H. Lundbeck A — Share Issue/Capital Change 2014

Mar 26, 2014

Valby, Copenhagen, 2014-03-26 16:46 CET (GLOBE NEWSWIRE) -- Valby, Denmark, 26
March 2014 - The Board of Directors of H. Lundbeck A/S has resolved, pursuant
to the authorisation in article 4.4 of the company's Articles of Association,
to issue warrants for up to a nominal value of DKK 6,775,000, corresponding to
1,355,000 shares of DKK 5 each.

The members of H. Lundbeck A/S’ Executive Management are comprised by the new
incentive plan (Warrant Program 2014). Under the Warrant Program 2014, the
Executive Management is offered to participate with a grant value of up to 42
months of base salary. For each of the eligible recipients the Board of
Directors of H. Lundbeck A/S determines the number of warrants that each
eligible recipient may receive. If a member of the Executive Management accepts
to participate in the Warrant Program 2014, the member will not participate in,
and will thus not receive any shares or share-based instruments under the
revolving LTI program in 2014, 2015 and 2016. The Board of Directors may allow
any new members of the Executive Management to participate in the revolving LTI
program.

The members of H. Lundbeck A/S’ Board of Directors are not comprised by the
incentive plan.

The warrants are granted on terms and conditions consistent with the
Remuneration guidelines for the Board of Directors and the Executive Management
of H. Lundbeck A/S that were adopted at the company’s annual general meeting
held on 26 March 2014.

One warrant entitle the holder to subscribe for 1 (one) Lundbeck share of DKK 5
nominal value. The subscription of shares will take place at a price per share
of DKK 5 nominal value of a basic amount calculated as the average amount of
the average prices ("all trades") of one Lundbeck share of DKK 5 nominal value
on NASDAQ OMX Copenhagen Stock Exchange over the 10 business days following the
date of publication of H. Lundbeck A/S’ announcement of its annual results for
2013. To the basic amount will be added annual increases of 4% of the basic
amount (including any annual increases for previous years) less any dividend
per Lundbeck share paid under resolutions passed at H. Lundbeck A/S’ general
meetings. The annual increases will continue until expiry of the warrants on 30
April 2020.

The warrants will vest 3 years after the date of grant subject to the Board of
Directors’ decision on vesting (having regard to i.a. the financial situation
of the Lundbeck group) and subject to the Executive Management member’s
continued employment in the Lundbeck Group in the vesting period. The warrants
may be exercised during certain windows in the period from 3-6 years after the
date of grant.

The market value of the warrants at the expected time of the grant in May 2014
is estimated to approximately DKK 45.7 million using the Black & Scholes
formula based on market assumptions. The number of warrants issued is low
compared to the overall share capital of H. Lundbeck A/S, and therefore no
adjustment has been made for the dilutive effect of the warrants issued when
calculating the market value.

In the financial statements, the incentive programmes granted to the Executive
Management members will be recognized in the income statement at fair value
over the vesting period of three years.

Lundbeck contacts

Investors: Media:

Palle Holm Olesen Mads Kronborg
Chief Specialist, Investor Relations Media Relations Manager
palo@lundbeck.com mavk@lundbeck.com
+45 36 43 24 26 +45 36 43 30 00

Jens Høyer
Specialist, Investor Relations
jshr@lundbeck.com
+45 36 43 33 86

About Lundbeck

H. Lundbeck A/S (LUN.CO, LUN DC, HLUYY) is a global pharmaceutical company
specialized in brain diseases. For more than 50 years, we have been at the
forefront of research within neuroscience. Our development and distribution of
pioneering treatments continues to make a difference to people living with
brain diseases. Our key areas of focus are alcohol dependence, Alzheimer’s
disease, depression/anxiety, epilepsy, Huntington’s disease, Parkinson’s
disease, schizophrenia and stroke.

Our approximately 6,000 employees in 57 countries are engaged in the entire
value chain throughout research, development, production, marketing and sales,
and are committed to improving the quality of life of people living with brain
diseases. Our pipeline consists of several late-stage development programs and
our products are available in more 100 countries. We have research centers in
China, Denmark and the United States, and production facilities in China,
Denmark, France, Italy and Mexico. Lundbeck generated revenue of DKK 15.3
billion in 2013 (EUR 2.0 billion; USD 2.7 billion).