LUNDBECK WORLDWIDE Lundbecks head office is situated in Valby, near the centre of Copenhagen. It houses the Groups administration, research and development activities, and pharmaceutical production. Chemical production takes place at two facilities, one in Lumsås, 100 km north west of Copenhagen, and the other in Seal Sands, near Newcastle in the U.K. Future expansion of production will take place mainly in Seal Sands, which offers excellent possibilities. Lundbeck has its own subsidiaries in 24 countries. The subsidiaries are responsible for marketing and selling the Groups products in their respective markets. 13 representative offices look after Lundbecks interests in the growth markets in the Far East, the Middle East and Eastern Europe. Lundbeck also uses a number of local agents. A/S Lundbeck Overseas is in charge of the marketing and sale of the Groups products in those parts of the world in which Lundbeck is not represented in other ways. The activities are managed from regional offices in the Far East, the Middle East, North Africa, South America and Eastern Europe. SUBSIDIARIES: Australia Lundbeck Australia Pty. Ltd. Unit 4/10 Gladstone Road AU-Castle Hill NSW 2154 Tel: +61 2 9894 2100 Fax: +61 2 9894 2522 Managing Director: Steve Maritz Austria Lundbeck Arzneimittel Ges.m.b.H. Brigittagasse 22-24 Postfach 61, A-1201 Vienna Tel: +43 133 1070 Fax: +43 133 1079 Managing Director: Ernst Kutrovatz Belgium Lundbeck N.V. Luchthavenlaan 20, B-1800 Vilvoorde Tel: +32 2251 0891 Fax: +32 2251 8068 Managing Director: Jacques Bedoret Canada Lundbeck Canada Inc. 413 St-Jacques Street West Suite FB-230 CA-Montreal (Quebec) H2Y 1N9 Tel: +1 51 4844 8515 Fax: +1 51 4844 5495 Managing Director: Ole Chrintz Denmark Lundbeck Pharma A/S Dalbergstrøget 5, DK-2630 Taastrup Tel: +45 4371 4270 Fax: +45 4371 4274 Managing Director: Jan H. Iversen A/S Lundbeck Overseas Ottiliavej 9, DK-2500 Copenhagen-Valby Tel: +45 3630 1311 Fax: +45 3630 1545 Managing Director: Karsten Gronemann Estonia Lundbeck Eesti AS Riia 132, EE-2400 Tartu Tel: +37 2739 0161 Fax: +37 2739 0183 Managing Director: Håkan Kotka Market Manager: Erik Allikmets Finland OY H. Lundbeck AB Lemminkäisenkatu 14-18 B FIN-20520 Turku Tel: +35 8 2251 0270 Fax: +35 8 2251 2770 Managing Director: Håkan Kotka France Lundbeck S.A. 37 avenue Pierre 1er de Serbie F-75008 Paris Tel: +33 1 5367 4200 Fax: +33 1 4723 4510 Managing Director: Eric Felber Germany Promonta Lundbeck Arzneimittel GmbH & Co Amsinckstrasse 57-61, D-20097 Hamburg Tel: +49 4023 6490 Fax: +49 40 2364 9255 Managing Director: Flemming Juul Jensen Greece Lundbeck Hellas S.A. 64, Kifisias Ave. GR-151 25 Marousi, Athens Tel: +30 1680 5036 Fax: +30 1680 5039 Managing Director: John Bo Jacobsen Ireland Lundbeck Ireland Limited Unit 5, Leopardstown Office Park Sandyford Industrial Estate Foxrock, IE-Dublin 18 Tel: +35 3 1294 1544 Fax: +35 3 1294 1547 Managing Director: Pascal King Italy Lundbeck Italia S.p.A. Via G. Fara 35, I-20124 Milan Tel: +39 2677 4171 Fax: +39 2677 41720 Managing Director: Franz Schneller Market Manager: Ettore Marre Latvia SIA Lundbeck Latvia Kleistu iela 24, LV-1067 Riga Tel: +37 1241 4826 Fax: +37 1930 9119 Managing Director: Håkan Kotka Manager: Pauls Brieze The Netherlands Lundbeck B.V. Hettenheuvelweg 37-39 NL-1101 BM Amsterdam Tel: +31 2 0697 1901 Fax: +31 2 0691 0632 Managing Director: Stig Løkke Pedersen New Zealand Lundbeck New Zealand Limited C/- Zuellig Pharma Limited. 