Three-month interim report (Q1) 2016

COPENHAGEN, Denmark, May 4, 2016 -- 

Performance for the period (unaudited)
(Comparative figures for 2015 are shown in brackets / revenue growth is measured in local currencies. Revenue from ALK's base business is defined as total revenue excluding income from the SLIT-tablet partnerships in North America and International markets).

ALK recorded high double-digit growth in Europe and North America in Q1. Growth in Europe was positively influenced by unusually large orders in France and several other markets affected by the temporary suspension of production by ALK's main competitor. Revenue and earnings in the quarter exceeded expectations and therefore ALK has updated the full-year financial guidance.

• Total revenue, including partner income, grew organically by 31% in local currencies to DKK 848 million (650).
• Revenue in the base business grew organically by 30% to DKK 807 million (626). SLIT-tablet sales in Europe grew by 94% reflecting strong growth in sales of GRAZAX^(r) and satisfactory sales of ACARIZAX^(r) that progressed well during its introductory phase in the first markets.
• Income from the partnerships increased to DKK 41 million (24).  
• Operating profit (EBITDA) was DKK 277 million (128), and the EBITDA margin was 33% (20%). The development was prompted by top-line growth, economies of scale in production and continued disciplined cost control.
• EBITDA before special items and excluding sales royalties and milestone payments increased by 91% to DKK 260 million (136).
• Free cash flow was an inflow of DKK 155 million (an outflow of 3).
• All pipeline activities continue to advance as planned. In April, Spain became the 12th European country to approve ACARIZAX^(r).  

Updated 2016 financial guidance
Full-year guidance has been updated to reflect the better than expected performance during Q1 and a slightly clearer view of the unfolding market situation in Europe.

• Base business revenue is now expected to grow organically by approximately 15% in local currencies to around DKK 2.75 billion (previous expectation: 10% growth and revenue of approximately DKK 2.6 billion).  
• EBITDA is now expected to increase to around DKK 575 million (previously: approximately 450 million) before special items, additional sales royalties and milestone payments. The new guidance includes a minor milestone payment from MSD which was recognised in February. Hence the underlying EBITDA guidance has been increased by approximately DKK 90 million. 
• Partnerships are expected to further contribute to ALK's revenue and earnings with sales royalties, product supply income, service fees, and, potentially, milestone payments.
• Free cash flow is now expected to be better than in 2015 (previously: largely on level with 2015).  

Hoersholm, 4 May 2016 

ALK-Abello A/S
 

Contact:
Steen Riisgaard, Chairman of the Board, tel. +45 4574 7576
Investor Relations: Per Plotnikof, tel. +45 4574 7527, mobile +45 2261 2525
Media: Jeppe Ilkjaer, tel. +45 7877 4532, mobile +45 3050 2014

Today, ALK is hosting a conference call for analysts and investors at 1.00 p.m. (CEST) at which Management will review the financial results and the outlook. The conference call will be audio cast on www.alk-abello.com/investor . Participants in the audio cast are kindly requested to call in before 12.55 p.m. (CEST). 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: 63593969#. The audio cast will also be available live on our website, where the related presentation will be available shortly before the call begins.