Lundbeck expects to deliver solid profits during a period of new product launches and patent expiries
(Thomson Reuters ONE) -
· Lundbeck expects to generate a minimum annual revenue and EBIT of DKK
14 billion and DKK 2 billion, respectively, in the period 2012-2014
· Lundbeck expects to continue its strong cash flow generation, and in
the period 2012-2014 plans to pay out dividend in the upper end of the payout
target of 25-35%
· Lundbeck expects to stay profitable, although launch activities
connected to Sycrest(®) and Lu AA21004 are expected to reduce profits especially
in 2012 and 2013
· Floor guidance includes new launch of escitalopram in Japan and
investments in the launches of Sycrest(®) and clobazam
· After 2014 Lundbeck plans for growth in both revenue and profit driven
by product launches from the existing pipeline
H. Lundbeck A/S (Lundbeck) today announces the financial floor guidance for the
company. The guidance addresses a period of transition for Lundbeck, but also a
period where we will maintain our strong financial position.
"We are pleased to continue to deliver solid profits while investing in new
product launches and research and development efforts to make a positive
difference for patients," said Ulf Wiinberg, President & Chief Executive Officer
at Lundbeck. "We believe we have laid out a solid platform for the floor
guidance and continue to plan for growth from 2015 and onwards."
From March 2012, as a consequence of the loss of patent protection in the United
States, Lundbeck expects that Lexapro(®) will be exposed to generic competition,
which will affect Lexapro(®) revenue. In spite of the impact from the loss of
Lexapro(®) income, Lundbeck expects to deliver solid profits during 2011-2014
and maintain its strong cash flow generation.
As part of its strategy, Lundbeck has identified and executed on a number of
initiatives that will have a positive impact on revenue and profits throughout
2011-14. The initiatives are separated into three categories: Decisions Now, R&D
pipeline and business development where the goal is to optimise and maximise
Lundbeck as well as invest significantly in the pipeline. Finally, in terms of
business development, the acquisition of Lundbeck Inc. in 2009 and the recent
in-licensing of Sycrest(®) from Merck & Co., along with escitalopram in Japan,
have created additional opportunities.
The revenue guidance for Lundbeck is primarily based on performance by
previously launched products. The floor guidance includes revenue from
Sycrest(®), which already has been approved in Europe; escitalopram in Japan
from 2012 pending approval and clobazam, which has shown very encouraging
clinical results in the clinical phase III programme but is pending filing later
in 2010 and approval in the United States. The guidance also includes Lu
AA21004, however, primarily as a cost in the form of related development and
pre-marketing costs in connection with the planned US/EU filing in 2012. Less
than 20% of revenue in any year during the floor guidance period is expected to
come from products currently in Lundbeck's pipeline and therefore not yet
launched.
In connection with the launch of new products, including LU AA21004 and
Sycrest(®) significant higher sales costs and promotion costs have also been
included for 2012-14. The guidance does not include any potential business
development activity. Furthermore, the guidance includes milestone payments
related to escitalopram in Japan and Lu AA21004.
Lundbeck will continue to develop and execute on initiatives that will improve
the mid and long-term outlook for the company. Therefore, it is Lundbeck's
intention always to strive to exceed this guidance.
DKK | 2010e (1))| 2011e| 2012e| 2013e| 2014e
---------------+------------+--------+------+------+------
Revenue(2) 3))|14.6-14.8 bn|>14.5 bn|>14 bn|>14 bn|>14 bn
---------------+------------+--------+------+------+------
SG&A costs | -| 36-37%|37-40%|37-40%|37-40%
---------------+------------+--------+------+------+------
R&D costs | ~21%| ~20%| ~20%| ~20%| ~20%
---------------+------------+--------+------+------+------
EBIT | 3.3-3.4 bn| >3 bn| >2 bn| >2 bn| >2 bn
---------------+------------+--------+------+------+------
EBITDA | 4.2-4.3 bn| -| -| -| -
---------------+------------+--------+------+------+------
1) Guidance provided on 4 March 2010 and revised on 3 November 2010
2) Included in the floor guidance are new product launches such as
Sycrest(®), clobazam, escitalopram in Japan as well as Lu AA21004-related
development and pre-marketing costs in connection with the planned US/EU filing
in 2012
3) Not included in the floor guidance is the impact from desmoteplase,
Lu AA24530, nalmefene and zicronapine
Given the long-term view of the floor guidance, it may be subject to greater
variability and higher uncertainty. This is related to events such as the uptake
of newly introduced products, foreign exchange fluctuations, macro-economic
activity including inflation, and industry-specific challenges such as changes
to government healthcare policy, generic competition and legal litigation.
After 2014, Lundbeck plans for growth in both revenue and profit driven by
potential product launches from the existing late-stage pipeline such as Lu
AA21004, clobazam, escitalopram in Japan, as well as products not included in
the floor guidance, such as desmoteplase, Lu AA24530, nalmefene, zicronapine and
others.
Lundbeck will provide further financial guidance for 2011 in connection with the
announcement of the 2010 annual report.
Dividend and financial policy
Lundbeck's financial strategy is to manage its capital structure as if the
company would carry an investment-grade rating from a rating agency. Lundbeck
expects to continue its strong cash generation, but will also retain the
flexibility to pursuit strategic opportunities in order to strengthen long-term
growth prospects.
Lundbeck has historically offered a dividend payout ratio of 30%. The target for
the payout ratio is 25% to 35% of the company's net profit. In the period
2012-2014, Lundbeck expects the payout ratio to be in the upper end of the long-
term range.
Lundbeck contacts
Investors: Media:
Palle Holm Olesen Mads Kronborg
Chief Specialist, Investor Relations Media Relations Manager
+45 36 43 24 26 +45 36 43 28 51
Magnus Thorstholm Jensen Stine Hove Marsling
Investor Relations Officer External Communication Specialist
+45 36 43 38 16 +45 36 43 28 33
Jacob Tolstrup
Vice President
+1 847 282 5713
About Lundbeck
H. Lundbeck A/S (LUN.CO, LUN DC, HLUKY) is an international pharmaceutical
company highly committed to improving 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. The company's products are targeted at
disorders such as depression and anxiety, schizophrenia, insomnia, epilepsy and
Huntington's, Alzheimer's and Parkinson's diseases.
Lundbeck was founded in 1915 by Hans Lundbeck in Copenhagen, Denmark. Today
Lundbeck employs today approximately 5,900 people worldwide. Lundbeck is one of
the world's leading pharmaceutical companies working with CNS disorders. In
2009, the company's revenue was DKK 13.7 billion (approximately EUR 1.8 billion
or USD 2.6 billion). For more information, please visit www.lundbeck.com.
[HUG#1458275]
Release no 415:
http://hugin.info/130085/R/1458275/397783.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: H. Lundbeck A/S via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 03.11.2010 - 07:31 Uhr
Sprache: Deutsch
News-ID 48339
Anzahl Zeichen: 9222
contact information:
Town:
Valby
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 163 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Lundbeck expects to deliver solid profits during a period of new product launches and patent expiries"
steht unter der journalistisch-redaktionellen Verantwortung von
H. Lundbeck A/S (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
