Lundbeck continues to deliver solid growth for strategic brands and the financial guidance range has been updated

HIGHLIGHTS

Revenue reached DKK 8,233 million in the first half of 2021, a decline of 4% in local currencies because of generic erosion on Northera^®. EBIT grew 58% compared to the same period in 2020 and reached DKK 1,478 million. EBIT margin reached 18.0%. EPS grew by 63% for the period, reaching DKK 5.03.

In aggregate, strategic brands grew 13% in local currencies reaching DKK 4,408 million in the first half of the year or 54% of total revenue. In the second quarter of 2021, all strategic brands have resumed double-digit growth in local currencies. Based on trends in Trintellix and Rexulti, there is a gradual uptick in new patient starts supporting growth momentum.

The newest product in the portfolio, Vyepti^®, continues its strong momentum since launch in April 2020 and reached DKK 101 million in the second quarter of 2021 compared to DKK 14 million for the same period last year. Regulatory review is ongoing in 14 markets.

Strategic brand performance:

• • Revenue of Abilify Maintena^®:  DKK 1,197 million (up 5% in local currencies, +2% reported)
  • Revenue of Brintellix^®/Trintellix^®: DKK 1,656 million (up 12% in local currencies, +5% reported)
  • Revenue of Rexulti^®/Rxulti^®: DKK 1,378 million (up 9% in local currencies, -1% reported)
  • Revenue of Vyepti^®: DKK 177 million (up 1,245% in local currencies, +1,164% reported)

Market performance:

• • Revenue in North America: DKK 4,052 million (down 10% in local currencies, -17% reported)
  • Revenue in International Markets: DKK 2,197 million (up 6% in local currencies, -1% reported)
  • Revenue in Europe: DKK 1,729 million (up 3% in local currencies, +2% reported)

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

“I am proud of our performance and our solid financial results as the strategic brand growth accelerates post pandemic. Our strategic brands are showing double-digit growth again as we begin to see more normalized interaction between physicians and patients. We expect to see a gradual improvement in growth as an increasing number of patients see health care providers for the remainder of the year as pandemic restrictions and concerns continue to lift. We are very pleased to see continued good uptake of Vyepti in the U.S. Currency headwinds have been impactful as has the more rapid than expected decline post loss of exclusivity on Northera, however, we remain confident in Lundbeck’s ability to deliver on our commitments to our patients and our shareholders in 2021 and beyond.”

Key figures:

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

The exploratory phase II PoC study using Rexulti as monotherapy in patients suffering from borderline personality disorder has finalized. The study did not show statistically significant separation from placebo on the predefined timepoint at the primary endpoint, although improvements greater than placebo were observed at other timepoints in the study. Evaluation of the complete data is still ongoing.

Core EBIT reached DKK 2,147 million and Core EBIT margin reached 26.1%. Profitability was impacted by faster Northera erosion on the revenue side. We continue to make investments in building our brands, especially Vyepti, however, lower activity levels in the wake of the COVID-19 pandemic have resulted in lower than expected SG&A expenses in the first half of 2021 mitigating some of the downdraft.

The financial guidance for 2021 is updated. Lundbeck now expects revenue to reach DKK 16.3 – 16.6 billion. Core EBIT is expected to reach DKK 3.3 – 3.6 billion and EBIT to reach DKK 2.0 – 2.3 billion.