Danish pharmaceutical companies Novo Nordisk, Lundbeck and most recently Leo Pharma have shown impressive strength in their ability to increase their cash flow from operations despite the global financial crisis, writes financial daily newspaper Børsen. Leo Pharma has just published its annual report for 2008 which shows the company generated a 9% growth in turnover to EUR 766m and profits before tax of EUR 429m, the best result ever.
Gitte P. Aabo, president and CEO of LEO Pharma says in a company press release: “Profits for 2008 are satisfactory, especially as it has been achieved through a high growth in sales. In particular, it is our anti-coagulant Innohep and the psoriasis drug Daivobet which have driven the growth in sales with increases of 25% and 23% respectively.”
The company says that with an equity of EUR 2,727m and a positive cash flow of EUR 356m, it has a favourable position to expand despite the global financial crisis.
Leo Pharma plans to buy projects for its product portfolio, make further investments in marketing of new products, invest in increased production capacity and establish subsidiaries in China and Mexico.
Aabo declines to disclose the sums involved in the planned investments, but says that profits are expected to decrease in the coming years.
"We believe that although these investments are associated with some uncertainty, it is the right thing to do to ensure that Leo Pharma has the best starting point for a good and stable development in the long run," she says.
LEO Pharma, founded in 1908, is one of the world's leading companies in psoriasis treatment. The company develops products for the treatment of skin diseases, coagulation disorders, hypertension, infectious diseases and diseases of bone metabolism. Leo Pharma employs approx. 3,000 people.