LEO Pharma
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Press Release LEO Pharma achieved a fine result in 2007
Ballerup, Denmark, April 2008
Psoriasis is a chronic skin disease, which seriously affects the patients’ quality of life and their psychological and physical well-being. Today, half of the patients receive no treatment and this is not acceptable, Gitte Aabo, President, CEO for LEO Pharma, states.
2007 was a good year for LEO Pharma, which with an increasing turnover achieved a satisfactory result on its way into 2008 – the year of the company’s 100 years’ anniversary. The LEO Group achieved a result before tax of DKK 2,901 million and this is far better than budgeted for 2007 as the company had expected a heavy decrease in the result before tax compared to 2006. The result before tax decreased with DKK 115 million to DKK 2,901 million. The result after tax is DKK 2,364 million for 2007 – a decrease of 3% compared to 2006. After the record result in 2006 of DKK 3,016 million, the result before tax in 2007 could immediately be regarded as slightly disappointing. However, the result must be considered on the basis of the fact that 2007 had not only fewer non-recurring receipts but also increased investments. The comparable result of 2007 turned out to be DKK 2,620 million against DKK 2,574 million in 2006, which is an increase of 2%. ”We have achieved a satisfactory result, which is better than expected. On the American market, we and our partner Warner Chilcott saw considerable progress concerning the sale. Thus, the local sale in USA of the psoriasis remedy Taclonex® was doubled from 2006 to 2007 to approximately DKK 800 million. Altogether, LEO Pharma and Warner Chilcott had last year a local sale in USA of almost DKK 2 billion originating from the sale of Taclonex® and Dovonex®,” Gitte Aabo, president, CEO of LEO Pharma since 1 January 2008, says. At that time she took over after Ernst Lunding, who is today the Chairman of the Board of Directors of LEO Pharma and of the LEO Foundation, which owns the group a 100%. ”Considering the difficult terms there have been on the market and the declining Dollar, the result must be regarded as satisfactorily,” Ernst Lunding says. The business focus areas of LEO Pharma are: Dermatology: Psoriasis, skin infections and eczema. Critical Care: Anticoagulation and bone turnover/nephrology.
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The main products within dermatology are Daivobet® (psoriasis) and the Fucidin® range (skin infections and eczema). LEO Pharma has had a handsome sales development concerning Daivobet® ointment. Within Critical Care the sales development is primarily driven by Innohep® (anticoagulation), where France is still the biggest market of LEO Pharma. In 2007 a positive cash flow of DKK 2,064 million has been generated. The equity capital at year end 2007 is DKK 17,832 million and the group has a credit standing of 87%. Compared to 2006 we are talking about a growth in the equity capital of 16% and through out the year the equity capital has carried an interest of 17%. In the beginning of 2007, the registration application for a new psoriasis product, Xamiol®, was as planned submitted as well in USA as in Europe. Xamiol®, which in the phase III clinic has achieved outstanding results, will be a new and long-needed treatment for patients suffering from the invalidating scalp psoriasis. LEO Pharma has great expectations to this product. The psoriasis product portfolio is the most important business area of LEO Pharma. Psoriasis is a chronic inflammation of the skin and a disease, which to a serious extent affects the patients’ quality of life as well as their psychological and physical well-being. Studies show that the patients evaluate the psychological aspect of the disease to be the more serious. Psoriasis affects the patients’ quality of life equal to for instance patients who suffer from diabetes. The patients often feel themselves socially stigmatized, physically disabled by their disease and they have more tendency to develop depression and alcoholism. ”Psoriasis is a chronic disease, which unfortunately often is underestimated in the health system. However, by the patients, the disease is regarded as a serious strain, as well psychologically as socially and physically. Half of the patients receive no treatment and this is unacceptable,” Gitte Aabo says. Research and Development During 2007, the Group has strengthened its pipeline and stands at the end of 2007 with a very powerful portfolio with respect to research and development projects: Dermatology Registration application has been submitted in USA and in Europe for Xamiol® for treatment of scalp psoriasis. Launching in USA and on the first European markets expected to be in 2008 and 2009. Daivobet® gel is in development for treatment of body psoriasis. Picato® is in development for the treatment of psoriasis of the face and the thin skin areas. TD 1414 is in development for treatment of skin infections. LEO 22811 is in development for oral treatment of psoriasis. LEO 29102 is in development for treatment of eczema. The increased levels of resistance towards known antibiotics and the need for alternative treatments as a consequence hereof has made LEO Pharma work on identifying new potential drug candidates within this field. These activities have implied that LEO Pharma in 2007 finalized a successful clinical phase I programme with the compound TD 1414, which is an entirely new antibiotic. For a start the compound is developed as an ointment for
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treatment of skin and soft tissue infections (SSTI). The new product has just been started in the clinical phase II in USA. If the development programme is carried through with success, the business potential is considered to be attractive. Critical Care ATryn® is in development for hereditary antithrombin III deficiency. In addition to this LEO Pharma has a number of potentially interesting research and development projects within both focus areas Dermatology and Critical Care.
Expectations for 2008 LEO Pharma wants to maintain an intensive research and development programme and to increase the sales and marketing investments for 2008 and the years to come. Thus, a decrease in the result for 2008 compared to 2007 is expected. The development of the company will still be positive and the expected decrease is therefore only a result of the investments in the future. One of the decisive events in 2008 will be the registration of Xamiol® for treatment of scalp psoriasis. For further information about LEO Pharma, please contact Corporate Communications: (+45) 4494 5888 or www.leo-pharma.com
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