LEO Pharma delivers double-digit revenue growth and strong progress for strategic transformation

Ballerup, Denmark, 26 February, 2025 – LEO Pharma delivered another year of strong progress in 2024, with both sales growth and adjusted EBITDA margin ahead of the initial outlook for the year, putting the company on track to meet its profitability targets and to achieve its long-term strategic objectives.

“2024 was a year of strong progress for LEO Pharma with double-digit growth in sales and another year of significantly improved EBITDA. A major highlight in 2024 was the approval and launch of our pioneering innovative topical Anzupgo® for chronic hand eczema (CHE). Additionally, we have strengthened our pipeline and successfully implemented efficiency initiatives set to substantially further improve our financial performance in 2025 and return LEO Pharma to a positive net result.

With our innovative portfolio demonstrating significant commercial potential, and by maintaining financial discipline, delivering consistent high growth, and building an attractive pipeline, we are creating a foundation for long-term financial strength as we bring more innovation to patients,” said CEO Christophe Bourdon.

2024 financial highlights

• Revenue grew 10% (CER) to DKK 12,453 million (2023: DKK 11,392 million). Reported growth was 9%.
• Dermatology portfolio revenue grew 12% (CER) to DKK 10,008 million (2023: DKK 9,039 million), driven by the U.S.
• Revenue grew across all regions led by strong growth of 35% (CER) in North America and solid growth of 7% (CER) in Europe and 5% (CER) in Rest of World.
• Operating profit improved significantly, with adjusted EBITDA up 43% year-over-year to DKK 895 million (2023: DKK 626 million) reflecting margin expansion of 2pp to 7%, despite the investments in Anzupgo® launch activities and the negative impact of foreign exchange rates.
• EBIT loss narrowed to DKK 1,143 million (2023 loss: 1,699 million). Net profit loss narrowed to DKK 1,776 million (2023 loss: 3,607 million)
• Cash flow from operations was positive at DKK 265 million (2023: negative 1,953 million) and free cash flow amounted to DKK negative 52 million for the year (2023: negative 2,490 million) including positive free cash flow of DKK 727 million in the second half of 2024.

Innovation and Commercial highlights

• Adbry®/Adtralza®: Now available in 20 markets, recorded 69% revenue growth (CER), becoming LEO Pharma’s largest product. Continued strong uptake, especially in North America, was driven by increased prescriber familiarity and growing adoption of biologic treatments for atopic dermatitis. The pre-filled pen, now in 12 markets, further strengthened uptake.
• Anzupgo®: The potential of the first-in-class topical pan-JAK inhibitor for chronic hand eczema in adults was highlighted by the DELTA 1 and DELTA 2 phase 3 trial results published in The Lancet in July 2024. Positive results from the DELTA TEEN phase 3 trial, announced in February 2025, further validated Anzupgo®, marking the fifth successful phase 3 trial.
• Anzupgo®: Launched in Germany and Denmark in Q4, with anticipated entry into additional markets in 2025, including the U.S. in the second half of 2025, pending FDA approval. Marketing authorizations were also granted in the UK, Switzerland, and the UAE.
• In January 2025, LEO Pharma and Gilead Sciences formed a strategic partnership to accelerate the oral STAT6 program for multiple inflammatory diseases. LEO Pharma received DKK 1.8 billion upfront and is eligible for up to DKK 10.5 billion in total payments, plus tiered royalties on sales ranging from high single-digit to mid-teens percentages.

Progress on strategic priorities

LEO Pharma’s performance last year puts it on track to meet its ambitions for sustainable, profitable growth and innovation, as set out in 2021, when the company embarked on a multi-year transformation strategy anchored in three areas: growth, pipeline and profitability.

Over 2024, LEO Pharma made significant progress, delivering another year of double-digit sales growth, advancing our innovation agenda with the approval and launch of Anzupgo®, and optimizing our operations with a strong emphasis on disciplined capital allocation.

The past three years have seen significant financial improvements, with the adjusted EBITDA margin rising from -17% in 2021 to 7% in 2024, and a return to positive cash flow from operating activities.

Importantly, the progress made in 2024 has laid the foundations for significant further progress in 2025 and beyond, both financially and in innovation. The year has started strong with the January 2025 strategic partnership with Gilead to accelerate the STAT6 program.

Follow-up on 2024 guidance and outlook for 2025

The financial performance in 2024 was in-line with the most recent guidance provided in August, which projected revenue growth of 9-11% (CER) and adjusted EBITDA margin of 6-8%. This performance significantly exceeded the initial guidance, which anticipated sales growth of 4-8% (CER) and a mid-single-digit adjusted EBITDA margin.

Building on the progress achieved in 2024 the outlook for 2025 is as follows:

• Revenue growth of 6-9% in CER.
• Adjusted EBITDA margin of 15-18% (2024: 7%), excluding the DKK 1.8 billion one-time upfront payment from the strategic partnership with Gilead.
• Reported net profit is expected to be positive for the year (2024: DKK 1.8 billlion loss), and free cash flow (excluding M&A) is also anticipated to be positive (2024: negative DKK 52 million).

Growth at constant exchange rates is expected to be driven by strong double-digit increases for Adtralza®/Adbry® and the launch of Anzupgo® in additional markets, including the U.S. in the second half of the year, pending FDA approval. Group revenue growth at constant exchange rates is expected to be higher in the second half of the year compared to the first half, due in part to the increasing impact from the launch of Anzupgo®. Given current exchange rates versus the Danish krone (as of 21 February 2025), full-year revenue growth reported in DKK is expected to be 1 percentage point higher than at CER.

The adjusted EBITDA margin is expected to improve to 15-18% in 2025, up from 7% in 2024, driven by sales growth and efficiency gains from restructuring initiatives implemented in 2024. Adjusted EBITDA excludes the DKK 1.8 billion one-time upfront payment from the strategic partnership with Gilead announced on January 11, as well as other non-recurring items. Reported net profit is expected to be positive for the year, and free cash flow (excluding M&A) is also anticipated to be positive.

The above outlook is subject to risks and uncertainties. Various factors could significantly alter the outlook, including but not limited to the impact of potential BD/M&A activities, changes in the geopolitical and macroeconomic environment, significant demand shifts and/or price reforms in key markets such as the U.S. and China, regulatory changes or delays, supply disruptions, and developments in raw material and other input costs.

Ballerup, 26 February 2025,

LEO Pharma

Forward-looking statements

This announcement may contain forward-looking statements, related to future operating, financial and sustainability performance and results, as well as business-related events. Such statements are subject to risks, uncertainties and assumptions, both general and specific, and actual results may differ materially from those contemplated, expressed or implied by any forward-looking statement. Various factors may affect future results, some of which are beyond LEO Pharma’s control, including but not limited to; interest rate and exchange rate fluctuations, changes in the geopolitical and macroeconomic environment, significant demand shifts and/or price reforms in key markets, introduction of competing products, exposure to product liability, supply disruptions, developments in raw material and other input costs, and changes in laws and regulations, including on reimbursement.