Financial forecast and targets

The Group retains its 2008 guidance of an EBIT margin of approximately 25%, while it expects to spend more than 20% of its revenue on research and development in 2008.

Lundbeck’s financial forecast for 2008 is based on the exchange rates that Lundbeck regularly hedges pursuant to its hedging policy. The most important currency in respect of Lundbeck’s financial results is the US dollar (USD), which is hedged at an  average exchange rate of 5.29 DKK/USD for 2008.

Dividend policy
Since 2003, Lundbeck has paid dividends of about 30% of the net profit for the year, and it is still the intention to pay out dividends of between 25% and 35% in the future.

Reservations
Forward-looking statements are subject to risks, uncertainties and inaccurate assumptions. This may cause actual results to differ materially from expectations. Factors that may affect future results include interest rate and 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.

In accordance with the Danish Financial Statements Act article 107a, listed companies must  consider whether or not they will disclose the consequences for substantial agreements if the control of the company changes. Lundbeck does not wish to disclose this information for competitive reasons.