Annual report 2022  
Allergy solutions  
for life  
ALK-Abelló A/S  
Bøge Allé 6-8, DK-2970 Hørsholm, Denmark, CVR no. 63 71 79 16  
 
Contents  
ALK annual report 2022  
2
Contents  
Management's review  
Financial statements  
3
6
7
9
Letter from the Chairman and CEO  
Performance highlights  
50 Statement by Management on  
the annual report  
2023 outlook  
51 Independent auditor’s report  
55 Consolidated financial statements  
60 Notes to the consolidated financial  
statements  
A century of scientific milestones  
11 ALK at a glance  
12 Five-year summary of financial  
highlights and key ratios  
13 Sales and market trends  
16 Financial review  
95 Parent company financial  
statements  
99 Notes to the parent company  
financial statements  
18 Q4 review  
20 The growing burden of allergy  
22 Strategy progress and 2023 targets  
34 Sustainability  
38 Risk management  
40 Governance and ownership  
45 Board of Directors  
48 Board of Management  
Find out more on  
our website  
ALK turns 100  
LinkedIn  
Twitter  
ALK has been a pioneer in fighting allergies  
for 100 years and counting. Its purpose is to  
continue helping people with allergies for  
many years to come.  
Find more information about  
ALK at www.alk.net  
 
Management's review  
ALK annual report 2022  
3
Letter from the Chair and CEO  
respiratory allergies – as well as efforts  
to build prescriber bases and the digital  
mobilisation of people with allergy via our  
klarify universe, which allows us to further  
connect with and support the millions of  
untreated people with allergy who could  
benefit from ALK’s products.  
Continued progress in 2023  
ALK delivered high growth in  
2022 and remains on course to  
deliver long-term, sustainable  
sales growth with significantly  
improving profitability.  
We expect ALK’s revenue growth to remain  
strong and earnings to further improve  
in 2023, despite inarguably tougher  
conditions. These include a one-year  
temporary rebate increase in Germany and  
high inflation putting pressure on the cost  
base.  
2022 was yet another year of strong  
Around the world, the tablet portfolio is  
now a well-established and fast-growing  
treatment concept that is transforming the  
way allergy is treated, and it continues to  
have outstanding future growth prospects.  
Alongside our work to enter new markets,  
such as China, and to cover additional  
patient populations and prepare the launch  
for children, a key remaining opportunity for  
tablets is to convince prescribers in the USA,  
where financial disincentives for allergists  
continue to block their wider adoption. We  
remain fully committed to succeeding in  
the USA, and to overcome these barriers,  
we will increasingly deploy resources to  
build new commercial channels that will  
give us access to millions more allergy  
immunotherapy (AIT)-eligible patients.  
We remain confident, and we are well-  
prepared to deal with these challenges.  
Plans have been made to further drive  
sales growth, our business platform and  
market positions are robust, and the  
transition within the allergy market is in our  
favour. So, we will continue to execute our  
current strategy and push for improved  
results. Revenue is expected to grow by  
7-11% (8-12%, disregarding the German  
rebate increase), while earnings margin  
(EBIT) is expected to grow by 25-45% in  
2023. This translates into an earnings  
margin (EBIT) of 13-15%, up from 10% in  
2022.  
growth in revenue and earnings for ALK,  
with sales up 13% in local currencies –  
equivalent to 15% in reported currency – on  
broad-based sales growth in all regions.  
Earnings (EBITDA) increased by 33% to  
DKK 708 million, driven by top-line growth,  
margin expansion and efficiencies. Results  
exceeded our initial expectations and were  
in line with our most recent outlook.  
In recent years,  
we have raised the  
bar and embarked on  
“
a journey to rigorously  
capture a greater share  
of the global allergy  
market.”  
Throughout the year, we also made strong  
progress with the items on our strategic  
agenda: the build-up in China to launch  
the ACARIZAX® tablet, the execution of  
R&D programmes – ranging from new  
discovery activities, to our entry into food  
allergy and large-scale clinical trials in  
Anders Hedegaard,  
Chair of the Board  
 
Management's review  
ALK annual report 2022  
4
in 2024/25 in Europe and North America –  
would be milestone events in our efforts to  
secure approvals for all respiratory tablets  
covering paediatric, adolescent, and adult  
use.  
also expanding our nationwide presence  
significantly, and sales of our current  
registered SCIT product are growing  
strongly. Meanwhile, we continue to  
support our partner for Jext® in China and  
believe in the long-term potential of this  
initiative as well.  
Full coverage for children  
and adolescents  
While we remain committed to delivering  
on our short-term promises, we are equally  
focused on sustaining high growth and  
profitability, now and beyond 2025. We  
will continue to invest significantly in 2023,  
and expect to make progress on each of  
our high-potential growth initiatives to  
safeguard, and potentially accelerate,  
ALK’s growth long-term.  
The commercial potential is compelling  
and full paediatric coverage would  
potentially expand our addressable  
markets significantly. Parents, who suffer  
in silence when it comes to their own  
allergies, are much more proactive when  
it comes to seeking treatment for their  
children. And children have a shorter and  
faster path to AIT-treatment, because  
healthcare professionals acknowledge  
the need to treat their underlying allergic  
disease, rather than allowing it to mature  
and progress to allergic asthma, or other  
serious comorbidities.  
Thirdly, on our ‘new horizons’ agenda, we  
remain committed to entering the attractive  
US market for adrenaline auto-injectors  
with an affordable, competitive, next-  
generation product, as soon as possible.  
The first of these opportunities is children.  
Many children in our society suffer from  
allergy-related sleep and cognitive  
function impairments, reduced academic  
performance, and restricted ability to  
participate in sport and other activities.  
Children deserve the right to live a life free  
from severe allergy symptoms, disease  
progression and stigma, and we at ALK  
are the only company that comes close  
to providing a long-term solution that  
is particularly suitable for children with  
allergies: our effective and convenient,  
once-daily tablets.  
Finally, we have initiated a Phase I trial with  
our new tablet treatment for peanut allergy  
– an important step in our quest to develop  
new, mainstream treatments for potentially  
life-threatening food allergies. The trial  
will assess the tolerability and safety of a  
once-daily tablet and we will see initial data  
from the first part of the trial during 2023.  
While we remain  
committed to  
delivering on our short-  
“
Further expansion and innovation  
The second opportunity is China, well on  
its way to becoming the world’s largest  
market for house dust mite (HDM) AIT.  
We recently submitted a registration  
application for our HDM tablet in China and,  
subject to approval, a launch is targeted  
for 2024/25. To prepare the ground, we  
just made the HDM tablet available in a  
special Medical Pilot Zone in China. We are  
term promises, we are  
equally focused on  
sustaining high growth  
and profitability, now  
and beyond 2025.”  
We are pursuing each of these potential  
accelerators at full speed and with funding  
in place. If we can repeat our recent  
successes, they will help to establish  
a much larger and stronger ALK – a  
company capable of generating attractive  
shareholder returns for many years to  
come.  
2023 will see data from our two pivotal,  
Phase III paediatric trials in house dust mite  
and tree pollen tablets. Their subsequent  
filings, approvals and launches – hopefully  
Carsten Hellmann,  
President & CEO  
 
Management's review  
ALK annual report 2022  
5
100 years of commitment  
In 2023, we are celebrating ALK’s 100th  
anniversary. ALK was founded on  
are an essential part of what makes ALK  
successful, and they deserve huge credit  
for helping to steer ALK though its recent  
transformation and the turbulence of  
COVID, while still managing to generate  
impressive results for the company.  
Financial highlights  
innovation and has stayed true to its  
heritage with a long history of ‘firsts’ in our  
industry: new treatment formulations, new  
disease areas, unprecedented large-scale  
clinical trials, a commitment to leading the  
transition towards evidence-based allergy  
care, and new ways of engaging with  
patients and healthcare professionals.  
Revenue  
Special thanks are also due to our partners,  
without whom we could not succeed, and  
to the patients and prescribers who place  
their trust in us – a trust we never take for  
granted and work hard to maintain.  
DKK 4 , 511 million  
(+13% l.c.)*  
EBITDA  
Our purpose has always been – and always  
will be – to provide allergy solutions for  
life. In recent years, we have raised the bar  
and embarked on a journey to rigorously  
capture a greater share of the global  
allergy market. We would like to thank our  
employees for their relentless commitment  
to this journey as well as their continuing  
efforts. Their endeavours allow us to deliver  
on our ambitious targets.  
Last, but not least, we would like to thank  
our shareholders. As ALK’s performance  
continues to improve towards our targets,  
we look forward to rewarding them through  
continued, long-term value creation.  
DKK 708million  
(+33% r.c.)**  
EBIT  
DKK 470 million  
Anders Hedegaard  
Carsten Hellmann  
(+61% r.c.)**  
Chair of the Board  
President & CEO  
On that note, the most recent employee  
engagement survey was very  
Free cash flow  
encouraging. This saw us improve our  
overall engagement score further,  
and placed ALK among the top 5% of  
international benchmark companies,  
well above the healthcare benchmark.  
Our great employees all over the world  
DKK 65million  
*
l.c.: local currencies  
** r.c.: reported currency  
 
Management's review  
ALK annual report 2022  
6
Performance highlights  
2022 business highlights  
2022 sustainability highlights  
Registration  
Phase I clinical  
development of tablet  
for treatment of peanut  
allergy  
Agreement with  
contract manufacturer  
to secure its tablet  
ALK committed to  
setting new, science-  
based target for CO2  
reduction  
~2.4 million people  
CO2 emissions down  
41% from 2019  
baseline  
application submitted  
for HDM tablet in China  
on treatment with  
ALK products, a net  
increase of 300,000  
capacity towards 2030  
Exclusive licensing  
agreement on launch  
of ALK’s house dust  
mite tablet in India  
Share split completed  
to support liquidity in  
ALK’s share  
Two upgrades to  
the full-year growth  
outlook  
59% of waste was  
recycled or reused,  
exceeding 2022  
targets  
2022 targets for  
energy and water  
Share of women in  
VP and senior director  
positions increased  
to 34%  
consumption were met  
 
Management's review  
ALK annual report 2022  
7
2023 outlook  
2023 targets  
Revenue growth  
disregarding the one-year temporary  
rebate increase in Germany. Growth is  
anticipated for all tablet brands and  
all sales regions, with Central Europe,  
Northern Europe, Japan and North  
America expected to lead the way through  
additional market share gains, further  
expansion of prescriber and patient bases  
as well as progress from the ongoing  
market transition in favour of evidence-  
based allergy medicines. As in previous  
years, some fluctuations in the quarterly  
tablet sales are anticipated, reflecting  
current market dynamics and phasing of  
product supply to partners.  
Improving EBIT margin in line  
with long-term ambitions  
ALK expects to continue its  
trajectory of high organic growth  
and earnings improvement in 2023.  
ALK expects operating profit to improve  
in 2023, fuelled by revenue growth, and  
benefits and efficiencies from increased  
scale. The EBIT margin is expected at  
13-15%, versus 10% in 2022, corresponding  
to an improvement of 25-45%, which is in  
line with ALK’s long-term earnings ambition  
of an EBIT margin of around 25% in 2025.  
7-11%  
Higher EBIT margin  
(Revenue growth rates are stated as  
organic growth in local currencies, unless  
otherwise indicated)  
13-15%  
(up from 10% in 2022)  
13-15% EBIT margin corresponds to a  
19-21% EBITDA margin  
ALK expects broad-based growth in all  
sales regions – Europe, North America  
and International markets – in 2023.  
Total revenue is expected to grow by  
7-11% organically, equalling 8-12%  
growth when disregarding the one-year  
temporary mandatory rebate increase of 5  
percentage points for all prescription drugs  
in ALK’s largest market, Germany, in 2023.  
The gross margin is expected to further  
benefit from higher tablet and SCIT sales  
volumes as well as efficiencies in product  
supply. However, this impact will be  
somewhat offset by different factors,  
including the increased rebate in Germany,  
higher tablet shipments to Torii in Japan  
at lower gross margins, changes to the  
product mix, and modest cost inflation.  
Consequently, the gross margin is expected  
to increase by up to 1% percentage point on  
the 62% seen in 2022.  
From EBITDA to EBIT  
ALK will use EBIT – Earnings Before Interest  
and Taxes – as the prime indicator of the  
company’s profitability aspirations going  
forward. Hence, ALK’s short-term financial  
indications for operating profit are now  
aligned with its long-term indications,  
rather than the previously applied EBITDA.  
The change reflects an increasing focus on  
the underlying earnings generation of the  
company and the fact that the next phase  
of the strategy is one of stable capital  
expenditure.  
In addition, ALK expects sales growth from  
the remaining non-tablet portfolio, mainly  
driven by SCIT and life science products,  
whereas Jext® sales are expected  
to decline somewhat following the  
extraordinary sales growth of 2022, fuelled  
by supply issues in the wider market.  
Tablets will remain key to growth, and  
are expected to grow by up to 15%,  
which equals up to 17% growth when  
 
Management's review  
ALK annual report 2022  
8
The overall capacity cost to revenue  
is expected to improve as ALK further  
leverages its existing platforms to drive  
efficiencies, and normalises R&D spend.  
Higher sales and marketing costs are  
planned to support preparations for  
paediatric tablet launches, the build-up in  
China, and digital engagement projects,  
but the overall sales, marketing and  
administrative expenses ratio to revenue  
is expected to decrease. R&D expenses  
are planned to decline to around DKK  
600 million, reflecting the start of a  
normalisation after a number of years with  
extraordinarily high R&D costs to complete  
the clinical Phase III programme for the  
respiratory tablet portfolio.  
Key assumptions  
•
Reduced spending power among  
consumers amid higher living costs  
is not expected to materially affect  
demand for AIT, since the majority of  
ALK’s sales either involve products  
with no co-payments or insignificant  
co-payments by patients.  
•
•
•
ALK's exposure to the ongoing  
inflationary pressure on its cost base  
is expected to remain modest.  
CAPEX is projected at around DKK 400  
million. Free cash flow is expected to  
be positive.  
•
•
The overall AIT market in Germany is  
expected to gradually recover in 2023  
following its weakness in the second  
half of 2022.  
The outlook is based on ALK’s current  
portfolio and does not include revenue  
from acquisitions, new partnerships,  
or the in-licensing of products, nor  
does it include payments related to  
M&A or in-licensing activities.  
COVID is not assumed to materially  
affect clinical and commercial  
activities, sales, nor investments in  
Europe and North America, however,  
the pandemic continues to cause  
a degree of uncertainty regarding  
capacity at clinics and patients’  
behaviour in some markets, such as  
China and Japan.  
•
The outlook is based on current  
exchange rates, resulting in a negative  
effect of approximately 1 percentage  
point on reported revenue and an  
immaterial effect on reported EBIT.  
Forward-looking statements  
This report contains forward-looking statements, including forecasts of future revenue, operating  
profit, and cash flows as well as expected business-related events. Such statements are, by their very  
nature, subject to risks and uncertainties, as various factors, some of which are beyond the control of  
ALK, may cause actual results and performance to differ materially from the forecasts made. Without  
being exhaustive, such factors include e.g., consequences of the COVID pandemic, general economic  
and business-related conditions including: legal issues, uncertainty relating to demand, pricing,  
reimbursement rules, partners’ plans and forecasts, fluctuations in exchange rates, competitive  
factors and reliance on suppliers. Additional factors include the risks associated with the sourcing and  
manufacturing of ALK’s products, as well as the potential for side effects from the use of ALK’s products,  
as allergy immunotherapy may be associated with allergic reactions of differing extents, durations, and  
severities.  
•
Pricing and reimbursement schemes  
are generally expected to be stable,  
except for the one-year temporary  
rebate increase in Germany in 2023,  
which is expected to lower ALK’s  
revenue by around DKK 50 million, and  
minor adjustments in certain markets  
in Southern Europe.  
 
Management's review  
ALK annual report 2022  
9
A century of scientific milestones  
The history of ALK can be traced back 100 years to a seminal  
moment in a Copenhagen laboratory in 1923. Since then, a series  
of scientific milestones has fuelled the company’s expansion and  
1989  
1990  
ALK (Abelló)  
introduces the world’s  
first sublingual allergy  
immunotherapy drops  
(SLIT-drops)  
1992  
led to major advances in the treatment of allergies.  
The Lundbeck Foundation  
– which awards research  
grants primarily to biomedical  
sciences research with focus  
on neuroscience – becomes  
the major shareholder of ALK  
ALK merges with rival  
Spanish company  
Abelló to become  
ALK-Abelló  
1923  
2001  
After returning from the USA with allergen  
extract recipes, Doctor Kaj Baagøe and  
pharmacist Peter Barfod produce the first  
pharmaceutically manufactured allergen extract  
at the Copenhagen University Hospital  
ALK introduces the  
sublingual allergy  
immunotherapy (SLIT)  
tablets development  
programme  
1976  
1978  
The world’s first  
standardised allergy  
immunotherapy, Alutard SQ®,  
is launched by ALK  
1928  
ALK develops the first  
standardised process for  
manufacturing allergen  
extracts  
Peter Barfod takes over the  
Frihavn Pharmacy in Copenhagen  
where he develops the  
commercial potential of allergy  
immunotherapy treatments  
1961  
ALK is transformed  
into the limited  
company ALK A/S  
1949  
1972  
2006  
2005  
Production of allergy immunotherapy treatments and  
diagnostics is centred at an independent unit called  
‘Allergologisk Laboratorium København’ (ALK)  
ALK develops a technique – crossed radio-  
immuno-electrophoresis (CRIE) – to accurately  
identify the proteins that trigger allergies  
GRAZAX® – the world’s  
first SLIT-tablet, is  
launched in Europe  
ALK becomes independently listed  
on Nasdaq Copenhagen following the  
divestment of Chr. Hansen Ingredients.  
GT-08 trial (grass tablet) is the first SLIT-  
tablet trial to demonstrate clinical efficacy  
in allergic rhinitis  
 
Management's review  
ALK annual report 2022  
10  
Continue the journey here  
2007  
PAT trial publishes 10-year  
follow-up data showing long-  
term reduced risk of asthma  
following treatment with  
Alutard SQ®  
2015  
ACARIZAX® – for house dust  
mite allergy – is the world’s first  
SLIT-tablet to be approved for  
both allergic rhinitis and allergic  
asthma. In Japan the product  
is launched under the name  
MITICURE™  
2008  
MT-02 trial (house dust mite  
tablet) is the first SLIT-tablet  
trial to demonstrate clinical  
efficacy in allergic asthma.  
ALK-Abelló introduces new  
logo and changes name to  
ALK. ALK-Abelló remains the  
legal name of the company  
2016  
ACARIZAX® – ALK’s tablet  
against house dust mite  
allergy – is launched in Europe  
and Australia. The GRAZAX®  
Asthma Prevention (GAP) trial  
demonstrates that ALK’s grass  
tablet reduces the risk of asthma  
symptoms in children with  
allergic rhinitis  
2014  
GRASTEK® – ALK’s tablet  
against grass pollen  
2009  
GRAZAX® is the first SLIT-  
tablet to be approved as a  
disease-modifying treatment.  
ALK’s new headquarters  
in Hørsholm, Denmark is  
inaugurated  
allergy – is launched in the  
USA, quickly followed by  
RAGWITEK® – ALK’s tablet  
against ragweed allergy  
2011  
ALK and Torii agree a  
partnership to develop and  
commercialise ALK’s house dust  
mite AIT products for Japan  
2017  
2019  
2021  
2023  
For the first time, allergy immunotherapy is recommended as  
a treatment option in the Global Initiative for Asthma (GINA)  
guidelines, based on data for ACARIZAX®  
ITULAZAX® – ALK's tablet  
against tree pollen allergy – is  
launched in Europe  
Real-world evidence study by ALK involving 92,000 allergy patients demonstrates  
AIT’s long-term effects on allergy and asthma. ALK announces an entry into food  
allergy treatment and begins developing a tablet against peanut allergy  
100 years of discoveries  
and cooperation  
 
Management's review  
ALK annual report 2022  
11  
ALK at a glance  
Resources  
2022 results  
Becoming relevant  
for more people  
with allergy  
Research & development  
~2.4  
million patients in  
treatment with ALK  
products  
100 years’ profound  
understanding of allergy  
ALK is a global allergy solutions  
company with a wide range of  
diagnostics, allergy immunotherapy  
(AIT) treatments, and services to  
meet the unique needs of allergy  
sufferers, their families, and  
doctors around the world.  
Clinical  
trials  
Process  
innovations  
Regulatory  
processes  
Discovery  
>700,000  
people mobilised digitally  
to find a doctor  
2,700 employees with  
diverse talents  
Manufacturing  
85%  
of adults with respiratory  
allergy covered by tablets  
Large-  
scale  
Purify/  
stan-  
Cultivate  
allergenic  
source  
Insights from academia,  
patients and partners  
Safety and  
quality  
manufac-  
turing at  
7 sites  
dardise  
allergen  
extracts  
ALK is a world leader in respiratory allergies  
and holds emerging positions in food  
allergies and anaphylaxis. Its business model  
is centred around strong R&D skills, insight  
into immunology, unique manufacturing  
processes, and a desire to bring the best of  
modern science to the allergy field. Based  
on the industry’s most comprehensive  
clinical data set and insights into patient  
behaviour, ALK wants to transform the  
clinical landscape from experience-based  
to evidence-based medicine for patients,  
practitioners and payers.  
materials  
4,250  
healthcare professionals  
trained or educated by  
ALK  
Digital engagement  
platforms (including klarify)  
Distribution and sales  
11%  
three-year average  
15 markets  
Global  
Digital  
patient  
mobilisation  
organic revenue growth  
ALK present in  
47 markets  
Raw materials,  
energy, water, etc.  
served by  
distribution  
partners  
41%  
reduction of CO2 emissions  
vs. 2019 baseline  
Financial resources  
 
Management's review  
ALK annual report 2022  
12  
Financial highlights and key ratios  
for the ALK Group*  
DKK  
DKK  
2021  
DKK  
DKK  
2019  
DKK  
2018  
EUR  
2022  
EUR  
2021  
DKK  
2022  
DKK  
2021  
DKK  
2020  
DKK  
2019  
DKK  
2018  
EUR  
2022  
EUR  
2021  
Amounts in DKKm/EURm**  
2022  
2020  
Amounts in DKKm/EURm**  
Income statement  
Revenue  
Information on shares  
Proposed dividend  
4,511  
708  
3,916  
534  
3,491  
395  
3,274  
241  
2,915  
136  
607  
95  
527  
72  
-
111  
-
111  
-
111  
-
111  
-
111  
-
14.9  
-
14.9  
EBITDA  
Share capital  
Operating profit (EBIT)  
Net financial items  
Profit before tax (EBT)  
Net profit  
470  
292  
150  
(14)  
(96)  
63  
39  
Shares in thousands of DKK 0.5 each  
Share price, at year end  
Net asset value per share  
222,824  
96  
222,824  
172  
222,824  
125  
222,824  
82  
222,824  
48  
222,824  
12.9  
222,824  
23.1  
(23)  
447  
(13)  
279  
(49)  
101  
(17)  
(7)  
(3)  
(2)  
(31)  
(103)  
(170)  
2,341  
60  
45  
38  
29  
18  
16  
14  
14  
14  
2.4  
2.1  
335  
219  
25  
(50)  
2,385  
Key figures  
Average number of employees (FTE)  
2,609  
2,492  
2,419  
2,609  
2,492  
Gross margin – %  
61.9  
15.7  
10.4  
9.0  
14.8  
-
61.2  
13.6  
7. 5  
58.1  
11.3  
4.3  
0.8  
5.5  
-
57.8  
7.4  
56.0  
4.7  
61.9  
15.7  
10.4  
9.0  
61.2  
13.6  
7. 5  
Balance sheet  
Total assets  
Invested capital  
Equity  
EBITDA margin – %  
6,308  
3,400  
3,988  
5,830  
2,931  
3,480  
5,563  
2,807  
3,153  
5,495  
2,759  
3,176  
4,865  
2,968  
3,179  
848  
457  
536  
784  
394  
468  
EBIT margin – %  
(0.4)  
(1.6)  
(0.5)  
-
(3.3)  
(5.3)  
(3.3)  
-
Return on equity (ROE) – %  
ROIC incl. goodwill – %  
Pay-out ratio – %  
6.6  
10.2  
-
6.6  
10.2  
-
14.8  
-
Cash flow and investments  
Depreciation, amortisation and impairment  
Cash flow from operating activities  
Earnings per share (EPS)  
Earnings per share (DEPS), diluted  
Cash flow per share (CFPS)  
Price earnings ratio (PE)  
Share price/Net asset value  
1.5  
1.5  
1.9  
63  
1.0  
1.0  
2.1  
0.1  
(0.2)  
(0.2)  
0.6  
(0.8)  
(0.8)  
(0.4)  
(61)  
3.4  
0.2  
0.2  
0.3  
63  
0.1  
238  
416  
242  
468  
245  
301  
255  
132  
232  
(95)  
32  
56  
33  
63  
0.1  
0.1  
1.4  
0.3  
172  
11.0  
Cash flow from investing activities  
(351)  
(55)  
(266)  
(45)  
(245)  
(26)  
(157)  
(20)  
(147)  
(199)  
(52)  
(47)  
(7)  
(36)  
(6)  
172  
11.0  
1,092  
8.8  
(356)  
5.7  
– of which investment in intangible assets  
– of which investment in tangible assetss  
5.4  
5.4  
(298)  
(218)  
(196)  
(126)  
(40)  
(29)  
– of which acquisitions of  
companies and operations  
Revenue growth – %  
Organic growth  
-
-
-
(20)  
(25)  
(21)  
-
-
13  
2
12  
-
8
11  
1
1
(1)  
-
13  
2
12  
-
Free cash flow  
65  
202  
56  
(294)  
9
27  
Exchange rate differences  
Acquisitions/divestments  
Total growth revenue  
(1)  
*
Management’s review comprises pages 1-48 as well as ‘Financial highlights and key ratios by quarter for the ALK Group’ on  
page 108  
-
-
-
-
-
-
15  
12  
7
12  
-
15  
12  
** Financial highlights and key ratios stated in EUR constitute supplementary information to the Management’s review. The  
exchange rate used in translating from DKK to EUR is the exchange rate prevailing on 31 December 2022 (EUR 100 = DKK 744)  
(31 December 2021: EUR 100 = DKK 744)  
In March 2022, ALK-Abelló A/S completed a share split at a ratio of 1:20, each existing share of a nominal value of DKK 10 was split into 20 new  
shares of a nominal value of DKK 0.50 each. The company's share capital remains DKK 111,411,960. As a result of the share split, comparison  
figures for EPS, DEPS, share price, share number, net asset value per share and share price/net asset ratio have been restated accordingly.  
For definitions and reconciliation of alternative performance measures, see page 94  
 
