H. Lundbeck A — Earnings Release 2016

Nov 2, 2016

Valby, Denmark, 2016-11-02 07:47 CET (GLOBE NEWSWIRE) -- HIGHLIGHTS

-- Revenue reached DKK 11,469 million in the first nine months of 2016
representing an increase of 6% compared to the same period last year
-- Revenue in the US increased 33% (30% in local currency) to DKK 6,035
million
-- Revenue in International Markets was unchanged (increased 4% in local
currencies) at DKK 2,988 million
-- Revenue in Europe declined 25% (24% in local currencies) to DKK 2,199
million
-- Revenue from key products grew 90% (89% in local currencies) to DKK 4,680
million in the period representing 41% of total revenue
-- Abilify Maintena® reached DKK 805 million, up 76% (77% in local
currencies)
-- Brintellix®/Trintellix reached DKK 773 million, up 85% (91% in local
currencies)
-- Northera® reached DKK 774 million, up 174% (173% in local currency)
-- Onfi® reached DKK 1,773 million, up 43% (39% in local currency)
-- Rexulti® was launched in the US in August 2015 and revenue reached DKK
555 million
-- EBIT improved significantly reaching DKK 1,541 million
-- In the first nine months of 2016, the EBIT-margin reached 13.4% compared to
a negative margin of 58.8% in the same period last year. In 2015, EBIT
included an impairment loss and restructuring charges of close to DKK 7
billion, and the third quarter 2016 includes an impairment loss of DKK 140
million relating to idalopirdine
-- The free cash flow reached DKK 1,889 million compared to a cash outflow of
DKK 3,300 million last year. Net interest bearing debt is reduced to DKK
575 million
-- Following the solid performance, Lundbeck now expects revenue to reach DKK
15.3-15.7 billion and profit from operations (EBIT) to reach DKK 2.1-2.3
billion for 2016 compared to previously DKK 14.6-15.0 billion and DKK
1.5-1.7 billion, respectively
-- Carnexiv™ and the sNDA on Rexulti have received FDA approvals. The first
phase III study investigating the efficacy of idalopirdine in patients with
Alzheimer’s disease did not meet the prespecified efficacy endpoints

In connection with the financial report, Lundbeck’s President and CEO, Kåre
Schultz said:

“I am pleased to see the continued solid momentum of our key products and the
improvements we have achieved on our profitability which makes us able to raise
the financial guidance for 2016. I am confident that our continued execution on
our strategy will drive substantial long-term value creation.”

DKK million 9M 2016 9M 2015 Growth

---

Reported Revenue 11,469 10,861 6%
Reported EBIT 1,541 (6,384) -
Reported EPS 3.74 (26.69) -
Reported EBIT margin 13.4% (58.8%) -

Core Revenue 11,469 10,748 7%
Core EBIT 2,463 774 218%
Core EPS 7.63 1.74 339%
Core EBIT margin 21.5% 7.2% -

*For definition of the measures “Core Revenue” and “Core EBIT”, see note 3 Core
reporting