The Lundbeck Foundation delivers healthy results despite a highly volatile year

The level of grants awarded by the Foundation remained high, and at a total of DKK 600 million, they reached the second highest level in the history of the Foundation.

• Operating profit amounted to DKK 2.34 billion compared to DKK 2.90 in 2019, which was in line with the forecasts. If H. Lundbeck’s impairment loss of DKK 792 million relating to foglilurax product rights is disregarded, operating profit actually increased. 

• The profit from the Lundbeck Foundation's financial investing activities reached DKK 1,250 million, a decline of DKK 930 million compared with the record year of 2019 (DKK 2,180).
• Investments by Lundbeckfonden Ventures and Emerge fell to a loss of DKK 6 million, compared with a profit of DKK 1,452 million in 2019. Whereas the results for 2019 were driven by the sale of Veloxis, 2020 was characterised by a drop in share prices for Ventures’ listed portfolio companies. Similarly, the Foundation did not generate any significant exits during the year.
• H. Lundbeck and ALK recorded a growth in revenue in relation to 2019 of 4% and 7%, respectively. On the other hand, Falck experienced a decrease in revenue equivalent to 11% due to COVID-19, which led to a substantial decline in activities in several of Falck’s business areas. Revenue fell overall to DKK 33,520 million from DKK 34,134 million in 2019.
• Grants amounted to DKK 600 million (2019: DKK 666 million). This is the second-highest level in the Foundation’s history, equivalent to the salaries of 708 full-time researchers at Danish universities.
• The Lundbeck Foundation's equity increased to DKK 42,852 million at 31 December 2020, from DKK 41,802 million at 31 December 2019.

 

I’m proud that we were able to deliver such healthy results, despite a challenging year with a high degree of uncertainty and significant fluctuations. Thanks to our talented employees, firm principles for engaged ownership and a well-balanced investment strategy, the Lundbeck Foundation has a strong financial position. Consequently, in 2021, too, we expect to be able to allocate grants worth at least half a billion Danish kroner to biomedical sciences research for the benefit of patients and society alike.

 

At DKK 21 billion, the Lundbeck Foundation's available assets have never been greater. Thus, the Foundation has a strong financial base and is looking ahead to 2030 with an ambitious strategy by which to steer. The strategy was launched in 2020 and its objective is for the Foundation to have doubled its worth and its grants by 2030, in order to boost and advance Denmark's global position in the field of neuroscience. Moreover, the Foundation aims to be a long-term owner of five to eight healthcare companies by 2030.

The brain is key to the Lundbeck Foundation's strategy, which focuses on research into brain disorders. As a result, in 2020, 71% of the year’s grants went to brain research projects. Another key focus area is the funding of researchers’ careers, on all steps of the ladder. Funding provided through the Foundation’s Fellows programme plays an important part in career advancement, and in 2020 eight fellowships – each worth DKK 10 million – were awarded for five-year research projects at Danish universities. Lundbeck Foundation Fellows come from all around the world, and all are well on track with promising research careers.

Breaking from protocol, the Lundbeck Foundation chose to create a coronavirus fund, dedicated to research-based projects with a patient focus. In the space of a few short days, the Foundation received and processed 249 applications, and 18 projects were given funding totalling DKK 38 million.

To mark its 10th anniversary, The Brain Prize – the Lundbeck Foundation's international research prize – was increased to DKK 10 million. Two professors, Huda Zoghbi, USA, and Sir Adrian Bird, UK, were awarded The Brain Prize 2020 for their ground-breaking work to map and understand epigenetic regulation of the brain and for identifying the gene that causes Rett syndrome.

 

 

Click the link to download the full annual report.

Click here for further information about the Lundbeck Foundation’s 2030 strategy.