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Lundbeck reaches voluntary agreement in principle with U.S. Department of Justice

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Valby, Denmark, 6 June 2018 - H. Lundbeck A/S (Lundbeck) today announced that its U.S. subsidiary Lundbeck LLC has reached an agreement in principle to resolve the U.S. Department of Justice (DOJ) investigation related to Lundbeck LLC’s relationship with and donations to independent patient assistance charitable foundations. The final terms of agreement are subject to further negotiation with DOJ.

As part of the agreement, Lundbeck LLC will pay DOJ USD 52.6 million (approximately DKK 336 million). This charge will be recognized as Other operating items, net in the second quarter of 2018 which will be announced on 8 August 2018.

Lundbeck LLC is pleased to have reached an agreement that will allow the company to put this matter behind it. The agreement does not include any admission by Lundbeck LLC that it violated any law. The agreement will allow Lundbeck LLC to continue its focus on providing innovative medications to the patients.

Financial guidance

The content of this release will have no influence on Lundbeck’s guidance for 2018, which was provided on 7 February 2018. The expense of approximately DKK 336 million can be included within the existing EBIT guidance range, and thus the EBIT guidance is still expected to be DKK 4,8–5,2 billion. Lundbeck still expects revenue to reach DKK 17.2-18.0 billion.

Lundbeck contacts

Investors                             Media:

Palle Holm Olesen                 Mads Kronborg

Vice President, IR                 Senior Director, Corp. Communication

PALO@lundbeck.com             MAVK@lundbeck.com

+45 3083 2426                    +45 3643 4000

About H. Lundbeck A/S

H. Lundbeck A/S (LUN.CO, LUN DC, HLUYY) is a global pharmaceutical company specialized in psychiatric and neurological disorders. For more than 70 years, we have been at the forefront of research within neuroscience. Our key areas of focus are Alzheimer's disease, depression, Parkinson's disease and schizophrenia.   

Our approximately 5,000 employees in 55 countries are engaged in the entire value chain throughout research, development, production, marketing and sales. Our pipeline consists of several late-stage development programmes and our products are available in more than 100 countries. We have production facilities in Denmark, France and Italy. Lundbeck generated revenue of DKK 17.2 billion in 2017 (EUR 2.3 billion; USD 2.6 billion).

For additional information, we encourage you to visit our corporate site www.lundbeck.com and connect with us on Twitter at @Lundbeck.

Safe Harbor/Forward-Looking Statements

The above information contains forward-looking statements that provide our expectations or forecasts of future events such as new product introductions, product approvals and financial performance.

Such forward-looking statements are subject to risks, uncertainties and inaccurate assumptions. This may cause actual results to differ materially from expectations and it may cause any or all of our forward-looking statements here or in other publications to be wrong. Factors that may affect future results include interest rate and currency exchange rate fluctuations, delay or failure of development projects, production problems, unexpected contract breaches or terminations, government-mandated or market-driven price decreases for Lundbeck's products, introduction of competing products, Lundbeck's ability to successfully market both new and existing products, exposure to product liability and other lawsuits, changes in reimbursement rules and governmental laws and related interpretation thereof, and unexpected growth in costs and expenses.

Certain assumptions made by Lundbeck are required by Danish Securities Law for full disclosure of material corporate information. Some assumptions, including assumptions relating to sales associated with product that is prescribed for unapproved uses, are made taking into account past performances of other similar drugs for similar disease states or past performance of the same drug in other regions where the product is currently marketed. It is important to note that although physicians may, as part of their freedom to practice medicine in the US, prescribe approved drugs for any use they deem appropriate, including unapproved uses, at Lundbeck, promotion of unapproved uses is strictly prohibited.

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