Management's review  
ALK annual report 2022  
13  
Sales and market trends  
Revenue by geography  
Revenue by product line  
market growth and competitor market  
supply issues.  
ALK’s full-year revenue for 2022  
ended at DKK 4,511 million (3,916)  
with organic growth of 13%. This  
Growth  
(l.c.)  
Growth  
(l.c.)  
Amounts in DKKm  
2022  
2021  
Amounts in DKKm  
2022  
2021  
Europe  
was in line with the most recent  
European revenue was up 9% at DKK 3,058  
Europe  
3,058  
857  
9%  
12%  
39%  
13%  
2,809  
683  
SCIT/SLIT-drops  
SLIT-tablets  
1,748  
2,102  
661  
3%  
18%  
27%  
13%  
1,655  
1,774  
487  
outlook, issued on 10 November  
2022, and reflected growth across  
all sales regions. Currencies had  
a positive effect, resulting in  
reported growth of 15%.  
million (2,809), with growth fuelled by  
tablets – which increased by 13% – and  
strong Jext® sales.  
North America  
Int’l markets  
Overall revenue  
596  
424  
Other products  
Overall revenue  
4 , 511  
3,916  
4 , 511  
3,916  
ALK continued to expand its market  
position for tablets, as tablets remained a  
preferred treatment option for people with  
moderate-to-severe respiratory allergies.  
Sales grew in double digits in the important  
northern European markets of the Nordics  
and Germany on market expansion and  
market-share gains. Double-digit sales  
growth was also seen in several other  
important markets, including the Benelux  
countries and Eastern Europe, while in  
France tablet sales grew by high single  
digits.  
Revenue by geography  
Revenue by product line  
Europe  
North America  
SCIT/SLIT-drops  
Other  
SLIT-tablets  
International markets  
(Comparative figures for 2021 are shown  
in brackets. Revenue growth rates are  
organic and stated in local currencies,  
unless otherwise indicated)  
13% (11%)  
19% (17%)  
15% (13%)  
68% (72%)  
39% (42%)  
Sales growth was driven by tablets which  
increased by 18%, while sales of ALK’s  
non-tablet product portfolio were up 8%,  
boosted by strong growth in International  
markets and North America as well as by  
the adrenaline auto-injector (AAI) Jext®  
in Europe, which benefitted from strong  
2022  
(2021)  
2022  
(2021)  
46% (45%)  
In the second half of the year, tablet sales  
growth was temporarily impacted mainly  
 
Management's review  
ALK annual report 2022  
14  
by a weakening of the overall AIT market in  
Germany. This was attributable to a wave  
of respiratory infections which crowded  
out AIT patients from the clinics. This,  
together with a weak tree pollen season,  
resulted in fewer patient initiations. In  
addition, some prescribers responded  
slowly to the phasing out of reimbursement  
for non-registered products. As a result,  
overall AIT industry sales in Germany are  
estimated to have declined in Q4. Despite  
this, ALK's market position remained  
strong, allowing the company to further  
expand its leadership in the country and  
contributing to the strong overall results.  
Combined sales of SCIT and SLIT-drops  
were unchanged in light of increased sales  
of SCIT venom products towards the end of  
the year as they recovered from the earlier  
unavailability of specific products and  
benefitted from supply issues affecting  
other manufacturers. Sales of other  
products increased 39% overall, as Jext®  
sales surged 51% in response to market  
growth and supply issues affecting other  
manufacturers of AAIs.  
local market transition from SLIT-drops to  
tablets. ALK retained its market leadership  
in terms of the number of patients treated.  
Sales of bulk allergen extracts increased  
3%, while revenue from other products  
improved 22%, helped by strong sales  
growth from non-allergy-related life  
science products.  
General market conditions were largely  
stable across Europe in 2022, and there  
were no notable changes affecting the  
pricing and reimbursement of AIT products,  
although Germany did announce a  
one-year temporary mandatory rebate  
increase for 2023 of 5 percentage points  
for all prescription products.  
International markets  
Revenue from International markets  
increased 39% in local currencies to DKK  
596 million (424), largely due to strong  
performances from the region’s two largest  
markets – China and Japan. In-market  
sales growth remained resilient despite  
quarterly fluctuations due to the phasing of  
product shipments, and despite the strong  
impact of COVID, in both Japan and China.  
Overall sales in France were slightly down  
on the combined effects of COVID in the  
first half of the year and the ongoing  
North America  
Revenue in North America grew by 12% in  
local currencies to DKK 857 million (683).  
Tablet sales increased 14%, supported  
by strong growth in Canada, whereas the  
USA still saw an ongoing weak market  
development. ALK continued its efforts  
towards building new channels, e.g,the  
paediatric channel, cf. strategy section on  
page 23.  
Although small in scale, tablet sales  
through Abbott, ALK’s partner for south-  
east Asia, also grew encouragingly.  
5-year total revenue by geography  
5-year total revenue by product line  
Europe  
North America  
SCIT/SLIT-drops  
Other  
SLIT-tablets  
International markets  
DKKm  
DKKm  
5,000  
4,000  
3,000  
2,000  
1,000  
0
5,000  
4,000  
3,000  
2,000  
1,000  
0
2018 2019 2020 2021 2022  
2018 2019 2020 2021 2022  
 
Management's review  
ALK annual report 2022  
15  
Germany: a market in transition  
authorisations. To date, just two of these  
have been approved, and a further 17 were  
forced to exit the market in 2022. Meanwhile  
just 44 more of the original 6,500 products  
remain on the market under transitional  
arrangements that are expected to end in  
2026.  
has increased its market share significantly  
and Germany has become ALK’s single  
largest market, with market share in 2022  
estimated at around 35%, up from 23% in  
2018.  
Germany, ALK’s single  
largest market, is a pioneer  
in transforming the allergy  
immunotherapy (AIT) market.  
On an EU level, the importance of  
the transition from a landscape of  
In parallel, further pressure from allergy  
undocumented legacy products towards  
documented and authorised products is  
underpinned by the 2020 adoption of a new  
European guideline, which aims to further  
support the availability of evidence-based,  
safe and efficacious allergen treatments and  
diagnostics across Europe.  
For years, the local allergy market was  
typified by individually-produced, so-called  
‘named-patient products’ (NPPs) which is an  
allergen product, prepared for an individual  
patient following a prescription by their  
doctor. But a shift – led by pressure from  
regulators and payers – towards clinically  
tested and registered treatments that are  
documented to pharmaceutical industry  
standards, has resulted in major changes.  
experts and national and regional payers  
has seen Germany update its reimbursement  
and prescription guidelines in favour of  
evidence-based, authorised AIT products.  
As the market further consolidates around  
authorised products, and those unable to  
meet the higher documentation thresholds  
continue to disappear, the market is being  
fundamentally reshaped. This process  
has led to some disruption among both  
traditional AIT manufacturers and the more  
than 10,000 physicians who traditionally  
have been involved in AIT.  
As regulations have tightened,  
undocumented or unviable products have  
been squeezed out of the market. Before  
2008, there were more than 6,500 individual  
AIT products available in Germany, for most  
of which no, or limited data, on quality, safety  
or efficacy were available or independently  
assessed. Of those, 123 sought marketing  
In 2019, ALK became the first company in  
Germany to offer a complete product range  
for major allergens featuring only authorised  
tablets and SCIT products. Since then, ALK  
 
Management's review  
ALK annual report 2022  
16  
Financial review  
2022 guidance history  
yielded a 1 percentage point improvement  
ALK’s full-year operating profit  
(EBITDA) increased 33% in  
in the gross margin to 62% (61%), mainly  
reflecting increasing tablet sales and  
production efficiencies – although the  
gross margin was reduced somewhat  
by increased shipments to Torii in Japan,  
which yield lower gross margins. ALK  
continued to implement its product and  
site strategy, covering investments for  
the upgrade of legacy products and  
associated manufacturing facilities,  
and to secure quality and robustness  
in product supply. In the second half of  
2022, cost of sales included one-time,  
extraordinary costs of approximately DKK  
30 million related to the discontinuation of  
a non-strategic product and unplanned  
facility maintenance.  
2022E  
8 Feb outlook  
2022E  
2022E  
2022  
Amounts in DKKm  
4 Aug outlook  
10 Nov outlook  
actual  
reported currency to DKK 708  
million (534), which was in line  
with the updated outlook issued on  
10 November 2022, and reflected  
higher sales and improved gross  
margin. The corresponding EBIT  
margin was 10% (7%).  
Revenue  
EBITDA  
8-12% (l.c.)  
10-13% (l.c.)  
11-13% (l.c.)  
13% (l.c.)  
DKK 708m  
DKK 625-725m  
DKK 675-750m  
DKK 675-750m  
Revenue  
Gross margin  
(Comparative figures for 2021 are shown  
in brackets. Revenue growth rates are  
stated in local currencies, unless otherwise  
indicated)  
Revenue  
Revenue  
Gross profit  
Cost of sales  
Revenue growth  
Gross margin  
DKKm  
%
DKKm  
%
5,000  
4,000  
3,000  
2,000  
1,000  
30  
20  
10  
0
5000  
4000  
3000  
2000  
1000  
80  
70  
60  
50  
40  
2022 revenue increased by 13% in local  
currencies to DKK 4,511 million (3,916).  
Exchange rate fluctuations had a positive  
effect, resulting in reported growth of 15%.  
Capacity costs increased 8% in local  
currencies to DKK 2,322 million (2,105).  
As planned, R&D expenses were slightly  
above the level of 2021, reflecting ongoing  
Phase III clinical trial activities. Sales and  
marketing expenses increased by 8% in  
local currencies, and included investments  
Cost of sales increased 9% in local  
currencies to DKK 1,720 million (1,520). The  
gross profit of DKK 2,791 million (2,396)  
-10  
2018 2019 2020 2021 2022  
2018 2019 2020 2021 2022  
 
Management's review  
ALK annual report 2022  
17  
in market expansion in China, digital  
DKK 708 million (534), driven by higher  
sales and an improved gross margin.  
Exchange rates had only a minor effect on  
operating profit. EBIT (operating profit  
before interest and tax) increased 61% in  
reported currency to DKK 470 million (292),  
which was equivalent to an EBIT margin of  
10% (7%).  
Cash flow from operating activities  
was DKK 416 million (468), driven by higher  
earnings which were offset by changes  
in working capital due to the timing of  
payments. Cash flow from investment  
activities was DKK minus 351 million  
(minus 266), on the build-up of additional  
capacity for SLIT-tablet production,  
upgrades to legacy production, and  
investments for the in-house next  
Cash flow from financing activities was  
DKK minus 42 million (minus 311), mainly  
relating to the repayment of borrowings.  
Currently ALK has DKK 1,292 million in  
unused credit facilities, running until the  
end of 2025.  
activities, the paediatric expansion, a  
generally high activity level including  
medical events and congresses, as well  
as costs associated with optimising ALK's  
commercial footprint, including the closing  
down of activities in Turkey. Administrative  
expenses increased, mainly due to IT and  
organisational development activities.  
At the end of 2022, ALK held 1,824,975 of its  
own shares, or 0.8% of the share capital,  
versus 1.3% at the end of 2021.  
Net financials were a loss of DKK 23  
million (a loss of 13). Tax on the profit  
totalled DKK 112 million (60), and net profit  
increased 53% in reported currency to DKK  
335 million (219).  
EBITDA (operating profit before  
depreciation and amortisation)  
increased 33% in reported currency to  
generation adrenaline auto-injector, which  
is currently in development. Free cash  
flow was positive at DKK 65 million (202).  
Equity totalled DKK 3,988 million (3,480)  
at the end of 2022, and the equity ratio was  
63% (60%).  
Research and development  
Sales, marketing and administration  
EBITDA  
EBIT  
Research and development expenses  
Percentage of revenue  
Administrative expenses  
Sales and marketing expenses  
Percentage of revenue  
EBITDA  
EBIT  
EBITDA margin  
EBIT margin  
DKKm  
%
DKKm  
%
DKKm  
%
DKKm  
%
800  
20  
16  
12  
8
1,600  
1,200  
800  
400  
0
60  
50  
40  
30  
20  
800  
20  
15  
10  
5
600  
15  
10  
5
600  
400  
200  
0
600  
400  
200  
0
400  
200  
0
0
4
0
200  
-5  
2018 2019 2020 2021 2022  
2018 2019 2020 2021 2022  
2018 2019 2020 2021 2022  
2018 2019 2020 2021 2022  
 
Management's review  
ALK annual report 2022  
18  
Q4 review  
Revenue by geography  
Revenue by product line  
(Comparative figures for Q4 2021 are  
shown in brackets. Revenue growth rates  
are stated in local currencies, unless  
otherwise indicated)  
ALK delivered 2022 full-year results in line  
with the most recent financial outlook,  
following a Q4 which saw revenue grow in  
all regions and across all product groups.  
Q4 revenue increased 12% to DKK 1,249  
million – the highest quarterly revenue  
to date. Growth was positively impacted  
by exchange rate fluctuations, so that  
reported growth in DKK was 14%.  
Q4 Growth  
Q4  
2021  
Q4 Growth  
Q4  
2021  
Amounts in DKKm  
2022  
(l.c.)  
Amounts in DKKm  
2022  
(l.c.)  
Europe  
871  
226  
152  
10%  
6%  
795  
193  
SCIT/SLIT-drops  
SLIT-tablets  
512  
581  
4%  
14%  
37%  
12%  
483  
509  
North America  
Int’l markets  
36%  
12%  
111  
Other products  
Overall revenue  
156  
107  
Overall revenue  
1,249  
1,099  
1,249  
1,099  
Q4 highlights  
Revenue in Europe was up 10% on double-  
digit growth in SCIT sales and strong triple-  
digit growth in Jext® sales. SCIT sales  
benefitted from the ongoing recovery in the  
venom AIT segment that previously suffered  
from the temporary unavailability of some  
venom initiation products, but also from  
improved pricing and rebate adjustments.  
Sales of Jext® continued to be fuelled by  
high demand in the wider market, which  
was impacted by supply issues.  
• Total revenue was up 12% in  
local currencies at DKK 1,249  
million (1,099)  
Revenue by geography  
Revenue by product line  
Europe  
North America  
SCIT/SLIT-drops  
Other  
SLIT-tablets  
International markets  
• Tablet sales grew by 14% to  
DKK 581 million (509)  
12% (10%)  
18% (18%)  
12% (10%)  
70% (72%)  
41% (44%)  
• Combined SCIT and SLIT-drops  
sales were up 4% at DKK 512  
million (483)  
2022  
(2021)  
2022  
(2021)  
47% (46%)  
• Sales of other products,  
including the adrenaline auto-  
injector, Jext®, increased 37% to  
DKK 156 million (107)  
Tablet sales in Europe were up 5%, mainly  
reflecting the slower start to the initiation  
season in ALK’s main market Germany cf.  
the sales and market section on pages  
 
Management's review  
ALK annual report 2022  
19  
Income statement  
13-14. Overall AIT industry sales in the  
German market were estimated to have  
declined in Q4, however, ALK’s sales  
In-market sales growth in China was also  
strong, despite intermittent regional  
outbreaks of COVID.  
Amounts in DKKm  
Q4 2022  
Q4 2021  
Revenue  
1,249  
478  
771  
62%  
185  
372  
76  
1,099  
remained resilient, allowing the company  
to further expand its leadership in both the  
overall AIT market and the tablet market  
segment. The Nordic region, Benelux, and  
a number of smaller markets continued to  
grow their tablet sales in double digits.  
Cost of sales  
398  
701  
64%  
179  
372  
71  
The gross margin was 62% (64%). The  
margin development reflected large  
shipments to Torii at lower margins,  
and continued investments in the  
implementation of the product and site  
strategy, as well as extraordinary costs for  
unplanned facility maintenance.  
Gross profit  
Gross margin  
Research and development expenses  
Sales and marketing expenses  
Administrative expenses  
Operating profit (EBIT)  
Net financials  
138  
(34)  
104  
26  
79  
Revenue in North America increased  
6%, mainly driven by sales growth from  
life science products. Sales growth in the  
largest category, bulk allergen extracts  
(SCIT) was negative and held back by  
temporary backorders which are expected  
to be fulfilled in the coming quarters,  
while growth rates were 4% for tablets  
and 17% for other products and services,  
respectively.  
(5)  
Profit before tax (EBT)  
Tax on profit  
74  
(2)  
76  
Capacity costs amounted to DKK 633  
million (622). R&D expenses were slightly  
above those for Q4 2021 due to ongoing  
clinical trial activity. Sales and marketing  
expenses increased, when adjusted for  
one-off restructuring costs in Q4 2021.  
The development reflected investments in  
market expansion in China and a generally  
high activity level in markets with positive  
momentum. The capacity costs to revenue  
ratio was down at 51% (57%).  
Net profit  
78  
Operating profit before depreciation and  
amortisation (EBITDA)  
201  
136  
Revenue from International markets  
grew by 36%, powered by strong growth  
in tablet shipments to Torii in Japan, while  
revenue from China was down on the  
timing of SCIT product shipments. In Japan,  
in-market growth was maintained for both  
MITICURE™ and CEDARCURE™, although  
new patient initiations were impacted  
by the ongoing effects of COVID, with  
fewer than usual patient visits to clinics.  
EBITDA of 201 million (136) was in line with  
the most recent outlook, mirroring higher  
sales and efficiencies across the business.  
EBIT increased 75% in reported currency to  
DKK 138 million (79).  
 
Management's review  
ALK annual report 2022  
20  
The growing burden  
of allergy  
The number of people with  
respiratory allergies has increased  
continuously over the past 60  
years and allergy is now one  
of the most common diseases  
globally, affecting as many as  
30% of adults and up to 40% of  
children in certain parts of the  
world. ALK estimates that, today,  
approximately 500 million people  
suffer from respiratory allergies  
worldwide.  
The burden of respiratory  
allergy is expected to increase  
due to climate change  
resulting in longer and more  
severe allergy seasons  
Children with allergic rhinitis  
are more likely to develop  
allergic asthma  
All of this is already placing a substantial  
burden on societies around the world –  
both in terms of direct healthcare costs,  
but also through lost productivity. In  
fact, estimates show that around 75% of  
the cost of allergic rhinitis – commonly  
known as hay fever – is largely hidden.  
 
Management's review  
ALK annual report 2022  
21  
There is also evidence to show that it can  
have a detrimental effect on academic  
performance.  
However, ALK estimates that just 1% of  
people suffering from allergic rhinitis  
actually receive AIT treatment today,  
even though the European Academy of  
Allergy and Clinical Immunology (EAACI)  
has declared AIT can achieve substantial  
results for patients, improving their quality  
of life and changing the course of their  
disease, while also reducing the long-term  
costs and disease burden for society.  
The effectiveness of  
The burden of respiratory allergy is  
allergy immunotherapy  
has been documented in  
multiple clinical trials  
over decades  
expected to increase even further due to  
climate change, as extended warm spells  
result in more airborne allergens, resulting  
in longer and more severe allergy seasons.  
In addition, climate change is allowing  
many plant species to migrate beyond  
their traditional locations, bringing new  
allergens to previously unaffected regions.  
Changing the paradigm  
ALK is working harder than ever to spread  
this knowledge – and to educate, promote  
and facilitate earlier access to allergy  
diagnoses and treatment with AIT. It is  
also raising awareness of the dangers  
of disease progression – also known as  
‘allergic march’ – where a child’s allergies  
and symptoms multiply as they grow older,  
potentially to include allergic asthma.  
Disease progression is another factor  
that is increasing the burden on society.  
For example, studies show that people  
with allergic rhinitis are significantly more  
likely to go on to develop allergic asthma.  
Again, children are particularly at risk, and  
genetic factors mean the risk is still higher if  
children have a parent with asthma.  
ALK believes that early diagnoses and  
effective treatment interventions are  
essential, not just for the potential  
healthcare benefits, but also as a means  
of reducing the wider costs of allergy to  
society.  
The message is clear: we cannot continue  
to underestimate the burden respiratory  
allergies place on either patients or  
healthcare systems. But unless we  
adjust our approach, as the prevalence  
of allergies increases, so will the burden  
on people with allergies, and the cost to  
economies through absenteeism, loss of  
productivity, cost of care, and reduced  
quality of life.  
With its strategic investments over recent  
years, ALK has become a leader in digital  
engagement with people with allergy,  
building a suite of apps, websites and tools  
under the ‘klarify’ banner that provides  
information, education and guidance on  
managing allergies.  
The role of allergy immunotherapy  
Despite these challenges, the situation  
can be improved. Allergy immunotherapy  
(AIT) has been extensively documented  
as being effective in reducing the  
symptoms of allergic rhinitis and asthma,  
and in improving quality of life for allergy  
sufferers.  
 
Management's review  
ALK annual report 2022  
22  
Strategy progress and 2023 targets  
ALK's strategic focus areas  
sustainable organic growth of 10% or  
more annually, with strong earnings  
improvements, to ramp up ALK’s EBIT  
margin to around 25% in 2025, driven by  
ALK continued the execution of its  
strategy in 2022, making progress  
with its focus areas.  
b
ALK's priority for  
the immediate  
sales growth, gross margin improvements  
and cost efficiencies. The strategy is  
further supported by selected longer-  
term initiatives, designed to safeguard,  
and potentially accelerate, ALK’s growth  
trajectory towards 2030 and beyond. These  
‘new horizons’ initiatives include developing  
mainstream food allergy treatments for  
peanut and tree nut, developing a next-  
generation anaphylaxis treatment, and  
pursuing other new innovations through  
research.  
future is to target  
ALK’s priority for the immediate future is to  
target continuous growth and improving  
profitability, as it seeks to become ever  
more relevant to more people with allergy,  
and to extend its global leadership in  
respiratory allergy. The steps towards  
fulfilling these ambitions fall into four key  
strategic focus areas: succeed in North  
America, complete and commercialise the  
tablet portfolio, consumer engagement  
and new horizons, and optimise for  
“
continuous growth and  
improving profitability.”  
x
excellence. All of this is underpinned by a  
company-wide ambition to lead the way on  
sustainability, through ALK's 'people and  
planet' commitments.  
ALK made broad-based progress on all four  
of its focus areas in 2022, except for the  
USA, where the tablets' sales progress is  
still impeded by slow adoption by allergists  
due to financial disincentives. 2022  
progress and 2023 priorities are described  
on the following pages.  
In 2023, ALK will also step up its  
sustainability efforts, strengthening  
reporting and committing to a new science-  
based target for CO2 emissions (cf. section  
on pages 34-37).  
The four strategic priorities map a path  
towards ALK’s financial ambitions for  
2025 and beyond. The strategy targets  
 
Management's review  
ALK annual report 2022  
23  
Succeed in North America  
reimbursement of SCIT treatments (allergy  
The business model for ALK's  
US tablets organisation is being  
adjusted to create a platform to  
succeed through new prescribers  
and new sales channels.  
shots) that are compounded for individual  
patients is critical to their income, and  
multi-allergen treatments remain standard  
practice.  
Accordingly, ALK is adapting its business  
model for tablets in the USA to unlock the  
market via new channels. Initial focus will  
be on paediatricians and new commercial  
partnerships, while the existing allergist  
tablets business will be focused on  
allergists who are supportive of tablets as  
a treatment concept in selected areas of  
the USA.  
Unlock the market  
Since 2017, ALK’s promotional efforts for  
tablets in the USA have predominantly  
been centred on allergists. Despite various  
strategies and tactics, the vast majority of  
allergists have been unwilling to adopt the  
FDA-approved tablet portfolio, because  
A key remaining opportunity for tablets is to  
convince prescribers in the USA, where financial  
disincentives for allergists continue to block their wider  
“
adoption. ALK remains fully committed to succeeding in  
the USA, and to overcoming these barriers.”  
 
