Portugal Lundbeck Portugal - Produtos Farmacêuticos Lda Russia Lundbeck Russia Slovakia Lundbeck Slovensko s.r.o. Slovenia Lundbeck Pharma d.o.o. Spain Lundbeck España S.A. Axofarma Lab, S.A. Farmaglia, S.A. Sweden H. Lundbeck AB
Switzerland Lundbeck (Schweiz) AG UK Lundbeck Limited
Oceania
Australia Lundbeck Australia Pty Ltd
Kingdom of Saudi Arabia Malaysia Philippines Romania Singapore Thailand The Ukraine United Arab Emirates
Representative offices
Bulgaria China Egypt Iceland Iran
Foundations & Institutions
Lundbeck International Neuroscience Foundation The Lundbeck Institute
SD 107 billion for both the direct and the indirect economic consequences of insomnia It is estimated that roughly rld will suffer from some form of dementia by 2025 WHO estimates that depression will become the second-largest cause of the global health burden by 2020 WHO estimates % of the worlds
Contents A process of change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Supervisory Board and Executive Management . . . . . . . . . . . . 4 Financial performance in 2003 . . . . . . . . . . . . . . . . . . . . . . . . . 6 Important events in 2003 . . . . . . . . . . . . . .
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A process of change This is a time of change for Lundbeck both inside the company and in the world around us. We are changing our structures and procedures. We are adapting our strategies and optimising our resources. The management team has also undergone changes and I was one of the persons
Supervisory Board Flemming Lindeløv Lars Bruhn Peter Kürstein Mats Pettersson Jes Østergaard Jan Gottliebsen Birgit Bundgaard Rosenmeier Torben Skarsfeldt Flemming Lindeløv, Chairman Born 20 August 1948 CEO, Royal Scandinavia A/S Elected at the 1998 Annual General Meeting Directorships
Executive Management Claus Bræstrup Lars Bang Ole Chrintz Hans Henrik Munch-Jensen Stig Løkke Pedersen Claus Bræstrup Hans Henrik Munch-Jensen Born 18 January 1945 President & CEO Directorships: BRIC (Chairman) Combio A/S Hormos Medical Corp. Lars Bang Born 15 April 1960 Executive Vi
Financial performance in 2003 Group financial highlights 1999-2003 1999 DKKm Revenue 3,991 Research and development costs 824 Profit from operations 664 Net financials 239 Net profit for the year 655 Total assets 4,639 Equity 2,911 Cash flows from operating and investing activities 375 Capital inve
It is managements intention that the shareholders should benefit from the companys strong financial position Lundbeck experienced a turbulent and challenging year in 2003. For the first time since being listed in 1999, Lundbeck failed to meet its financial forecasts. The forecast for 2003 was commu
Financial performance in 2003 New dividend policy It is proposed to raise the dividend payment for the 2003 financial year to 30% of profit after tax, corresponding to a 55% increase compared with the dividend payment in 2002. In connection with the proposal to increase the dividend payment, the Sup
Audit committee In connection with the decision to set up an audit committee, the Supervisory Board has defined the duties of the audit committee: The duties of the audit committee are to review: · the companys financial reporting procedures, including the procedures for reviewing interim and annua
Important events in 2003 In January, Lundbeck announced the results of phase III clinical studies with an immediate release formulation of etilevodopa, a soluble prodrug of levodopa, in advanced Parkinsons disease patients. Etilevodopa was found to be well tolerated and as effective as levodopa. How
In October, Lundbeck and Teva Pharmaceutical Industries Ltd. announced that a rasagiline regulatory file had been submitted to the European Agency for Evaluation of Medicinal Products (EMEA) for the treatment of Parkinsons disease (PD). Also in October, a settlement was reached in legal proceedings
Drugs in clinical development Compound Rasagiline Memantine Sertindole Escitalopram Bifeprunox Gaboxadol CEP 1347 Lu 31-130 Lu AA21004 Activity MAO-B inhibitor NMDA-antagonist D2-5HT2 SSRI Dopamine/Serotonin GABAA-agonist Kinase inhibitor Monoaminergic SRI+ Indication Parkinsons disease Mild to mode
Launched drugs Compound Escitalopram Citalopram Memantine Activity SSRI SSRI NMDA-antagonist Indication Depression, panic disorder, SAD Depression, panic disorder , OCD, prevention of relapse/recurrence Moderately severe to severe Alzheimers Mild depression Depression Depression Depression Psychotic
Alzheimers disease Alzheimers disease, which is the most common cause of dementia, is a neurological disorder in which the brain gradually degenerates. Since Alzheimers is a senescent disease, aging populations in the Western countries create wider prevalence. In the five major European markets (Fra
