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Lundbeck on Track to Meet Financial Expectations and Renew Its Product Portfolio to Secure Long-Term Growth

H. Lundbeck A/S (Lundbeck) reports first half revenue of DKK 6,829 million, excluding Lexapro® in the US, an increase of 1% compared to the first half of 2011. EBITDA and EBIT, excluding restructuring costs were DKK 1,742 million and DKK 1,264 million respectively, corresponding to an EBITDA margin of 24% and an EBIT margin of 17%. Profits were affected by the increase in launch costs associated with Lundbeck's newer products, as well as the loss of revenue from Lexapro due to generic competition.

•New products* increased 65% and now constitutes 13% of revenue
•Revenue in the US, excluding Lexapro, increased 19% and revenue from International Markets increased 12% compared to the first half of 2011
•The launch of Lexapro in Japan is on track and Lexapro now holds a market share of 4%
•Filing of vortioxetine in Europe, Canada and the US in 2012 on track
•Complete Response Letter from the FDA regarding aripiprazole depot in the US received. No issues or concerns regarding the efficacy, safety, tolerability, or labeling were raised by FDA
•As part of the restructuring plan announced in June, Lundbeck will reduce the number of employees by up to 600 primarily in Europe in 2012. Consequently a provision of DKK 500 million is included in the results for the first half of 2012
•The range for the financial guidance for 2012 is maintained, excluding restructuring costs
Distribution of revenue

DKK million H1 2012 H1 2011 Growth Growth
in local
New products* 947 574 65% 55%

Cipralex 2,927 3,068 (5%) (5%)
Ebixa 1,459 1,394 5% 5%
Azilect 570 577 (1%) 0%
Xenazine 558 417 34% 26%

Europe 3,883 4,147 (6%) (6%)
USA (excl. Lexapro) 950 798 19% 12%
International Markets 1,900 1,701 12% 10%

Total revenue 7,340 8,203 (11%) (11%)

*New products include Xenazine, Sabril, Sycrest, Lexapro (Japan) and Onfi

In connection with the first half report, Lundbeck's President and CEO Ulf Wiinberg said:
"We are pleased with the overall results for the first half of the year and the process of renewing our product portfolio. Already in 2012, revenue from New products is expected to exceed the lost revenue from Lexapro US. Now we are looking forward to the filing of our multimodal antidepressant vortioxetine in North America and Europe and aripiprazole depot in the EU."


Posted: August 2012