Management's review  
ALK annual report 2022  
24  
healthcare system, primarily via retail  
pharmacies, urgent care clinics or  
and expand current prescriber and  
allergist groups.  
Paediatricians, who are estimated  
to treat 4 million AIT-eligible patients  
each year, have a high flow of patients  
with uncontrolled allergies and a high  
understanding of immunology and allergy,  
which is similar in its dynamics to that for  
allergists. But – in contrast to allergists –  
paediatricians are not equally financially  
disincentivised to prescribe tablets, and  
they would potentially welcome additional  
treatment options.  
on-demand virtual care providers. To make  
tablets more widely available, in 2023,  
ALK will focus on establishing commercial  
partnerships with selected innovators  
offering convenient, high-quality care.  
Key priorities for 2023  
• Canada, well on track to become a  
significant contributor to global tablet  
sales, has become a fully independent  
sales and marketing organisation  
within ALK, and its capabilities will be  
expanded.  
The existing allergist business will be  
refocused to target region-specific  
opportunities, mainly in east coast and  
west coast territories. The business  
will have the opportunity to grow with  
higher efficiency, supported by Medicaid,  
paediatric and adolescent indications,  
and digital consumer engagement  
programmes.  
Build new prescription and  
sales channels for tablets  
in the USA with a special  
focus on paediatricians  
• The legacy business in the USA,  
comprising SCIT bulk extracts,  
diagnostics, and life science products,  
will continue to target growth as before.  
With the forthcoming paediatric and  
adolescent indications for the house dust  
mite tablet, ACARIZAX®/ODACTRA®, and  
the existing paediatric and adolescent  
indications for its pollen tablets, ALK is  
well positioned to capitalise on the need  
for better treatment options. To prove  
the business model, ALK will initially  
target around 2,000 paediatricians  
who frequently perform allergy tests  
and regularly issue prescriptions for  
symptomatic products.  
Efforts to strengthen ALK’s position in  
North America therefore continue, as the  
company targets additional future growth  
opportunities at pace, via the initiatives in  
food allergy, adrenaline, and paediatric  
and adolescent indications for the tablet  
portfolio.  
Continue to grow  
tablet sales in  
North America  
New leadership and  
organisation in place  
As a result of these changes in focus, ALK’s  
North America organisation has been  
structured around three business areas  
under a new leadership:  
Continued double-digit growth  
Overall, 2022 sales in North America  
were up 12%, while tablet sales were up  
14%. ALK continues to target double-  
digit growth in 2023 across the portfolio,  
including for tablets.  
It is estimated that more than 20 million  
of the AIT-eligible allergy patients in the  
USA look for help outside of the traditional  
• The US tablets business is responsible  
for tablet sales and marketing in the USA  
and will be deployed to engage with  
paediatricians, build new partnerships  
Maximise value of legacy  
business in the USA  
 
Management's review  
ALK annual report 2022  
25  
Complete and commercialise  
the tablet portfolio  
number of patient dropouts was minimal.  
Efforts to complete and  
The paediatric Phase III trial of the tree  
pollen tablet in Europe and Canada (TT-06)  
also includes some participants in Russia,  
but this trial too, saw minimal dropouts.  
commercialise the tablet portfolio  
advanced in 2022, with the  
aim of securing their use in  
additional patient groups and new  
geographies.  
Recently, ALK received approval in Canada  
and the USA for the use of the house dust  
mite tablet ACARIZAX®/ODACTRA® for the  
treatment of allergic rhinitis in adolescents.  
Full paediatric coverage  
Clinical development of the tablet portfolio  
continued with particular focus on children  
and adolescents, and ALK’s two large-  
scale, pivotal Phase III trials in children  
remained on course for completion in 2023.  
The trials represent some of the final steps  
towards gaining full paediatric coverage  
for the tablet portfolio in Europe and North  
America, which will be an important driver  
of continued growth for ALK.  
Gaining full paediatric  
coverage for the tablet  
The paediatric Phase III trial in allergic  
rhinitis for the house dust mite tablet  
in Europe and North America (MT-12)  
stayed on track and, despite including  
participants from Ukraine and Russia, the  
portfolio in Europe and North  
“
America will be an important  
driver of continued growth for  
ALK.”  
 
Management's review  
ALK annual report 2022  
26  
a follow-up activity, after the tablet’s  
potential approval and launch.  
Secure commercial momentum  
Following dialogue with the European  
authorities, in 2022, ALK decided to  
end the paediatric Phase III trial of the  
house dust mite tablet (MT-11) in allergic  
asthma. The trial was initiated before the  
outbreak of COVID, but pandemic-related  
containment measures impaired the trial,  
as face masks, social distancing, and  
other factors, significantly reduced the  
frequency of asthma exacerbations. Since  
house dust mite-induced allergic asthma  
is a comorbidity of allergic rhinitis, ALK  
nevertheless expects to gain full paediatric  
coverage via the previously mentioned  
Phase III trial (MT-12).  
In 2023, ALK’s goal is to further grow global  
tablet sales by up to 15%. This equals  
growth of up to 17%, when disregarding  
the impact of the one-year temporary  
rebate increase in Germany, and implies  
maintained underlying momentum.  
Key priorities for 2023  
Ahead of the planned launch, ALK  
recently made the house dust mite tablet  
ACARIZAX® available in China’s Boao  
Lecheng Medical Pilot Zone, where the first  
prescriptions were issued in early 2023.  
ALK expects to gain valuable input from  
prescribers and patients in the pilot area  
ahead of a planned nationwide launch  
of the tablet, which, subject to approval,  
could take place in 2024/25.  
Market expansions will continue and,  
across markets, ALK will continue efforts  
to build the tablet prescriber and patient  
bases for the tablets through targeted  
activities such as channel expansion,  
digital engagement, disease awareness  
programmes, advocacy for evidence-  
based medicines, and new business  
models. The organisational build-up in  
China will continue (cf. to text on next page)  
while, in Europe and North America, sales  
and marketing resources will be allocated  
to preparations for the paediatric launches  
of the house dust mite and tree tablets  
which, subject to approval, could take  
place in 2024/25.  
Complete clinical  
development and prepare  
for paediatric launches of  
house dust mite and tree  
tablets  
In addition to China, geographic expansion  
continued in 2022 with the launch of  
the house dust mite tablet in the United  
Arab Emirates. ALK also entered into an  
agreement with Dr. Reddy’s Laboratories,  
which will lead to the future introduction  
of the house dust mite tablet in India’s  
fast-developing allergy market. ALK will be  
responsible for product supply, while the  
partner will be in charge of registration and  
commercialisation.  
Geographic expansion  
ALK has recently submitted a registration  
application in China for its house dust mite  
tablet in adult and adolescent allergic  
rhinitis. A waiver from the authorities  
allowed ALK to file its application without  
finalising the local Phase III registration  
trial, which was paused because of  
COVID. The waiver permits relevant data  
on Chinese patients to be obtained as  
Continue build-up ahead of  
tablet launch in China  
Secure commercial  
momentum globally  
 
Management's review  
ALK annual report 2022  
27  
Unlocking the potential in China  
Subject to regulatory approval, ACARIZAX® could  
ALK continues to ramp up its  
presence in China according to  
plan. In 2022, this saw the local  
organisation grow 64% to 133  
employees after expansions of  
both the sales force and back-office  
staff. The number of hospital-based  
clinics using ALK’s products grew  
by 50% to above 500, and ALK  
accelerated its efforts to train and  
educate allergy specialists.  
be on the market in China from 2024/25 onwards.  
This would offer an important new treatment option  
in a country where roughly 100 million people  
are affected by HDM allergy, while just 500,000  
at present receive treatment with AIT. China is  
already a global top market for HDM AIT and has  
the potential to become the world’s largest market.  
Annual HDM AIT sales are already estimated at  
more than DKK 1 billion.  
There are just three players in the HDM AIT market.  
A competitor’s SLIT-drops product currently  
has the highest sales, but ALK’s market share is  
growing and currently exceeds 15%. ALK’s current  
range includes the SCIT product line Alutard SQ®  
and diagnostic products which are prescribed via  
hospital-based clinics in key locations.  
Alongside the build-up in the HDM AIT-market, ALK  
has teamed up with Grandpharma, China’s leading  
supplier of adrenaline, in an exclusive licensing  
agreement to launch Jext® as the first adrenaline  
auto-injector in mainland China. Grandpharma is  
currently in the process of preparing a regulatory  
submission.  
The increase in staff aims to speed up the adoption  
of ALK’s existing allergy immunotherapy (AIT)  
offering and to build the market ahead of the  
planned introduction of the house dust mite (HDM)  
tablet ACARIZAX®. As a result, ALK’s revenue in  
China in 2022 grew in double-digits and revenue is  
expected to further increase in 2023.  
 
Management's review  
ALK annual report 2022  
28  
More adherent to treatment  
A life less allergic for millions of children  
Children are more likely to stay on treatment once  
AIT has been prescribed. Children’s adherence rate  
exceeds that of adults in core EU markets - in part,  
due to the active role parents or guardians take in  
their treatment.  
and other comorbidities. By completing its  
current development activities, ALK will be  
able to offer a new and potentially important  
treatment option for these patients.  
Several-fold increased risk of asthma  
Obtaining full approval for  
the tablet portfolio for young  
patients is a key strategic  
priority for ALK and is  
expected to be an important  
growth driver for the future.  
Respiratory allergy symptoms include itchy  
or watery eyes, a blocked nose, sneezing,  
headaches, sore throat, coughing, a tight,  
wheezy chest, and difficulty in breathing.  
Without proper treatment, these symptoms  
can worsen and lead to other conditions,  
including conjunctivitis, dermatitis, and  
asthma. Furthermore, researchers have  
demonstrated that childhood allergic rhinitis  
is associated with a several-fold increase in  
the risk of asthma in later life.  
To build the market ahead of these launches,  
ALK will organise digital awareness  
campaigns, webinars, conferences,  
e-learning activities and will cooperate with  
medical associations and others to raise  
awareness of childhood allergies among  
existing and potential new prescribers. Once  
potential new prescribers are identified, ALK  
will further assist them by organising training  
on how to use AIT and organising peer-to-  
peer education programmes.  
Fast-track patients  
Adults’ journey to AIT can take up to seven-to-10  
years, while children typically have a much shorter  
journey. Children also typically need fewer visits to  
their doctors before being referred to specialists.  
Their waiting time at specialists is also shorter.  
The planned paediatric indications for  
ALK's house dust mite and tree tablets will  
complete the respiratory tablet portfolio for  
all relevant ages. Large-scale paediatric  
clinical trials with the two tablets are  
expected to complete in 2023 and, subject to  
regulatory approval, both could be available  
with paediatric indications in Europe and  
North America in 2024/25.  
In addition to the direct health consequences,  
children also suffer in other ways. For example,  
trying to avoid allergen exposure often  
restricts their lives and can have psychological  
and social consequences. Allergies can also  
impact their studies – even if they are still able  
to go to school, their academic performance is  
often impaired as symptoms drain their mental  
and physical energy.  
ALK will also increasingly engage with parents  
and guardians on childhood allergies and their  
consequences via klarify, other consumer  
outreach platforms, and patient associations.  
These efforts aim to help caregivers  
Expansion of prescriber base  
A tablet portfolio with full paediatric and adolescent  
coverage for the house dust mite and tree tablets  
would allow ALK to target new prescribers  
effectively. This would also likely create a halo effect  
for the other tablets in the portfolio (GRAZAX®/  
GRASTEK®, RAGWIZAX®/RAGWITEK®).  
Globally, it is estimated that more  
than 10 million children, aged five-  
to-11, have uncontrolled respiratory  
allergies and the number is growing, as  
is the acknowledgement by healthcare  
professionals that early intervention and  
adequate control of allergy is crucial to  
halt the disease’s progression to asthma  
to recognise the symptoms of allergy,  
understand the disease’s potentially dramatic  
consequences on quality of life for children,  
and when they should take a child to see a  
doctor. Data clearly shows that parents and  
guardians are much more likely to seek help for  
children than they would be for themselves.  
Over recent years, ALK has conducted 15  
clinical trials involving more than 4,100  
children, in order to secure paediatric and  
adolescent indications for its tablet portfolio. It  
is also the only AIT-company with a dedicated  
development programme for children  
covering all the major respiratory allergies.  
 
Management's review  
ALK annual report 2022  
29  
ALK's tablet portfolio  
Ongoing clinical trials and regulatory approvals  
Allergy immunotherapy  
for respiratory and food  
allergies  
Product  
Age groups and indication  
Phase I Phase II Phase III Filing  
Marketed  
ACARIZAX® China  
Adults – Allergic rhinitis (HDM)  
ACARIZAX® / ODACTRA® Europe & North America  
ITULAZAX®/ITULATEK™ Europe & Canada  
Children – Allergic rhinitis (HDM)  
Children – Allergic rhinitis (tree: birch family)  
Over the past 20 years, ALK has  
pioneered the development of  
purified and standardised natural  
allergen extracts, formulated as  
rapidly dissolving SLIT-tablets.  
Peanut SLIT-tablet  
North America & Europe  
Adults, adolescents and children – Food allergy  
(accidential peanut exposure)  
Product approvals  
Product  
Age groups and indication  
Marketed  
GRAZAX® / GRASTEK®  
Europe, North America & International markets  
Adults and children – Allergic rhinitis (grass)  
Adults and children – Allergic rhinitis (ragweed)  
2007-17  
2014-21  
2016-21  
This has resulted in the launch of five tablets which  
address the most common respiratory allergies  
worldwide. ALK is now expanding its respiratory  
allergy leadership by targeting new geographies  
and patient groups, where growth opportunities  
are significant. ALK is also leveraging its existing  
SLIT-tablet technology with the ambition of  
becoming the leading player in the treatment  
of severe food allergies – a major commercial  
opportunity in an area with significant unmet  
medical need – and Phase I development of a tablet  
for peanut allergy has already begun.  
RAGWIZAX® / RAGWITEK®  
Europe, North America & International markets  
Adults – Allergic rhinitis and allergic asthma (HDM)  
Adolescents – Allergic rhinitis (HDM)  
ACARIZAX® Europe & International markets  
ACARIZAX® / ODACTRA® North America  
MITICURE™ Japan*  
Adults – Allergic rhinitis (HDM)  
2017-18  
2015-18  
2023  
Adults and children – Allergic rhinitis (HDM)  
Adolescents – Allergic rhinitis (HDM)  
ODACTRA® North America  
Adults and children – Allergic rhinitis  
(Japanese cedar)  
CEDARCURE™ Japan*  
2018  
ITULAZAX®/ITULATEK™ Europe & Canada  
Adults – Allergic rhinitis (tree: birch family)  
2019-20  
*
Licensed to Torii for Japan  
 
Management's review  
ALK annual report 2022  
30  
Consumer engagement and  
new horizons  
Consumer engagement  
consultation. Historically, the path to AIT  
treatment has been lengthy and complex,  
often taking up to 10 years. ALK continues  
to work towards shortening and simplifying  
this journey and, in 2022, more than 700,000  
unique users found a doctor using these  
tools, versus around 400,000 in 2021.  
Furthermore, more than a million symptom  
diary entries have now been logged by  
users. Progress was also made on profiling  
which types of users were most likely to  
actually book a medical consultation after  
using one of ALK’s digital tools.  
Digital mobilisation of and  
With its strategic digital investments over  
recent years, ALK has become a leader in  
digital engagement with people who have  
allergy, building a suite of apps, websites  
and tools under the ‘klarify’ banner that  
provides information, education and  
guidance on managing allergies, while  
providing ALK with deeper insights into  
the challenges, behaviours and priorities  
of people who live with allergic disease. In  
2022, new launches in Switzerland, Austria,  
Czechia, Slovakia and Netherlands brought  
the total number of countries covered by  
this initiative to 11, with Norway being  
added in early 2023.  
partnering with people who are  
living with allergy remains a key  
priority and saw further advances  
in 2022. This strategy allows ALK  
to increase its relevance to people  
with allergy and to better connect  
with and support the millions who  
could benefit from treatment with  
allergy immunotherapy (AIT),  
which is particularly important  
since, for many consumers, allergy  
is a self-managed disease, and they  
use up to 10 years before taking  
action on their disease. In addition,  
ALK's 'new horizons' priorities  
cover strategic innovations  
All of this is made possible by the  
investments ALK has made in back-end  
technologies such as intelligent modelling  
- including machine learning and lead  
scoring - which allow the aggregation of  
large-scale anonymised data, to create  
tailored, personalised experiences for the  
benefit of individual consumers. This digital  
closeness to people with allergy gives ALK  
access to a continuous stream of real-  
world evidence that offers valuable insights  
that allow ALK to continually improve its  
Tools and services that are already  
available include a personalised app that  
tracks pollen counts and has a symptom-  
tracking diary, a test to determine suitability  
for AIT treatment, details of local doctors  
or specialists with the knowledge to treat  
their condition, and information on allergy  
symptoms, the path to diagnosis and  
treatment, and how to prepare for a medical  
with the ability to accelerate the  
company's long-term growth.  
 
Management's review  
ALK annual report 2022  
31  
New horizons  
ALK’s work on the food allergy treatment  
initiative also progressed. After the  
resources, tools and discussions with  
healthcare professionals (HCPs), and  
to better understand the triggers that  
ultimately prompt people to finally take  
action on their allergy. ALK also has plans  
to publish insights from its digital platforms  
at medical congresses in 2023.  
The ‘new horizons’ priority covers initiatives  
designed to accelerate long-term growth  
for ALK.  
completion of a formulation feasibility study  
confirming the suitability of ALK’s existing  
tablet technology for use in a peanut  
allergy tablet, ALK initiated a Phase I trial  
with a new tablet for peanut allergy – the  
first step in developing new, mainstream  
treatments for food allergies. The trial  
will assess the tolerability and safety of a  
once-daily tablet, initially in adult patients,  
before progressing to the important  
younger patients. Recruitment for the trial  
is ongoing, however, the initial recruitment  
of adult patients has taken longer than  
expected, and ALK has implemented  
several mitigating actions to minimise  
delays to the trial timeline. First read-  
outs from the first part of the trial are still  
expected in 2023, with study completion  
now expected in 2024.  
Key priorities for 2023  
On the first of these, two parallel adrenaline  
auto-injector (AAI) development projects –  
the in-house Genesis project, and a project  
in partnership with Windgap – continued  
to progress. Development will continue in  
2023 towards a planned submission to the  
US FDA, with the exact timing subject to FDA  
feedback which is expected in 2023.  
Also in 2023, ALK will further expand access  
to its digital engagement tools in countries  
with a well-developed infrastructure for  
allergy treatment. Prerequisites include  
reimbursement systems favouring  
evidence-based medicines, and broad  
coverage by allergists and other medical  
professionals treating allergies. 2023  
will also see further moves towards  
multichannel marketing through increased  
digital communication with HCPs using  
insights from a new customer relationship  
management (CRM) system that will be  
rolled out globally after a successful test  
phase in the Nordic countries.  
Expand digital ecosystem  
for patients and prescribers  
Meanwhile, the China-based pharma-  
ceutical company Grandpharma continued  
its preparatory work ahead of a planned  
registration and launch of ALK’s existing  
AAI, Jext®, which would become the first  
AAI in mainland China. Work will continue  
into 2023. In addition, Grandpharma has  
recently received approval under a special  
import license to make Jext® available in  
China's Greater Bay area.  
Execute on clinical  
development of tablet for  
peanut allergy  
2023 will also see ALK advancing its early-  
stage R&D discovery activities with the  
potential to transform respiratory allergy  
care.  
ALK is also using its digital capabilities to  
deliver education and training to HCPs. In  
2022, ALK trained 4,250 HCPs in allergy  
and AIT, while 25,200 HCPs were trained in  
allergic disease innovations. This training  
will continue in 2023.  
Advance AAI projects  
towards FDA filing  
ALK continues to work towards shortening and  
simplifying this journey and, in 2022, more than  
700,000 unique users found a doctor using ALK's tools."  
“
 
Management's review  
ALK annual report 2022  
32  
Optimise for excellence  
To further support tablet volumes build-up,  
The priority ‘optimise for  
in 2023, ALK will increase its capacity in  
the USA for the production of house dust  
mite source materials, and in Denmark for  
the production of active pharmaceutical  
ingredients (APIs) for the house dust mite  
and pollen tablets. Furthermore, ALK will  
work with Catalent to cross-validate tablet  
production on additional production lines  
at Catalent’s site.  
excellence’ covers the product and  
site strategy (PASS) programme  
and other initiatives aimed at  
safeguarding ALK’s core portfolio  
of legacy products while, at the  
same time, building capacity for  
tablets, adrenaline auto-injectors  
(AAIs), and other products.  
Simplification of set-up  
Under the PASS programme, in 2022, ALK  
continued to safeguard its core portfolio of  
legacy products to ensure it remains viable  
in the long term, which, in part, means  
upgrading legacy production processes  
and associated manufacturing facilities  
so that they continue to meet the very  
latest regulatory standards. As part of  
Upscaling tablet capacity  
Continued upscaling of capacity for tablet  
production was in focus in 2022 and will  
remain a priority in 2023. To secure long-  
term capacity for the tablet portfolio, in  
2022, ALK signed an expanded agreement  
with the contract manufacturer Catalent,  
which will accommodate ALK’s growth  
ambitions towards 2030.  
 
