Strong operational performance with continued solid growth from strategic brands in Q4 2021
HIGHLIGHTS
In aggregate, strategic brands grew 15% in 2021 reaching DKK 9.3 billion or 57% of revenue. Total revenue reached DKK 16.3 billion in 2021, a decline of 5% in local currencies due to erosion on Northera® following loss of exclusivity and reduced contract work.
EBIT grew 1% compared to 2020 and reached DKK 2.0 billion. Core EPS reached DKK 12.57 for the year.
Outlook 2022
- Revenue expected at DKK 16.7 – 17.3 billion.
- Core EBIT expected at DKK 3.6 – 4.0 billion.
- EBIT expected at DKK 2.2 – 2.6 billion.
In connection with the quarterly corporate release, Lundbeck’s President and CEO Deborah Dunsire said:
“I am very pleased with the results in a challenging year. Our strategic and many of the mature brands continue to perform. The newest addition to our portfolio, Vyepti, continues to have good uptake where it has launched, and our plans to globalize this brand took a great step forward with EU approval last month. We have made great strides over the past year on our Expand and Invest to Grow strategy, and now have two very interesting phase II biotherapeutics projects. The proposed new capital structure with A and B-shares also announced today is designed to expand our options for executing on our strategy over the long term. We have a strong future ahead of us.”
Key figures:
| DKK million | FY 2021 | FY 2020 | Growth |
| Core Revenue* | 16,299 | 17,672 | (8%) |
| Core EBIT* | 3,517 | 4,436 | (21%) |
| Core EPS* (DKK) | 12.57 | 18.92 | (34%) |
| Core EBIT margin* | 21.6% | 25.1% | |
| Reported Revenue | 16,299 | 17,672 | (8%) |
| Reported EBIT | 2,010 | 1,990 | 1% |
| Reported EPS (DKK) | 6.63 | 7.96 | (17%) |
| Reported EBIT margin | 12.3% | 11.3% |
*For definition of the measures “Core Revenue”, “Core EBIT”, “Core EBIT margin” and “Core EPS”, see note 2 Core reporting
The newest product in the portfolio, Vyepti®, continues to grow strongly since its launch in April 2020, reaching DKK 492 million in 2021 compared to DKK 93 million in 2020. Vyepti is now approved in the EU bringing the total approved countries to 39. Regulatory review is ongoing in 13 markets and around five submissions are planned this year.
Core EBIT reached DKK 3.5 billion and Core EBIT margin reached 21.6%. Profitability is benefitting from COVID-19 related cost avoidance but is also negatively impacted by Northera erosion on the revenue side and restructuring costs of DKK 200 million.
Lundbeck has initiated a phase II PoC study for potential new treatment of migraine prevention with Lu AF09222, which represents a novel approach for potential treatment of migraine.
The Board of Directors proposes to pay a dividend of DKK 2.0 per share, equal to a pay-out ratio of approximately 30%.
