Nine-month interim report (Q3) 2017

Performance for the period (unaudited)
(Comparative figures for 2016 are shown in brackets. Revenue growth is measured in local currencies. 2016 comparative figures are affected by last year's market disruptions which boosted ALK's sales and earnings in Europe significantly. To provide a meaningful benchmark, comparisons to figures from 2015 have also been included in the report wherever relevant.)

During Q3 2017, ALK continued its investment programme to scale-up and build a pharma company in North America, defend its European leadership position and upgrade its product supply. ALK will continue to invest to deliver its long-term growth plans.    

Q3 2017 highlights:

• Sales growth in Europe, North America and International markets showed good progress in line with expectations.
• Total revenue increased 7% to DKK 667 million (630), with European revenue 23% higher organically than 'pre-market disruption' levels in Q3 2015.
• Constraints in SCIT production capacity are estimated to have negatively impacted Q3 sales by DKK 50-60 million.
• Operating profit (EBITDA) was DKK 36 million (110) following planned cost increases to support long-term growth, including the launch of the HDM SLIT-tablet in North America and to secure robustness in ALK's product supply operations.
• 9M total revenue amounted to DKK 2,147 million (2,251) and 9M operating profit (EBITDA) was DKK 192 million (546).

Business priorities

• Investments in the North American scale-up to support the launch of SLIT-tablets are ongoing. In August, the marketing authorisations were transferred to ALK from the FDA. In November, ALK has launched the HDM SLIT-tablet as ACARIZAX^® in Canada and has started pre-launch and marketing activities ahead of the launch in the USA, where the brand name will be ODACTRA™. Market access in the USA is progressing well.
• Investments to defend and retain market leadership in Europe continue and showed good results in Q3.
• ACARIZAX^® sales in Europe roughly doubled in Q3, while development, registration and market access activities are progressing.
• Investments in securing a robust product supply continue. Robust inventory levels are expected to be gradually rebuilt during 2018.
• In December 2017, ALK will be presenting an updated strategy that is designed to stimulate a new era of growth by continuing ALK's investments in its core AIT franchise while also leveraging its position and expertise to engage with more patients and to capture a larger share of the total allergy market.

2017 financial guidance

ALK's financial guidance for full-year revenue has been narrowed while guidances for operating profit (EBITDA) and free cash flow remain unchanged:

• Full-year revenue is now projected at approximately DKK 2.9 billion (previously DKK 2.8-3.0 billion) as European markets establish a 'new normal' following last year's disruptions. 
• Operating profit (EBITDA) is still expected to be DKK 225-250 million.
• Free cash flow is still expected at approximately minus DKK 700 million.
   

Hørsholm, 10 November 2017

ALK-Abelló A/S

For further information, contact:
Investor Relations: Per Plotnikof, tel. +45 4574 7527, mobile +45 2261 2525
Media: Jeppe Ilkjær, tel. +45 7877 4532, mobile +45 3050 2014 

Today, ALK is hosting a conference call for analysts and investors at 10.00 a.m. (CET) at which Management will review the financial results and the outlook. The conference call will be audio cast on http://ir.alk.net/. Participants for the audio cast are kindly requested to call in before 9.55 a.m. (CET). Danish participants should call in on tel. +45 7022 3500 and international participants should call in on tel. +44 (0) 20 7572 1187 or +1 646 722 4972. Please use the Participant Pin Code: 28359539#. The conference call will also be webcast live on our website, where the related presentation will be made available shortly before the call begins.

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