Management's review  
ALK annual report 2022  
33  
this work, in 2022, ALK submitted a total  
of 1,977 regulatory variations covering  
107 products to 44 authorities around the  
world. Additional documentation efforts  
will be undertaken in 2023.  
Mitigate cost inflation  
In 2023, ALK will continue its ‘Fit for  
Growth’ and Manufacturing Excellence  
programmes to drive efficiencies across  
Product Supply with the aim of mitigating  
inflationary effects on input costs and  
wages.  
Key priorities for 2023  
A key element in the  
PASS programme is to  
simplify ALK’s production  
A key element in the PASS programme  
is to simplify ALK’s production set-up by  
reducing the number of different APIs  
used across its product portfolio, allowing  
ALK to eventually consolidate production  
on fewer production lines. Based on an  
EU regulatory approval from 2021, ALK  
is particularly focused on driving the  
necessary changes for the largest EU  
SCIT product line, Alutard SQ®, which is  
expected to lead to a streamlined portfolio  
and increased efficiency, ultimately leading  
to improvements in the gross margin.  
“
set-up by reducing the  
The PASS programme will continue with  
particular focus on robustness, efficiency,  
and profitability, as well as ensuring there  
are no quality-related major interruptions  
to product supply.  
number of different active  
pharmaceutical ingredients  
used across its product  
portfolio."  
Continue upscaling  
capacity for tablet  
production  
Finally, in 2023, ALK will prepare Product  
Supply for the commercial supply of its  
forthcoming adrenaline auto-injector  
product.  
Deliver on PASS and Fit for  
Growth programmes to drive  
efficiencies  
Prepare Product Supply  
for commercial supply of  
new AAI product  
 
Management's review  
ALK annual report 2022  
34  
Lead the way - People and planet  
ALK's sustainability journey  
Sustainability  
Focusing on environmental impacts  
In 2022, ALK implemented several  
Building on its progress in 2022,  
ALK is committing to helping even  
more people with allergies, setting  
a new science-based target for CO2  
reductions, and strengthening  
sustainability efforts even further.  
initiatives towards decreasing Scope 1, 2  
and 3 emissions by reducing total energy  
consumption and promoting renewable  
energy use. As a result, energy intensity  
relative to net revenue decreased, despite  
increased medicines production. CO2  
emission intensity also decreased, and total  
emissions were reduced by 41% compared  
to a 2019 baseline. Initiatives to reduce  
water use and improve waste management  
were also implemented, resulting in both  
areas exceeding 2022 targets.  
2020  
2022  
2023  
Current materiality  
assessment  
CSRD* Gap Analysis  
Science-based targets set  
Committed to science-  
based targets  
New sustainability  
target setting  
Approved 'Access  
to allergy care'  
strategy  
Long-term sustainability  
strategy discussions  
Biodiversity strategy  
Closing CSRD data gaps  
In 2022, ALK progressed on its  
sustainability focus areas: access to  
allergy care, people, environment and  
responsible business practices. Overall, all  
targets were met, and the route to meeting  
its long-term targets was confirmed. In  
addition, governance was updated so that  
the Board of Directors' Audit Committee  
now oversees all sustainability disclosures,  
processes, controls and assurance, when  
applied/implemented.  
2024  
Full CSRD  
compliance  
A key priority for 2023 will be to set a new  
CO2 reduction target according to the  
science-based targets' methodology,  
Find out more  
2030  
Science-based  
targets near-term  
commitment  
2050  
in ALK’s sustainability report,  
https://www.alk.net/  
sustainability  
Science-based  
targets long-term  
commitment  
*
Corporate sustainability  
reporting directive  
 
Management's review  
ALK annual report 2022  
35  
ESG key figures overview1  
to align ALK with the goals of the Paris  
Agreement to limit global warming to 1.5°C  
above pre-industrial levels. Prior to that,  
ALK will complete an analysis of current  
Scope 1, 2 and 3 emissions and map the  
transition needed to reduce emissions  
across the value chain. To further address  
environmental impacts, ALK will also be  
stepping up efforts to make a positive  
impact on biodiversity through further  
integration of certain sustainable farming  
practices at the sites where allergenic  
source materials are cultivated.  
were made available to more than 300,000  
additional patients, bringing ALK's total  
number of patients to around 2.4 million.  
Amounts in DKKm  
Unit  
2022  
2021  
2020  
Environmental data  
Scope 1 emissions  
Scope 2 emissions2  
Tonnes CO2eq  
Tonnes CO2eq  
4,857  
372  
5,801  
2,833  
5,521  
3,020  
ALK introduced tablet-based AIT to the  
United Arab Emirates and the Boao  
Lecheng Pilot Zone in China - the first step  
towards making the house dust mite (HDM)  
tablet available across China, subject to  
regulatory approval. ALK also continued  
large-scale clinical trials to secure  
registrations for the HDM and tree pollen  
tablets for children in North America and  
Europe.  
Scope 3 emissions  
(1st leg distribution and travel flights)  
Tonnes CO2eq  
Tonnes CO2eq  
5,800  
11,029  
2.68  
3,18 0  
11,814  
3.02  
2,848  
11,389  
3.26  
Total emissions  
GHG intensity per net revenue  
Tonnes CO2eq/  
DKKm  
Energy consumption  
MWh  
(MWh/DKKm)  
%
46,766  
11.3  
53  
44,923  
11.5  
45  
46,811  
13.4  
38  
Energy intensity per net revenue  
Renewable energy consumption  
Water consumption  
m3 116,642 127, 8 2 3 110,530  
Water intensity  
m3/DKKm  
Tonnes  
%
28.3  
1,1353  
59  
32.6  
809  
45  
31.7  
851  
38  
Expanding 'Access to allergy care'  
‘Access to allergy care’ aims to make ALK  
products and solutions accessible in new  
geographies and to new patient groups  
such as children and adolescents. In 2022,  
allergy diagnosis, allergy immunotherapy  
(AIT) treatments and adrenaline products  
Total waste generated  
Total waste recycled  
ALK’s digital channels helped more than  
700,000 people to find a doctor, and the  
klarify digital engagement platform was  
launched in five new countries to empower  
people to take action on their allergies. ALK  
also tested concepts to eliminate friction  
points on the path to prescriptions for the  
many untreated patients who are eligible  
for AIT treatment.  
Social data  
Workforce  
Headcount  
2,731  
63  
2,593  
62  
2,486  
64  
Gender diversity (total workforce)  
Women in all management levels  
Gender pay ratio  
% female  
%
Times  
%
49  
49  
46  
1.14  
13  
1.18  
13  
1.14  
10  
Employee turnover  
Lost time injury frequency  
Absence due to sickness  
LTIF  
%
1.7  
0.3  
3.1  
2.9  
3.1  
3.2  
Find out more  
Governance data  
To help overcome the lack of access to  
specialist doctors, ALK trained 4,250  
healthcare professionals on how to  
diagnose and treat allergies, while 25,000  
healthcare professionals were educated in  
allergic disease innovations.  
Please see further information on ALK’s  
sustainability report, https://www.alk.net/  
sustainability  
Gender diversity, Board  
Board meeting attandance rate  
CEO pay ratio  
%
%
29  
97  
33  
33  
94  
34  
20  
98  
34  
Times  
Find out more  
1
See Definitions of ESG calculations on page 37  
Calculated using a market-based methodology which considers emissions from specific energy purchase contracts  
Increase is related to improved and expanded documentation of waste fractions  
2
Read the financial highlights and  
key figures overview here  
3
 
Management's review  
ALK annual report 2022  
36  
Engagement and development  
The 2022 engagement survey had a  
participation rate of 95% and resulted in  
an overall engagement score of 8.3 – an  
improvement of 0.1 from 2021 and 0.7  
above the benchmark for the healthcare  
industry.  
ALK took further steps towards increasing  
gender diversity among senior leaders.  
In 2022, 34% of vice president and  
specific policies on sustainability, as well  
as the environment, health and safety,  
access to medicine, diversity & inclusion,  
remuneration, data ethics, tax, stakeholder  
communications, investor relations, anti-  
corruption and bribery, whistleblowing,  
and a third-party code of conduct.  
Additionally, ALK’s own code of conduct  
details the company’s expectations on  
professionalism, honesty and integrity. In  
2022, 95% of employees completed and  
signed off on the annual online code of  
conduct training.  
senior director positions were held by  
women, up from 29% in 2021, and the  
number is expected to increase further  
in 2023, supported by talent, mentoring  
and sponsorship programmes. The  
talent management programme was  
also strengthened to ensure a good  
pipeline of talents globally, and individual  
development plans were established and  
supported by Board of Management.  
ALK invests significantly to ensure all  
employees have equal opportunities to  
realise their full potential and development  
opportunities continue to be one of the  
major drivers of engagement and are  
key to ALK's success. As a part of this  
commitment, 150 senior-level leaders were  
trained in leading in an agile and inclusive  
way and 205 leaders were trained in  
handling health & well-being issues. Annual  
development agreements were made for  
all employees and 159 talents took part in  
the ASPIRE talent programme. In addition,  
an average of 300 participants attended  
quarterly ALK Learn events, which are part  
of an international learning platform for all  
employees.  
The gender balance at manager and  
director levels in 2022 remained on track  
for the target of approximately 50%, at 53%  
women.  
ALK’s statutory annual report on  
sustainability, data ethics and gender  
diversity (as required by §99a, §99b,  
§99d and §107d of the Danish Financial  
Statements Act as well as Article 8 of the EU  
Taxonomy) is available at https://www.alk.  
net/sustainability  
At the end of 2022, ALK’s Board of Directors  
consisted of 10 members. Of the seven  
shareholder-elected members, two were  
women. Furthermore, women accounted for  
67% of employee-elected Board members.  
Policies and guidelines  
Employee turnover was unchanged at 13%,  
reflecting a very high demand for skilled  
labour in key locations, particularly in the  
first half of the year, both in healthcare and  
other sectors.  
ALK remains a signatory of the UN Global  
Compact and supports the UN Sustainable  
Development Goals. ALK’s sustainability  
efforts are governed by a wide range  
of policies and guidelines including  
 
Management's review  
ALK annual report 2022  
37  
purchase contracts, and therefore consider renewable energy  
purchase certificates.  
include paper, electronics, medical waste, wood, metal,  
general solid bio-waste, oil, and chemical waste.  
The gender diversity figures from 2021 and earlier do not  
Definitions of ESG calculations  
include Germany, as job grades were not yet approved by the  
works council in that region.  
Scope 3 emissions include 1st leg distribution emissions, which  
are emissions arising from intra-company shipments and  
shipments from ALK product supply sites to ALK commercial  
fulfilment centres/warehouses. These emissions are  
calculated using the GHG Protocol scope 3 screening tool,  
which uses a spend-based methodology, with the values for  
December estimated based on average monthly spend over  
the year. Emission conversion factors are calculated using  
IEA tank-to-wheel emission (TTW) values. The wheel-to-tank  
(WTT) emissions in % compared to the TTW emissions for  
various liquid fuels are calculated based on the DEFRA 2022  
emissions factors. Since the third-party transportation and  
business travel represent a diverse mix of transportation  
modes and fuel types, the average calculated is considered to  
be representative. Scope 3 also includes travel flight emissions  
which are reported using a WTT CO2 report provided by AMEX  
for all ALK business travel flights in 2022, except in China where  
flight emissions are estimated using a spend-based method  
and the GHG Protocol scope 3 screening tool for January-  
October, and actual emission values for November-December.  
TTW flight emission values are calculated using IEA values.  
Travel flight emissions for 2019-2021 do not include flights  
from China.  
People  
Environment and climate  
Health & safety  
The CEO annual compensation ratio is determined by the  
annual total compensation of the CEO against the median  
annual total compensation for all active (permanent and  
temporary) employees, excluding the CEO. Annual total  
compensation includes salary, bonus, allowances, pension  
and all one-time payments over the course of a year.  
All environmental data is reported for main production sites  
(Hørsholm, Madrid, Oklahoma, Post Falls, Port Washington,  
Vandeuil and Varennes). Some figures have been corrected  
from previous years due to improved reporting and  
documentation of data.  
Work-related incidents are defined as occurrences arising out  
of or in the course of work that result in injury or fatality. Injuries  
that occur when working from home are work related if the  
injury occurs while the worker is performing work from home,  
and the injury is directly related to the performance of work  
rather than the general home environment or setting. Incident  
cases are reported to our EHS department and include the  
number of incidents as well as important background details  
related to the incidents.  
CO2 emissions  
Responsible Business Practices  
ALK adheres to the principles of the Green House Gas (GHG)  
Protocol when reporting on emissions. Emissions are  
measured in metric tonnes of CO2 equivalents according to  
Global Warming Potential values published by the IPCC based  
on a 100-year time horizon.  
Business ethics  
Alertline cases are taken from our external system, Ethics Point.  
Cases related to discrimination are defined as ´discrimination on  
the grounds of an individual’s uniqueness such as perspectives,  
work and life experiences, age, gender, race, ethnicity, religion,  
sexual orientation, ability, or any other characteristics´.  
Discrimination concerns can be raised through several channels  
such as our whistle-blower hotline, alertline, or through  
Employee Representative Groups, HR, EHS and Legal.  
Work related accidents are defined as work-related incidents  
resulting in an individual being physically or mentally unable  
to work, as diagnosed by a competent medical professional.  
The rate of work-related accidents, expressed as lost time  
injury frequency (LTIF) is determined by dividing the number of  
accidents by the total hours worked, multiplied by 1,000,000 to  
give number of cases per one million hours worked.  
Scope 1 emissions include direct energy consumption  
(natural gas, gas oil, diesel and petrol), where emission  
conversion factors are calculated using the UK's Department  
for Environment, Food and Rural Affairs (DEFRA) calculation  
methodology, supported by the GHG Protocol. Scope 1  
also includes company car emissions, which are estimated  
based on fuel type and either fuel consumption or mileage  
of company cars. Fuel consumption or mileage in December,  
and in some cases November, were estimated based on  
average monthly consumption or mileage over the year.  
Emission conversion factors are calculated using the DEFRA  
calculation methodology. Scope 1 also includes emissions  
of ozone-depleting substances, which are defined as those  
listed in the Montreal Protocol on Substances that Deplete  
the Ozone Layer, including CFCs, Halons, Halogenated CFCs,  
methyl tetrachloride, methyl chloroform, HCFCs, HBFCs,  
methyl bromide, bromochloromethane, hydrofluorocarbons.  
When reporting on bribery, bribes can take the form of money,  
gifts, loans, fees, hospitality, services, discounts, the award of  
a contract or any other advantage or benefit, and it comprises  
any financial or other inducement or reward for an action  
which is illegal, unethical, a breach of trust or improper in any  
way. When reporting on corruption, this is defined as ´abuse of  
entrusted power by someone for personal gain´.  
Absence due to illness is calculated as number of total  
working days with absence due to any illness, work related or  
otherwise, divided by total working days.  
GHG intensity and CO2 reduction are calculated using scope 1,  
scope 2 market-based and scope 3 emissions. CO2 reduction  
is compared to a 2019 baseline considering scope 1, scope 2  
location-based and scope 3 emissions.  
Engagement  
Participation rate and engagement score are collected from a  
survey conducted by a third party.  
Governance  
Board diversity is measured by the percentage of female  
non-executive members.  
Workforce Demographics  
Energy  
All employee-related data is downloaded from our internal  
HR-system, Workday, and is relevant as of 31 December  
2022. All figures consider active (permanent and temporary)  
employees. Non-guaranteed hour employees, and employees  
outside our own workforce are not included. Temporary  
employment is defined as employment with a pre-agreed  
end-date.  
Energy consumption is calculated based on meter readings  
and/or invoices of all energy types at production sites.  
Board independence is measured by the percent of  
independent, non-executive members.  
Scope 2 emissions include energy consumed for electricity  
and district heating, where emission conversion factors are  
calculated using the United States Environmental Protection  
Agency (US EPA) eGRID emission values, or for facilities outside  
the USA, emission values from the International Energy Agency  
(IEA). Scope 2 location-based emissions are calculated  
based on average energy generation emission factors for  
defined locations, while scope 2 market-based emissions are  
calculated based on emissions calculated from specific energy  
Water  
Water consumption is measured by meter readings and/or  
invoices at all production sites.  
The Board Meeting Attendance rate is calculated as (number  
of meetings*number of members)-meetings not attended/  
(number of meetings*number of members)*100.  
Waste  
Workforce headcount is broken down for countries with more  
than 50 employees. The employee turnover ratio is calculated  
by dividing the number of employees who left the company by  
the average number of employees in the reporting year.  
Waste is estimated in some sites where waste cannot be  
directly weighed. The types of materials present in the waste  
Code of Conduct training is calculated by the percentage  
of employees completing the training based on internal  
registrations.  
 
Management's review  
ALK annual report 2022  
38  
Commercial risks impacting  
revenue growth  
Severe IT security  
breaches  
Risk management  
Description  
Description  
The threat of cyberattacks  
continues to intensify globally and  
The degree of market acceptance for a new product or  
drug candidate depends on several factors, including the  
demonstration of clinical efficacy and safety, cost-effectiveness, thus also for ALK. Disruption to IT  
reimbursement/market access, convenience and ease of systems, such as severe breaches  
administration, potential advantages over alternative treatment of data security, may occur across  
meets twice a year or more, as required, to  
ALK’s Board of Management  
is responsible for the ongoing  
management of risks throughout  
the value chain, including risk  
identification, the assessment  
of probabilities and potential  
consequences, and the introduction  
of risk-reducing measures.  
perform its tasks. Risks are systematically  
assessed according to a two-dimensional  
matrix, rating the potential impact  
methods, competition, and marketing and distribution support.  
If ALK’s new products, primarily tablets, fail to achieve market  
acceptance, this could have a significant influence on the  
company’s ability to generate revenue.  
the global value chain, where  
well-functioning IT systems and  
infrastructure are critical for the  
company’s ability to operate  
effectively.  
and probability of each risk. A risk  
Price pressures mandated by authorities can have a significant  
impact on the company’s earnings capacity. In most of the  
countries in which ALK operates, prescription drugs are  
subject to reimbursement from, and price controls by, national  
authorities and healthcare providers. This often results in  
significant price differences between individual markets.  
Exceptionally, governments and national authorities may  
introduce economic measures that also affect the pricing and  
reimbursement of medicines, for example, because of a major  
economic downturn.  
management report with key enterprise  
risks and recommended mitigation plans  
is presented to Board of Management  
before it is submitted to the Board of  
Directors on an annual basis for their review  
and approval as part of ALK’s long-term  
strategic planning process.  
Risk mitigation  
ALK has a security strategy in  
place to prevent intruders from  
causing damage to systems or  
gaining access to critical data  
and systems. ALK continuously  
invests in upgrading IT security.  
Awareness campaigns, access  
controls, intrusion detection and  
prevention systems have all been  
implemented. Further initiatives  
are planned, and systems are  
regularly upgraded to increase  
network security.  
The Board of Management has a risk  
committee to assist it in meeting its overall  
responsibility for risk management. The  
Risk Committee comprises representatives  
from each functional area relevant to  
ALK’s risk profile. The Risk Committee  
Risk mitigation  
The following is a description of ALK’s key  
enterprise risks, and the main initiatives  
taken to mitigate these risks. The risk  
movements compared to the previous year  
are indicated.  
ALK closely monitors economic, market and regulatory  
developments as they relate to product pricing, along with the  
competitive situation and initiatives in all important markets.  
ALK regularly conducts surveys of market conditions and  
commits significant resources to providing information on  
allergy treatment to doctors and patients. ALK continues its  
focus on market access strategies, especially in the USA and  
China.  
ALK actively engages in dialogue with authorities with the aim  
of securing fair pricing and reimbursement agreements and  
maintains a strong focus on its market access strategy. ALK is  
strongly committed to evidenced-based medicine, based on  
strong clinical and health economic evidence as the basis for  
pricing and reimbursement.  
2022 movement  
The impact of the risk has increased  
compared to the year before  
The impact of the risk is stable and  
has not changed from the year  
before  
The impact of the risk has decreased  
compared to the year before  
2022 movement:  
2022 movement:  
 
Management's review  
ALK annual report 2022  
39  
Production and quality issues impacting  
product supply and patient safety  
Lack of critical competencies due to  
competitive employment market  
Breaches of legal or  
ethical standards  
Failures or delays in  
product development  
Description  
Description  
Description  
Description  
ALK’s products are subject to many statutory and regulatory requirements  
with respect to issues such as safety, efficacy, and quality. The products may  
be associated with side-effects such as allergic reactions of varying extents,  
durations, and severities. Meeting pharmaceutical quality standards is a  
prerequisite for the company’s ability to supply products and hence its competitive  
strength, and for the company’s earnings and sales.  
The employment market is more competitive than  
ever. ALK is dependent on being able to attract  
and retain employees across all key functions and  
markets to deliver on its strategy. Failure to attract,  
develop and retain the right talents may have a  
material impact on the company’s market and  
research efforts.  
Non-compliance with applicable regulations,  
legislation, or ALK’s Code of Conduct could  
negatively impact the company’s good reputation  
which is essential for operating within the  
pharmaceutical industry. Patents and other  
intellectual property rights are important for  
developing and retaining ALK’s competitive  
strength.  
The future success of ALK depends on the company’s  
ability to maintain current products and to  
successfully identify, develop and market new,  
innovative drugs.  
A pharmaceutical product must be subjected to  
extensive and lengthy clinical trials to document  
qualities such as safety and efficacy before it can be  
approved for marketing. During the development  
process, the outcomes of these trials are subject to  
significant risks. Even though substantial resources  
are invested in the development process, the trials  
may produce negative results. Geopolitical situations  
may also impact the recruiting and maintaining of  
patients in the trials.  
As ALK continues to rationalise its product portfolio, there may be risks associated  
with the discontinuation of its products. Among others, these may include potential  
production interruptions at manufacturing sites during decommissioning and  
change-over work, the loss of sales from products for which no suitable ALK  
substitute product exists, or the inability to meet sudden spikes in demand for other  
products due to patients switching from discontinued products.  
Risk mitigation  
Risk mitigation  
ALK manages this risk, among other things, by  
continuously monitoring and improving employee  
engagement, offering its staff opportunities to  
develop their professional competencies, and  
by continuously monitoring the total rewards  
packages against the market. Further, ALK focuses  
increasingly on how to position ALK as an attractive  
employer, and how to best identify, attract, and  
recruit future global and local talents with the  
competencies and capabilities that will be required  
in the future.  
ALK strives to act professionally, honestly, and with  
high integrity throughout the company in relation  
to stakeholders. ALK’s Code of Conduct defines  
ALK’s high standard of ethical behaviour in relation  
to customers, employees, shareholders, society,  
suppliers, and partners. Annually, all employees  
are asked to sign and confirm their knowledge of  
the Code of Conduct and to take an online test. ALK  
has established a whistleblower scheme which  
allows for the confidential and anonymous internal  
and external reporting of potential or suspected  
wrongdoings. Immediate action is taken on  
substantiated non-compliance.  
As part of its supply chain, ALK is dependent on selected key third parties for key  
production processes and supplies which entails a risk for ALK’s ability to deliver  
products, especially tablets, to the markets.  
Failures or delays in the development process, or in  
obtaining regulatory approvals, may have a major  
impact for the patients not able to benefit from the  
products, and on the ability of ALK to achieve its  
long-term goals.  
Risk mitigation  
ALK stringently monitors product and manufacturing quality compliance and safety  
via quality assurance, pharmacovigilance, and sales and marketing activities.  
If, despite the high levels of quality and safety, a situation should occur in which  
it is necessary to recall a product, ALK has procedures in place to ensure that  
this can be managed swiftly and effectively and in accordance with regulatory  
requirements. Production and manufacturing processes are subject to periodic  
and routine inspections by regulatory authorities as a regular part of their  
monitoring processes to ensure that ALK observes the prescribed requirements  
and standards.  
Risk mitigation  
ALK and its collaborative partners perform thorough  
risk assessments of their research and development  
programmes throughout the development and  
registration processes, with the objective of risk  
mitigation to optimise the likelihood of the products  
reaching the market.  
Internal controls and policies are in place to  
safeguard ALK’s intellectual property rights. The  
risk that ALK might infringe patents or trademark  
rights held by other companies, as well as the  
risk that other companies may attempt to infringe  
the patents and/or trademark rights of ALK are  
monitored and, if necessary, suitable measures are  
taken.  
ALK has invested significantly to increase the robustness and compliance of the  
legacy business by reducing manufacturing complexity, and all possible steps are  
taken during portfolio rationalisation work to mitigate any potential impact on other  
areas of manufacturing or the wider business. ALK conducts risk planning including  
for the prevention of unwanted events, and preventative inventory management.  
ALK’s Scientific Committee is responsible for other  
patient-/product-related innovation activities.  
The committee advises on matters relating to R&D  
activities and other patient-/product-related  
innovation activities, including reviewing R&D  
programmes and the overall R&D pipeline.  
ALK manages key third-party dependency risks through long-term contracts,  
diligent production forecasting, monitoring, and joint steering committees.  
2022 movement:  
2022 movement:  
2022 movement:  
2022 movement:  
 
Management's review  
ALK annual report 2022  
40  
Governance and ownership  
Corporate governance  
The statement provides an account of ALK’s  
two-tier management structure, including  
the Board of Directors’ composition,  
competencies, activities, self-assessment,  
and remuneration. The statement also  
describes key elements of ALK’s internal  
control and risk management systems  
related to financial reporting processes.  
Board composition  
Following the election of Alan Main, four  
out of the seven shareholder-elected  
members are independent, according to  
the definitions set by the Danish Committee  
on Corporate Governance. This reflects the  
Board’s efforts to achieve an overweight  
of independent members on the Board and  
its committees. The Board is considered  
ALK’s statutory corporate governance  
statement for 2022, pursuant to section  
107b of the Danish Financial Statements  
Act, is available at https://ir.alk.net/  
financial-reporting/risk-management  
At the Annual General Meeting (AGM)  
in 2022, Anders Hedegaard (Chair),  
Lene Skole (Vice Chair), Gitte Aabo, Lars  
Holmqvist, Bertil Lindmark and Jakob  
Riis were all re-elected to the Board of  
Directors, while Alan Main was elected as a  
new, independent member of the Board.  
Attendance at meetings  
Name (male/female)  
Audit  
Commitee  
meetings Committee meetings  
Remuneration  
& Nomination  
Scientific  
Committee  
meetings  
Meeting attendance  
Attended  
Absent  
Board  
meetings  
Competencies  
Anders Hedegaard (m)  
Lene Skole (f)  
Competencies  
Core competencies  
Executive experience in a global company  
Life science industry  
Consumer healthcare / OTC  
Financial / Risk  
Gitte Aabo (f)  
Lars Holmqvist (m)  
Bertil Lindmark (m)  
Alan Main (m)1  
Commercial  
Digitalisation  
Jakob Riis (m)  
Experience with US market  
Research & Development  
Katja Barnkob (f)2  
Nanna Rassov Carlson (f)2  
Johan Smedsrud (m)2  
Role competencies: Chair & Vice Chair  
Experience at CEO level  
Board experience from other companies  
1
elected at the AGM on 16 March 2022  
2
employee-elected  
 
