Solid start to the year: 13% revenue growth driven by strong performance in dermatology

Q1 2024 financial highlights

• Revenue grew 13% to DKK 3,064 million (Q1 2023: 2,763 million). Reported growth was 11%.
• Dermatology revenue grew 16% to DKK 2,444 million (Q1 2023: 2,150 million), driven by growth of Adtralza®/Adbry® for atopic dermatitis (AD) and solid growth in the core portfolio.
• Adbry®/Adtralza® revenue increased by 90% driven by continued uptake across markets.
• Core dermatology portfolio delivered growth of 9% across our Affiliate and Alliance markets. Growth largely driven by the Fucidin® Range, Enstilar® and Protopic® across our eczema, psoriasis and skin infection portfolios.
• Growth across all regions: North America up 42%, Europe up 6%, Rest of the World up 15%. North America continues to be the key growth driver with revenue of DKK 439 million (Q1 2023: 313 million).

 Progress on strategic priorities

• To advance the growth of our U.S. business, LEO Pharma added a late-stage asset to our medical dermatology pipeline by finalizing the strategic acquisition of TMB-001 to the treatment of congenital ichthyosis. In Q1 2024, patient recruitment was completed for the Phase III ASCEND trial.
• The recent results of the successful DELTA FORCE-trial comparing delgocitinib to current standard of care, further confirms delgocitinib’s potential to become a key growth driver for the company and we will be investing additional resources in accelerating the launch of this potential treatment to patients.
• Regulatory review of the marketing authorization application is pending in the EU, and based on the positive outcome of the DELTA clinical program, LEO Pharma is assessing ways to bring this potential treatment to other markets as well, including the U.S.
• Adbry® (tralokinumab-ldrm) data from the ECZTEND trial was shared during the American Academy of Dermatology (AAD) Annual Meeting investigating the stability of long-term therapeutic responses to tralokinumab in adults with moderate-to-severe AD.

“First quarter marks a solid start to 2024 with a 13% revenue growth and continued progress on our strategic priorities. I am pleased with the strong growth track record for our global dermatology portfolio, primarily driven by performance in North America. Furthermore, I am excited about the progress we are making in building evidence and bringing delgocitinib to the market to help patients with chronic hand eczema. The positive results from the recently completed head-to-head trial against current standard of care make us even more motivated to accelerate our efforts,” says CEO Christophe Bourdon.

2024 financial outlook

• Following our strong Q1 2024 performance, we are revising our full-year revenue growth outlook upwards compared to what was shared in the Annual Report on 29th February 2024. Full-year revenue growth is now projected to be 5-8% in CER (before: 4-8%).
• Potential changes in key assumptions for market growth and unexpected health care and pricing reforms are risk factors, among others, which could change the outlook for the year.

Sales performance

In Q1 2024, revenue grew 13% (CER) to DKK 3,064 million from DKK 2,763 million in the same period last year, corresponding to a reported growth in DKK of 11%. Dermatology revenue was a significant contributor with 16% in CER. While growth is attributed to the performance of both recently launched dermatology products Adtralza®/Adbry®, as well as core dermatology products, a part of growth was also attributable to timing of shipments especially in rest of world.

					Growth composition
(DKK million)	Q1 2024	Q1 2023	FY 2023		CER growth	Reported growth
Revenue by region
Europe	1.698	1.588	6.375		6%	7%
North America	439	313	1.667		42%	40%
Rest of World	927	862	3.350		15%	7%
Total	3.064	2.763	11.392		13%	11%
Revenue by therapeutic area
Dermatology
Psoriasis	1.012	951	3.813		9%	6%
Skin Infection	432	416	1.771		6%	4%
Eczema	836	639	2.900		34%	31%
Acne/Rosacea	101	85	317		21%	18%
Other Mature Dermatology	63	59	238		13%	6%
Total dermatology	2.444	2.150	9.039		16%	13%
Thrombosis	588	566	2.141		4%	4%
CMO*	32	47	212		(31)%	(31)%
Total	3.064	2.763	11.392		13%	11%
*Contract manufacturing of divested products

LEO Pharma expects to issue a company announcement on the financial performance and progress on strategic priorities in the first half of 2024 on 26 August 2024.

Ballerup, 3 May 2024,

LEO Pharma