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LEO Foundation Annual Report 2020
LEO Pharma
Management review
Financial statements
LEO Pharma – progressing on its strategic ambitions LEO Pharma is committed to reinforce its global leadership in medical dermatology. The LEO Foundation is the company’s controlling shareholder.
In 2020, LEO Pharma progressed on its strategic ambitions and demonstrated business resilience during the global COVID-19 pandemic. LEO Pharma launched its 2030 strategy with the ambition to be a global leader in medical dermatology. The strategy outlines an ambition to expand the range of treatments covering the full severity spectrum of patients within core medical and rare dermatology through partnerships and acceleration of the company’s R&D efforts. At the same time, the company managed to convincingly mitigate the effects of the C OVID-19 pandemic by implementing precautionary cost reductions and a plan to keep employees safe, while keeping production running. LEO Pharma continued to invest strongly in R&D while also making significant progress in further developing its pipeline. In the important near-term pipeline, a key milestone was the announcement of positive phase 3 results for tralokinumab, enabling the company to prepare for the 2021 global launch of what will p otentially be the second biologic treatment for atopic
dermatitis available to patients. Further, delgocitinib was granted breakthrough designation by the FDA in the United States, citing the need for new treatment options for chronic hand eczema. Patidegib, an asset developed in partnership with PellePharm, progressed in phase 3, spearheading LEO Pharma’s presence in rare diseases. In addition, LEO Pharma further strengthened its Global Leadership Team with five new members establishing a strong team with a breadth of experience and diverse cultural backgrounds. LEO Pharma also initiated a process of organizational realignment to remain agile, competitive, and ready to achieve its strategic ambition to become a global leader in medical dermatology.
acquired from Bayer. The portfolio was taken over on September 1, 2018 in the US and on July 1, 2019 for the rest of the world. Revenue from the acquired portfolio increased to DKK 1,126 million in 2020 (2019: DKK 728 million). 2020 revenue was also supported by growth for the strategic products Enstilar® and Kyntheum®, with sales up 3% and 40%. Revenue from Region Europe+ grew marginally by less than 1% compared to 2019, with Enstilar® and Kyntheum® as the drivers of organic growth. However, excluding the impact of the acquired Bayer products, overall sales declined by 7%.
Revenue Revenue in 2020 declined by 6% to DKK 10,133 million (2019: DKK 10,805 million), mainly due to increased generic competition and disruptions caused by COVID-19.
Revenue from Region International declined by DKK 193 million or 6% compared to 2019. Sales from the acquired Bayer portfolio helped to partially offset the decline in revenue as a result of COVID-19. Given the wide diversity of countries and business models within the region, there was a significant difference in the individual countries’ performance.
Revenue was supported by the first full-year sales of the prescription dermatology products
Revenue from Region US amounted to DKK 463 million, a decline of DKK 385 million or 45%. The
FINANCIAL PERFORMANCE
Revenue DKK
10,133 million
21%
of revenue reinvested in R&D
~6,000 employees worldwide
+130
countries where LEO Pharma treatments are available
