LEO Pharma delivers double-digit revenue growth and strong progress for strategic transformation

LEO Pharma delivered another year of strong progress in 2024, with both sales growth and adjusted EBITDA margin ahead of the initial outlook for the year, putting the company on track to meet its profitability targets and to achieve its long-term strategic objectives.

“2024 was a year of strong progress for LEO Pharma with double-digit growth in sales and another year of significantly improved EBITDA. A major highlight in 2024 was the approval and launch of our pioneering innovative topical Anzupgo® for chronic hand eczema (CHE). Additionally, we have strengthened our pipeline and successfully implemented efficiency initiatives set to substantially further improve our financial performance in 2025 and return LEO Pharma to a positive net result,” said CEO Christophe Bourdon.

Progress on strategic priorities

LEO Pharma’s performance last year puts it on track to meet its ambitions for sustainable, profitable growth and innovation, as set out in 2021, when the company embarked on a multi-year transformation strategy anchored in three areas: growth, pipeline and profitability.

Over 2024, LEO Pharma made significant progress, delivering another year of double-digit sales growth, advancing our innovation agenda with the approval and launch of Anzupgo®, and optimizing our operations with a strong emphasis on disciplined capital allocation.

“With our innovative portfolio demonstrating significant commercial potential, and by maintaining financial discipline, delivering consistent high growth, and building an attractive pipeline, we are creating a foundation for long-term financial strength as we bring more innovation to patients,” said CEO Christophe Bourdon.

Importantly, the progress made in 2024 has laid the foundations for significant further progress in 2025 and beyond, both financially and in innovation. The year has started strong with the January 2025 strategic partnership with Gilead to accelerate the STAT6 program.

Outlook for 2025

Building on the progress achieved in 2024 the outlook for 2025 is as follows:

• Revenue growth of 6-9% in CER.
• Adjusted EBITDA margin of 15-18% (2024: 7%), excluding the DKK 1.8 billion one-time upfront payment from the strategic partnership with Gilead.
• Reported net profit is expected to be positive for the year (2024: DKK 1.8 billlion loss), and free cash flow (excluding M&A) is also anticipated to be positive (2024: negative DKK 52 million).

Growth at constant exchange rates is expected to be driven by strong double-digit increases for Adtralza®/Adbry® and the launch of Anzupgo® in additional markets, including the U.S. in the second half of the year, pending FDA approval. Group revenue growth at constant exchange rates is expected to be higher in the second half of the year compared to the first half, due in part to the increasing impact from the launch of Anzupgo®. Given current exchange rates versus the Danish krone (as of 21 February 2025), full-year revenue growth reported in DKK is expected to be 1 percentage point higher than at CER.

The adjusted EBITDA margin is expected to improve to 15-18% in 2025, up from 7% in 2024, driven by sales growth and efficiency gains from restructuring initiatives implemented in 2024. Adjusted EBITDA excludes the DKK 1.8 billion one-time upfront payment from the strategic partnership with Gilead announced on January 11, as well as other non-recurring items. Reported net profit is expected to be positive for the year, and free cash flow (excluding M&A) is also anticipated to be positive.