Lundbecks products Lundbecks research and development activities are concentrated on developing new and innovative pharmaceuticals for treating diseases of the central nervous system (CNS). The companys unique ownership structure has made it possible to pursue long-term research strategies. Over the years, this has resulted in a number of epoch-making CNS products. In the last 40 years, Lundbecks research programme has made a substantial contribution to the development of better therapies. Each preparation is a small step in the right direction, and Lundbecks total product portfolio represents an important advance in the treatment of psychiatric disorders and neurological diseases. Today, Lundbeck offers effective treatment of a number of diseases of the central nervous system, such as schizophrenia, depression and panic disorder. Several new substances are at the development stage. Lundbecks research and development activities are targeted on the following diseases: Alzheimers disease, Parkinsons disease, depression, anxiety disorders, and schizophrenia. The goal is to improve quality of life of patients with psychiatric and neurological disorders by developing and introducing ever more effective CNS drugs with fewer sideeffects. The substance is more effective and almost totally without the Parkinson-like side-effects that are otherwise typical of the classic antipsychotic drugs. The combination of a well-documented effect and a good sideeffect profile is expected to lead to significant improvements in the treatment of schizophrenia. The individual patient can thus look forward to a better quality of life, fewer relapses and improved future prospects. Lundbeck has been developing antipsychotic drugs since the end of the 1950s. Today, our assortment includes such products as Cisordinol®, Fluanxol® and Truxal®, all of which are available in several different formulations. That means that the same product can be used through all phases of the treatment, from the acute psychotic phase to maintenance therapy, which is aimed at prevending relapse. Besides the established Lundbeck products, Promonta Lundbeck in Germany markets three antipsychotic drugs: Buteridol®, Lyogen® and Taxilan®. Of these, Lyogen® in particular is strengthening Lundbecks position in the German market for antipsychotic drugs. risk of interaction with other drugs, and problems rarely arise even when the patient is being treated with other medication at the same time. All these factors make Cipramil®/ Seropram® particularly suitable for elderly patients. Forest Laboratories, Inc. plans to launch Cipramil®/Seropram® in the USA in 1998. The application for registration was submitted to the FDA (Food & Drug Administration) in May 1997, and authorisation to market the substance on the American market is expected in mid-1998. Other citalopram partners are Bayer AG in Germany, Recordati Industria Chimica e Farmaceutica S.p.A. in Italy, Prodespharma, S.A. in Spain and DuPont Pharmaceuticals Limited in the UK. Lundbeck is focusing on continued development of pioneering alternative therapies As a supplement to its recognised and wellestablished products, Lundbeck has three new CNS preparations under development. One of them is a new antidementia preparation for the treatment of Alzheimers disease. The substance, with the code number Lu 25109, acts directly on the cholinergic receptors, which are believed to influence the development of Alzheimers disease. The substance is expected to improve the patients cognitive functions, in both the early and the later stages of the disease without serious side-effects. There is also a hope that Lu 25109 may help to slow down the progression of the disease. The effect will be documented in clinical phase III studies which will start in 1998. There are also prospects of a more effective treatment for Parkinsons disease. Parkinsan®, an antiparkinsons drug developed by Byk Gulden Lomberg Chemische Fabrik GmbH and licensed by Promonta Lundbeck in connection with the joint venture agreement in 1994, was launched on the German market in 1997. Parkinsan® has an especially good effect on tremor which is one of the main symptoms of Parkinsons disease. Cipramil®/Seropram®** now registered in more than 50 countries In 1997, Cipramil®/Seropram® received approval in Australia, the Netherlands, Lithuania, Russia, Colombia, Lebanon and the Philippines. By the end of the year, Cipramil®/ Seropram® was thus registered in 57 countries, and in 8 of these, the product is gaining the position as the leading antidepressant on the market. Internationally, Cipramil®/Seropram® is positioned as a particularly suitable preparation for treatment of elderly, depressed patients. The reason for this is that the product offers significant advantages for this particular group of patients. The active substance in Cipramil®/Seropram® - citalopram - is the most selective of the so-called SSRIs (Selective Serotonin Reuptake Inhibitors) currently on the market. Most patients can tolerate the drugs and the side-effects are usually mild and transient. In addition, Cipramil®/ Seropram® has a remarkably low Serdolect®/Serlect®* launched in most of Europe In 1997, Lundbeck launched its new antipsychotic drug, Serdolect®/Serlect®, in most of Europe. The development of Serdolect®/ Serlect® represents a major breakthrough in the treatment of schizophrenia. Serdolect®/Serlect® differs significantly from the classic antipsychotic drugs by binding selectively to the receptors in the brain that are believed to play a part in the development of schizophrenia. * Serdolect® and Serlect® are registered trademarks for sertindole. ** Cipramil® and Seropram® are registered trademarks for citalopram. 10 Contents Supervisory Board and Board of Management A clear vision The way forward A continuously dev Supervisory Board Arne V. Jensen (Chairman) Jørgen Fakstorp (Vice-Chairman) Lars Bruhn Henrik He Board of Management Erik Sprunk-Jansen President Eva Steiness Executive Vice President Research an Georgios Peros, Abstract, 1990 A clear vision Lundbeck has a clear vision. We intend to become one The way forward Strategy is planning - the ability to see where we are, where we are going and how A visionary goal Our goal is to become one of the worlds leading companies in the treatment of psych A continuously developing organisation Lundbeck is a continuously developing company. Growing inter Group structure The Lundbeck Foundation H. Lundbeck A/S Synthesis factories Region Scandinavia &am The pharmaceutical industry Market conditions in the pharmaceutical industry In 1996, the global ph K. Nathanael, Sunset, 1997 Sales and marketing The sales figure for 1997 places Lundbeck as one of Lundbecks products Lundbecks research and development activities are concentrated on developing new Koprianos, Town, 1996 Lastly, Lundbeck has a promising substance under development for treatment of The Supervisory Boards Report Net turnover (DKKm) 3,000 2,662 Net turnover 2,500 2,000 1,500 1,000 During the last few years, the pharmaceutical industry has undergone marked changes, resulting in a The Supervisory Boards Report Average number of employees 2,500 Subsidiaries Parent companies 2,000 At the annual general meeting on 16 May 1997, the employee bonus/profit distribution scheme that had The Supervisory Boards Report Lundbeck International Psychiatric Institute As a specialist in psych Spyros Loukidis, Windows, 1995 17 Environmental Report The Managements Declaration Lundbeck regards openness about the companys healt Environmental Report 1997 In 1997, Lundbeck continued developing a health, safety and environmental Environmental Report Lundbeck - general Lundbeck has its headquarters, with its management, adminis K. Fyra, Abstract, 1994 The first steps in the process are often carried out in Seal Sands, while t Environmental Report Summary of the Groups environmental status Below a short summary is given of t the waste water, while the remaining approx. 1,200 tonnes are sent to a special chemical waste dispo The Lundbeck International Psychiatric Institute The Lundbeck International Psychiatric Institute Ex ment, education of patients and their families, and Quality Management within psychiatric treatment. Art can overcome prejudices In Greece, as in many other countries, the general attitude to psychiat Giannis Papadakis, Abstract, 1997 Strengthening local collaboration The exhibitions are held in col PsychiatryLink an Internet introduction http://www.psychiatrylink.com will give you the possibility Lundbeck presents http://www.psychiatrylink.com The development of the first version of Lundbecks ne EPOS EPOS: European Post-marketing Observational Serdolect®/Serlect® project: increasing our unders Giannis Pachis, Excommunication, 1997 Unlike controlled clinical trials, the EPOS project has been My dream changes from colour