It is estimated that roughly 37 million people around the world will suffer from a form of dementia by 2025 In the seven major pharmaceutical markets, approx. 5.2 million people suffered from Alzheimers disease in 2001. By 2011, this figure is expected to have risen by 25%, thereby affecting more t
Alzheimers disease It is estimated that about 30% of the patients treated with acetylcholine esterase inhibitors do not respond to the treatment. The most common side-effects are gastrointestinal, e.g. diarrhoea, nausea, loss of appetite and weight loss; sleep problems and fatigue can also occur. Th
Brand name Aricept® Exelon® Reminyl® Akatinol®* Axura®* Ebixa®* Active ingredient donepezil rivastigmine galantamine memantine memantine memantine Marketing corporation(s) Eisai Novartis Johnson & Johnson Merz Merz Lundbeck Sales 2002 worldwide (USDm) 1128 290 165 19 18 2 Growth in % 2
Depression and anxiety Depression is a disease that affects a large proportion of the population, and it is also one of the most disabling diseases. According to the WHOs latest depression study, the disease ranks among the 10 leading causes of disability. WHO estimates that depression will become t
WHO estimates that depression will become the second-largest cause of the global health burden by 2020 Lundbeck drugs in clinical development Development stage III I Registration application 2004 2006+ Expected launch 2005 2006+ Compound Escitalopram Lu AA21004 Activity SSRI SRI+ Indication GAD
Depression and anxiety What is depression? Common symptoms of depression are: · Low mood · Loss of pleasure or interest · Loss of energy or increased tiredness Furthermore, at least two of the following concomitant symptoms must be present: · Loss of self-confidence or self-esteem · Feelings of
Depression treatment options have improved dramatically since the 1950s, and today there are good possibilities of successfully treating depressed patients Market shares of antidepressants in the USA in value, Q3 2003 Market shares of antidepressants in Europe in value, Q3 2003 Sertraline Paroxet
Parkinsons disease Parkinsons disease is a progressive neurodegenerative disruption of the central nervous system. The disease is characterised by tremors, slow movements, stiffness in arms and legs and balance problems. Next to Alzheimers disease, Parkinsons disease is the most common neurodegenera
It is estimated that close to 4 million people worldwide suffer from Parkinsons disease In October 2003, Lundbeck and the licensor Teva Pharmaceuticals in Israel filed a European registration application for rasagiline for the treatment of Parkinsons disease. Rasagiline is a MAO-B inhibitor which i
Parkinsons disease Market size The market for drugs for the treatment of Parkinsons disease was USD 1.8 billion in 2002, an increase of 8% over 2001. Growth rates in the Parkinsons market are relatively small, among other things because there have been no significant improvements in the treatment si
WHO estimates that approx. 1% of the worlds population at some point in life will be affected by schizophrenia Schizophrenia Schizophrenia is a severe, disabling and, most often, chronic brain disorder with a considerable impact on the patients quality of life. Furthermore, schizophrenia affects th
Schizophrenia Drugs in clinical development Compound Sertindole Bifeprunox Lu 31-130 Launched drugs Compound Melperone Zuclopenthixol Activity Typical antipsychotic Typical antipsychotic Indication Psychotic disorders Schizophrenia and other psychotic disorders, anxiety, restlessness and insomnia Ma
The latest generation of antipsychotic drugs were launched in the late 1990s. These drugs are characterised by being effective in the treatment of both positive and negative symptoms although the effect in treating negative symptoms is still not convincing. In addition, treatment with atypical an
Schizophrenia Symptoms of the disease Schizophrenia afflicts both sexes equally, and typically starts in late adolescence, but slightly later in women than in men. Sometimes, the disease is initially misinterpreted as difficulties associated with puberty, school fatigue, effects of cannabis abuse, e
Lundbeck and Merck have signed an agreement for the exclusive US development and commercialisation of gaboxadol Sleep disorders Insomnia is the most common type of sleep disorder and is considered to be a symptom rather than an actual disease or syndrome. Insomnia is one of the most complained abou