54 Carbine Road, NZ-Mt. Wellington Tel: +64 9570 1080 Fax: +64 9570 1081 Managing Director: Steve Maritz PARENT COMPANY: H. Lundbeck A/S Ottiliavej 9 DK-2500 Copenhagen - Valby Tel: +45 3630 1311 Fax: +45 3630 1940 e-mail: initials@lundbeck.com. SYNTHESIS FACTORIES: Denmark H. Lundbeck A/S Oddenvej 182, Lumsås DK-4500 Nykøbing Sj. United Kingdom Lundbeck Pharmaceuticals Ltd. Seal Sands, Middlesborough GB-Cleveland TS2 1UB 26 CONTENTS Supervisory Board and Board of Management . . . . . . . . . . . . . . . . . . . . 4 The Sup SPECIALISTS IN PSYCHIATRY PIONEERS IN NEUROLOGY As a specialist, one must constantly seek knowledge 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 and 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Net turnover (DKKm) 1,853 2,326 THE SUPERVISORY BOARDS REPORT DEVELOPMENT OF STRATEGY The rules of play for pharmaceutical companies 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Average number of employees Outs THE SUPERVISORY BOARDS REPORT The development of Serdolect®/Serlect® for the American market has tak ART OR THERAPY In 1988 a group of Dutch psychiatrists formed the Art & Psychiatry Foundation arr Art & Psychiatry Foundation is therefore to question the concept art and serve as a mediator bet THE VALUE OF CREATIVE THERAPY In spite of the lack of scientific studies of creative therapy, both p and the methods we employ. For me it is important to keep wondering, says Dr. de Groot. In this way, A STEP IN THE RIGHT DIRECTION Professor Norman Sartorius, President of the World Psychiatric Associa opment of a part of the national mental health programme in which Lundbeck and Grenlandsaksjonen wil NATURAL CONSIDERATIONS We have a major responsibility for the internal and external environment in c changes without taking the necessary precautions, and the knowledge that a defective filter or an ov FOCUS ON PARKINSONS DISEASE Lundbeck works in two main areas. For this reason we describe ourselves refers to various theories about heredity, environmental impacts, head trauma, side-effects of drugs A PRODUCT WITH POTENTIAL There is broad agreement that the development of specific serotonin-reuptak and on their family and social relations. In fact, the quality of life of patients with phobias is j ITS ALL ABOUT PREVENTION In 1993, Lundbeck, working in close cooperation with some of the worlds lea Preclinical tests show that preparations like Serdolect®/Serlect® do not affect the part of the brai LUNDBECKS PRODUCTS Lundbeck specialises in the development of new and better drugs for the treatment In April 1997, we sold the rights to Ketogan® and Ketodur® to Searle Scandinavia (a division of Mons LUNDBECK WORLDWIDE Lundbecks head office is situated in Valby, near the centre of Copenhagen. It hou Norway H. Lundbeck A/S P.O. Box 361 Lysaker torg 10, N-1324 Lysaker Tel: +47 6753 