We focus on restoring brain health to drive our growth
For Lundbeck to sustain our foundation as a highly profitable business into the decades ahead, it is imperative to focus the company strategy on restoring value creating growth. Utilizing the capabilities of our talented employees together with our financial resources, we will invest in accessing opportunities to drive revenue growth and strengthen our pipeline in order to deliver a competitive return to our shareholders.
The burden of brain diseases is vast and growing
It is estimated that more than 700 million people live with brain diseases. These diseases are the leading cause of disability worldwide and account for 37% of healthy life years lost from non-communicable diseases. Brain diseases represent an alarmingly high and increasing burden for society. A study by World Economic Forum* estimates that the total cost of mental illness is expected to increase to 6 trillion USD in 2030, more than double the total cost of cancer, diabetes and cardiovascu-lar diseases combined. Brain diseases are the leading cause of disability-adjusted life years (DALYs) and the second leading cause of death. With the projected growth and aging of the world’s population, brain diseases will become even greater contributors to premature death and disability.
People living with brain diseases more than ever need the commitment of the neuroscience community to enable them to restore their brain health. As the number of people living with brain diseases grows, the need to achieve new generations of breakthroughs has never been more urgent.
Despite the vast unmet needs within brain diseases, many companies have scaled back their investments in research and development or even abandoned the space entirely, however Lundbeck has not.
Tirelessly dedicated to restoring brain health
Despite the challenges, Lundbeck remains steadfast in our commitment to deliver innovation that patients need. We work tirelessly to advance neuroscience, develop new and innovative treatments, and support patient communities – all with the aim of restoring brain health and transforming the lives of the millions of people living with a brain disease. Not only does the burden of brain diseases demand action now, it also demands expertise and courage. We know that to get radically different results, we need to pursue radically different approaches.
Lundbeck will leverage our specialist knowledge of the brain to address this huge burden for people and societies all over the world. Among the more than 200 different diseases of the brain, Lundbeck has the neuroscience expertise and global reach to deliver transformative medicines that create significant value for years to come.
We will build on our strengths to grow Lundbeck
Five strategic imperatives are at the core of our new strategy:
- Maximising the performance of our existing brands through new indications and improved formulations.
- Expanding our operating space to encompass a broader range of brain diseases, always grounded in the areas where we have unique skills and capabilities.
- Rebuilding our pipeline of transformative medicines across all clinical phases through external and internal innovation.
- Maintaining focus on high profitability, but allowing flexibility to invest in growing the top-line and profits.
- Enhancing our organizational agility and collaboration.
Lundbeck’s strategy builds on our expertise in neuroscience, developed through over 70 years of focus on helping people living with brain diseases. As a fully integrated pharmaceutical company with leading expertise in neuroscience and a strong specialized global presence, we have the skills, capabilities and financial flexibility needed to spur innovation from both our own laboratories and through externally sourced initiatives.
The treatments launched by Lundbeck over the last 10 years demonstrate the company’s ability to deliver transformative medicines to patients from own research as well as through partnerships, collaborations, licensing and company acquisitions. In recent years, Lundbeck has also strengthened its global commercial footprint and has created a highly efficient organization with specialized expertise across the value chain. Going forward it will remain a priority for Lundbeck to run an efficient business. We will continue to attract and retain engaged employees who have the expertise and commitment to addressing the needs of people with brain diseases and thus, deliver exceptional company performance.
We aim to lead in the field of brain health
With a global presence, we have the reach to benefit people around the world with our therapies, improving access to new and better treatments. Launching our products globally enhances the return on research and development investments and drives the growth of Lundbeck. In this way, we simultaneously create value for society while securing a profitable return on our investments.
The core of the value we create is derived from the innovative treatments we develop and make available to patients. Lundbeck has a broad mature portfolio of therapies and strategic growth products that are already addressing the needs of people with brain diseases. Lundbeck will realize the full potential of these assets throughout the product lifecycle, incl. ongoing evaluation of opportunities to improve the value for patients through the launch of new indications or through improved formulations.
In the years to come we will accelerate our innovation efforts and invest in both internal and external opportunities. Our goal is to offer novel therapies that redefine the standard of care and address functional outcomes that matter most to patients. We will utilize cutting edge neuroscience insights and technologies to more precisely match the right therapy to the right patient when it can help them most.
Our growth agenda
Our strategy has been developed to sustain Lundbeck’s growth for the long-term. To tackle this growth agenda, we are focusing first on invigorating the current portfolio, starting with clear actions in 2019. Near-term, we aim to invigorate our business by further expanding the potential of our growth brands, rebuilding our pipeline and driving organizational agility.
In the mid-term, we will accelerate our growth by expanding our brand franchises through the launches of new indications and new formulations. In our pipeline, we will accelerate innovation through own research and external opportunities, building on deep scientific understanding and leveraging technology to advance transformative therapies that address unmet medical needs.
Longer term, we will transform our business by launching novel transformative medicines across all regions, exceeding shareholder returns and being a recognized leader in brain health worldwide. In this way, we are accelerating our journey to restore brain health so every person can be their best.