Sleep disorders The sleep apnoea diagnosis rate in the USA is well above that for Europe. It is estimated that about half of the persons who suffer from this disorder consult their doctor. About 50% of these will be referred to a specialist. In Europe, the diagnosis rate is a great deal smaller, wit
addiction. They each have different tolerability profiles, but typical side-effects are drowsiness, dizziness and headache. In addition to benzodiazepines and dedicated hypnotic agents, a number of other drugs are used for treating sleep disorders, including antidepressants and antihistamines. Moreo
Know-how and competencies Lundbecks employees work to improve the quality of life for people suffering from psychiatric and neurological diseases. That is Lundbecks mission. Our vision is to become the worlds leading company within this field. Lundbeck is implementing various measures and is develop
Lundbecks success builds on research, development and marketing of unique pharmaceutical drugs. For this purpose, we require employees in a constant learning process Lundbeck conducts a large number of courses in management training, situational self-leadership, conducting employee performance revi
Know-how and competencies Distribution by gender, worldwide, 2003 Geographic composition of employees in 2003 1.9% 2.2% 3.7% 6.2% 6.4% 1.5% 0.9% Female Male Denmark UK Other Europe 47.9% North America Asia Australia South America Africa 52.1% Middle East 36.6% 40.6% The pharmaceutical industry
Lundbeck received 3,100 unsolicited job applications during 2003 Age composition of Lundbecks employees in 2003 18-25 26-34 35-45 46-55 55+ 13.4% 3.6% 5.6% 38.3% 39.1% Lundbeck has many young employees, with more than 80% of employees below the age of 46. The reason is that most of the large nu
Environmental factors In 2003, Lundbeck focused on enhancing the in-house organisation of environmental and occupational health and safety activities. We have implemented a more effective process in our chemical production and worked to obtain environmental certification and approval. Drug manufactu
The environmental approvals regulate the atmospheric emission of organic solvents. The field is also regulated by an EU directive on the emission of volatile organic chemicals (VOC). The directive affects operations at Lundbecks three synthesis factories. By 31 October 2007, existing facilities must
Summary for the Group 1994-2003 Income statement (DKKm) 1994 Revenue 1,336 Profit before research and development costs 348 Research and development costs 189 Profit from operations 174 Net financials (15) Profit before tax 159 Profit before minority interests 112 Net profit for the year 109 1995 1,
Ratios continued Capital employed (DKKm) Capital turnover (%) 1994 1,084 87.0 1995 1,507 91.0 267 17 22 1996 1,798 94.8 206 18 3 1997 2,003 95.7 165 23 7 1998 1,894 107.1 257 15 6 1999 2,943 86.0 335 40 96 2000 3,859 82.9 714 238 109 2001 4,903 96.1 975 908 140 2002 6,073 102.4 784 270 1
Financial review The annual report of H. Lundbeck A/S has been presented in accordance with the provisions of the Danish Financial Statements Act on reporting class D enterprises, the International Financial Reporting Standards (IFRS), Danish accounting standards as well as the requirements otherwis
On recognition of income from sales of citalopram and escitalopram to Forest, the quantities of citalopram and escitalopram held in stock by Forest are only included in Lundbecks income at the agreed minimum price. The difference between the invoiced price and the minimum price of Forests inventorie
Financial review restructuring and closing down the companys regional sales and administration offices. Finally, an amount was allocated to cover any losses or costs in connection with the companys defence of its intellectual property rights. Of the total cost of DKK 287 million, DKK 222 million has
The net currency expense included in net financials amounted to DKK 6 million compared to DKK 29 million in 2002. Tax Investments DKKm 2,500 2,000 1,500 1,000 500 0 - 500 % 30 24 18 12 6 0 Tax for the year totalled DKK 679 million against DKK 805 million in 2002. The effective tax rate was 33.1% a
Financial review patents are amortised over the remaining patent period. In 2003, the patents were assigned to H. Lundbeck A/S for DKK 627 million, including the results of the research activities during the year. The intra-group profit of DKK 140 million from the assignment has been eliminated in t
Lundbecks total cash resources at 31 December 2003 appear from the table below. Cash resources 2003 DKKm Cash Securities Interest-bearing debt Interest-bearing net cash Unutilised credit facilities Cash resources at 31 December 524 810 (546) 788 2,694 3,482 2002 DKKm 388 473 (239) 622 1,751 2,373 D
