LEO Pharma 2016 result surpassed expectations

Investments paying off with strong growth from expanded portfolio. Launch of first biologic in dermatology expected this year.

BALLERUP, Denmark, 3 April 2017 – In 2016, LEO Pharma A/S helped 73 million people and increased its revenue by 19% in local currencies to a record high of DKK 9,863 million. The company invested significantly in expanding its reach, delivering new products like Enstilar® and Protopic® to the market and introducing biologics in dermatology to its clinical pipeline, with brodalumab and tralokinumab being the most advanced projects.

“I am very pleased with the results. 2016 was a defining year for LEO Pharma that surpassed our expectations. We helped 73 million people and generated all-time high sales by expanding our portfolio with new products such as Enstilar® and Protopic®. We strengthened our clinical pipeline and made significant changes to our organisation. Despite the ongoing changes to our business and the challenging market conditions, the people at LEO Pharma have delivered solid results that will strengthen our future,” says Gitte Aabo, CEO & President, LEO Pharma.

“As a result of our investments and the efforts of our global team, LEO Pharma has secured a new foothold in the dermatology market. We are well positioned for introducing new products this year, including our first biological treatment in dermatology. Today, LEO Pharma is in a stronger position than ever before to deliver better care to more people with skin diseases.”

Key figures  2015  2016  Change
 Patient reach  55 million  73 million  +32%
 Revenue  DKK 8,457 million  DKK 9,863 million  +19% (local currencies)
 EBITDA  DKK 1,209 million  DKK 1,346 million  +11%
 EBIT  DKK 763 million  DKK 341 million  -55%

In 2016, LEO Pharma’s revenue grew by 19% in local currencies to a record high of DKK 9,863 million against DKK 8,457 million in 2015 driven by strong performance of new and existing products. Revenue increased by 13% in region Europe, 39% in region international and 16% in region US in local currencies. Operating profit before depreciation, amortisation and impairment losses (EBITDA) totalled DKK 1,346 million. The year was marked by significant investments, leading to a decrease in operating profit (EBIT) to DKK 341 million from DKK 763 million in 2015 due to increased amortisation relating to investments. Net profit was 743 million against DKK 713 million in 2015. 

In the US and Europe, LEO Pharma introduced Enstilar®, the first fixed-dose combination spray foam for the treatment of plaque psoriasis, and saw strong sales from Protopic® for eczema. In China, Russia and other markets, LEO Pharma doubled the number of people it helped by expanding its offering to include Protopic® for eczema, Locoid® for eczema and psoriasis, Locobase® for skin care and Zineryt® for acne.

LEO Pharma acquired the global licence for tralokinumab for skin diseases and the exclusive licence for brodalumab in Europe. For earlier-stage projects, LEO Pharma initiated a partnership with MorphoSys to discover and develop therapeutic antibodies. We made good progress in our clinical pipeline development activities, demonstrating proof-of-concept for our topical JAK inhibitor (LP0133) for eczema and progressing our oral PDE4 inhibitor (LP0058) to phase 2a clinical testing in psoriasis patients.

LEO Pharma continued to expand its innovation ecosystem, including opening a science and technology hub in Boston, US. The company’s innovation lab continued to build and launch new digital technologies and platforms, and expanded its presence by establishing a satellite in the US.

Expectations for 2017
In 2017, LEO Pharma expects to see the results of the investments in expanding the company’s current and future treatment offering. In addition, the company plan to continue to invest heavily in strengthening the business.

Subject to approval, LEO Pharma expects to launch brodalumab, a biological treatment for moderate-to-severe plaque psoriasis and the company’s first biological treatment within dermatology, in Europe in the second half of 2017. LEO Pharma will continue to advance and strengthen its clinical pipeline through internal innovation and external partnering.

LEO Pharma expects revenue to be DKK 9.5-10 billion in 2017, driven primarily by Enstilar® and Protopic®. Operating profit is expected to increase to DKK 525-675 million, positively impacted by the realised cost savings from organisational restructuring and benefits from efficiency projects carried out during 2016.

New board members
LEO Pharma has made changes to its Board of Directors, welcoming Jan G. J. van de Winkel and Cristina Lage as new members.

Jan van de Winkel is co-founder of Genmab and served as President, Research & Development and Chief Scientific Officer of the company until his appointment as President & CEO in 2010. Dr. van de Winkel has over 25 years of experience in the therapeutic antibody field and served as Vice President and Scientific Director of Medarex Europe prior to Genmab. He is chairman of the board of directors of Regenesance and member of the board of directors of ISA Pharmaceuticals, Celdara Medical and Forward Pharma, the scientific advisory board of Thuja Capital Healthcare Fund and the advisory board of Capricorn Healthtech Fund. He holds M.S. and Ph.D. degrees from the University of Nijmegen.

Cristina Lage is chairman of the board at AES, vice chairman of SEB Pension and Alm. Brand Invest and member of the board of Det Obelske Familiefond, Den Berlingske Fond, C.L.Davids Fond and the LEO Foundation. She has held many executive management positions including CEO of Unipension, CEO Nordea Invest, CEO Nordea Life & Pension and CEO TV2 Danmark. Cristina Lage holds an MSc in Economics from CBS.

Jens Bo Olesen has retired from the Board. The company would like to thank Jens Bo Olesen for his long-standing service to LEO Pharma.

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