Management's review  
ALK annual report 2022  
41  
Remuneration  
to have the right competencies to support  
ALK's long-term value creation and  
strategic process.  
represented, each shareholder-elected  
member of the Board has been asked  
to identify a maximum of four primary  
competencies they bring to the Board,  
considering ALK’s long-term strategy. They  
may also have knowledge or experience  
in areas other than the four primary  
competencies. The matrix shows the  
responses to the self-assessment process.  
Employee-elected members are not part  
of the competency self-assessment. For  
the Chair and Vice Chair, two additional  
competencies, specific to these roles, have  
been identified.  
Amounts in DKKt  
2022  
2021  
Board of Directors  
Base fee  
4,477  
1,117  
5,593  
3,650  
998  
All shareholder-elected Board members  
are elected for a term of one year. In  
addition, the Board includes three  
Committee fees  
Total  
4,648  
employee-elected members, all elected for  
a term of four years. The employee-elected  
members are up for election in March 2023.  
All Board members are presented on pages  
45-47 of this annual report, while the Board  
of Management is presented on page 48.  
There were no changes to the Board of  
Management in 2022 but, in 2023, Henrik  
Jacobi and Søren Jelert will be leaving  
ALK. Henriette Mersebach will replace  
Henrik Jacobi as Executive Vice President,  
Research & Development on 1 March  
2023, while the search for Søren Jelert’s  
successor as CFO is ongoing. Søren Jelert  
will leave ALK no later than 31 May 2023.  
Board of Management  
Base salary  
18,16 4  
11,652  
17, 276  
11,924  
Short-term incentives  
(cash bonus)  
On 1 March 2023, Henriette Mersebach will replace  
Henrik Jacobi as EVP for Research & Development  
in ALK. Henrik Jacobi has had a leading role in  
the transformation of global allergy and allergic  
asthma care. Under his R&D leadership, ALK has  
become the undisputed leader within allergy  
immunotherapy, and tablet-based allergy  
immunotherapies developed by ALK are now  
available in many parts of the world. On behalf of  
ALK, the Board of Directors would like to offer its  
sincere gratitude to Henrik Jacobi for his dedication  
and contribution during the past 23 years.  
Pension incl. social  
security  
1,493  
711  
1,396  
703  
Other benefits  
Long-term incentives  
(grant value)  
6,692  
6,371  
Governance recommendations  
The Danish Committee on Corporate  
Governance has set out a series of  
Total  
38,712  
37,670  
recommendations on corporate  
governance which has been adopted by  
Nasdaq Copenhagen. ALK complies with  
all recommendations and the Board of  
Directors uses these recommendations  
as inspiration for setting up structures,  
tasks and procedures. ALK accounts for its  
compliance with the recommendations in  
an annual ‘comply-or-explain’ review.  
determined in accordance with ALK’s  
Find out more  
remuneration policy as adopted by the AGM  
in March 2021. The policy is prepared in  
accordance with sections 139 and 139a of  
the Danish Companies Act as well as items  
4.1.1-4.1.6 of the latest Danish Corporate  
Governance Recommendations.  
ALK’s statutory corporate governance statement:  
https://ir.alk.net/financial-reporting/risk-  
management  
Competency matrix for the  
Board of Directors  
Find out more  
Based on its long-term strategy, ALK  
has identified the core competencies  
which must be represented in the Board  
of Directors for the Board to be able to  
support the strategy. To assess whether  
all core competencies are adequately  
The Board of Directors’ comply-or-explain review:  
https://ir.alk.net/corporate-governance  
Find out more  
Remuneration  
Remuneration for the Board of Directors  
and the Board of Management is  
Highlights of remuneration report  
Remuneration for the Board of Directors  
and Board of Management is reported  
ALK’s remuneration policy: https://ir.alk.net/  
corporate-governance  
 
Management's review  
ALK annual report 2022  
42  
separately in ALK’s remuneration report.  
The report is prepared in accordance with  
section 139b of the Danish Companies Act.  
fee for serving on the Remuneration &  
Nomination Committee, and the Scientific  
Committee, remained unchanged for  
both the members and chairmen of the  
committees.  
Investor relations  
ALK furthermore works to strengthen its  
dialogue with all financial stakeholders.  
It is ALK’s objective to have a diversified  
shareholder base in terms of geography,  
investment profile and time horizon that  
shares the company’s vision and supports  
its long-term strategy.  
Growing shareholder base  
The report provides an overview of  
remuneration components, actual  
remuneration in 2022, its development  
over the past five years, as well as the  
shareholdings of Board of Directors and  
Board of Management members.  
2022 saw further growth in ALK’s investor  
base. On 31 December 2022, ALK had  
27,960 registered shareholders versus  
20,434 at the end of 2021. The registered  
shareholders owned 97.2% of the share  
capital (98%).  
The remuneration for the Board of  
Management consisted of both fixed pay  
elements (base-pay and benefits) and  
variable pay elements in the form of short-  
term incentive (STI) and long-term incentive  
(LTI) plans. The variable pay elements  
reflected a year with solid performance  
with STI and LTI plans settled above target.  
The base salary for members of the Board  
of Management was increased by 3%,  
in line with the general increase for ALK  
employees in Denmark, except for the CFO  
and EVP, Commercial Operations, who  
received an increase above the general  
level to bring their base salaries closer to  
the market level.  
In order to enable both a fair valuation and  
regular trading of its shares, ALK provides  
relevant, accurate, and timely information  
on its strategy, operations, performance,  
expectations, goals, pipeline, market  
development, and other matters of  
All remuneration for the Board of Directors  
and Board of Management in 2022  
followed the principles and framework  
outlined in ALK’s remuneration policy.  
To support the liquidity of the share, in 2022  
ALK completed a share split at a ratio of  
1:20, whereby each share, with a nominal  
importance to the assessment of the share.  
Members of the Board of Directors each  
received a fixed annual fee, with the Vice  
Chair and Chair receiving double and triple  
the annual fee, respectively. In addition,  
members received an additional fee for  
serving on the Board’s committees.  
Shareholder overview as at 31 December 2022  
Registered  
Shareholder  
office  
No of shares  
Interest  
Votes  
Lundbeck Foundation  
Copenhagen,  
Denmark  
18,414,400 A shares  
1,841,440 AA shares  
69,496,540 B shares  
40.3%  
67. 2%  
To align fees for serving on the Board of  
Directors and the Audit Committee more  
to the market, the fees were adjusted with  
effect from 2022 following approval at the  
AGM in March 2022. However, the base  
The remuneration report for 2022 will be  
presented for an advisory vote at the AGM  
on 23 March 2023. The remuneration report  
is available at https://ir.alk.net/corporate-  
governance  
ATP  
Hillerød,  
Denmark  
11,461,329 B shares  
5.1%  
0.8%  
2.8%  
-
ALK  
Hørsholm,  
Denmark  
1,824,975 B shares  
(treasury shares)  
Other  
800 A shares  
80 AA shares  
53.8%  
29.5%  
119,784,356 B shares  
 
Management's review  
ALK annual report 2022  
43  
value of DKK 10, was split into 20 new  
shares with a nominal value of DKK 0.50.  
Two shareholders have reported to ALK  
that they held 5% or more of the shares on  
31 December 2022:  
Lundbeck Foundation’s holding and  
treasury shares.  
Core data for the share  
Following the share split, the share capital  
of DKK 111,411,960 was divided into  
18,415,200 A shares, 1,841,520 AA shares  
and 202,567,200 B shares. All B shares  
are listed on Nasdaq Copenhagen and  
freely negotiable. The A and AA shares are  
not listed and are predominantly held by  
the Lundbeck Foundation, an enterprise  
foundation whose purpose is to strengthen  
brain health and develop the Danish  
business sector.  
To meet obligations to deliver shares under  
management incentive programmes,  
ALK held 1,824,975 of its own shares, or  
0.8% of the share capital, versus 1.3% at  
the end of 2021. The holding was reduced  
following the settlement of share option  
and performance share programmes.  
• The Lundbeck Foundation (Copenhagen,  
Denmark): 40.3% incl. A and AA shares  
• ATP (Hillerød, Denmark): 5.1%  
Share capital  
Nominal value  
No of A shares  
DK K 111,411,960  
DKK 0.50 per share  
18,415,200 units with  
10 votes per share  
Of the largest registered shareholders,  
the vast majority were institutional  
investors, and largely from Europe and  
North America. The international registered  
ownership was estimated at approximately  
33% (31%), representing 55% of the  
No of AA shares  
No of B shares  
1,841,520 units with  
10 votes per share  
202,567,200 units with  
1 vote per share  
The Board of Directors and Board of  
Management held a total of 275,312 shares  
at year-end, corresponding to 0.1% of the  
share capital (0.1%).  
Stock exchange  
Ticker symbol  
Indices  
Nasdaq Copenhagen  
ALK B  
free float of the B shares, excluding the  
X4500 (healthcare),  
OMXCLCPI (LargeCap)  
and OMXCPI (all)  
Shareholders as at 31 December 2022  
The ALK share in 2022  
ISIN  
DK0060027142  
ALKB.DC  
Lundbeck Foundation  
ALK  
ATP  
ALK  
Other  
OMXC25 (indexed)  
Pharma, biotech and life sciences (NBI-NAS, indexed)  
Blomberg code  
Reuters code  
LEI code  
ALKB_CO  
Index  
529900SGCREUZCZ7P020  
110  
100  
90  
40.3%  
Find out more  
Trading information and core data on  
ALK’s share: https://ir.alk.net/share-  
information  
53.8%  
80  
70  
5.1%  
0.8%  
60  
50  
Jan  
Feb  
Mar  
Apr  
May  
Jun  
Jul  
Aug  
Sep  
Oct  
Nov  
Dec  
 
Management's review  
ALK annual report 2022  
44  
Return to shareholders  
and ALK’s capital structure on an ongoing  
basis.  
available on ALK’s main corporate website,  
together with reports, presentations,  
recordings of telephone conferences, share  
price information, analysts’ estimates,  
and related information. Registered  
shareholders are encouraged to sign up at  
the InvestorPortal.  
At year-end, the closing price of ALK B  
shares was DKK 96 compared to DKK 171 at  
the end of 2021.  
Up to and including 15 March 2027, the  
Board of Directors is authorised to increase  
the share capital by up to DKK 11,141,196,  
with or without pre-emption rights for  
existing shareholders.  
The total market value of ALK’s B shares,  
excluding treasury shares, was DKK 19.3  
billion at year-end, versus DKK 34 billion at  
the end of 2021. Since end of 2017, when  
ALK’s new strategy was announced, share  
price increases have yielded an average,  
annual return of 21% to shareholders.  
The Board of Directors is authorised for  
the period until 12 March 2024 to let the  
company acquire its own B shares for a  
nominal value of up to DKK 11,141,196. The  
consideration for such shares may not  
deviate by more than 10% from the official  
quoted price of the B shares on the date of  
acquisition.  
Dividend and capital structure  
The Board of Directors considers that  
ALK’s financial resources, including credit  
facilities, continue to form a sufficient  
basis for executing ALK’s strategy and to  
fund investments. At the end of 2022, net  
interest-bearing debt amounted to DKK 475  
million and leverage stood at 0.7 EBITDA  
(1.0).  
The Lundbeck Foundation  
The Lundbeck Foundation, one of  
Denmark’s largest enterprise foundations,  
is the controlling shareholder of ALK,  
owning 67% of the votes and 40% of the  
capital. The Foundation grants a minimum  
of DKK 500 million each year to public  
biomedical and health science research  
with a particular focus on neuroscience.  
Its business activities encompass majority  
shareholdings in two other healthcare  
companies, H. Lundbeck and Falck, a  
significant shareholding in Ferrosan  
Medical Devices, an international portfolio  
of early-stage biotech companies, as well  
as management of a DKK 22 billion portfolio  
of financial investments which are primarily  
invested in listed securities.  
Financial calendar 2023  
Investor relations  
During 2022, besides hosting  
regular telephone conferences, ALK  
representatives participated in many  
individual meetings and briefing calls  
with analysts and investors as well as  
conferences and seminars targeting  
various audiences.  
Annual General Meeting  
23 March  
9 May  
Three-month interim report (Q1)  
Six-month interim report (Q2)  
Nine-month interim report (Q3)  
24 August  
15 November  
In support of ALK’s growth strategy,  
the Board of Directors is extending its  
recommendation that dividend payments  
be suspended until ALK’s profitability  
further improves. Accordingly, the Board of  
Directors will propose to the AGM, that no  
dividends are declared for 2022. The Board  
of Directors revisits the dividend policy  
Contact Investor Relations  
Per Plotnikof, Head of IR  
Tel. +45 45747527  
A total of 24 announcements were  
published in 2022 (2021: 26), including  
investor news and reports on transactions  
by managerial staff. All announcements are  
Find out more  
Visit Investor Relations:  
https://ir.alk.net/investors  
 
Management's review  
ALK annual report 2022  
45  
Board of Directors  
Anders Hedegaard  
Lene Skole1  
Gitte Aabo  
Lars Holmqvist1  
(1960, Danish)  
(1959, Danish)  
(1967, Danish)  
(1959, Swedish)  
Professional board member  
Chair  
The Lundbeck Foundation, CEO  
and directorships at two other subsidiaries  
Vice Chair  
GN Hearing, CEO  
Professional board member  
Board member since 20152  
Board member since 20212  
Member of the Audit Committee  
Board member since 20202  
Member of the Audit Committee  
Board member since 20142  
Chair of the Remuneration & Nomination Committee  
Member of the Scientific Committee  
Member of the Remuneration & Nomination Committee  
Member of the Scientific Committee  
Competencies  
Competencies  
Competencies  
Competencies  
Specific expertise within management and sales &  
marketing in international life science and consumer  
care companies.  
Experience in management, financial and economic  
expertise, experience in strategy and communication  
in international companies.  
Extensive global leadership experience and deep  
understanding of international management, finance,  
IT, and sales & marketing, as well as considerable  
insights into building digital communities.  
Experience in management, finance, and sales &  
marketing in international life science companies,  
including med-tech and pharmaceutical companies.  
Directorships3  
Directorships3  
Directorships3  
Directorships3  
Rodenstock Group, Germany: Board member and  
adviser to Management  
Falck A/S: Vice Chair, member of the Audit and the  
Remuneration Committees  
Danmarks Nationalbank: Member of the Committee of  
Directors  
Biovica International AB: Chair and member of  
the Audit Committee  
H. Lundbeck A/S: Vice Chair and member of the  
Nomination, Remuneration, and Scientific Committees  
Nordea Bank Abp, Finland: Board member and  
member of the Audit Committee  
Ørsted A/S: Vice Chair and member of the Nomination  
and Remuneration Committees  
HIMPP A/S (Hearing Instrument Manufacturers Patent  
Partnership): Board member  
Union therapeutics A/S: Board member  
The Danish Chamber of Commerce: Board member and  
member of the Executive Committee  
H. Lundbeck A/S: Board member and member of  
the Audit Committee  
The Lundbeck Foundation: Board member and Chair of  
the Investment Committee  
Vitrolife AB, Sweden: Board member and member of  
the Audit Committee  
Life Healthcare Group Holdings Ltd, South Africa:  
Board member and member of the Audit and  
Investment Committees  
1
These board members are not regarded as independent in the sense of the definition contained in the Danish recommendations on corporate governance due to being affiliated with the Lundbeck Foundation, which owns 40.3% of ALK’s shares.  
All members elected by the annual general meeting are up for re-election each year.  
Directorships do not include those for companies that are privately owned, in whole or in part, by members of the Board of Directors.  
2
3
 
Management's review  
ALK annual report 2022  
46  
Bertil Lindmark  
Alan Main  
Jakob Riis1  
(1955, Swedish)  
(1963, British)  
(1966, Danish)  
Galecto A/S, Chief Medical Officer  
Senior Adviser, Bamboo Capital Partners  
Falck A/S, President & CEO  
Board member since 20212  
Chair of the Scientific Committee  
Board member since 20222  
Member of the Remuneration & Nomination Committee  
Board member since 20132  
Chair of the Audit Committee  
Competencies  
Competencies  
Competencies  
More than 30 years of experience of global R&D  
leadership in pharmaceuticals and biotech. Brings  
board-level experience from Almirall and Medicon  
Valley Alliance, and served on the Research Board of  
AstraZeneca. Has also participated in a range of IPOs,  
acquisitions and debt-financing activities.  
More than 30 years of experience from the consumer  
healthcare industry in roles at, amongst others,  
Sanofi, Bayer and Roche.  
Experience in management and sales & marketing in  
the international healthcare industry.  
Directorships3  
Directorships3  
Aqilion AB, Sweden: Chair of the Board  
Cellevate, Sweden: Director of the Board  
The Danish Chamber of Commerce: Board member and  
member of the Executive Committee  
1
These board members are not regarded as independent in the sense of the definition contained in the Danish recommendations on corporate governance due to being affiliated with the Lundbeck  
Foundation, which owns 40.3% of ALK’s shares.  
All members elected by the annual general meeting are up for re-election each year.  
2
3
Directorships do not include those for companies that are privately owned, in whole or in part, by members of the Board of Directors.  
 
Management's review  
ALK annual report 2022  
47  
Katja Barnkob  
Nanna Rassov Carlson  
Johan Smedsrud  
(1969, Danish)  
(1976, Danish)  
(1972, Danish)  
Project Director, Global CMC Development,  
ALK-Abello A/S  
Senior Manager, QA Release,  
ALK-Abelló A/S  
Maintenance Supporter, Process & Production  
Support, ALK-Abelló A/S  
Board member since 2011  
Employee-elected  
Board member since 2019  
Employee-elected  
Board member since 2019  
Employee-elected  
Competencies  
Competencies  
Competencies  
Experience in project management of global drug  
development projects in the pharmaceutical industry.  
Expertise in production and release of ALK’s  
active pharmaceutical ingredients for sublingual  
immunotherapy products.  
Experience in HVAC systems, cleanroom  
testing, utensil washing and sterilisation for the  
pharmaceutical industry.  
Directorships3  
The Lundbeck Foundation: Employee-elected board  
member  
3
Directorships do not include those for companies that are privately owned, in whole or in part, by members of the Board of Directors.  
 
Management's review  
ALK annual report 2022  
48  
Board of Management  
Carsten Hellmann  
Henrik Jacobi2  
Søren Jelert3  
Søren Niegel  
(1964, Danish)  
(1965, Danish)  
(1972, Danish)  
(1971, Danish)  
President & CEO  
Executive Vice President,  
Research & Development  
Executive Vice President & CFO  
Executive Vice President,  
Commercial Operations  
Competencies  
Competencies  
Competencies  
Competencies  
Executive management experience in global  
healthcare and biopharmaceutical companies.  
Experience in management, innovation, and research  
& development in the pharmaceutical industry.  
Experience in management, financial and economic  
expertise in the pharmaceutical industry and other  
sectors.  
Experience in management, as well as global  
production and sales & marketing within the  
pharmaceutical industry.  
Henrik Jacobi holds a degree in Medicine from 1993.  
Directorships1  
Coloplast A/S  
Copenhagen Capacity  
The Danish Chamber of Commerce  
1
Directorships do not include those for companies that are privately owned, in whole or in part, by members of the Board of Directors.  
Henrik Jacobi, Executive Vice President, Research & Development will leave ALK on 28 February 2023.  
Søren Jelert, Executive Vice President & CFO will leave ALK no later than 31 May 2023.  
2
3
 
Financial Statements  
ALK annual report 2022  
49  
Financial  
Statements  
Statements  
Consolidated  
Parent company  
financial statements  
96 Income statement  
97 Balance sheet  
98 Statement of changes  
in equity  
50 Statement by Management  
on the annual report  
51 Independent Auditor’s  
reports  
financial statements  
56 Income statement  
56 Statement of  
comprehensive income  
57 Cash flow statement  
58 Balance sheet  
59 Statement of changes  
in equity  
99 Notes  
60 Notes  
 
Financial Statements  
ALK annual report 2022  
50  
Statement by Management on the annual report
The Board of Directors and the Board of
Management have today considered and
adopted the annual report of ALK-Abelló
A/S for the financial year 1 January to 31
December 2022.
financial year 1 January to 31 December
2022.
Board of Management  
Carsten Hellmann
President & CEO
In our opinion, Management’s review
includes a true and fair account of the
development in the operations and
financial circumstances of the group and
the parent company, of the results for the
year, and of the financial position of the
group and the parent company, as well as a
description of the most significant risks and
elements of uncertainty facing the group
and the parent company.
Henrik Jacobi
Executive Vice President,
Research & Development
Søren Jelert
Executive Vice President
& CFO
Søren Daniel Niegel
Executive Vice President,
Commercial Operations
The consolidated financial statements
have been prepared in accordance
with International Financial Reporting
Standards as adopted by the EU and
further requirements in the Danish Financial
Statements Act. The parent company
financial statements have been prepared
in accordance with the Danish Financial
Statements Act. Management's review
has been prepared in accordance with the
Danish Financial Statements Act.
Board of Directors  
In our opinion, the annual report of
ALK-Abelló A/S for the financial year 1
January to 31 December 2022 identified
as "ALK-2022-12-31.zip” is prepared, in all
material respects, in compliance with the
European Single Electronic Format (ESEF)
Regulation.
Anders Hedegaard
Chair
Lene Skole
Vice Chair
Gitte Aabo
Katja Barnkob
Bertil Lindmark
Johan Smedsrud
Nanna Rassov Carlson
Alan Main
Lars Holmqvist
Jakob Riis
In our opinion, the consolidated financial
statements and the parent company
financial statements give a true and
fair view of the financial position at 31
December 2022 of the group and the
parent company and of the results of the
group and parent company’s operations
and consolidated cash flows for the
We recommend that the annual report be
adopted at the annual general meeting.
Hørsholm, 3 February 2023
 
Financial Statements  
ALK annual report 2022  
51  
Independent Auditor’s Reports
To the shareholders of ALK-Abelló A/S
Our opinion is consistent with our Auditor’s
Long-form Report to the Audit Committee
and the Board of Directors.
under those standards and requirements
are further described in the Auditor’s
responsibilities for the audit of the Financial
Statements section of our report.
Appointment
We were first appointed auditors of
ALK-Abelló A/S on 11 March 2020 for
the financial year 2020. We have been
reappointed annually by shareholder
Report on the audit of the Financial
Statements
What we have audited
The Consolidated Financial Statements (pp
55-94) and the Parent Company Financial
Statements (pp 95-107) of ALK-Abelló
A/S for the financial year 1 January to
31 December 2022 comprise income
statement, balance sheet, statement of
changes in equity and notes, including
summary of significant accounting policies
for the Group as well as for the Parent
Company, and statement of comprehensive
income and cash flow statement for the
Group.
We believe that the audit evidence we have
obtained is sufficient and appropriate to
provide a basis for our opinion.
resolution for a total period of uninterrupted
engagement of 3 years including the
financial year 2022.
Our opinion
In our opinion, the Consolidated Financial
Statements give a true and fair view of the
Group’s financial position at 31 December
2022 and of the results of the Group’s
operations and cash flows for the financial
year 1 January to 31 December 2022 in
accordance with International Financial
Reporting Standards as adopted by the
EU and further requirements in the Danish
Financial Statements Act.
Independence
We are independent of the Group in
accordance with the International Ethics
Standards Board for Accountants’
International Code of Ethics for Professional
Accountants (IESBA Code) and the
additional ethical requirements applicable
in Denmark. We have also fulfilled our other
ethical responsibilities in accordance with
these requirements and the IESBA Code.
Moreover, in our opinion, the Parent
Collectively referred to as the “Financial
Statements”.
Company Financial Statements give a true
and fair view of the Parent Company’s
financial position at 31 December 2022
and of the results of the Parent Company’s
operations for the financial year 1 January
to 31 December 2022 in accordance with
the Danish Financial Statements Act.
To the best of our knowledge and belief,
prohibited non-audit services referred to in
Article 5(1) of Regulation (EU) No 537/2014
were not provided.
Basis for opinion
We conducted our audit in accordance
with International Standards on Auditing
(ISAs) and the additional requirements
applicable in Denmark. Our responsibilities
 