Financial review According to the agreement with Forest, Lundbeck is guaranteed a minimum price. The guarantee means that even in a situation of significant reduction of Forests net selling price, Lundbeck will be ensured a minimum level of income. It also means that, if the sale of CelexaTM and Lex
Share price based plan for employees of foreign companies (1999 plan): In 1999, the employees of Lundbecks foreign subsidiaries were offered a share price based plan, which was a reflection of the Danish employee share plan. As a result of the conditions relating to the plan, the value of the plan,
Financial review Liability 1999 plans Executive Management Executives Other Options employees not granted Total options Price DKK Liability DKKm Share options for the Executive Management and a number of key employees: Liability at 31 December 2002 Options exercised in 2003 Cancelled and recateg
2004 plans Warrants granted Stock Appreciation Rights granted to employees of American subsidiaries Executive Management 160,000 Executives 353,900 18,400 Other Options employees not granted 2,040,192 126,750 145,908 154,850 Total options 2,700,000 300,000 Price DKK 108.11 108.11 Value of trea
Financial review The return on the bond portfolio and money market deposits was DKK 21 million in 2003, equal to a yield of 4.5% p.a. Lundbecks benchmark in 2003 was an external bond portfolio with a maturity of two years. In 2003, the yield on the benchmark portfolio was 3.3% p.a. The Groups intere
The companys USD income derives primarily from sales invoiced to Forest. According to the Groups accounting policies, the guaranteed minimum price is recognised as income at the time of invoicing, and the excess amount is recognised in the balance sheet as a prepayment. The prepayment and any settle
Accounting policies The annual report of H. Lundbeck A/S has been presented in accordance with the provisions of the Danish Financial Statements Act on reporting class D enterprises, the International Financial Reporting Standards (IFRS), Danish accounting standards as well as the requirements other
matically through the income statement based on an individual assessment of the economic life of the asset, however with a maximum period of 20 years. Negative balances (negative goodwill) reflecting an anticipated unfavourable performance in the companies concerned are recognised in the balance she
Accounting policies future cash flows are recognised directly in equity (hedge accounting). Income and expenses related to such hedging transactions are transferred from equity on realisation of the hedged item and included in the same item as the hedged item. Changes in the fair value of derivative
Development costs are capitalised if the criteria for capitalising these costs in the balance sheet are deemed to have been met and it is found to be probable that future earnings will cover the development costs. In the opinion of the Group, development costs should not normally be capitalised unti
Accounting policies Development projects Clearly defined and identifiable development projects are recognised as intangible assets where the technical feasibility of the project, the availability of adequate resources and a potential future market or development opportunity in the company can be dem
Investments in subsidiaries and associates Investments in subsidiaries and associates are measured according to the equity method. This means that the investments are measured in the balance sheet at the proportionate share of the companies net asset value, calculated in accordance with the parents
Accounting policies Liabilities relating to share options and other employee plans Liabilities relating to share option plans and other share price based plans are not recognised in the balance sheet. Payments under these plans are recognised in equity. Pension liabilities The Group has entered into
On acquisitions of companies provisions for restructurings in the acquiree are included in the calculation of cost and thus in goodwill or group goodwill to the extent they have been decided and announced on or before the date of acquisition. Debt Mortgage debt and debt to credit institutions are re
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Income statement for the year ended 31 December 2003 PARENT 2002 DKKm 2003 DKKm Notes GROUP 2003 DKKm 2002 DKKm 6,894.3 1,610.3 5,284.0 972.9 663.5 3,647.6 1,572.3 2,075.3 65.5 18.4 2,122.4 276.9 (0.8) (324.1) 2,074.4 805.1 1,269.3 1,269.3 7,230.3 1,592.9 5,637.4 806.0 944.8 3,886.6 1,740.9 2,145.
