ALK-Abelló

Earnings Release • Feb 7, 2017

Copenhagen, 2017-02-07 07:30 CET (GLOBE NEWSWIRE) --

The Board of Directors of ALK (ALKB:DC / OMX: ALK B / AKABY / AKBLF) today
considered and approved the 2016 Annual Report with the following
highlights[1]:

Q4 performance
Q4 results were in line with ALK's most recent outlook, released on 4 January
2017.

-- Total revenue, including partner income, increased 12% to DKK 754 million
(687).
-- Base business revenue grew by 10% to DKK 735 million (678).
-- EBITDA before special items was DKK 121 million (123).

Full-year performance
ALK achieved record levels of revenue and operating profit in 2016. In Europe,
temporary production issues at a major competitor contributed to a total growth
in revenue of 28%. Sales of both SLIT-tablets and SLIT-drops grew by 61%, while
sales of SCIT declined as expected due to production upgrades. Revenue in North
America also showed double-digit growth.

-- ALK's total revenue increased to DKK 3,005 million (2,569), while revenue
in the base business grew by 25% to DKK 2,918 million (2,384).
-- EBITDA before special items was DKK 705 million (452).
-- Reported EBITDA increased to DKK 642 million (451), and the EBITDA margin
was 21% (18).
-- Global market share grew to an estimated 40% (2015: ~33%).
-- ACARIZAX® was launched in eight countries and close to 25,000 patients have
now initiated treatment.

2017 outlook
ALK has decided to invest aggressively in maintaining the market share it has
gained and in building long-term growth. As a result, additional close to DKK
300 million will be allocated to a number of growth initiatives, including the
organisational build-up in North America, further expansion in Europe and in
International markets, the continuing roll-out of ACARIZAX®, as well as the
strengthening of R&D and the robustness of Product Supply. At the same time,
ALK is increasing its capital expenditure on production capacity by DKK 150-200
million.

-- Total revenue is projected at DKK 2.8-3.0 billion and reflects the
anticipated normalisation of the competitor situation in Europe, gradual
reinstatement of normal deliveries of ALK SCIT products, as well as growth
in North America and International markets.
-- Reported EBITDA is expected at DKK 300 million due to the accelerated
investments in growth initiatives (2016: 642).
-- The underlying EBITDA is therefore expected to be level with 2015 before
the temporary competitor issues emerged.

See page 25 in the attached annual report for a detailed review of the 2017
outlook.

“ALK begins 2017 in a strong position and we are determined to consolidate our
position as the global market leader. The coming year will see significant
investments and costs as we seek to build long-term growth. These additional
resource allocations will inevitably slow earnings in 2017 when compared to an
exceptional 2016, but we are convinced this money is being well spent, and that
it will provide a satisfactory return as we unlock the potential of our
products and market opportunities within allergy and asthma. Underlying
earnings for 2017 will be in line with the situation before our competitor’s
issues arose,” says ALK’s President & CEO, Carsten Hellmann.

Audio cast
Today, ALK is hosting a conference call at 01.30 p.m. (CET) where Management
will review the results and the outlook, and answer questions. The call will be
audio cast on http://ir.alk.net/, where the presentation will be available
shortly before the call begins. Participants in the conference call are kindly
requested to call in before 1.25 p.m. (CET). Danish participants should call in
on tel. 7022 3500 and international participants should call in on tel. +44 (0)
20 7572 1187 or +1 646 722 4972. Please use the following participant pin code:
81185835#.

                             ALK-Abelló A/S

[1] Comparative figures for 2015 are shown in brackets / revenue growth is
stated as organic growth in local currencies. Revenue from ALK's base business
is defined as total revenue excluding revenues from the SLIT-tablet
partnerships

For further information please contact:
Carsten Hellmann, President & CEO, tel. +45 4574 7576
Investor Relations: Per Plotnikof, tel. +45 4574 7527, mobile +45 2261 2525
Media: Jeppe Ilkjær, tel. +45 7877 4532, mobile +45 3050 2014

About ALK
ALK is a research-driven global pharmaceutical company focusing on allergy
prevention, diagnosis and treatment. ALK is a world leader in allergy
immunotherapy – a treatment of the underlying cause of allergy. The company has
approximately 2,300 employees, with subsidiaries, production facilities and
distributors worldwide. ALK has entered into partnership agreements with Torii,
Abbott, and Seqirus to commercialise sublingual allergy immunotherapy tablets
in Japan, Russia and South-East Asia, and Australia and New Zealand,
respectively. The company is headquartered in Hørsholm, Denmark, and listed on
Nasdaq Copenhagen. Find more information at www.alk.net.