5372 Fax: +47 6753 THE LUNDBECK FOUNDATION AWARD FOR OUTSTANDING RESEARCH H. Lundbeck A/S is fully owned by the Lundbec ACCOUNTS SUMMARY FOR THE GROUP 1987-1996 Profit and loss account (DKKm) Net turnover Profit before R&D co Key figures Average number of employees Net profit ratio before R&D costs (%) Net profit ratio ( COMMENTS ON THE ACCOUNTS CHANGES IN ACCOUNTING POLICIES With effect from the annual accounts for 199 3,000 2,750 2,500 2,250 2,000 1,750 1,500 1,250 1,000 750 500 250 0 Turnover (DKKm) Cipramil®/Sero COMMENTS ON THE ACCOUNTS 100% 90% 80% 70% 60% 18 26 20 22 23 36 35 34 33 Cost structure (%) 28 Pro 450 400 350 300 250 200 150 100 50 0 -50 -100 -150 Cash flow (DKKm) 281 282 231 191 203 164 145 98 FINANCIAL COMMENTS GENERAL The Lundbeck Groups financial income and expenses in 1996 were influenced Lundbecks cash flows in foreign currencies in 1996 were concentrated around SEK, FRF, FIM and DEM bl ACCOUNTING POLICIES GENERAL The annual accounts and the consolidated accounts have been prepared in THE BALANCE SHEET INTANGIBLE FIXED ASSETS Intangible fixed assets are stated at cost less accumulate Win Van Niel, Daoux Rex, bronze, 35 x 25 x 8 cm. 40 PROFIT AND LOSS ACCOUNT PARENT COMPANY 1995 DKKm 1,042.8 469.1 157.3 160.8 255.6 221.2 12.7 5.9 41.2 BALANCE SHEET AT 31 DECEMBER ASSETS PARENT COMPANY 1995 DKKm 21.0 11.0 32.0 312.3 97.2 112.2 114.0 6 BALANCE SHEET AT 31 DECEMBER LIABILITIES PARENT COMPANY 1995 DKKm 110.0 14.7 25.5 785.1 935.3 1996 D STATEMENT OF SOURCES AND APPLICATION OF FUNDS GROUP 1996 DKKm 310.8 5.0 84.3 400.1 -47.2 -78.4 78.0 SIGNATURES Copenhagen, 24 April 1997 THE Erik Sprunk-Jansen President BOARD OF MANAGEMENT Ib D. NOTES 1 NET TURNOVER PARENT COMPANY 1995 DKKm 282.2 760.6 1,042.8 1996 DKKm 263.0 1,150.7 1,413.7 De Production, distribution, administration, and research and development costs include depreciation et NOTES 4 FINANCIAL ITEMS, NET PARENT COMPANY 1995 DKKm 44.4 1.4 30.4 2.8 79.0 43.4 5.5 8.8 57.7 21.3 6 FOREIGN CURRENCY TRANSLATION OF SUBSIDIARIES PROFIT AND LOSS ACCOUNTS AT THE EXCHANGE RATE RULING NOTES 7 INTANGIBLE AND TANGIBLE FIXED ASSETS GROUP: Research and Leasehold INTANGIBLE development im 7 INTANGIBLE AND TANGIBLE FIXED ASSETS - CONTINUED PARENT COMPANY: Research and Leasehold INTANGIBLE NOTES 8 SHARES IN SUBSIDIARIES Total Purchase price 84.8 4.1 -115.5 145.8 88.9 56.1 -3.2 39.5 -18.7 8 SHARES IN SUBSIDIARIES - CONTINUED Specified as follows: Equity value at 31.12.1996 DKKm 1.6 57.0 NOTES 9 OTHER SHAREHOLDINGS AND OTHER RECEIVABLES PARENT COMPANY Other shareholdings 4.5 1.6 -0.7 5. 11 PROVISIONS FOR DEFERRED TAX Timing differences between amounts as stated in the accounts and as c NOTES 13 DEBT PARENT COMPANY 1995 DKKm 378.2 27.7 141.7 547.6 10.3 11.7 22.0 569.6 18.2 84.5 0.0 50. 14 CHANGE IN INTEREST-BEARING DEBT GROUP 1996 DKKm Proceeds in connection with the raising of intere Marjanne Voolstra, Eerste berg, acrylic paint on paper, 100 x 70 cm. 58 INTEGRATED THERAPY When disease strikes, it is not just a case of a fault in the works that has to b The story of Lundbecks logo is rather unusual. It goes back to the 1930s and Paris, where Grete Lund