ANNUAL REPORT 2021 slide image

ANNUAL REPORT 2021

LUNDBECK ANNUAL REPORT 2021 = CONTENTS 14/111 1 ᏌᏁ 2 Most notably through the forthcoming global launch of VyeptiⓇ and further indications in development for VyeptiⓇ and RexultiⓇ/RxultiⓇ. We have assessed and identified the most promising biological clusters on which to focus our R&D efforts that enable us to treat our targeted indication groups. These four biology clusters are: 1. Hormonal / neuropeptide signaling: Targeting selected pathways of pain signals and stress response; 4 2. 3 Figure 2: Lundbeck's R&D focus on four biological clusters 3. 4. Circuit / neuronal biology: Targeting neurotransmission / synaptic dysfunction to restore brain circuits and reduce neurological, psychiatric, and pain symptoms; Neuroinflammation /neuroimmunology: Targeting neuronal loss due to an overactive immune system, relevant across many niche and rare neurological disorders; Protein aggregation, folding, and clearance: Targeting neurodegenerative proteinopathies involved in a range of neurodegenerative diseases, e.g. Alzheimer's and Parkinson's as well as rare diseases. Our focus in niche and rare neurology and psychiatry provides for a broad range of business development opportunities across all stages of development. We will continue to pursue external innovation through acquisitions, strategic partnerships and in- licensing. Access to technologies and novel early-stage assets will complement the four biological clusters and ensure we have the best possible starting point for developing differentiated medicines to patients with high unmet needs. Access to later- stage products will seek to leverage our existing global commercial infrastructure and provide for sustainable growth. Rebuilding the pipeline The R&D organization is transforming, adopting an agile mindset to enable the team to be more flexible when necessary. In this way, we will more effectively and efficiently rebuild our pipeline with a balance of first-in-class and best-in-class drug candidates, to enable a steady stream of breakthrough and differentiated medicines across all phases of the pipeline. We continue to orient R&D towards specialist treated disease indications that address high unmet needs in niche and rare disease neurology and psychiatry. We will use our four biological clusters in our in-house discovery research to target the high unmet needs within our expanded operating space and to deliver impactful neuroscience medicines of the future. Drawing on our experimental medicine expertise, we now detect signals and gain more objective evidence to test efficacy earlier in development - de-risking the path to the market. We complement the rebuild of our pipeline with the right blend of external innovation, mix of acquisitions, partnerships and licenses for new medicines that fit with our refined focus on niche neuroscience indications. Maintain focus on profitability Safeguarding a consistent level of profitability ensures our ability to make strategic investments in our business. We increase cost efficiency across the organization whenever we can by further leveraging the knowledge and capabilities in our Group Business Services center (GBS) in Poland. We will continue to harness the power of technology and pull digital capabilities into our ways of working to drive greater efficiency. With our current product portfolio and projects in our pipeline it is our ambition to reach an EBIT margin of more than 25% by 2024. Enhance organizational agility and collaboration We work as global function teams, building on each other's strengths and harnessing the full power of our functions and departments across borders for greater outcomes. Working cross-functionally and cross-geographically allows us full clarity and alignment in terms of prioritization and decision making and provides greater opportunity for our people through the transfer of knowledge and talent development. We work in alignment with our priorities and shared purpose, grounded in our beliefs.
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