Six-month interim report (Q2) 2007
Financial performance in the six months ended June 30, 2007
(Comparative figures for the same period last year are shown in brackets)
(Comparative figures for the same period last year are shown in brackets)
- Revenue increased to DKK 823 million (731).
- Organic growth in sales of allergy vaccines was 19%.
- As expected, sales of GRAZAX® amounted to DKK 19 million.
- Operating profit (EBIT) was DKK 205 million (26) and included an up-front payment from the company’s US partner Schering-Plough of DKK 199 million.
- Profit before tax (EBT) was DKK 213 million (37).
- Profit for the period, DKK 166 million, was affected by extraordinary income of DKK 37 million.
Highlights of the period
The launch of GRAZAX®, ALK-Abelló’s tablet-based vaccine against grass pollen allergy, continues to progress as planned. The authorities in the Netherlands and Austria have decided to provide full public reimbursement for treatment with GRAZAX®, joining the group of countries which also includes Sweden, Germany and the United Kingdom, all of which have decided to provide reimbursement for the vaccine. Moreover, the authorities in Switzerland have granted marketing approval for GRAZAX®, which has now been approved for marketing in 28 countries in Europe.
The launch of GRAZAX®, ALK-Abelló’s tablet-based vaccine against grass pollen allergy, continues to progress as planned. The authorities in the Netherlands and Austria have decided to provide full public reimbursement for treatment with GRAZAX®, joining the group of countries which also includes Sweden, Germany and the United Kingdom, all of which have decided to provide reimbursement for the vaccine. Moreover, the authorities in Switzerland have granted marketing approval for GRAZAX®, which has now been approved for marketing in 28 countries in Europe.
ALK-Abelló has signed an agreement with Catalent Pharma Solutions (formerly the Pharmaceutical Technologies and Services segment of Cardinal Health) for a substantial increase of tablet production in the United Kingdom.
Outlook for the 2007 financial year
For the financial year 2007, ALK-Abelló retains its forecast of revenue, including revenue from sales of GRAZAX®, of DKK 1,650-1,700 million (1,519). The forecast of the rate of organic growth in sales of allergy vaccines is retained at 15-19%. EBIT will be affected by substantial sales and marketing costs for GRAZAX® and the start-up of the company’s two partnership agreements. EBIT is retained at DKK 200-220 million and includes revenue from Schering-Plough of DKK 199 million. The forecast of pre-tax profit (EBT) remains unchanged at DKK 230-250 million. As a result of a reduction of the corporate tax rate in Denmark and, consequently, a reduction of the company’s tax assets by DKK 11 million, profit after tax is now forecast at DKK 120-140 million compared to the previous forecast of DKK 130-150 million. In addition, extraordinary income of DKK 37 million is expected, bringing the forecast of net profit for the year to DKK 157-177 million.
For the financial year 2007, ALK-Abelló retains its forecast of revenue, including revenue from sales of GRAZAX®, of DKK 1,650-1,700 million (1,519). The forecast of the rate of organic growth in sales of allergy vaccines is retained at 15-19%. EBIT will be affected by substantial sales and marketing costs for GRAZAX® and the start-up of the company’s two partnership agreements. EBIT is retained at DKK 200-220 million and includes revenue from Schering-Plough of DKK 199 million. The forecast of pre-tax profit (EBT) remains unchanged at DKK 230-250 million. As a result of a reduction of the corporate tax rate in Denmark and, consequently, a reduction of the company’s tax assets by DKK 11 million, profit after tax is now forecast at DKK 120-140 million compared to the previous forecast of DKK 130-150 million. In addition, extraordinary income of DKK 37 million is expected, bringing the forecast of net profit for the year to DKK 157-177 million.
ALK-Abelló holds a conference call for analysts and investors today at 3.30 p.m. (CET) at which Jens Bager, President and CEO, will review the results. Danish participants must call in on tel +45 7026 5040 before 3.25 p.m. (CET), and international participants must call in on tel +44 208 817 9301 before 3.25 p.m. (CET). The conference call will also be webcast on our website:www.alk-abello.com, where the related presentation will be available shortly before the conference call begins