the exercise date and a base price corresponding to the average closing price of the Lundbeck share (all trades) on the business days during the period from 15 June 2009 - 19 June 2009, both dates included, multiplied by the number of exercised SARs. However if the closing price of the Lundbeck share (all trades) on the date of grant is higher than the base price, the base price will equal the closing price of the Lundbeck share (all trades) on the date of grant. The employees in Lundbeck Inc. are also awarded the right to receive a cash amount, 'Lundbeck Restricted Cash Units' (RCU), corresponding to the closing price of the Lundbeck share (all trades) on the exercise day, multiplied by the number of RCUs. The grant is subject to continuing employment and contingent on the achievement of defined financial results. Moreover the head of Lundbeck Research USA is awarded SARs and RCUs which will reflect the terms and conditions for the issuance of the incentive programme based on the board resolution of 3 March 2009. The market value of the awarded SARs and RCUs at the time of the decision on 10 June 2009 amounts to a total of approximately USD 8,300,000. The market value at the time of grant on 1 July 2009 will be recognised in the income statement over the vesting period from 1 July 2009 until 1 July 2012. No shares are included in the programmes. The content of this release will have no influence on the Lundbeck Group's financial result for 2009. Lundbeck contacts Investors: Media: Jacob Tolstrup Mads Kronborg Director, IR & Communication Media Relations +45 36 43 30 79 +45 36 43 28 51 Palle Holm Olesen Head of Investor Relations +45 36 43 24 26 Magnus Thorstholm Jensen Investor Relations Officer +45 36 43 38 16 About Lundbeck H. Lundbeck A/S (LUN.CO, LUN DC, HLUKY) is an international pharmaceutical company highly committed to improve the quality of life for people suffering from central nervous system (CNS) disorders. For this purpose Lundbeck is engaged in the research and development, production, marketing and sale of pharmaceuticals across the world, targeted at disorders like depression and anxiety, schizophrenia, insomnia, Huntington's, Alzheimer's and Parkinson's diseases. Lundbeck was founded in1915 by Hans Lundbeck in Copenhagen, Denmark, and employs today over 5,500 people worldwide. Lundbeck is one of the worlds leading pharmaceutical companies working with CNS disorders. In 2008, the company's revenue was DKK 11.3 billion (approximately EUR 1.5 billion or USD 2.2 billion). For more information, please visit www.lundbeck.com.