Balance sheet at 31 December 2003 - assets PARENT 2002 DKKm 2003 DKKm Notes GROUP 2003 DKKm 2002 DKKm 7.9 175.6 173.4 356.9 1,271.3 290.0 314.6 370.5 2,246.4 1,496.7 114.2 1,110.3 525.4 25.8 3,272.4 5,875.7 402.7 373.2 159.3 935.2 589.2 229.0 473.3 59.8 1,351.3 473.2 17.9 2,777.6 8,653.3 4.2 626.5
Balance sheet at 31 December 2003 - liabilities PARENT 2002 DKKm 2003 DKKm Notes GROUP 2003 DKKm 2002 DKKm 1,168.7 48.7 359.8 3,977.3 266.5 5,821.0 94.4 94.4 19.6 268.5 288.1 87.6 2.1 685.0 338.6 14.4 107.6 137.8 1,050.2 26.5 2,449.8 2,737.9 8,653.3 1,168.7 405.0 4,927.0 413.7 6,914.4 1.4 199.7 20
Equity at 31 December 2003 Group Share capital DKKm Share premium DKKm Retained earnings DKKm Total DKKm 2002 Equity at 1.1.2002 Distribution of dividend 9.4.2002, gross Distribution of dividend 9.4.2002, treasury shares Employee share issue Additions, deferred gains/losses on hedging contracts
Equity at 31 December 2003 Parent 2002 Equity at 1.1.2002 Distribution of dividend 9.4.2002, gross Distribution of dividend 9.4.2002, treasury shares Employee share issue Additions, deferred gains/losses on hedging contracts Disposals, realised gains/losses on secured transactions transferred to
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Cash flow statement for the year ended 31 December 2003 GROUP Notes 2003 DKKm 2002 DKKm Profit from operations Adjustments Working capital changes Cash flows from operations before net financials Financial receipts Financial payments Cash flows from ordinary activities Income tax paid for the year
Management statement The Supervisory Board and the Executive Management have today considered and adopted the annual report of H. Lundbeck A/S for 2003. The annual report has been presented in accordance with International Financial Reporting Standards, the Danish Financial Statements Act, Danish ac
Auditors report To the shareholders of H. Lundbeck A/S We have audited the annual report of H. Lundbeck A/S for the financial year 2003, pages 3 to 101. Our audit did not include the supplementary report on shareholder information on pages 104 to 109. The annual report is the responsibility of the c
Notes 1. Revenue PARENT 2002 DKKm 2003 DKKm 2003 DKKm GROUP 2002 DKKm 284.3 2,976.7 3,172.3 461.0 6,894.3 223.1 2,766.9 3,695.0 545.3 7,230.3 Denmark Rest of Europe USA* Rest of the world Total Including: Payments towards shared research Royalty * Revenue in the USA is invoiced via Ireland. 136.
2. Staff costs, continued Employees: PARENT 2002 2003 2003 GROUP 2002 2,015 2,129 Average number of full-time employees in the financial year Number of full-time employees at 31.12.: 5,223 4,534 2,193 2,193 2,065 2,065 In Denmark Abroad Total 2,108 3,209 5,317 2,240 2,889 5,129 Incentive
Notes 2. Staff costs, continued Share price based plan for employees in foreign subsidiaries (1999 plan) In 1999, the employees of foreign subsidiaries received a share price based plan, according to which employees employed by the Groups foreign subsidiaries throughout the period from 1 September 1
3. Depreciation and amortisation PARENT 2002 DKKm 2003 DKKm 2003 DKKm GROUP 2002 DKKm 131.8 39.8 65.4 237.0 156.6 91.9 83.1 331.6 Depreciation and amortisation for the year are analysed as follows: Cost of sales Distribution costs Administrative expenses Research and development costs Total 251.
Notes 5. Net financials PARENT 2002 DKKm 2003 DKKm 2003 DKKm GROUP 2002 DKKm 37.7 31.7 13.4 5.8 10.9 134.6 234.1 32.2 33.2 16.1 0.8 11.2 9.7 144.5 1.1 248.8 Interest, cash and securities, etc. Interest income, subsidiaries Exchange gains Dividend received Realised and unrealised gains - Bonds - E
6. Tax on profit for the year PARENT 2002 DKKm 2003 DKKm 2003 DKKm GROUP 2002 DKKm 577.6 (17.5) 8.4 (3.9) 151.9 113.8 830.3 712.1 19.0 (15.1) (8.0) 44.9 (77.9) 675.0 Current tax Prior year adjustment, current tax Prior year adjustment, deferred tax Income taxes paid between jointly taxed subsidia
Notes 7. Intangible assets and property, plant and equipment GROUP Goodwill DKKm Patent rights1 DKKm Product rights DKKm Other rights DKKm IT projects2 DKKm IT projects in progress3 DKKm Intangible assets total DKKm Cost at 1.1.2003 Exchange differences Reclassification Additions Additions arising
7. Intangible assets and property, plant and equipment, continued GROUP Land and buildings DKKm Plant and machinery DKKm Other fixtures, fittings, tools and equipment4 DKKm Prepayments and property, plant and equipment in progress DKKm Property, plant and equipment total DKKm Total DKKm Cost at 1.
