JP Morgan 26th Annual Healthcare Conference Claus Bræstrup, President by ugj56471


									JP Morgan 26th Annual Healthcare Conference
Claus Bræstrup, President & CEO
Safe Harbour Statement

  This presentation contains forward-looking statements that provide our expectations
  or forecasts of future events such as new product introductions, product approvals
  and financial performance.

  Such forward-looking statements are subject to risks, uncertainties and inaccurate
  assumptions. This may cause actual results to differ materially from expectations and
  it may cause any or all of our forward-looking statements here or in other
  publications to be wrong. Factors that may affect future results include interest rate
  and currency exchange rate fluctuations, delay or failure of development projects,
  production problems, unexpected contract breaches or terminations, government-
  mandated or market-driven price decreases for Lundbeck's products, introduction of
  competing products, Lundbeck's ability to successfully market both new and existing
  products, exposure to product liability and other lawsuits, changes in reimbursement
  rules and governmental laws and related interpretation thereof, and unexpected
  growth in costs and expenses.

                                                                                  Page 2
Lundbeck is a fully fledged pharmaceutical company
only specialising in CNS

What is CNS?
CNS is short for Central Nervous System.

More than 700 million cases of
CNS disorders are reported
every year.

CNS disorders are categorised in:          The brain and spinal cord
                                           of vertebrates are known
                                           collectively as the central
1. Psychiatric conditions, for instance    nervous system
    Anxiety disorders

2. Neurological conditions, for instance
    Parkinson’s disease
    Alzheimer’s disease

                                                            Page 3
CNS: world’s biggest niche -
17% of world pharmaceutical sales
                  2006 CNS market USD                        Lundbeck focus
                  billion 100.7 (+7%)
                                                             Depression, N6A

                                             20%             Psychosis, N5A
  CAGR of 13%
                                                             Alzheimer’s disease, N7D

                                                    (+11%)   Parkinson’s disease, N4A

                                               5% (+16%)     Sleep, N5B
                                            3% (+12%)
                                         5% (+19%)           Alcohol dependence, N7E
                                      0.1% (+20%)
                                                             Stroke, B1D
                                                             USDbn 0.7 (+1%)

      Source: IMS world review 2007

                                                                                        Page 4
The Lundbeck story – CNS expertise for 50 years

 Psychosis, N5A                              1996, 2006 Serdolect®         2009+ Lu 31-130
  1959: Lundbecks first anti-
  psychotic Truxal® was launched

     Depression, N6A                1989 Cipramil®   2002 Cipralex®        2009+ Lu AA21004
      1961: Lundbecks first anti-
      depressant Saroten® was launched                 Alzheimer’s Disease, N7D
                                                       2002 Ebixa®
                                                          Parkinson’s Disease, N4A
                                                           2005 Azilect®
                                                                     Insomnia, N5B
                                                                     2008 Circadin®
                                                                        Alcohol dependence, N7X

                                                                            2009+ Nalmefene
                                                                        Stroke, B1D

                                                                            2009+ Desmoteplase
  1960                     1980                 2000        2007           Future years

                                                                                          Page 5
Sales infrastructure in place in Europe and
International Markets – expanding into US and Japan

                                  US: CNS specialist sales force to
                                be established supporting the
                                potential launch of sertindole and
                                other future compounds
                                  Europe: Fully fledged CNS sales
                                  International markets: CNS sales
                                infrastructure in place in important
                                International Markets and to be
                                established in Japan

                                                             Page 6
Continued growth in all major products

   As percent of total revenue
   (excl. one-off items in brackets)

            10% (2%)                        Cipralex®     (+19%)      Products: Lundbeck’s newly
                                35% (38%)   Lexapro®      (+46%)    launched products perform well in all
                                            Ebixa®        (+27%)

 0.4%                                       Azilect®     (+143%)     Markets: Growth in International
                                            Serdolect®   (+259%)
                                                                    Markets is high and the region plays
                                                                    an increasingly important role in
                                            Other           (-7%)
14% (16%)                                   pharmaceuticals
                                            Other revenue (+427%)
                    24% (26%)                                         Margins: In both Europe and
         10% (2%)
                                                                    International Markets the profitability
                                                                    is improving with increasing
                                            Europe        (+11%)
 19%                                                                revenues and focus on cost
(21%)                                       USA           (+45%)    structure
                                            Markets        (+28%)
                                            Other revenue (+427%)

