The driving force behind Lundbeck's long-term innovation

Lan Ding, Vice President of Lundbeck Corporate and Portfolio Strategy

Since its establishment in 1915, the company has focused exclusively on treatments for neurological disorders, actively pursuing technology introductions, and M&As

“Continuing external collaborations...technology acquisition agreement with AprilBio marks milestone in company’s expansion into neuroimmunology.”

"Lundbeck is a publicly listed company, but 70% of its shares are held by the Lundbeck Foundation.

 

This structure has provided a foundation for Lundbeck to focus on its core value without being swayed by short-term stock price fluctuations.

 

The Lundbeck Foundation reinvests the dividend income it receives from the operating company (Lundbeck) in research and development in the fields of brain disorders and neuroscience." Lan Ding, Vice President of Corporate and Portfolio Strategy, spoke about the company’s governance system at Lundbeck's headquarters in Valby, Copenhagen, Denmark.

 

Ding explained that the stable investment structure backed by the foundation acts as a catalyst for accelerating innovation through a virtuous cycle.

 

Lan Ding, Vice President of Lundbeck Corporate and Portfolio Strategy

Lundbeck is a pharmaceutical company that has focused exclusively on brain disease treatments since its establishment in 1915.

 

It has built a pipeline covering the entire spectrum of central nervous system disorders, from mental illnesses such as schizophrenia and depression to neurological disorders such as migraine and epilepsy.

 

As of the closing price on the 10th, the company's market capitalization stood at DKK 32.9 billion (approximately KRW 8 trillion), ranking among the top 20 companies on the Danish stock exchange.

 

Ding holds a master's degree in supply chain management from Lancaster University in the UK and an EMBA from London Business School (LBS).

 

She has worked in strategy and portfolio management at global pharmaceutical companies such as GlaxoSmithKline (GSK).

 

She joined Lundbeck in January this year as vice president of corporate and portfolio strategy, and has been directing the company's mid- to long-term growth strategy.

 

What has enabled Lundbeck to continue innovating for over 100 years?

 

Ding cited four factors: ▲a focus on neuroscience, ▲continuous R&D investment, ▲open innovation, and ▲a foundation-owned governance structure.

 

First, Ding emphasized the company's strategy of dedication and focus on CNS.

 

“Our deep and unwavering focus on neuroscience is the foundation of Lundbeck's innovation,” said Ding.

 

“Reinvesting more than 20% of our annual revenue in R&D based on scientific data and unmet medical needs is also a key factor.” Open innovation is another pillar supporting Lundbeck's innovation.

 

Lundbeck is expanding its scientific scope and accelerating innovation by forming strategic partnerships with various stakeholders, including academia, biotech companies, and patient groups.

 

Lundbeck is also actively pursuing mergers and acquisitions (M&A) to accelerate growth, not just technology adoption.

 

A notable example is last year's acquisition of Longboard Pharmaceuticals for USD 2.6 billion, when the company secured a new drug candidate for epilepsy.

 

The company’s foundation-based governance structure provides the grounds for the execution of such long-term strategies.

 

“Since the Lundbeck Foundation holds approximately 70% of Lundbeck's shares, stable investment is possible from a long-term perspective,” said Ding, adding, “The Lundbeck Foundation itself is a major supporter of neuroscience research worldwide.” Currently, Lundbeck is focusing its resources on three core areas through a focused innovation strategy (Focused Innovator) to enhance capital allocation efficiency while pursuing sustainable and profitable growth in the long term.

 

Ding explained, “Lundbeck is focusing on continuing development based on its long legacy in the field of mental illness, strengthening its position in the field of neurology, and expanding into the field of rare neurological diseases.

 

We are concentrating on the acquisition of Longboard Pharmaceutical, the expansion of indications for Vyepti, and next-generation neurological drug programs such as PACAP inhibitors.” Lundbeck is also actively exploring external partnerships to enhance its global competitiveness in the rare disease field.

 

Ding said, “Recently, we have been actively exploring external assets and technologies such as artificial intelligence (AI), neuroimmunology, and RNA-based technologies.

 

When collaborating with external institutions, Lundbeck places importance on scientific excellence, alignment with our strategic focus areas, and the potential to deliver meaningful medical outcomes.”

Lundbeck

Asia, including South Korea, is also one of the regions that Lundbeck is focusing on.

 

Lundbeck signed a contract with AprilBio in South Korea in October 2021 to introduce the technology for APB-A1, a candidate drug for autoimmune diseases, worth USD 448 million (approximately KRW 537 billion).

 

The contract includes a non-refundable upfront payment of USD 16 million (approximately KRW 19 billion) and milestone payments of up to USD 430 million (approximately KRW 518 billion) based on the progress of development.

 

Ding stated, “The agreement with AprilBio marks a strategic milestone for Lundbeck in accelerating its expansion into the neuroimmunology field.

 

The program aligns well with Lundbeck's R&D strategy that focuses on biomarker-based, traceable development.” She added, “APB-A1 is a promising candidate with potential efficacy in various neuroimmunological diseases and is currently in Phase Ib clinical trials for thyroid eye disease.” Lundbeck's mission is to “advance brain health and transform lives.” Ding mentioned that the company always adheres to this management philosophy as the principle of all its strategies.

 

Ding said, “Lundbeck is committed to scientific innovation that pushes the boundaries of neuroscience, with a patient-centered mindset at the core of all decision-making.

 

We prioritize ethical and responsible research, placing the highest value on safety, transparency, and scientific integrity.” “Lundbeck is actively engaging with the outside world based on its philosophy of focusing on long-term impact rather than short-term results and working with various stakeholders to achieve greater progress.

 

This principle is in line with Lundbeck's core values of passion, responsibility, and commitment to progress.”