Lundbeck reached record revenue of DKK 20 billion in 2023 with strong growth momentum set to continue in 2024

Key highlights

Lundbeck’s revenue increased by 9% (+8% CER[1]) to DKK 19,912 million in 2023, driven mainly by growth in the U.S. and Europe

• United States: DKK 9,829 million (+8%; +11% CER)
• Europe: DKK 4,628 million (+9%; +11% CER)
• International Markets: DKK 4,991 million (-4%; +2% CER)

The revenue of Lundbeck’s strategic brands increased by 13% (+16% CER), reaching DKK 13,733 million, representing 69% of total revenue

• Rexulti^®/Rxulti^®: DKK 4,525 million (+16%; +20% CER)
• Brintellix^®/Trintellix^®: DKK 4,324 million (+1%; +5% CER)
• Abilify Maintena^®/Asimtufii: DKK 3,187 million (+8%; +10% CER)
• Vyepti^®: DKK 1,697 million (+69%; +74% CER)

Adjusted EBITDA[2] increased to DKK 5,652 million (+17%; +7% CER) and adjusted EBITDA margin reached 28.4% equivalent to an increase of 2.0 percentage points. Adjusted earnings per share (EPS) reached DKK 4.22 equivalent to an increase of 13%.

In connection with the corporate release, Lundbeck’s President and CEO, Charl van Zyl said:

“I am pleased to announce our record results for the year. Lundbeck has presented sustainable growth and is already showing results of the successful R&D transformation. We are currently in the process of strengthening Lundbeck’s position as a focused innovator to ensure a sustainable long-term future for our products, innovation, R&D and profitability. Encouraging results are already seen from the AMULET PoC trial in the treatment of Multiple System Atrophy.”

In line with our dividend policy, it is proposed to pay-out a dividend of DKK 0.70 per share or DKK 697 million which is an increase of 21% compared to 2022.
 

Key figures

DKK million	FY 2023	FY 2022	Change	Change (CER)1	Q4 2023	Q4 2022	Change	Change (CER)1
Revenue	19,912	18,246	9%	8%	4,978	4,680	6%	6%
EBITDA	5,207	4,663	12%	0%	744	910	(18%)	(31%)
Adjusted EBITDA	5,652	4,823	17%	7%	793	1,118	(29%)	(38%)
EPS (DKK)	2.31	1.93	20%		0.14	0.31	(55%)
Adjusted EPS (DKK)	4.22	3.74	13%		0.58	0.87	(33%)

 

Recent events

On 31 January 2024, Lundbeck announced results of the AMULET PoC trial, a randomized, double-blind, placebo-controlled exploratory proof-of-concept trial. The trial included 61 MSA patients randomized 2:1 (40 on Lu AF82422 versus 21 on placebo) and treated for 48-72 weeks. The primary endpoint in the trial measured slowing of progression of MSA as measured by Unified Multiple System Atrophy Rating Scale (UMSARS) Total Score Part I and II, while the key secondary endpoint was Modified UMSARS Part I. The primary statistical approach consisted of a Bayesian slope analysis. In addition, the trial included several other clinical outcome measures and biomarkers. While the trial did not reach statistical significance on its primary endpoint, a trend towards slowing MSA disease progression was observed in the group exposed to Lu AF82422 compared to the placebo group, and additional signals of efficacy were observed across other clinical and biomarker endpoints. Lu AF82422 was generally well tolerated. Lundbeck plans to initiate a phase III study, following further dialogue with health authorities.

On 30 November 2023, Lundbeck hosted an R&D event in London to update analysts and investors on its transformed R&D pipeline for future growth. The event showcased key pipeline programs and highlighted the company’s strategic focus on innovation and life cycle management activities for sustained commercial success.

Financial guidance 2024

For the financial guidance 2024 and going forward, Lundbeck will focus on revenue and adjusted EBITDA at constant exchange rates (CER), instead of revenue and adjusted EBITDA at reported rates, to provide a more focused view of the underlying operational performance.

For 2024, revenue growth is expected to be 7% to 10% at CER when compared to revenue of the prior year excluding the effect from hedging. The growth reflects the continued and sustainable growth driven mainly by the strategic brands.

Lundbeck expects Adjusted EBITDA growth to be 10% to 16% at CER when compared to adjusted EBITDA of the prior year excluding effects from hedging, driven by the growth in revenue. The growth is partially offset by higher R&D investments and higher sales distribution costs due to Vyepti^® and Rexulti^® sales activities. Further details are available in section 2.8 Outlook.