ANNUAL REPORT 2021
LUNDBECK
ANNUAL REPORT 2021
E CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS
NOTE 6
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6 INTANGIBLE ASSETS - CONTINUED
Significant assumptions and estimates are applied to the discounted expected future cash flows from the
product right.
The four category elements in the table below are taken into consideration when determining the key
parameters for the value-in-use calculation.
Financial elements
Prices
Rebates
Quantities
Patient population
Market shares
Competition
Fill rates
Prescription rates
Lundbeck costs (including promotion costs)
Market elements
Healthcare reforms
Price reforms
Market access
Pharma restrictions
Launch success
Product positioning
Competing pharmaceuticals
Generics on the market
2021 testing outcome
The impairment tests performed in 2021 did not result in the recognition of any impairment loss.
2020 testing outcome
The impairment tests performed in 2020 did not result in the recognition of any impairment loss other than
the impairment loss on the foliglurax product rights recognized in March 2020.
Impact of possible changes in key assumptions
If the budgeted revenue had been 5% lower than Management's estimates, the head room would continue
to be positive. If the discount rate after tax applied to cash flows had been 1% higher, the head room would
continue to be positive.
The sensitivity analyses are based on a change in an assumption while holding all other assumptions
constant. The method and types of assumptions used in preparing the sensitivity analyses did not change
compared to the prior period. The potential changes in key assumptions are considered within historic
variations experienced by the Group and thus considered reasonably possible.
R&D elements
R&D spend
Collaborations
Pipeline success rate
Product labelling
Liaison with regulatory bodies
Other elements
Supply chain effectiveness
Strength and abilities of partners
The assumptions are based on past experience, external source of information and industry-relevant
observations for each product right.
The calculation of the value-in-use for product right is based on a discount rate after tax of 6.2% (7.3% in
2020).View entire presentation