The Board of Directors of ALK (ALKB:DC / OMX: ALK B / AKABY / AKBLF) today considered and approved the 2016 Annual Report with the following highlights:
Q4 results were in line with ALK's most recent outlook, released on 4 January 2017.
- Total revenue, including partner income, increased 12% to DKK 754 million (687).
- Base business revenue grew by 10% to DKK 735 million (678).
- EBITDA before special items was DKK 121 million (123).
ALK achieved record levels of revenue and operating profit in 2016. In Europe, temporary production issues at a major competitor contributed to a total growth in revenue of 28%. Sales of both SLIT-tablets and SLIT-drops grew by 61%, while sales of SCIT declined as expected due to production upgrades. Revenue in North America also showed double-digit growth.
- ALK's total revenue increased to DKK 3,005 million (2,569), while revenue in the base business grew by 25% to DKK 2,918 million (2,384).
- EBITDA before special items was DKK 705 million (452).
- Reported EBITDA increased to DKK 642 million (451), and the EBITDA margin was 21% (18).
- Global market share grew to an estimated 40% (2015: ~33%).
- ACARIZAX® was launched in eight countries and close to 25,000 patients have now initiated treatment.
ALK has decided to invest aggressively in maintaining the market share it has gained and in building long-term growth. As a result, additional close to DKK 300 million will be allocated to a number of growth initiatives, including the organisational build-up in North America, further expansion in Europe and in International markets, the continuing roll-out of ACARIZAX®, as well as the strengthening of R&D and the robustness of Product Supply. At the same time, ALK is increasing its capital expenditure on production capacity by DKK 150-200 million.
- Total revenue is projected at DKK 2.8-3.0 billion and reflects the anticipated normalisation of the competitor situation in Europe, gradual reinstatement of normal deliveries of ALK SCIT products, as well as growth in North America and International markets.
- Reported EBITDA is expected at DKK 300 million due to the accelerated investments in growth initiatives (2016: 642).
- The underlying EBITDA is therefore expected to be level with 2015 before the temporary competitor issues emerged.
See page 25 in the attached annual report for a detailed review of the 2017 outlook.
“ALK begins 2017 in a strong position and we are determined to consolidate our position as the global market leader. The coming year will see significant investments and costs as we seek to build long-term growth. These additional resource allocations will inevitably slow earnings in 2017 when compared to an exceptional 2016, but we are convinced this money is being well spent, and that it will provide a satisfactory return as we unlock the potential of our products and market opportunities within allergy and asthma. Underlying earnings for 2017 will be in line with the situation before our competitor’s issues arose,” says ALK’s President & CEO, Carsten Hellmann.
Today, ALK is hosting a conference call at 01.30 p.m. (CET) where Management will review the results and the outlook, and answer questions. The call will be audio cast on http://ir.alk.net/, where the presentation will be available shortly before the call begins. Participants in the conference call are kindly requested to call in before 1.25 p.m. (CET). Danish participants should call in on tel. 7022 3500 and international participants should call in on tel. +44 (0) 20 7572 1187 or +1 646 722 4972. Please use the following participant pin code: 81185835#.
 Comparative figures for 2015 are shown in brackets / revenue growth is stated as organic growth in local currencies. Revenue from ALK's base business is defined as total revenue excluding revenues from the SLIT-tablet partnerships
For further information please contact:
Carsten Hellmann, President & CEO, tel. +45 4574 7576
Investor Relations: Per Plotnikof, tel. +45 4574 7527, mobile +45 2261 2525
Media: Jeppe Ilkjær, tel. +45 7877 4532, mobile +45 3050 2014
ALK is a research-driven global pharmaceutical company focusing on allergy prevention, diagnosis and treatment. ALK is a world leader in allergy immunotherapy – a treatment of the underlying cause of allergy. The company has approximately 2,300 employees, with subsidiaries, production facilities and distributors worldwide. ALK has entered into partnership agreements with Torii, Abbott, and Seqirus to commercialise sublingual allergy immunotherapy tablets in Japan, Russia and South-East Asia, and Australia and New Zealand, respectively. The company is headquartered in Hørsholm, Denmark, and listed on Nasdaq Copenhagen. Find more information at www.alk.net.