Notes 8. Investments in subsidiaries Total DKKm Accumulated Cost revaluations DKKm DKKm Accumulated impairment losses DKKm Carrying amount at 1.1.2003 Reclassification Capital contribution and acquisition of company Dividend received from subsidiaries Profits in subsidiaries Losses in subsidiaries
8. Investments in subsidiaries, continued Lundbeck Argentina S.A., Argentina Lundbeck Australia Pty Ltd., Australia Lundbeck S.A., Belgium Lundbeck Americas Ltda, Brazil Lundbeck Brasil Ltda., Brazil Lundbeck Canada Inc., Canada Lundbeck Chile Farmacéutica Ltda., Chile Lifecycle Pharma A/S, Denmark
Notes 9. Investments in associates Accumulated revaluations/ impairment Cost losses DKKm DKKm Total DKKm Carrying amount at 1.1.2003 Losses in associates Exchange differences Total 114.2 (3.9) (11.1) 99.2 109.8 109.8 4.4 (3.9) (11.1) (10.6) The carrying amount of investments in associates incl
12. Share capital The share capital of DKK 1,168.7 million at 31 December 2003 is divided into 233,741,985 shares of a nominal value of DKK 5 each. 1999 DKKm 2000 DKKm 2001 DKKm 2002 DKKm 2003 DKKm Share capital at 1.1 Employee share issue Share capital at 31.12 1,100.0 65.5 1,165.5 1,165.5 1,165
Notes 14. Provision for pensions and similar liabilities PARENT 2002 DKKm 2003 DKKm 2003 DKKm GROUP 2002 DKKm - - Present value of funded pension liabilities Fair value of plan assets Funded pension liabilities, net Present value of unfunded pension liabilities Provision for pensions at 31.12 Oth
14. Provision for pensions and similar liabilities, continued The UK defined benefit plan is funded by means of an independent pension fund. The actuarial calculation of the liability as at 31 December 2003 is stated in the Groups balance sheet at an amount of DKK 18.6 million (DKK 26.4 million in 2
Notes 15. Provision for deferred tax GROUP Temporary differences between assets and liabilities as stated in the financial statements and as stated in the tax base: Balance at 1.1.2003 DKKm Adjustment of deferred tax at beginning of year DKKm Acquisition of company DKKm Exchange differences DKKm Mov
15. Provision for deferred tax, continued PARENT Temporary differences between assets and liabilities as stated in the financial statements and as stated in the tax base: Adjustment of Balance at deferred tax at 1.1.2003 beginning of year DKKm DKKm Movement during the year DKKm Balance at 31.12.2003
Notes 16. Other provisions PARENT 2002 DKKm 2003 DKKm 2003 DKKm GROUP 2002 DKKm - 199.7 199.7 Provision at 1.1. Provision charged during the year Provision at 31.12. 222.0 222.0 - The provision covers severance pay in connection with the staff reductions carried out in the autumn of 2003, whic
18. Treasury shares PARENT AND GROUP Shares of DKK 5 nom. Number Nominal value DKKm Share of share capital % Cost DKKm Holding at 1.1.2003 Disposals at cost Holding at 31.12.2003 2,364,436 (79,479) 2,284,957 11.8 (0.4) 11.4 1.01% -0.03% 0.98% 150.9 (3.5) 147.4 The shares are acquired to secure
Notes 19. Contractual obligations Rental and lease obligations Lundbeck has obligations amounting to DKK 700.3 million (DKK 457.4 million in 2002) in the form of rentals and leasing of operating equipment, primarily cars. The future rental and lease payments can be analysed as follows: 2003 Land and
20. Contingent liabilities Incentive plans The Group has an obligation relating to share options granted to the Executive Management and a number of key employees as well as a share price based plan for the employees of foreign companies in a total amount of DKK 57.9 million at 31 December 2003 (DKK
Notes 21. Financial instruments Currency risks Net forward exchange contracts and currency options outstanding at 31 December 2003 on a consolidated basis: Hedging part: Hedge value according to the hedge principle DKKm Market value (forward exchange contracts) DKKm Loss/gain included in the income