Financial Statements  
ALK annual report 2022  
52  
Key audit matters
Statement on Management’s Review
Management is responsible for
Management’s Review (pp 1-48 and 108).
material misstatement in Management’s
Review.
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the Financial Statements for 2022. These matters were
addressed in the context of our audit of the Financial Statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Management’s responsibilities
for the Financial Statements
Our opinion on the Financial Statements
does not cover Management’s Review, and
we do not express any form of assurance
conclusion thereon.
Management is responsible for the
preparation of consolidated financial
statements that give a true and fair view
in accordance with International Financial
Reporting Standards as adopted by the
EU and further requirements in the Danish
Financial Statements Act and for the
preparation of parent company financial
statements that give a true and fair view
in accordance with the Danish Financial
Key audit matter
How our audit addressed the key audit matter
Revenue recognition and related sales
deductions
The Group sells products in certain markets subject with Management.
to various rebate and discount arrangements and
mandated price adjustments schemes. These
arrangements and schemes result in deductions
to gross revenue in arriving at net revenue and in
accruals for estimated sales deductions.
We discussed the principles for accounting for
rebates, discounts and mandated price adjustments
In connection with our audit of the Financial
Statements, our responsibility is to read
Management’s Review and, in doing so,
consider whether Management’s Review
is materially inconsistent with the Financial
Statements or our knowledge obtained
in the audit, or otherwise appears to be
materially misstated.
We performed risk assessment procedures to
obtain an understanding of the IT systems, business
processes and relevant controls for revenue
recognition and related sales deductions. We
assessed whether the controls were designed
and implemented to effectively address the risk of
Statements Act, and for such internal control
as Management determines is necessary
to enable the preparation of financial
We focused on these areas as accounting for
rebates, discounts and mandated price adjustments material misstatement.
is complex and requires a high degree of estimation
Moreover, we considered whether
Management’s Review includes the
disclosures required by the Danish
Financial Statements Act.
statements that are free from material
misstatement, whether due to fraud or error.
by Management. This includes the estimation
uncertainty regarding accruals for estimated sales and estimates, including models and data used for
deductions.
We evaluated and challenged the assumptions
calculating rebates, discounts and mandated price
adjustments and accruals for sales deductions.
In preparing the Financial Statements,
Management is responsible for assessing
the Group’s and the Parent Company’s
ability to continue as a going concern,
disclosing, as applicable, matters related to
going concern and using the going concern
basis of accounting unless Management
either intends to liquidate the Group or the
Parent Company or to cease operations, or
has no realistic alternative but to do so.
We refer to note 2.1 in the consolidated financial
statements.
We assessed the appropriateness of the related
disclosure provided in the consolidated financial
statements.
Based on the work we have performed,
in our view, Management’s Review is
in accordance with the Consolidated
Financial Statements and the Parent
Company Financial Statements and has
been prepared in accordance with the
requirements of the Danish Financial
Statements Act. We did not identify any
 
Financial Statements  
ALK annual report 2022  
53  
procedures responsive to those risks,
and obtain audit evidence that is
sufficient and appropriate to provide
a basis for our opinion. The risk of not
detecting a material misstatement
resulting from fraud is higher than for one
resulting from error, as fraud may involve
collusion, forgery, intentional omissions,
misrepresentations, or the override of
internal control.
events or conditions that may cast
significant doubt on the Group’s and the
Parent Company’s ability to continue
as a going concern. If we conclude
that a material uncertainty exists,
we are required to draw attention
in our auditor’s report to the related
disclosures in the Financial Statements
or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are
based on the audit evidence obtained
up to the date of our auditor’s report.
However, future events or conditions
may cause the Group or the Parent
Company to cease to continue as a
going concern.
direction, supervision and performance
of the group audit. We remain solely
responsible for our audit opinion.
Auditor’s responsibilities for the
audit of the Financial Statements
Our objectives are to obtain reasonable
assurance about whether the Financial
Statements as a whole are free from
material misstatement, whether due to
fraud or error, and to issue an auditor’s
report that includes our opinion.
Reasonable assurance is a high level of
assurance, but is not a guarantee that
an audit conducted in accordance with
ISAs and the additional requirements
applicable in Denmark will always detect
a material misstatement when it exists.
Misstatements can arise from fraud or error
and are considered material if, individually
or in the aggregate, they could reasonably
be expected to influence the economic
decisions of users taken on the basis of
these Financial Statements.
We communicate with those charged
with governance regarding, among other
matters, the planned scope and timing of
the audit and significant audit findings,
including any significant deficiencies in
internal control that we identify during our
audit.
• Obtain an understanding of internal
control relevant to the audit in order
to design audit procedures that are
appropriate in the circumstances,
but not for the purpose of expressing
an opinion on the effectiveness of the
Group’s and the Parent Company’s
internal control.
We also provide those charged with
governance with a statement that we
have complied with relevant ethical
requirements regarding independence, and
to communicate with them all relationships
and other matters that may reasonably
be thought to bear on our independence
and, where applicable, actions taken to
eliminate threats or safeguards applied.
• Evaluate the overall presentation,
structure and content of the Financial
Statements, including the disclosures,
and whether the Financial Statements
represent the underlying transactions
and events in a manner that gives a true
and fair view.
• Evaluate the appropriateness of
accounting policies used and the
reasonableness of accounting estimates
and related disclosures made by
Management.
As part of an audit in accordance with ISAs
and the additional requirements applicable
in Denmark, we exercise professional
judgement and maintain professional
scepticism throughout the audit. We also:
From the matters communicated with
those charged with governance, we
determine those matters that were of most
significance in the audit of the Financial
Statements of the current period and
are therefore the key audit matters. We
describe these matters in our auditor’s
report unless law or regulation precludes
public disclosure about the matter.
• Obtain sufficient appropriate audit
evidence regarding the financial
• Conclude on the appropriateness of
Management’s use of the going concern
basis of accounting and based on the
audit evidence obtained, whether a
material uncertainty exists related to
information of the entities or business
activities within the Group to express an
opinion on the Consolidated Financial
Statements. We are responsible for the
• Identify and assess the risks of
material misstatement of the Financial
Statements, whether due to fraud
or error, design and perform audit
 