     24% (26%)
                                                                                                   Page 7
Cipralex® / Lexapro® - continued positive
performance in Europe and International markets

Antidepressant market
Europe                                                          International markets
Market share, value – market growth, volume                     Market share, value – market growth, volume
20%                                                       20%   20%                                                       20%

                                    combined 17.0%

15%                                                       15%   15%                                                       15%
                                    Cipralex® 13.8%                                                   combined 13.1%

10%                                                       10%   10%                                                       10%
                                                                                            Lexapro® /Cipralex ® 10.8%

5%                                                        5%    5%                                                        5%

                                        citalopram 3.1%                                               citalopram 2.3%
                                                                0%                                                        0%
0%                                                     0%
 aug-04          aug-05         aug-06            aug-07              Q2 '04       Q2 '05          Q2 '06        Q2 '07

                                                                         Market volume growth (3 months average)
      Market volume growth (3 months average)
      Cipralex®                                                          Lexapro®/Cipralex®
      citalopram                                                         citalopram
      combined                                                           combined
                                                                      Note: International Markets excl. Israel, Japan,
      Source: IMS Health, August 2007                                 New Zealand, Puerto Rico and Taiwan.             Page 8
Lexapro® - maintaining branded market position in US
 Antidepressant market
Market share, value – market growth, volume
25%                                                 25%
                                  combined 22.6%            Lexapro is the most prescribed
                                                           antidepressant in the US
20%                                                 20%
                                   Lexapro® 22.3%           Marketed by Forest Laboratories, Inc.
15%                                                 15%

10%                                                 10%

 5%                                                 5%
                                  citalopram 0.3%

 0%                                                 0%
  aug-04        aug-05        aug-06       aug-07

(5)%                                                (5)%

       Market volume growth (3 months average)

       Source: IMS Health, August 2007                                                       Page 9
  Ebixa® (memantine) –
  the second most prescribed anti-alzheimer product
      Anti-alzheimers market
      Europe                                                      International markets
      Market share, value – market growth, volume                 Market share, value – market growth, volume
25%                                                         40%   25%                                                            40%
                                         combined 22.8%

                                                                                                           combined 19.9%
20%                                                               20%
                                                            30%                                                                  30%

                                             Ebixa® 15.3%
15%                                                               15%

                                                            20%                                                 Ebixa® 11.2% 20%
10%                                                               10%
                                               cther 7.4%                                                         cther 8.7%

                                                            10%                                                                  10%
5%                                                                 5%

0%                                                       0%        0%                                                            0%
  aug-04           aug-05          aug-06           aug-07              Q2 '04         Q2 '05          Q2 '06           Q2 '07

               Market volume growth (3 months average)                             Market volume growth (quarterly average)
               Ebixa®                                                              Ebixa®
               other memantine                                                     other memantine
               combined                                                            combined

           Source: IMS Health, August 2007                           Note: International Markets excl. Israel, Japan,
                                                                     New Zealand, Puerto Rico and Taiwan.                     Page 10
Azilect® - successful introduction in Europe
  Anti-parkinsons market shares

    Market share, value – market growth, volume
    5%                                                   5%
                                        Azilect® 4.2%
                                                                 Lundbeck has launched Azilect® in
    4%                                                   4%
                                                                more than 20 countries
    3%                                                   3%      Once daily treatment
                                                                  Approved for monotherapy and
    2%                                                   2%
                                                                adjunct therapy with levodopa
    1%                                                   1%

    0%                                               0%
      aug-05                 aug-06             aug-07

   (1)%                                                  (1)%

               Market volume growth (3 months average)

   Source: IMS Health, August 2007                                                           Page 11
Launch of new compound – Circadin®

 Global value market for N5B –
 USD 5.4 billion
 European insomnia market 2006 –                                       Lundbeck has rights for approx.
 Approx. USD 1 billion                                                80% of European market
                                                                        Approved for treatment of primary
    67%                                                               insomnia for patient aged 55+
                                                      North America    Expected launch in first European
                                          18%         Europe          countries within 1H 2008
                                                      Rest of world     Fits well into Lundbeck’s distribution
                                                                      in Europe – and first new sleep
                                                                      compound to be launched in Europe
                                                                      since 1999