21. Financial instruments, continued Trading part: Market value (forward exchange contracts) DKKm Loss/gain included in the income statement DKKm Average hedge prices of existing forward exchange contracts DKK Maturity period USD EUR SEK NOK AUD CAD HUF ZAR GBP Currrency options Forward contracts
Notes 21. Financial instruments, continued Interest rate risk The interest rate risk has been calculated based on maturity dates. If repricing or interest rate adjustments have been made before the respective maturity dates, the interest rate risk is calculated on the basis of the repricing dates. L
22. Related parties Lundbeck defines related parties as: - The companys principal shareholder, LFI A/S, Vestagervej 17, DK-2900 Hellerup, which is wholly owned by the Lundbeck Foundation, and the Lundbeck Foundation - Companies in which the principal shareholder exercises controlling influence, and
Notes 24. Earnings per share Earnings per share (EPS) is calculated on the basis of the average number of outstanding shares for the year. No adjustment has been made for the holding of treasury shares, as these represent less than 2% of the total capital. 2003 DKKm 2002 DKKm Profit for the year (D
27. Acquisitions of companies GROUP Acquisitions of companies: Intangible assets Property, plant and equipment Tax asset Other receivables Cash Non-interest-bearing debt Net assets Goodwill on acquisition of company Adjustment, cash Cash cost 2003 DKKm 2002 DKKm 486.8 30.1 34.8 5.3 108.1 (69.6) 595
Shareholder information Lundbecks year on the stock exchange H. Lundbeck A/S shares are listed on the Copenhagen Stock Exchange (CSE). The price of the shares fell 46.94% from 186.25 at year-end 2002 to 98.82 at year-end 2003. During the same period, the leading KFX index rose by 22.49%, and the CSE
The Supervisory Board proposes payment of a dividend of DKK 1.77 per share. This corresponds to 30% of the net profit for the year, and is 55% higher than in 2002 Shares traded and stock performance, 2003 Rate Shares traded, Lundbeck Lundbeck, stock performance KFX Index KAX Index 200 CSE35 Index 4
Shareholder information Composition of the shareholder group Composition of the shareholder group exclusive of LFI A/S LFI A/S H. Lundbeck A/S Institutional investors, Danish Institutional investors, international Private investors 10% 1% 11% 5% H. Lundbeck A/S Institutional investors, Danish Ins
Releases from H. Lundbeck A/S in 2003 No. 119 118 117 116 115 114 113 112 111 110 109 108 107 106 105 104 103 102 101 100 99 98 97 96 95 94 93 92 91 90 89 88 87 Date 19 9 4 27 26 14 5 14 13 10 23 22 19 9 2 19 19 2 23 6 10 9 8 3 31 26 21 10 10 6 11 29 6 December December December November November No
Shareholder information Analyst coverage Broker ABG Sundal Collier Analyst Alexander Lindström Peter Östling Tero Weckroth Poul P. Lykkesfeldt Michael D. Jørgensen Stig Andersen Annette Lykke Martin Parkhøi Brian White Shawn Manning Lars Hevreng Niels Granholm-Leth Michael Leacock Laura Balan Vi
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Lundbeck worldwide Parent company Denmark H. Lundbeck A/S India Lundbeck Israel Lundbeck Japan Lundbeck Korea Lundbeck Pakistan Lundbeck Turkey Lundbeck India Private Limited Israel Ltd. Japan Kabushiki Kaisha Korea Co., Ltd. Pakistan (Private) Limited Ìlaç Ticaret Limited Sirketi Synthesis facto
Portugal Lundbeck Portugal - Produtos Farmacêuticos Lda Russia Lundbeck Russia Slovakia Lundbeck Slovensko s.r.o. Slovenia Lundbeck Pharma d.o.o. Spain Lundbeck España S.A. Axofarma Lab, S.A. Farmaglia, S.A. Sweden H. Lundbeck AB Switzerland Lundbeck (Schweiz) AG UK Lundbeck Limited Oceania Aust
H. Lundbeck A/S Annual General Meeting will be held on 30 March 2004 at 4 pm at Copenhagen Congress Center, Bella Center. Design: Bysted A/S Photo: Sofie Helsted and Simon Ladefoged Print: Quickly Tryk A/S March 2004
In the United States, estimates range between USD 92.5 an 37 million people around the According to the WHOs report from 2001, an estimated 340 million people around the world suffer from a depressive disorder for which they require treatment Schizophrenia is one of the major psychotic disorders, 