Financial Statements  
ALK annual report 2022  
54  
required to be tagged using judgement
where necessary;
• Obtaining an understanding of the
company’s iXBRL tagging process and
of internal control over the tagging
process;
Hellerup, 3 February 2023
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No 33 77 12 31
Report on compliance with
the ESEF Regulation
As part of our audit of the Financial
• Ensuring consistency between iXBRL
tagged data and the Consolidated
Financial Statements presented in
human-readable format; and
Statements we performed procedures to
express an opinion on whether the annual
report of ALK-Abelló A/S for the financial
year 1 January to 31 December 2022 with the
filename alk-2022-12-31-en.zip is prepared,
in all material respects, in compliance with
the Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic
Format (ESEF Regulation) which includes
requirements related to the preparation
of the annual report in XHTML format and
iXBRL tagging of the Consolidated Financial
Statements including notes.
• Evaluating the completeness of the
iXBRL tagging of the Consolidated
Financial Statements including notes;
Lars Baungaard
State Authorised Public Accountant
mne23331
• For such internal control as Management
determines necessary to enable the
preparation of an annual report that is
compliant with the ESEF Regulation.
• Evaluating the appropriateness of
the company’s use of iXBRL elements
selected from the ESEF taxonomy and
the creation of extension elements
where no suitable element in the ESEF
taxonomy has been identified;
Kim Tromholt
State Authorised Public Accountant
mne33251
Our responsibility is to obtain reasonable
assurance on whether the annual report
is prepared, in all material respects, in
compliance with the ESEF Regulation based
on the evidence we have obtained, and to
issue a report that includes our opinion. The
nature, timing and extent of procedures
selected depend on the auditor’s
judgement, including the assessment
of the risks of material departures from
the requirements set out in the ESEF
Regulation, whether due to fraud or error.
The procedures include:
• Evaluating the use of anchoring of
extension elements to elements in the
ESEF taxonomy; and
Management is responsible for preparing an
annual report that complies with the ESEF
Regulation. This responsibility includes:
• Reconciling the iXBRL tagged data with
the audited Consolidated Financial
Statements including notes.
• The preparing of the annual report in
XHTML format;
In our opinion, the annual report of
ALK-Abelló A/S for the financial year 1
January to 31 December 2022 with the file
name alk-2022-12-31-en.zip is prepared,
in all material respects, in compliance with
the ESEF Regulation.
• The selection and application of
appropriate iXBRL tags, including
extensions to the ESEF taxonomy and
the anchoring thereof to elements in the
taxonomy, for all financial information
• Testing whether the annual report is
prepared in XHTML format;
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
55  
Consolidated  
financial statements  
Financial statements  
Notes  
Income statement  
56  
56  
57  
58  
59  
60  
Section 1  
Basis of reporting  
Section 3  
Operating assets and liabilities  
Section 5  
Other disclosures  
Statement of comprehensive income  
Cash flow statement  
Balance sheet  
1.1  
1.2  
General accounting policies  
60  
62  
3.1  
Intangible assets  
70  
72  
74  
76  
77  
77  
78  
80  
80  
5.1  
Share-based payments  
88  
91  
92  
92  
92  
Significant accounting  
3.2 Property, plant and equipment  
3.3 Leases  
5.2 Cash flow  
estimates and judgements  
5.3 Related parties  
5.4 Events after the reporting period  
5.5 Approval of financial statements  
Statement of changes in equity  
Notes  
3.4 Inventories  
Section 2  
Results for the year  
3.5 Trade receivables  
3.6 Prepayments  
5.6 List of companies in the ALK Group 93  
Definitions  
94  
2.1  
Revenue and segment information 63  
3.7  
Pensions and similar liabilities  
2.2 Expenses  
64  
3.8 Provisions  
2.3 Depreciation, amortisation  
and impairment  
3.9  
Other payables  
65  
65  
66  
66  
67  
3.10 Contingent liabilities  
and commitments  
2.4 Staff costs  
81  
2.5 Fees to the ALK Group’s auditors  
2.6 Financial income and expenses  
2.7 Income tax and deferred tax  
Section 4  
Capital structure and financing  
4.1  
Share capital and earnings  
per share  
82  
83  
4.2 Financial risks and  
financial instruments  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
56  
Income statement  
Statement of comprehensive income  
Amounts in DKKm  
Note  
2022  
2021  
Amounts in DKKm  
Note  
2022  
335
2021  
Net profit  
219
Revenue  
2.1  
4,511
1,720
2,791
3,916
1,520
2,396
Cost of sales  
Gross profit  
2.2-2.4, 3.4, 5.1  
Items that will subsequently not be reclassified  
to the income statement:  
Actuarial gains on pension plans  
3.7  
2.7  
96
(30)
66
16
Research and development expenses  
Sales and marketing expenses  
Administrative expenses  
2.2-2.4, 5.1  
2.2-2.4, 5.1  
2.2-2.4, 5.1  
665
1,381
276
1
631
1,234
240
1
Tax related to actuarial gains/(losses) on pension plans  
(5)
11
Other operating income  
Items that will subsequently be reclassified to  
the income statement, when specific conditions are met:  
Operating profit (EBIT)  
470
292
Foreign currency translation adjustment of foreign affiliates  
61
84
Financial income  
2.6  
2.6  
4
27
10
23
Tax related to other comprehensive income, that will  
subsequently be reclassified to the income statement  
Financial expenses  
Profit before tax (EBT)  
2.7  
4
(4)
447
279
65
80
Tax on profit  
2.7  
4.1  
112
60
Other comprehensive income  
Total comprehensive income  
131
466
91
Net profit  
335
219
310
Earnings per share (EPS)  
Earnings per share (EPS)  
1.52
1.51
1.00
0.99
Earnings per share (DEPS), diluted  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
57  
Cash flow statement  
Amounts in DKKm  
Note  
2022  
335
2021  
219
Net profit  
Adjustments  
Adjustments for non-cash items  
Changes in working capital  
Financial income, received  
Financial expenses, paid  
Income tax, paid (net)  
5.2  
5.2  
406
(235)
2
400
(28)
-
(14)
(78)
416
(23)
(100)
468
Cash flow from operating activities  
Investments in intangible assets  
Investments in tangible assets  
3.1  
(55)
(298)
2
(45)
(218)
(3)
3.2-3.3  
Investments in other financial assets  
Cash flow from investing activities  
(351)
(266)
Free cash flow  
65
202
Sale of treasury shares  
42
(11)
60
31
(72)
226
Exercised share options, paid  
Proceeds from borrowings  
Repayment of borrowings  
5.2  
5.2  
5.2  
(94)
(39)
(42)
(464)
(32)
(311)
Repayment of lease liabilities  
Cash flow from financing activities  
Net cash flow  
23
(109)
Cash beginning of year  
194
298
Unrealised gain/(loss) on cash held in foreign currency and  
financial assets carried as cash  
4
23
5
(109)
194
Net cash flow  
Cash year end  
221
The consolidated statement of cash flow is compiled using the indirect method. As a result, the individual figures in the cash flow  
statement cannot be reconciled directly to the income statement and the balance sheet.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
58  
Balance sheet – Assets  
Balance sheet – Equity and liabilities  
31 Dec.  
2022  
31 Dec.  
2021  
31 Dec.  
2022  
31 Dec.  
2021  
Amounts in DKKm  
Note  
Amounts in DKKm  
Note  
Non-current assets  
Equity  
Intangible assets  
Goodwill  
Share capital  
4.1  
111
20
111
(41)
3.1  
3.1  
460
182
642
457
165
622
Currency translation adjustment  
Retained earnings  
Total equity  
Other intangible assets  
3,857
3,988
3,410
3,480
Tangible assets  
Land and buildings  
3.2-3.3  
3.2  
991
440
958
451
Liabilities  
Plant and machinery  
Non-current liabilities  
Mortgage debt  
Other fixtures and equipment  
Property, plant and equipment in progress  
3.2-3.3  
3.2  
76
80
4.2  
3.7  
4.2  
203
236
226
49
222
324
207
42
511
325
Pensions and similar liabilities  
Lease liabilities  
2,018
1,814
Other non-current assets  
Prepayments  
Deferred income  
94
716
29
790
172
991
Deferred tax liabilities  
Income tax payables  
2.7  
4
1
Deferred tax assets  
Income tax receivables  
2.7  
203
921
169
965
193
1,003
Current liabilities  
Mortgage debt  
Bank loans  
4.2  
4.2  
18
208
131
41
18
226
115
37
Total non-current assets  
Current assets  
3,663
3,427
Trade payables  
Lease liabilities  
Deferred income  
Provisions  
4.2  
3.8  
3.9  
Inventories  
3.4  
3.5  
5.3  
1,297
764
18
1,204
583
12
4
4
Trade receivables  
Receivables from group companies  
Income tax receivables  
Other receivables  
Prepayments  
3
12
Income tax payables  
Other payables  
16
23
24
14
978
1,399
950
1,385
82
82
3.6  
239
221
2,645
314
194
2,403
Cash  
Total liabilities  
2,320
6,308
2,350
5,830
Total current assets  
Total equity and liabilities  
Total assets  
6,308
5,830
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
59  
Statement of changes in equity  
Currency  
translation  
adjust-  
Currency  
translation  
adjust-  
ment  
Share  
capital  
Retained  
earnings  
Total  
equity  
Share  
capital  
Retained  
earnings  
Total  
equity  
Amounts in DKKm  
2022  
ment  
Amounts in DKKm  
2021  
Equity at 1 January  
111
(41)
3,410
3,480
Equity at 1 January  
111
(125)
3,167
3,153
Net profit  
-
-
-
-
61
61
335
70
335
131
466
Net profit  
-
-
-
-
84
84
219
7
219
91
Other comprehensive income  
Total comprehensive income  
Other comprehensive income  
Total comprehensive income  
405
226
310
Share-based payments  
-
-
-
-
-
-
-
-
-
-
27
(11)
42
27
(11)
42
Share-based payments  
Share options settled  
-
-
-
-
-
-
-
-
-
-
-
-
36
(72)
31
36
(72)
31
Share options settled  
Sale of treasury shares  
Sale of treasury shares  
Tax related to items recognised directly in equity  
Other transactions  
(16)
42
(16)
42
Tax related to items recognised directly in equity  
Other adjustments  
10
10
12
12
Other transactions  
17
17
Equity at 31 December  
111
20
3,857
3,988
Equity at 31 December  
111
(41)
3,410
3,480
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
60  
Section 1 – Basis of reporting  
1.1 General accounting policies  
The accounting policies are unchanged  
from last year except for the below  
mentioned impacts of new standards.  
statements used for consolidation are  
prepared in accordance with the ALK  
Group’s accounting policies.  
On consolidation, intra-group income  
and expenses, intra-group balances  
and dividends, and gains and losses  
arising on intra-group transactions are  
eliminated.  
On recognition in the consolidated  
financial statements of subsidiaries  
whose financial statements are  
presented in a functional currency other  
than DKK, the income statements are  
translated at average exchange rates  
for the respective months, unless these  
deviate materially from the actual  
exchange rates at the transaction  
dates. In that case, the actual exchange  
rates are used. Balance sheet items  
are translated at the exchange rates  
at the balance sheet date. Goodwill is  
considered to belong to the acquired  
company in question and is translated  
at the exchange rate at the balance  
sheet date.  
Exchange rate differences arising on  
the translation of foreign subsidiaries’  
opening balance sheet items to the  
exchange rates at the balance sheet  
date and on the translation of the  
income statements from average  
exchange rates to exchange rates at the  
balance sheet date are recognised in  
other comprehensive income.  
Foreign exchange rate adjustment of  
receivables or debt to subsidiaries  
which are considered part of the  
parent company’s overall investment  
in the subsidiary in question are also  
recognised in other comprehensive  
income in the consolidated financial  
statements.  
The consolidated financial statements  
for the period 1 January to 31  
December 2022 have been prepared  
in accordance with the International  
Financial Reporting Standards (IFRS)  
as adopted by the EU and in accordance  
with Danish disclosure requirements  
for listed companies. Additional Danish  
disclosure requirements for annual  
reports are imposed by the Statutory  
Order on Adoption of IFRS issued under  
the Danish Financial Statements Act.  
Definitions and ratios  
The key ratios have been calculated in  
accordance with generally accepted  
financial ratios applied by financial  
analysts. Definitions are shown on page  
94.  
Reporting under the ESEF regulation  
The Commission Delegated Regulation  
(EU) 2019/815 on the European  
Single Electronic Format (ESEF) (ESEF  
Regulation) has introduced a single  
electronic reporting format for the  
annual financial reports of issuers with  
securities listed on the EU regulated  
markets.  
The ESEF Regulation sets out the  
following main requirements: (1)  
Issuers shall draw up and disclose  
their annual financial reports using  
the XHTML format; and (2) issuers that  
draw-up their primary consolidated  
financial statements in accordance  
with IFRS as endorsed by the EU shall  
tag those consolidated financial  
statements using inline eXtensible  
Business Reporting Language (iXBRL)  
including block-tag of the notes to the  
consolidated financial statements.  
New standards effective from  
1 January 2022  
The ALK Group has implemented all  
new and amended standards and IFRIC  
interpretations which are effective  
for the financial year 2022. This has  
not resulted in any changes to the  
accounting policies of the ALK Group.  
Foreign currency translation  
On initial recognition, transactions  
denominated in currencies other  
than DKK are translated at average  
exchange rates, which are an  
approximation of the exchange rates  
at the transaction date. Receivables  
and debt and other monetary items not  
settled at the balance sheet date are  
translated at the closing rate.  
Exchange rate differences between  
the exchange rate at the date of  
the transaction and the exchange  
rate at the date of payment or the  
balance sheet date, respectively, are  
recognised in the income statement  
under financial items. Tangible assets  
and intangible assets, inventories and  
other nonmonetary assets acquired in  
foreign currency and measured based  
on historical cost are translated at the  
exchange rates at the transaction date.  
The consolidated financial statements  
are presented in Danish kroner (DKK),  
which is considered the primary  
currency of the ALK Group’s activities  
and the functional currency of the  
parent company.  
The consolidated financial statements  
are presented on a historical cost basis,  
apart from certain financial instruments,  
which are measured at fair value.  
The general accounting policies  
described below apply to the  
consolidated financial statements as  
a whole. To enhance understanding,  
specific accounting policies are  
described in the notes to which they  
relate. The description of accounting  
policies in the notes form part of the  
overall description of accounting  
policies.  
New standards effective on or after  
1 January 2023  
A number of IFRS standards, amended  
standards and IFRIC interpretations,  
which are effective on or after 1 January  
2023, have not been implemented.  
Based on a preliminary assessment it  
is estimated that these standards and  
interpretations will have no material  
impact on the consolidated financial  
statements.  
Basis of consolidation  
The consolidated financial statements  
comprise the financial statements of  
ALK-Abelló A/S (the parent company)  
and companies (subsidiaries)  
controlled by the parent company.  
The consolidated financial statements  
are prepared as a consolidation of  
items of a uniform nature. The financial  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
61  
Section 1 – Basis of reporting  
1.1 General accounting policies – continued  
The combination of the XHTML  
format with the iXBRL tags makes the  
annual financial reports both human-  
readable and machine-readable,  
thus enhancing accessibility, analysis  
and comparability of the information  
included in the annual financial reports.  
iXBRL tags shall comply with the ESEF  
taxonomy, which is included in the ESEF  
Regulation and developed based on the  
IFRS taxonomy published by the IFRS  
Foundation.  
As part of the tagging process financial  
statement line items are marked up  
to elements in the ESEF taxonomy.  
If a financial statement line item is  
not defined in the ESEF taxonomy, an  
extension to the taxonomy is created.  
Extensions have to be anchored  
to elements in the ESEF taxonomy,  
except for elements corresponding to  
subtotals.  
The annual report 2022 for the ALK  
Group submitted to the Danish Financial  
Supervisory Authority and Nasdaq  
consists of the XHTML document  
together with some technical files all  
included in a ZIP file named “ALK-2022-  
12-31-en.zip”.  
Key definitions  
XHTML (eXtensible HyperText Markup  
Language) is a text-based markup  
language used to structure and mark  
up content such as text, images, and  
hyperlinks in documents that are  
displayed as Web pages in an updated  
standard Web browser like Chrome or  
Edge.  
ESEF data  
Name of reporting entity or other  
means of identification  
ALK-Abelló A/S
Domicile of entity  
Denmark
Legal form of entity  
A/S
Country of incorporation  
Denmark
Address of entity’s registered office  
Bøge Allé 6-8, DK-2970 Hørsholm
Principal place of business  
Global
Description of nature of entity’s  
operations and principal activities  
ALK is a global allergy solutions
company  
Name of parent entity  
Lundbeckfond Invest A/S
Name of ultimate parent of group  
Lundbeck Foundation
iXBRL tags (or Inline XBRL tags) are  
hidden meta-information embedded  
in the source code of an XHTML  
document in accordance with the Inline  
XBRL 1.1 specification, which enables  
the conversion of XHTML-formatted  
information into a machine-readable  
XBRL data record by appropriate  
software.  
The tagging process is a process where  
iXBRL tags are applied to financial  
statement line items, notes etc.  
Taxonomy is an electronic dictionary  
of business reporting elements used  
to report business data. A taxonomy  
element is an element defined in a  
taxonomy that is used for the machine-  
readable labeling of information in an  
XBRL data record.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
62  
Section 1 – Basis of reporting  
1.2 Significant accounting estimates and judgements  
In the preparation of the consolidated  
financial statements according to  
IFRS, Management is required to make  
certain estimates as many financial  
statement items cannot be reliably  
measured, but must be estimated.  
Such estimates comprise judgements  
made on the basis of the most recent  
information available at the reporting  
date.  
information, additional experience or  
subsequent events. Similarly, the value  
of assets and liabilities often depends  
on future events that are somewhat  
uncertain. In that connection, it is  
necessary to set out e.g. a course of  
events that reflects Management’s  
assessment of the most probable  
course of events.  
A description of significant accounting  
estimates and judgements as well as  
assumptions applied is included in the  
relevant notes.  
Management considers those listed  
below as the key accounting estimates  
and related judgements used in the  
preparation of the consolidated  
financial statements.  
It may be necessary to change previous  
estimates as a result of changes to the  
assumptions on which the estimates  
were based or due to supplementary  
Estimate/  
Note  
Key accounting estimates and judgements  
judgement  
Sales deductions comprising rebates, discounts, and mandated  
2.1 Revenue and segment information  
Estimate  
price adjustments  
2.2 Expenses  
Recognition of costs for outsourced clinical trials  
Estimate  
Provision for uncertain tax positions and measurement of  
Estimate/  
2.7 Income tax and deferred tax  
deferred tax assets  
judgement  
3.1 Intangible assets  
Recoverable amount of goodwill  
Estimate  
Valuation of inventories and capitalisation of indirect production  
3.4 Inventories  
Estimate  
costs  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
63  
Section 2 – Results for the year  
2.1 Revenue and segment information  
Europe  
North America  
International markets  
Total  
Amounts in DKKm  
2022  
2021  
2022  
2021  
2022  
2021  
2022  
2021  
SCIT/SLIT-drops  
1,266  
1,273  
349  
302  
133  
80  
1,748  
1,655  
SLIT-tablets  
1,519  
1,340  
151  
120  
432  
314  
2,102  
1,774  
Other products and services  
273  
196  
357  
261  
31  
30  
661  
487  
Total revenue  
3,058  
2,809  
857  
683  
596  
424  
4 , 511  
3,916  
Sale of goods  
4,411  
3,835  
Royalties  
93  
81  
Services  
7
-
Total revenue  
4 , 511  
3,916  
Of total revenue, DKK 119 million (2021: DKK 101 million) is derived from Denmark.  
The ALK Group’s non-current tangible and intangible assets are distributed among the following geographical markets:  
Europe  
North America  
International markets  
Total  
Amounts in DKKm  
2022  
2021  
2022  
2021  
2022  
2021  
2022  
2021  
Non-current tangible and  
intangible assets  
1,754  
1,671  
899  
763  
7
2
2,660  
2,436  
Of total non-current tangible and intangible assets, DKK 1,356 million relates to assets in Denmark (2021: DKK 1,283 million).  
Accounting policies  
Segment information  
Based on the internal reporting used by the  
Board of Management to assess the results of  
operations and allocation of resources, the ALK  
Group has identified one operating segment  
‘Allergy treatment’, which is in accordance  
with the way the activities are organised and  
managed. Even though revenue within the  
operating segment “Allergy treatment” can  
be divided by product lines and market, the  
main part of the activities within production,  
research and development, sales and  
marketing and administration are shared by  
the ALK Group as a whole. The disclosures in  
the financial statements include a breakdown  
of revenue by product line and a geographical  
breakdown of revenue and non-current assets.  
The geographical information on markets is  
based on customer and asset location.  
Revenue  
The primary performance obligation of  
the ALK Group is the sale and delivery of  
own-manufactured goods and goods for resale  
for allergy treatment. Revenue from the sale of  
goods is recognised in the income statement  
upon the control of the goods being transferred  
to the customer, i.e. when goods are delivered.  
Revenue is recognised by the ALK Group at a  
point in time.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
64  
Section 2 – Results for the year  
2.1 Revenue and segment information  
2.2 Expenses  
The ALK Group’s customers have payment terms that reflect the customer type and the market in which  
sales take place, which typically varies from 0 to 180 days.  
Accounting policies  
Cost of sales  
The item comprises cost of sales and production costs incurred in generating the revenue for the year.  
Costs for raw materials, consumables, goods for resale, production staff and a proportion of production  
overheads, including maintenance and depreciation, amortisation and impairment of tangible assets  
and intangible assets used in production as well as operation, administration and management of  
factories are recognised in cost of sales and production costs. In addition, the costs and write-down to  
net realisable value of obsolete and slow-moving goods are recognised.  
Revenue is measured as the fair value of the consideration received or receivable.  
Revenue is measured exclusive of VAT, taxes etc. charged on behalf of third parties and less any  
commissions and discounts in connection with sales.  
Furthermore, revenue includes licence income and royalties from outlicensed products as well as  
up-front payments, milestone payments and services in connection with partnerships. These revenues  
are recognised in the income statement in accordance with the agreements and when the ALK Group  
obtains the right to the payments, which is when services have been delivered to the customer or at the  
point in time the subsequent sales occur.  
When combined contracts are entered, the elements of the contracts are identified and assessed  
separately for accounting purposes.  
Research and development expenses  
The item comprises research and development expenses, including expenses incurred for wages  
and salaries, amortisation, impairment of capitalised development projects in progress, and other  
overheads as well as costs relating to research partnerships. Research expenses are recognised in the  
income statement when incurred. Due to the long development periods and significant uncertainties  
in relation to the development of new products, including risks regarding clinical trials and regulatory  
approvals, it is the assessment that most of the ALK Group’s development expenses do not meet the  
capitalisation criteria in IAS 38, Intangible Assets. Consequently, development expenses are generally  
recognised in the income statement when incurred. Development expenses relating to individual minor  
development projects running for short-term periods and subject to limited risk are capitalised under  
other intangible assets.  
Significant accounting estimates and judgements  
Sales deductions comprising rebates, discounts, and mandated price adjustments are estimated  
and accrued for at the time when the related sales are recorded. Management is required to make  
significant estimates in the revenue recognition relating to the accruals for sales deductions as not all  
conditions are known at the time of sale and as revenue can only be recognised to the extent that it is  
probable that a significant reversal of the recognised revenue will not occur.  
Management’s estimate of accruals for sales deductions is based on a calculation taking into  
consideration among other factors, existing contractual obligations, the extent of predictability,  
historical experience with similar transactions and whether the consideration is highly susceptible to  
factors outside ALK’s influence.  
ALK considers the accruals established for sales deductions to be reasonable and appropriate based  
on currently available information. The accruals for sales deductions are adjusted regularly as new or  
more detailed information becomes available and when actual amounts are processed.  
Sales and marketing expenses  
The item comprises selling and marketing expenses, including salaries and expenses relating to sales  
staff, advertising and exhibitions, depreciation, amortisation and impairment losses on tangible assets  
and intangible assets used in the sales and marketing process as well as other indirect costs.  
Administrative expenses  
The item comprises expenses incurred for management and administration, including expenses for  
administrative staff and management, office expenses and depreciation, amortisation and impairment  
losses on tangible assets and intangible assets used in administration.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
65  
Section 2 – Results for the year  
2.2 Expenses - continued  
2.4 Staff costs  
2022  
2021  
Amounts in DKKm  
Wages and salaries  
1,584  
1,425  
Pensions, cf. note 3.7  
131  
115  
Other social security costs, etc.  
207  
193  
Share-based payments, cf. note 5.1  
27  
35  
Total  
1,949  
1,768  
Staff costs are allocated as follows:  
Cost of sales  
747  
682  
Research and development expenses  
279  
254  
Sales and marketing expenses  
673  
604  
Administrative expenses  
187  
170  
Included in the cost of assets  
63  
58  
Total  
1,949  
1,768  
Remuneration to Management:  
Remuneration to Board of Management:*  
Salaries  
19  
18  
Short-term incentive (cash bonus)  
12  
12  
Pensions  
1
1
Long-term incentives (share-based) based on expensed accounting value  
7
11  
Total remuneration to Board of Management  
39  
42  
Remuneration to Board of Directors  
6
5
Total remuneration to Board of Management and Board of Directors  
45  
47  
Employees  
Average number (FTE)  
2,609  
2,492  
Number year end (FTE)  
2,680  
2,537  
*
The expensed costs include DKK 0 (2021: DKK 5 million) related to adjustment in the share options and performance share  
units expected to vest.  
Significant accounting estimates and judgements  
Clinical trials, which are outsourced to Clinical Research Organisations (“CROs”), take several years  
to complete. As such, Management is required to make estimates based on the progress and costs  
incurred to-date for the ongoing trials. Estimates are made in determining the amount of costs to be  
expensed during the period or recognised as prepayments or accruals on the balance sheet.  
At 31 December 2022, DKK 114 million is recognised as accrued expenses (2021: DKK 179 million) and  
DKK 130 million as prepayments in the balance sheet (2021: DKK 240 million). In 2022, clinical trials  
expenses of DKK 240 million have been recognised in the income statement (2021: DKK 242 million).  
2.3 Depreciation, amortisation and impairment  
Amounts in DKKm  
2022  
2021  
Depreciation, amortisation and impairment allocation:  
Cost of sales  
163  
158  
Research and development expenses  
9
8
Sales and marketing expenses  
23  
36  
Administrative expenses  
43  
40  
Total  
238  
242  
Impairment amounts to DKK 2 million (2021: DKK 20 million), of which DKK 1 million relates to impairment  
of tangible assets (2021: DKK 8 million) and DKK 1 million relates to intangible assets (2021: DKK 12  
million).  
The impairment of tangible assets is related to impairment of production equipment of DKK 1 million with  
no recoverable amount after impairment. The impairment is recognised as cost of sales.  
The impairment of intangible assets is related to impairment of goodwill of DKK 1 million with no  
recoverable amount after impairment. The impairment is associated with closing down activities in  
Turkey and is recognised as sales and marketing expenses.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
66  
Section 2 – Results for the year  
2.5 Fees to the ALK Group’s auditors  
2022  
2021  
Amounts in DKKm  
Fees to the auditors appointed at the annual general meeting:  
Audit services  
3
3
Other opinions  
-
-
Tax advisory services  
-
1
Other services  
1
-
Total  
4
4
The fee for non-audit services provided by PricewaterhouseCoopers Statsautoriseret  
Revisionspartnerselskab (Denmark) of DKK 1 million (2021: DKK 1 million) relates to HR consulting and  
other general financial accounting matters.  
For information on ALK entities intended to be exempt from local audits of the 2022 accounts, see  
note 5.6.  
2.6 Financial income and expenses  
2022  
2021  
Amounts in DKKm  
Interest income  
4
1
Financial income from financial assets measured at amortised cost  
4
1
Currency gains, net  
-
9
Total financial income  
4
10  
Interest expenses*  
22  
23  
Financial expenses from financial liabilities measured at amortised cost  
22  
23  
Interest expenses on uncertain tax positions, net  
2
-
Currency losses, net  
3
-
Total financial expenses  
27  
23  
*
Includes interest expenses related to leasing of DKK 6 million (2021: DKK 7 million).  
Accounting policies  
Financial items comprise interest receivable and interest payable, the interest element of lease  
payments, realised and unrealised gains and losses on securities, cash, liabilities and foreign currency  
transactions, mortgage amortisation premium/allowance etc. and provisions for uncertain tax  
position.  
Interest expenses and income related to uncertain tax position are recognised on the balance sheet  
as tax liabilities and tax assets respectively upon the receipt of ruling from the tax authorities and  
correspondingly reflected in the income statement as financial items net.  
Interest income and expenses are accrued based on the principal and the effective rate of interest.  
The effective rate of interest is the discount rate to be used on discounting expected future payments  
in relation to the financial asset or the financial liability so that their present value corresponds to the  
carrying amount of the asset or liability, respectively.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
67  
Section 2 – Results for the year  
2.7 Income tax and deferred tax  
2022  
2021  
Amounts in DKKm  
Tax on profit  
Current income tax  
91  
154  
Adjustment of deferred tax  
20  
(97)  
Prior years adjustments, income tax  
3
3
Prior years adjustments, deferred tax  
(2)  
-
Tax on profit for the year  
112  
60  
Profit before tax  
447  
279  
Income tax, tax rate of 22% (2021: 22%)  
98  
61  
Effect of deviation of foreign subsidiaries’ tax rate  
relative to Danish tax rate  
14  
11  
Permanent differences  
(10)  
(14)  
Other taxes and adjustments  
11  
1
Change in valuation of net tax assets  
(2)  
(2)  
Prior years adjustments, income tax  
3
3
Prior years adjustments, deferred tax  
(2)  
-
Tax on profit for the year  
112  
60  
Tax related to equity comprises an expense of DKK 16 million (2021: income of DKK 10 million) and other  
comprehensive income comprises an expense of DKK 26 million (2021: expense of DKK 9 million).  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
68  
Section 2 – Results for the year  
2.7 Income tax and deferred tax – continued  
Intangible  
Tangible  
Current and  
Tax losses  
assets  
assets  
other assets  
Liabilities  
carried forward  
Total  
Amounts in DKKm  
2022  
Deferred tax  
Carrying amount beginning of year  
(20)  
(98)  
438  
129  
340  
789  
Adjustment to prior years’ deferred tax  
-
(3)  
1
2
2
2
Adjustment of receivables from group companies  
-
-
-
-
(17)  
(17)  
Currency adjustments  
-
(3)  
-
2
1
-
Adjustment of deferred tax due to coming year change of tax rates  
-
(1)  
-
1
-
-
Recognised in the income statement, net  
(4)  
(2)  
(37)  
-
21  
(22)  
Change in valuation of net tax assets  
-
-
-
2
-
2
Recognised in other comprehensive income, net  
-
-
-
(30)  
4
(26)  
Recognised in equity, net (share-based payments)  
-
-
(32)  
-
16  
(16)  
Carrying amount year end  
(24)  
(107)  
370  
106  
367  
712  
2021  
Deferred tax  
Carrying amount beginning of year  
(7)  
(103)  
340  
135  
332  
697  
Adjustment to prior years’ deferred tax  
3
1
(4)  
-
-
-
Adjustment of receivables from group companies  
-
-
-
-
(6)  
(6)  
Currency adjustments  
-
(2)  
-
1
1
-
Recognised in the income statement, net  
(16)  
6
125  
(4)  
(16)  
95  
Change in valuation of net tax assets  
-
-
-
2
-
2
Recognised in other comprehensive income, net  
-
-
-
(5)  
(4)  
(9)  
Recognised in equity, net (share-based payments)  
-
-
(23)  
-
33  
10  
Carrying amount year end  
(20)  
(98)  
438  
129  
340  
789  
Deferred tax consists of deferred tax assets of DKK 716 million (2021: DKK 790 million) and deferred tax liabilities of DKK 4 million (2021: DKK 1 million).  
Unrecognised deferred tax assets comprising tax losses carried forward amount to DKK 11 million and relate to US entities (2021: DKK 14 million). The tax losses have no expiry date.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
69  
Section 2 – Results for the year  
2.7 Income tax and deferred tax – continued  
Accounting policies  
tax liabilities or as net assets to be offset against future positive taxable income. Deferred tax assets  
including the tax value of tax losses are recognised if it is probable that it can be utilised against future  
taxable income within a foreseeable future. This includes an assessment of the possibilities to utilise tax  
losses in the joint Danish taxation scheme with the Lundbeck Foundation (Lundbeckfond Invest A/S).  
At each balance sheet date, it is reassessed whether it is likely that there will be sufficient future taxable  
income for the deferred tax asset to be utilised.  
The parent company is included in a joint Danish taxation scheme with the Lundbeck Foundation  
(Lundbeckfond Invest A/S) and its Danish subsidiaries. The tax charge for the year is allocated among  
the jointly taxed companies in proportion to the taxable incomes of individual companies, taking into  
account taxes paid.  
Tax on the profit for the year comprises the year’s current tax and changes in deferred tax. The  
tax expense relating to the profit/loss for the year is recognised in the income statement, and the  
tax expense relating to items recognised in other comprehensive income and directly in equity,  
respectively, is recognised in other comprehensive income or directly in equity. Exchange rate  
adjustments of deferred tax are recognised as part of the adjustment of deferred tax for the year.  
Current tax payable and receivable is recognised in the balance sheet as the expected tax on the  
taxable income for the year, adjusted for tax paid on account.  
The current tax charge for the year is calculated based on the tax rates and rules enacted at the balance  
sheet date.  
Uncertain tax position is recognised for those matters for which the tax determination is uncertain but it  
is considered probable that there will be a future outflow of funds to a tax authority (and a future inflow  
of funds from a tax authority). The uncertain tax position is measured at the best estimate of the amount  
expected to become payable (and receivable).  
Deferred tax is measured using the balance sheet liability method on all temporary differences between  
the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised  
on temporary differences relating to the initial recognition of goodwill or the initial recognition of a  
