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ALK delivers 8% revenue growth with operating profit up 128% in Q3 (unaudited)

ALK saw growth in all sales regions in Q3, led by sales of tablets and SCIT. As expected, European tablet sales picked up and grew by 14%, mainly driven by new patient initiations. Operating profit (EBIT) increased by 128% in local currencies on sales growth and gross margin improvements.

Q3 2023 financial highlights

Comparative figures for Q3 2022 are shown in brackets. Revenue growth rates are stated in local currencies, unless otherwise indicated

• Total revenue increased by 8% in local currencies to DKK 1,110 million (1,062), equalling 9% growth when disregarding the one-year rebate increase in Germany. Currencies lowered reported growth by 3 p.p.

• Tablet sales increased by 10% to DKK 491 million (458) on 14% growth in Europe and 26% growth in North America while sales in International markets decreased 5% due to phasing of product shipments to Japan.

• Combined SCIT/SLIT-drops sales increased by 23% to DKK 484 million (407), fuelled by continued growth across Europe and an extraordinarily high level of product shipments to China.

• Sales of Other products and services decreased by 28% to DKK 135 million (197) as Jext^® sales, as anticipated, declined steeply due to intermittent supply shortages from ALK’s contract manufacturer of adrenaline-filled cartridges. The decline in Jext^® sales lowered overall revenue growth by 4 p.p. in Q3.

• Operating profit (EBIT) increased by 128% in local currencies and by 116% in reported currency to DKK 147 million (68) on sales growth, gross margin improvements and a modest decline in capacity costs, as certain sales and marketing activities saw some phasing between Q3 and Q4.
  
  

Financial performance for the first nine months 2023

Progress on strategic priorities

• Based on the recent successfully completed Phase 3 trial, ALK has started preparing a registration application for authorities in Europe and Canada with the aim of expanding the indication of the tree tablet (ITULAZAX^®) to include patients aged five to 17.

• Registration applications with the aim of expanding indications for the house dust mite (HDM) tablet (ACARIZAX^®) to include children are expected to be submitted to the European and American authorities in the near future.

• First interim readouts from the Phase 1 trial of the tablet treatment for peanut allergy are still expected end-2023.

• The regulatory review of the BLA for the HDM tablet in China is ongoing.