to black and white Depression is about the worst thing anyone can exper The pieces fall into place That was the start of a life with changing psychopharmacological drugs, a Lundbeck worldwide Parent company H. Lundbeck A/S Ottiliavej 9 DK-2500 Copenhagen - Valby Tel: +45 Slovenia Lundbeck Pharma AS Presernova 1 (2. nadstropje) SLO-2000 Maribor Tel/Fax: +386 62 221 943 R The Lundbeck Foundation Award for Outstanding Research The Lundbeck Foundation, which makes substant V. Kafivas, Garden, 1996 Accounts 37 Summary for the Group 1993-1997 Profit and loss account (DKKm) Net turnover Profit before R&D c Key figures Average number of employees Average number of shares (million)*) Earnings per share (DKK Comments on the accounts Profit for the year In 1997, profit developed positively. Profit for the y The limited effect of the policy changes in 1997 is due to the movement in the size and composition Comments on the accounts Under the changed accounting policies, the results of foreign subsidiaries At the end of 1997, Lundbecks new antipsychotic drug, Serdolect®/Serlect®, had been launched in 10 E Comments on the accounts Other operating income, net Other operating income, net, amounted to DKK 8 In 1997, capital investments totalled DKK 188 million against DKK 224 million in 1996. As in 1996, t Financial comments General In 1997, the Lundbeck Groups financial income and expenses were affected The Groups loans on mortgage credit-like terms at 31 December 1997 Outstanding debt CIBOR-based loan Financial comments At the present moment it is very likely that Italy, Spain and Portugal will also Lundbecks exchange rate index (1988 = 100) 104 102 100 98 96 94 92 90 88 (Jan.) 89 90 91 92 93 94 95 Accounting policies General The annual accounts and the consolidated accounts have been prepared in The consolidated accounts are prepared on the basis of the accounts of the parent company and the su Accounting policies Provision is made in the balance sheet for the present value of plans which are The cost of new buildings and erection by the company of its own technical installations and machine Profit and loss account for the year ended 31 December 1997 Parent company 1996 DKKm 1,411.1 503.6 Per share ratios (DKKm) 150 137 Net asset values Cash flow 125 100 80 82 114 Earnings per share Balance sheetat Assets Parent company 1996 DKKm 18.0 9.6 27.6 386.1 140.4 101.5 146.6 774.6 95.4 5. Balance sheetat Liabilities Parent company 1996 DKKm 110.0 56.1 1,086.2 1,252.3 1997 DKKm 110.0 77. Statement of sources and application of funds for the year ended 31 December 1997 Group Notes Oper Signatures Copenhagen, 12 March 1998 The Supervisory Board and the Board of Management have today c Notes to the profit and loss account 1 Net turnover Parent company 1996 DKKm 263.0 874.7 176.9 96.5 Production, distribution, administration, and research and development costs incl. depreciation etc. Notes to the profit and loss account 4 Other operating income Parent company 1996 DKKm 3.1 3.1 1997 6 Tax on the profit for the year Parent company 1996 DKKm 1.3 0.8 1997 DKKm 49.7 - 0.1 Tax due on th Notes to the balance sheet 7 Intangible and tangible fixed assets Group: Research and development c Land and buildings DKKm Technical plant and machinery DKKm Other fixtures and fittings, tools and Notes to the balance sheet 8 Shares in subsidiaries Total DKKm Book value at 1.1.1997 Adjustment du 8 Shares in subsidiaries - continued Net asset value at 31.12.1997 DKKm H. Lundbeck A/S, Norway H. L Notes to the accounts 9 Other shareholdings and other receivables Parent company Other shareholding 11 Capital and reserves Group 1996: Share capital DKKm Capital and reserves at 1.1.1996 Adjustment d Notes to the accounts 11 Capital and reserves - continued Parent company 1996: Share capital Revalu 12 Provisions for pensions Group: The Group operates with two types of pension plans: defined contri Notes to the accounts 13 Provisions for deferred tax Group: Temporary differences between calculati 13 Provisions for deferred tax - continued Parent company: Temporary differences between calculation Notes to the accounts 15 Contractual obligations Rentals and leasing obligations Lundbeck has commi Notes to statement of sources and applicational funds 17 Adjustments Group: 1997 DKKm Depreciation e Michalis Manolopoulos, Landscape, 1997 Lundbecks new logo Lundbeck has introduced a new logo that clearly expresses our identity, vision an