LEO Pharma announces annual results 2022

Today, LEO Pharma released its financial results for 2022.

Financial highlights

• Revenue grew 7% vs. last year to 10,641 mDKK. The revenue growth in constant currency rates was 4% and in-line with guidance of 3-5%.
• Growth was driven by 8% growth in the Dermatology portfolio in constant currency rates. Growth was partly off-set by 4% decline in the Thrombosis business and reduced revenue from contract manufacturing of divested products.
• Since 2020 there has been a steady, organic acceleration of the Dermatology growth from 0% in 2020 to 4% in 2021 to 8% in 2022 in constant currency rates. The 8% growth in the Dermatology portfolio was mainly driven by the launch of Adbry^TM in the U.S. and continued launch of Adtralza^® in EU. In addition, we see solid growth for the established portfolio.
• Adjusted EBITDA loss was 1,253 mDKK, which represents an improvement of 478 mDKK vs. last year because of the revenue growth and lower costs driven by the transformation and restructuring program executed during 2021 and 2022.
• EBIT for 2022 amounted to a loss of 3,311 mDKK and is in line with the guidance of an operating loss (EBIT) of 3.1-3.3 bDKK.

CEO of LEO Pharma, Christophe Bourdon comments:

"We are progressing on our financial turnaround. 2022 was a year characterized by growth in our dermatology portfolio across markets and progress in our pipeline. In 2023, we are laser-focused on delivering positive EBITDA. I would like to thank all my colleagues for getting us to this turning point for the company."

Executing on growth strategy

In 2022, LEO Pharma continued its transformation, preparing to become more profitable and delivering positive EBITDA in 2023. A new commercial model was introduced at the start of the year with the purpose to simplify market operations and ensure full focus on the launch of Adtralza^®/Adbry™ across markets. By the end of the year, the treatment was available to patients in 13 markets, including major markets such as the U.S., Spain, Germany, UK and France.

Strengthening the Global Leadership Team

In April, Christophe Bourdon took the reins as CEO. Brian Hilberdink joined as EVP Region North America, Sven Hauptmann as EVP Technical Development and Supply and Philip Eickhoff as CFO and EVP Global Finance and Business Services. The Global Leadership Team now has significant international industry competencies, setting LEO Pharma up to achieve the ambitions of growth and executing on a financial turnaround.

Advancements in R&D pipeline

LEO Pharma’s R&D pipeline progressed significantly in 2022 and achieved important milestones to support future growth. These include:

• Approval of Adtralza^® in Japan
• Positive Phase 3 data for DELTA1 trial for delgocitinib, a topical pan-JAK inhibitor for treatment of chronic hand eczema, meeting primary and all key secondary endpoints.
• Positive Phase 2 data for Anti IL-22R, an anti-inflammatory monoclonal antibody for atopic dermatitis, progressing to Phase 2B.

These assets are all outcomes of strategic partnerships. This underpins the recent adjustment of the R&D strategy to have an increased emphasis on external innovation and partnerships.

On track towards sustainability targets

Progress was made towards the targets set out in the sustainability strategy.
The targets to reduce our carbon emissions from own operations by more than 50% from 2019 to 2030 and to ensure that 75% of our suppliers by emissions have set science-based targets by 2026, were validated by the Science Based Target initiative.

Outlook 2023

In 2023, LEO Pharma will continue its focus on delivering positive EBITDA, which is a first and necessary step to driving profitable and sustained growth towards 2025 and beyond. To deliver on the expectations, we anticipate revenue growth of 6-10% in 2023, driven by increasing sale of Adtralza^®/Adbry^™and growth in the strategic brands.​ We expect to deliver a low single-digit positive EBITDA margin.​ Taking the ordinary depreciation and amortization into account, this is expected to result in an operating loss (EBIT) in 2023.

Key figures

DKK million	2022	2021	Delta
Revenue	10,641	9,967	7%
Adjusted EBITDA	(1,253)	(1,731)	28%
EBITDA	(1,574)	(1,957)	20%
Operating profit (EBIT)	(3,311)	(4,156)	20%
Net profit	(4,110)	(4,868)	16%

Annual Report 2022

The full results are available in the LEO Pharma Annual Report 2022 on the company’s website at: www.leo-pharma.com 

Changes to LEO Pharma’s Board of Directors

At LEO Pharma’s Annual General Meeting 2023 Jesper Mailind stepped down as Vice Chair of the Board of Directors, while continuing as Board member. Board member Paul Navarre was elected new Vice Chair.

 

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