 Source: IMS World Review 2007 & IMS Knowledge link

                                                                                                         Page 12
Pharmaceuticals in clinical development
Indication                                                    Development step          Registration   Expected
Compound                     Activity                     Phase I Phase II  Phase III   application     launch
Schizophrenia                Dopamine/
Serdolect US                 serotonin                                                     2008          2009
Schizophrenia                Dopamine/
Bifeprunox                   serotonin                                                     2009+
Desmoteplase                 Plasminogen activator                                         2009+
Alcohol dependence           Specific opioid receptor
Nalmefene                    antagonist                                                    2009+
Depression                   Serotonin Modulator &
Lu AA21004                   Stimulator                                                    2009+
Lu 31-130                    Monoaminergic                                                 2009+
Lu AA24530                   Multiple target                                               2009+
Lu AA34893                   Multiple target                                               2009+
Lu AA39959                   Ion Channel Modulator                                         2009+
Stroke/neuronal damage
Lu AA24493                   Tissue protective cytokine                                    2009+
Neurological diseases        Adenosine receptor
Lu AA47070                   antagonist                                                    2009+
Mood and anxiety disorders
Lu AA37096                   Multiple target                                               2009+                  Page 13
Late stage pipeline – LU AA21004 (phase III) for the
treatment of major depression

  Lu AA21004 belongs to a new chemical class having a mode of action that is different
from currently marketed antidepressants
 Lundbeck and Takeda formed an alliance in September 2007 to develop and
commercialize a portfolio of novel compounds in the US and Japan, including Lu
  In the clinical phase II study, Lu AA21004 showed highly significant improvements on
the primary efficacy endpoints for both 5 and 10 mg doses compared to placebo and had
an attractive safety profile

Clinical programme                       In addition
  Phase III to include 2,000+ patients   • Bis-aryl-sulphanyl amine
                                         • New pharmacological profile due to
                                         the combination of serotonin reuptake
                                         inhibition with a number of other,
                                         undisclosed, characteristics

                                                                                 Page 14
Late stage pipeline - Desmoteplase (phase III) for the
treatment of ischaemic stroke

 Potentially first compound to treat patients within an
 up to 9 hours treatment window
                                                          Stroke patients, mio.
 Inlicensed from PAION, Germany                           0,9       0,6         0,6
 Lundbeck holds world wide rights                         0,0
                                                                  USA         Europe     Japan
 New phase III clinical trial expected in H2.2008                            (Major 5)
pending discussions with medical agencies                 Source: Decision Resources,
                                                          COGNOS, February 2004

Strategic fit:
                                                          In addition
 Highly innovative compound                                 Desmoteplase is a novel
 Administered by neurologists                             plasminogen activator, or
                                                          blood-clot dissolving agent
                                                            Limit the often fatal
Disease management:                                       consequences of ischaemic
   12%                                                    stroke

                       Source:American Heart
                       Associasion                                                       Page 15
Late stage pipeline - Nalmefene (phase III) for the
treatment of alcohol dependence

   Potentially new treatment paradigm           Prevalence
   Inlicensed from BioTie, Finland              Estimated 5-6% of
                                                population suffers from
   Lundbeck holds world wide rights excluding   alcohol abuse or heavy
  North America, Mexico, Turkey, and South-     drinking

  Strategic fit:
                                                In addition
   Leverage on existing European
   GP and specialist sales force                Opioid receptor antagonist for
                                                the treatment of substance
   Co-morbidity to other psychiatric            abuse disorders and impulse
   disorders                                    control disorders

                                                                     Page 16
Final remarks and financial guidance

Financial guidance
(excl. one-off items)

2006 actual                           2007 guidance       Lundbeck is a fully-integrated
                                                        pharmaceutical company only
                                      More than
DKK 1,784 million       EBIT                            focusing on CNS diseases
                                      DKK 2.6 billion
                                                          Core competence of the company
19.3%                   EBIT margin   25%
                                                        in research and development
DKK 762 million         Capex
                                      DKK 650 million     Growth in all major products
Ongoing share buy back programme of DKK 6 billion         On track to establish a commercial
to be completed in 2008                                 foothold in USA and Japan
                                                         Current pipeline is the broadest
                                                        ever in company history

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