transaction, apart from business combinations, and where the temporary difference existing at the  
date of initial recognition affects neither profit/loss for the year nor taxable income.  
Deferred tax is calculated based on the planned use of each asset and settlement of each liability,  
respectively. Deferred tax is measured using the tax rates and tax rules that, based on legislation  
enacted or in reality enacted at the balance sheet date, are expected to apply in the respective  
countries when the deferred tax is expected to crystallise as current tax. Changes in deferred tax as a  
result of changed tax rates or rules are recognised in the income statement, in other comprehensive  
income or in equity, depending on where the deferred tax was originally recognised. Deferred tax  
related to equity transactions is recognised in equity.  
Deferred tax assets, including the tax value of tax loss carry-forwards, are recognised in the balance  
sheet at the value at which the asset is expected to be realised, either through a set-off against deferred  
Significant accounting estimates and judgements  
Management is required to make an estimate in the recognition of deferred tax assets. This assessment  
includes estimates of future taxable income in ALK and other members of the joint Danish taxation scheme  
with the Lundbeck Foundation. The forecasts for ALK-Abelló A/S with increased positive results (EBT) is  
based on growth in revenue and earnings driven by SLIT-tablets.  
At 31 December 2022, the value of the total net deferred tax asset is DKK 712 million (2021: DKK 789  
million). It includes a net deferred tax asset in Denmark related to tax losses carried forward of DKK 343  
million (2021: DKK 328 million).  
Complying with tax rules, when conducting business globally, can be complex as the interpretation of  
legislation and case law may change over time or may not always be clear. Management’s judgements  
are applied to assess the possible effect of exposures and the possible outcome of disputes or  
interpretational uncertainties when transfer pricing disputes with local tax authorities may occur.  
Dialogue with local tax authorities, tax advisors, business plans and knowledge of the business are key  
parameters for Management to estimate the tax assets and liabilities.  
At 31 December 2022, the ALK Group recognises uncertain tax position as part of non-current tax. The  
actual outcome may deviate and depends on the result of litigation and settlements with the relevant  
local tax authorities.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
70  
Section 3 – Operating assets and liabilities  
3.1 Intangible assets  
Patents,  
Other  
trademarks  
intangible  
Goodwill  
Software  
and rights  
assets*  
Total  
Amounts in DKKm  
2022  
Cost beginning of year  
479  
420  
236  
249  
1,384  
Currency adjustments  
4
-
3
2
9
Additions  
-
8
-
47  
55  
Disposals  
(1)  
(4)  
(32)  
-
(37)  
Transfer to/from other groups  
-
35  
-
(35)  
-
Cost year end  
482  
459  
207  
263  
1,411  
Amortisation and impairment  
beginning of year  
22  
332  
225  
183  
762  
Currency adjustments  
-
1
3
1
5
Amortisation for the year  
-
28  
6
4
38  
Disposals during the year  
(1)  
(4)  
(32)  
-
(37)  
Impairment during the year,  
cf. note 2.3  
1
-
-
-
1
Amortisation and  
impairment year end  
22  
357  
202  
188  
769  
Carrying amount year end  
460  
102  
5
75  
642  
* Other intangible assets includes individual minor development projects running for short-term periods.  
Patents,  
Other  
trademarks  
intangible  
Goodwill  
Software  
and rights  
assets*  
Total  
Amounts in DKKm  
2021  
Cost beginning of year  
475  
396  
231  
245  
1,347  
Currency adjustments  
4
1
5
1
11  
Additions  
-
8
1
36  
45  
Disposals  
-
(17)  
(1)  
(1)  
(19)  
Transfer to/from other groups  
-
32  
-
(32)  
-
Cost year end  
479  
420  
236  
249  
1,384  
Amortisation and impairment  
beginning of year  
23  
313  
214  
173  
723  
Currency adjustments  
(1)  
-
4
1
4
Amortisation for the year  
-
25  
7
9
41  
Disposals during the year  
-
(17)  
(1)  
-
(18)  
Impairment during the year,  
cf. note 2.3  
-
11  
1
-
12  
Amortisation and  
impairment year end  
22  
332  
225  
183  
762  
Carrying amount year end  
457  
88  
11  
66  
622  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
71  
Section 3 – Operating assets and liabilities  
3.1 Intangible assets – continued  
Goodwill  
Goodwill is related to acquisition of companies in previous years and has been subject to an impairment  
test, which has been submitted to the Audit Committee for subsequent approval by the Board of  
Directors. The impairment test performed in 2022 revealed no need for impairment of goodwill.  
Impairment of goodwill in 2022 of DKK 1 million is associated with closing down activities in Turkey.  
Goodwill has been tested at an aggregated level for ALK as one cash-generating unit. In the calculation  
of the value in use of the cash-generating unit, future free net cash flow is estimated based on Board  
of Directors-approved budget (2023) and financial forecasts (2024-2025) in line with the ALK Group’s  
strategy.  
The budget and the forecast plans are based on specific future business initiatives for which the risks  
relating to key parameters have been assessed and recognised in estimated future free cash flows.  
The key parameters in the calculation of the value in use are revenue, earnings, working capital,  
capital expenditure, discount rate and the preconditions for the terminal value. Estimates are based on  
historical data and expectations on future changes in the markets and products. These expectations  
are based on a number of assumptions including expected product launches, volume forecasts, price  
information and profitability of both the ALK Group’s business as well as geographical expansions.  
For financial years after the three year forecast period (2023-2025), the cash flows in the most recent  
period have been extrapolated adjusted for a growth factor of 1.5% (2021: 1.5%) during the terminal  
period. The discount rate used is 9.6% pre-tax and 7.5% after tax (2021: 9% pre-tax and 7% after tax).  
The calculated value in use shows that future earnings and cash flows fully support the carrying amount  
of total net assets, including goodwill.  
Goodwill is not amortised, but is tested for impairment at least once a year. To the extent that the  
carrying amount of goodwill exceeds the recoverable amount, goodwill is written down to this lower  
amount. Impairment of goodwill is not reversed.  
Software, patents, trademarks and rights  
Acquired intellectual property rights in the form of software, patents, trademarks, licenses, customer  
base, and similar rights are measured at cost less accumulated amortisation and impairment.  
The cost of software includes costs of installation and direct salaries.  
Intangible assets with determinable useful lives are amortised on a straight-line basis over the expected  
useful lives of the assets, typically not exceeding 10 years. If the actual useful life is shorter than either  
the remaining life or the contract period, the asset is amortised over this shorter useful life. The carrying  
amounts are reviewed at the balance sheet date to determine whether there are any indications of  
impairment. If such indications are identified, the recoverable amount of the asset is calculated to  
determine any need for an impairment write-down and, if so, the amount of the write-down.  
Intangible assets with indeterminable useful lives are not amortised, but are tested for impairment at  
least once a year. To the extent that the carrying amount of the assets exceeds the recoverable amount,  
the assets are written down to this lower amount.  
See note 3.2 for more information on assessment, recognition and reversal of impairment.  
Other intangible assets  
Other intangible assets includes individual minor development projects running for short-term periods,  
including software development projects, which fulfil the requirements in IFRS. The measurement and  
impairment follow the same rules as described above for software, patents, trademarks, and rights.  
Accounting policies  
Significant accounting estimates and judgements  
Goodwill  
On initial recognition, goodwill is measured and recognised as the excess of the cost of the acquired  
company over the fair value of the acquired assets, liabilities and contingent liabilities.  
On recognition of goodwill, the goodwill amount is allocated to the ALK Group’s cash-generating unit.  
The ALK Group is considered as one cash-generating unit as the individual companies and business  
units in the ALK Group cannot be evaluated separately due to the value-adding processes are generated  
across corporations and entities.  
The assessment of whether goodwill is impaired requires a determination of the value in use of the cash-  
generating unit. The determination of the value in use requires estimates of the expected future cash  
flow of the cash-generating unit and a reasonable discount rate.  
At 31 December 2022, the carrying amount of goodwill is DKK 460 million (2021: DKK 457 million).  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
72  
Section 3 – Operating assets and liabilities  
3.2 Property, plant and equipment  
Property,  
Other  
plant and  
Land and  
Plant and fixtures and equipment  
buildings*  
machinery equipment in progress  
Total  
Amounts in DKKm  
2022  
Cost beginning of year  
1,623  
1,028  
272  
325  
3,248  
Currency adjustments  
35  
19  
2
5
61  
Additions  
83  
23  
11  
260  
377  
Lease contract modifications  
(17)  
-
-
-
(17)  
Disposals  
(11)  
(67)  
(11)  
-
(89)  
Transfer to/from other groups  
30  
45  
4
(79)  
-
Cost year end  
1,743  
1,048  
278  
511  
3,580  
Depreciation and impairment  
beginning of year  
665  
577  
192  
-
1,434  
Currency adjustments  
7
9
1
-
17  
Depreciation for the year  
91  
87  
20  
-
198  
Disposals during the year  
(11)  
(66)  
(11)  
-
(88)  
Impairment during the year,  
cf. note 2.3  
-
1
-
-
1
Depreciation and  
impairment year end  
752  
608  
202  
-
1,562  
Carrying amount year end  
991  
440  
76  
511  
2,018  
of which financing costs  
-
Value of land and buildings  
subject to mortgages  
176  
*
Land and buildings include buildings on land leased from Scion DTU A/S, Hørsholm in Denmark. The leases are open-ended  
and the estimated lease terms are 15 years. See also note 3.3.  
Property,  
Other  
plant and  
Land and  
Plant and fixtures and equipment  
buildings*  
machinery equipment in progress  
Total  
Amounts in DKKm  
2021  
Cost beginning of year  
1,493  
947  
256  
269  
2,965  
Currency adjustments  
41  
21  
2
7
71  
Additions  
46  
18  
12  
176  
252  
Disposals  
(1)  
(25)  
(13)  
(1)  
(40)  
Transfer to/from other groups  
44  
67  
15  
(126)  
-
Cost year end  
1,623  
1,028  
272  
325  
3,248  
Depreciation and impairment  
beginning of year  
572  
505  
184  
-
1,261  
Currency adjustments  
9
12  
2
-
23  
Depreciation for the year  
85  
77  
19  
-
181  
Disposals during the year  
(1)  
(24)  
(13)  
(1)  
(39)  
Impairment during the year,  
cf. note 2.3  
-
7
-
1
8
Depreciation and  
impairment year end  
665  
577  
192  
-
1,434  
Carrying amount year end  
958  
451  
80  
325  
1,814  
of which financing costs  
-
Value of land and buildings  
subject to mortgages  
186  
*
Land and buildings include buildings on land leased from Scion DTU A/S, Hørsholm in Denmark. The leases are open-ended  
and the estimated lease terms are 15 years. See also note 3.3.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
73  
Section 3 – Operating assets and liabilities  
3.2 Property, plant and equipment – continued  
Accounting policies  
If the asset does not generate any cash flows independently of other assets, the recoverable amount is  
calculated for the smallest cash-generating unit that includes the asset.  
The recoverable amount is calculated as the higher of the fair value less costs to sell and the value in use  
of the asset or the cash-generating unit, respectively. In determining the value in use, the estimated  
future cash flows are discounted to their present value, using a discount rate reflecting current market  
assessments of the time value of money as well as risks that are specific to the asset or the cash-  
generating unit and which have not been taken into account in the estimated future cash flows.  
If the recoverable amount of the asset or the cash-generating unit is lower than the carrying amount,  
the carrying amount is written down to the recoverable amount. For the cash-generating unit, the write-  
down is allocated in such a way that goodwill amounts are written down first, and any remaining need  
for write-down is allocated to other assets in the unit, although no individual assets are written down to  
a value lower than their fair value less costs to sell.  
Impairment write-downs are recognised in the income statement. If write-downs are subsequently  
reversed as a result of changes in the assumptions on which the calculation of the recoverable amount  
is based, the carrying amount of the asset or the cash-generating unit is increased to the adjusted  
recoverable amount, not, however, exceeding the carrying amount that the asset or cash-generating  
unit would have had, had the write-down not been made.  
Land and buildings, plant and machinery, and other fixtures and equipment are measured at cost less  
accumulated depreciation and impairment. Land is not depreciated.  
Cost comprises the purchase price and any costs directly attributable to the acquisition and any  
preparation costs incurred until the date when the asset is available for use.  
The depreciation base is cost less the estimated residual value at the end of the useful life. The residual  
value is determined as the amount the company expects to obtain for the asset less costs of disposal.  
The cost of an asset is divided into smaller components that are depreciated separately if such  
components have different useful lives.  
Tangible assets are depreciated on a straight-line basis over their estimated useful lives as follows:  
Buildings  
25-50 years  
Plant and machinery  
5-10 years  
Other fixtures and equipment  
5-10 years  
Depreciation methods, useful lives and residual values are reassessed once a year.  
Impairment  
The carrying amounts of tangible assets are reviewed at the balance sheet date to determine whether  
there are any indications of impairment. If such indications are found, the recoverable amount of the  
asset is calculated to determine any need for an impairment write-down and, if so, the amount of the  
write-down.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
74  
Section 3 – Operating assets and liabilities  
3.3 Leases  
Specification of right-of-use assets:  
Other  
Land and fixtures and  
buildings* equipment  
Total  
Amounts in DKKm  
2022  
Cost beginning of year  
335  
2
337  
Currency adjustments  
5
-
5
Additions  
78  
1
79  
Lease contract modifications**  
(17)  
-
(17)  
Disposals  
(6)  
-
(6)  
Cost year end  
395  
3
398  
Depreciation beginning of year  
109  
1
110  
Currency adjustments  
1
-
1
Depreciation for the year  
43  
-
43  
Disposals  
(6)  
-
(6)  
Depreciation year end  
147  
1
148  
Carrying amount year end  
248  
2
250  
*
Land and buildings include buildings on land leased from Scion DTU A/S, Hørsholm in Denmark. The leases are open-ended  
and the estimated lease terms are 15 years.  
** Lease contract modifications include changes to existing lease contracts different from lease extensions or new lease  
contracts that are included as additions.  
Specification of right-of-use assets:  
Other  
Land and fixtures and  
buildings* equipment  
Total  
Amounts in DKKm  
2021  
Cost beginning of year  
295  
2
297  
Currency adjustments  
6
-
6
Additions  
34  
-
34  
Cost year end  
335  
2
337  
Depreciation beginning of year  
69  
1
70  
Currency adjustments  
2
-
2
Depreciation for the year  
38  
-
38  
Depreciation year end  
109  
1
110  
Carrying amount year end  
226  
1
227  
*
Land and buildings include buildings on land leased from Scion DTU A/S, Hørsholm in Denmark. The leases are open-ended  
and the estimated lease terms are 15 years.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
75  
Section 3 – Operating assets and liabilities  
3.3 Leases – continued  
Leases in the income statement  
2022  
2021  
Amounts in DKKm  
Expenses from short-term leases  
2
1
Expenses from low-value assets (including cars)  
18  
19  
Depreciation of right-of-use assets  
43  
38  
Interest expenses on lease liabilities  
6
7
Total  
69  
65  
Cash outflow related to lease agreements was DKK 45 million (2021: DKK 39 million).  
Lease liabilities are disclosed in note 4.2 Financial risks and financial instruments.  
Accounting policies  
Lease liabilities  
Lease assets are recognised at the commencement date of the contract if it is or contains a lease.  
Lease assets are recognised at cost less accumulated depreciation and impairment. Cost is defined as  
the lease liability adjusted for any lease payments made at or before the commencement date. Lease  
assets are depreciated on a straight-line basis over the lease term.  
On initial recognition, lease liabilities are measured as the present value of future payments. The lease  
payments contain fixed payments less any lease incentives receivable and variable lease payments  
that depend on an index or a rate.  
On subsequent recognition, lease liabilities are measured at amortised cost. The difference between  
the present value and the nominal value of lease payments is recognised in the income statement over  
the term of the lease as a finance charge.  
If the interest rate cannot be determined in the agreement, the lease payments are discounted using  
the ALK Group’s incremental borrowing rate adjusted for the functional currency and length of the lease  
term. The lease liability is remeasured if or when the future payment or lease term changes.  
Short term lease expenses and low value assets are not recognised as part of lease liabilities. They are  
recognised in the income statement when incurred as an operating expense.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
76  
Section 3 – Operating assets and liabilities  
3.4 Inventories  
2022  
2021  
Amounts in DKKm  
Raw materials  
265  
245  
Work in progress  
507  
432  
Manufactured goods and goods for resale  
525  
527  
Total  
1,297  
1,204  
Amount of write-down of inventories during the year  
50  
40  
Amount of reversal of write-down of inventories during the year*  
19  
15  
Total cost of materials included in cost of sales  
490  
396  
Net carrying amount of inventory not expected to be sold in following year  
333  
209  
*
Reversal of provision for slow moving items, sold in 2022.  
The net realisable value of inventories is calculated as the expected selling price less completion costs  
and costs incurred in making the sale.  
A minor part of ALK’s raw materials inventory contains biological assets from agricultural activities. Due  
to missing market on which a fair value can be established these products are not valuated.  
Significant accounting estimates and judgements  
The valuation of inventories includes Management’s assessment of the saleability of the finished goods,  
and the quality of raw materials to be used in the production process. If the expected sales price less  
any completion costs and costs to execute sales (net realisable value) of inventories is lower than the  
carrying amount, the inventories are written down to net realisable value. When assessing salability  
and net realisable value, Management uses estimates for future sales and related costs.  
End of 2022, the write-down of inventories to net realisable value amounted to DKK 85 million (2021: DKK  
97 million).  
Further, work in progress and manufactured goods and goods for resale are measured at cost including  
indirect production costs. The indirect production costs are measured using a standard cost method.  
This is reviewed regularly to ensure reliable measurement of employee costs, capacity utilisation, cost  
drivers and other relevant factors. When including the indirect productions costs for capitalisation,  
Management makes estimates about cost of production, standard cost variances, cost drivers and  
capacity utilisation. Changes in these parameters may have a significant impact on the gross margin  
and the overall valuation of work in progress and manufactured goods and goods for resale.  
End of 2022, the indirect production costs capitalised under inventories amounted to DKK 442 million  
(2021: DKK 406 million).  
Accounting policies  
Inventories are measured at cost determined under the FIFO method or net realisable value where this  
is lower.  
Cost comprises raw materials, goods for resale, and direct payroll costs as well as fixed and  
variable production overheads. Variable production overheads comprise indirect materials and  
payroll costs and are allocated based on predetermined costs of the goods actually produced. Fixed  
production overheads comprise maintenance of and depreciation on the machines, factory buildings  
and equipment used in the manufacturing process as well as the cost of factory management and  
administration. Fixed production overheads are allocated based on the normal capacity of the  
production plant.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
77  
Section 3 – Operating assets and liabilities  
3.5 Trade receivables  
Days past due  
Amounts in DKKm  
Not due <180 days  
180-360 >360 days  
Total  
2022  
Average expected credit loss rate  
1%  
2%  
8%  
50%  
Trade receivables (gross)  
671  
86  
13  
2
772  
Loss allowance  
4
2
1
1
8
Trade receivables (net)  
667  
84  
12  
1
764  
Loss allowance:  
Balance beginning of year  
11  
Change in allowances during the year  
2
Realised losses during the year  
(5)  
Loss allowance, year end  
8
2021  
Average expected credit loss rate  
1%  
6%  
20%  
50%  
Trade receivables (gross)  
519  
68  
5
2
594  
Loss allowance  
5
4
1
1
11  
Trade receivables (net)  
514  
64  
4
1
583  
Loss allowance:  
Balance beginning of year  
15  
Change in allowances during the year  
(1)  
Realised losses during the year  
(3)  
Loss allowance, year end  
11  
Accounting policies  
On initial recognition, receivables are measured at fair value, subsequently at amortised cost.  
Expected credit losses are measured based on historical data adjusted by forward-looking information.  
Forward-looking information includes assessment of the probability of default as well as consideration  
of various external sources of actual and economic information that is reasonable and supportable  
without undue cost or effort.  
ALK recognises expected credit losses that result from default events possible within the whole asset  
life. Risk related to trade receivables is managed in ALK locally by entities, based on an individual  
assessment. Loss allowance for doubtful trade receivables is also based on an individual assessment  
of the receivables. ALK has not implemented a global provision matrix due to different characteristics  
related to receivables across the ALK Group. Loss allowance are calculated based on variables, e.g.  
probability-weighted amount (based on historical realised losses), the time value of money, additional  
supportable information, including an individual assessment of each customer/customer group.  
An impairment loss or reversal of prior impairment loss is recognised in the income statement.  
Receivables are written down when information indicates severe financial difficulties and that there is  
no reasonable expectation of recovery. Financial assets written off may still be subject to enforcement  
activities. Any recoveries made are recognised in the income statement.  
3.6 Prepayments  
Amounts in DKKm  
2022  
2021  
Clinical trials, cf. note 2.2  
130  
240  
Royalties  
39  
-
Other  
70  
74  
Total  
239  
314  
Accounting policies  
Prepayments are recognised as an asset and comprise incurred costs relating to subsequent financial  
years. Prepayments are measured at cost.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
78  
Section 3 – Operating assets and liabilities  
3.7 Pensions and similar liabilities  
The ALK Group has entered into defined contribution plans as well as defined benefit plans.  
In defined contribution plans, the ALK Group is obliged to pay a certain contribution to a pension fund or  
the like but bears no risks regarding the future development in interest, inflation, mortality, disability  
rates etc. regarding the amount to be paid to the employee.  
The ALK Group sponsors defined benefit plans for qualifying employees of its subsidiaries in Germany,  
France and Switzerland. The defined benefit plans guarantee employees a certain level of pension  
benefits for life. The pension is based on seniority and salary at the time of retirement. The ALK Group  
bears the risks regarding the future development in interest, inflation, mortality, disability rates etc.  
regarding the amount to be paid to the employee.  
Amounts in DKKm  
2022  
2021  
Costs related to defined contribution plans  
107  
91  
Costs related to defined benefit plans  
24  
24  
Total  
131  
115  
Present value of funded pension obligations  
24  
25  
Fair value of plan assets (100% insurance contract)  
(21)  
(17)  
Funded pension obligations, net  
3
8
Present value of unfunded pension obligations  
161  
246  
Pension obligations  
164  
254  
Anniversary liabilities  
10  
11  
Other liabilities*  
62  
59  
Pension obligations and similar liabilities, year end  
236  
324  
*
Other liabilities include liability related to the transition period for the Danish Holiday Act of DKK 60 million (2021: DKK 59 million).  
Plan assets consist of assets placed in pension companies. Assets are placed in investments classified  
as other assets than shares, bonds and property by the pension companies, and are not measured at  
quoted prices.  
The weighted average duration of the pension obligations is 16.58 years (2021: 19.24 years).  
2022  
2021  
Amounts in DKKm  
The principal assumptions used for the actuarial valuations  
Discount rate range of 2% - 3.9% (weighted average rate)  
3.8%  
1.0%  
Expected future rate of salary increase range of 1% - 2.5%  
(weighted average rate)  
2.4%  
2.4%  
Assumed life expectations on retirement age for current pensioners  
(years based on weighted average)*:  
Males  
21.1  
21.1  
Females  
24.3  
24.4  
Assumed life expectations on retirement age for current employees  
(future pensioners) (years based on weighted average)*:  
Males  
22.4  
22.4  
Females  
26.3  
26.3  
Sensitivity analysis:  
Significant actuarial assumptions for determining the  
defined benefit obligation  
Discount rate, effect in case of increase in range of 0.25% - 1%**  
(21)  
(42)  
Discount rate, effect in case of decrease in range of 0.25% - 1%**  
27  
50  
Salary, effect in case of 0.25% - 0.5% increase**  
2
4
Salary, effect in case of 0.25% - 0.5% decrease**  
(2)  
(4)  
Life expectancy, effect in case of increase by 1 year*  
6
11  
Life expectancy, effect in case of decrease by 1 year*  
(6)  
(11)  
Movements in the present value of the funded defined benefit obligation  
in the current year  
Opening funded defined benefit obligation  
25  
20  
Current service costs  
2
2
Actuarial (gains)/losses arising from changes in financial assumptions  
(5)  
-
Benefits paid  
1
2
Currency translation adjustment  
1
1
Closing funded defined benefit obligation  
24  
25  
*
Based on national statistics for mortality.  
** Based on actuarial reports with different rates.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
79  
Section 3 – Operating assets and liabilities  
3.7 Pensions and similar liabilities – continued  
2022  
2021  
Amounts in DKKm  
Movements in the fair value of the plan assets in the current year  
Opening fair value of plan assets  
17  
13  
Contribution from plan participants  
2
2
Benefits paid  
1
2
Currency translation adjustment  
1
-
Closing fair value of plan assets (fully invested in insurance contracts)  
21  
17  
Movements in present value of unfunded pension obligations  
in the current year  
Opening present value of unfunded pension obligations  
246  
268  
Other adjustments  
-
(12)  
Current service costs  
7
7
Interest costs  
3
2
Actuarial (gains)/losses from changes in financial assumptions  
(87)  
(15)  
Actuarial (gains)/losses arising from experience adjustments  
(4)  
(1)  
Benefits paid  
(4)  
(3)  
Closing present value of unfunded pension obligations  
161  
246  
Amount recognised as staff expenses in the income statement  
Current service costs  
9
10  
Net interest expense  
3
2
Total  
12  
12  
Amount recognised in comprehensive income in respect  
of defined benefit plans  
Actuarial (gains)/losses  
(96)  
(16)  
Total  
(96)  
(16)  
The expected contribution for 2023 for the defined benefit plans is DKK 13 million (2022: DKK 12 million).  
The most recent actuarial valuations of the defined benefit liability were carried out by external  
independent actuary agents at 31 December 2022.  
Accounting policies  
The ALK Group has entered into pension agreements and similar agreements with some of the ALK  
Group’s employees.  
In respect of defined contribution plans, the ALK Group pays in fixed contributions to independent pension  
funds etc. The contributions are recognised in the income statement during the period in which the  
employee renders the related service. Payments due are recognised as a liability in the balance sheet.  
In respect of defined benefit plans, the ALK Group is required to pay an agreed benefit in connection with  
the retirement of the employees covered by the plan, e.g. in the form of a fixed amount or a percentage of  
the salary at retirement.  
For defined benefit plans, an annual actuarial assessment is made of the net present value of future  
benefits to which the employees have earned the right through their past service for the ALK Group and  
which will have to be paid under the plan. The Projected Unit Credit Method is applied to determine net  
present value.  
The net present value is calculated based on assumptions of the future development of salary, interest,  
inflation, mortality and disability rates.  
The net present value of pension liabilities is recognised in the balance sheet, after deduction of the  
fair value of any assets attached to the plan, as either plan assets or pension liabilities, depending on  
whether the net amount is an asset or a liability, as described below.  
If the assumptions made with respect to discount factor, inflation, mortality and disability are changed,  
or if there is a discrepancy between the expected and realised return on plan assets, actuarial gains  
or losses occur. These gains and losses concerning previous financial years are recognised in other  
comprehensive income.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
80  
Section 3 – Operating assets and liabilities  
3.8 Provisions  
Restructuring  
Other  
programs*  
provisions**  
Total  
Amounts in DKKm  
2022  
Provisions beginning of year  
10  
2
12  
Provisions made during the year  
-
1
1
Used during the year  
(10)  
-
(10)  
Provisions, year end  
-
3
3
Provisions are recognised as follows:  
Current liabilities  
-
3
3
Provisions, year end  
-
3
3
2021  
Provisions beginning of year  
-
3
3
Provisions made during the year  
10  
-
10  
Used during the year  
-
(1)  
(1)  
Provisions, year end  
10  
2
12  
Provisions are recognised as follows:  
Current liabilities  
10  
2
12  
Provisions, year end  
10  
2
12  
*
Provision used in 2022 for restructuring programs of DKK 10 million relates to restructuring of ALK’s Spanish entity  
ALK-Abelló S.A.  
** Other provisions include a provision for sales in Italy of DKK 3 million (2021: DKK 2 million).  
3.9 Other payables  
2022  
2021  
Amounts in DKKm  
Rebates and commissions, cf. note 2.1  
274  
294  
Salaries, holiday payments etc.  
270  
239  
Clinical trials, cf. note 2.2  
114  
179  
VAT and other taxes  
81  
85  
Other  
239  
153  
Total  
978  
950  
Accounting policies  
Other payables are recognised as a current liability and comprise costs due in the subsequent financial  
year. Other payables are measured at amortised cost.  
Accounting policies  
Provisions are recognised when, as a consequence of a past event during the financial year or previous  
years, the ALK Group has a legal or constructive obligation, and it is likely that settlement of the  
obligation will require an outflow of the ALK Group’s financial resources. Provisions are measured as the  
best estimate of the costs required to settle the obligations at the balance sheet date. Provisions with an  
expected term of more than a year after the balance sheet date are measured at present value.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
81  
Section 3 – Operating assets and liabilities  
3.10 Contingent liabilities and commitments  
Contingent liabilities  
In the ordinary course of business, the ALK Group is involved in certain claims, disputes etc. In the  
opinion of Management, settlement or continuation of pending claims and other disputes will have no  
material impact on the ALK Group’s financial position.  
The ALK Group operates in a wide variety of jurisdictions, in some of which the tax law is subject to  
varying interpretations and potentially inconsistent enforcement. As a result, there can be practical  
uncertainties in applying tax legislation to the ALK Group’s activities. Whilst the ALK Group considers  
that it operates in accordance with applicable tax law, there are potential tax exposures in respect of its  
operations, the impact of which cannot be reliably estimated, but could be material.  
Joint taxation scheme  
ALK-Abelló A/S is included in a joint Danish taxation scheme with the Lundbeck Foundation  
(Lundbeckfond Invest A/S) and its Danish subsidiaries. The Danish companies are joint and several  
liable for the joint taxation liability. The joint taxation liability covers income taxes and withholding taxes  
on dividends, royalties and interest. The joint taxation liability is capped at an amount equal to the share  
of the capital of the company directly or indirectly owned by the ultimate parent company. The total tax  
obligation under the joint Danish taxation scheme is shown in the financial statements of the Lundbeck  
Foundation (Lundbeckfond Invest A/S).  
Change of control  
The ALK Group’s credit facilities and drawn loans are subject to standard change of control clauses  
according to which the lender has the right to cancel the commitment and demand repayment of  
outstandings.  
Commitments  
Land and buildings provided as security vis-à-vis for mortgage debt amount to DKK 176 million  
(2021: DKK 186 million) out of mortgage debt of DKK 221 million (2021: DKK 240 million).  
2022  
2021  
Amounts in DKKm  
Bank guarantees*  
76  
2
Other guarantees  
11  
6
Total  
87  
8
*
Bank guarantees include DKK 75 million related to ongoing tax audits (2021: DKK 0)  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
82  
Section 4 – Capital structure and financing  
4.1 Share capital and earnings per share  
2022  
2021  
Nominal  
Nominal  
value  
value  
Units  
(DKKm)  
Units  
(DKKm)  
Share capital  
The share capital consists of:  
A shares (nominal value of DKK 0.5)  
18,415,200  
9
18,415,200  
9
AA shares (nominal value of DKK 0.5)  
1,841,520  
1
1,841,520  
1
B shares (nominal value of DKK 0.5)  
202,567,200  
101  
202,567,200  
101  
Total  
222,823,920  
111 222,823,920  
111  
2022  
2021  
Treasury shares  
Treasury shares beginning of year (B-shares), units  
2,970,560  
4, 2 57,46 0  
Sale of treasury shares, units  
(1,145, 58 5)  
(1,286,900)  
Treasury shares year end (B-shares), units  
1,824,975  
2,970,560  
Proportion of share capital year end  
0.8%  
1.3%  
Nominal value year end  
0.9  
1.5  
Market value year end  
175  
509  
Earnings per share  
The calculation of earnings per share is based on the following:  
Net profit (DKKm)  
335  
219  
Number in units:  
Average number of issued shares  
222,823,920  
222,823,920  
Average number of treasury shares  
(2,321,447)  
(3,430,180)  
Average number of shares used for calculation  
of earnings per share  
220,502,473  
219,393,740  
Average dilutive effect of outstanding share options  
870,206  
1,596,200  
Average number of shares used for calculation  
of diluted earnings per share  
221,372,679  
220,989,940  
Earnings per share (EPS) (DKK)  
1.52  
1.00  
Earnings per share, diluted (DEPS) (DKK)  
1.51  
0.99  
In March 2022, ALK-Abelló A/S completed a share split at a ratio of 1:20, each existing share of a  
nominal value of DKK 10 was split into 20 new shares of a nominal value of DKK 0.50 each. The company's  
share capital remains DKK 111,411,960. As a result of the share split, comparison figures for number of  
shares, EPS, and DEPS have been restated accordingly.  
Each A and AA share carries 10 votes, whereas each B share carries 1 vote. AA shares no longer held by  
individuals or legal entities other than the Lundbeck Foundation or companies which are group affiliated  
with the Lundbeck Foundation, cf. the definition of groups in section 6 of the Danish Companies Act,  
or in the event that a company which holds AA shares is no longer group affiliated with the Lundbeck  
Foundation, such AA shares shall be transferred to the B share capital.  
According to a resolution passed by the parent company at the annual general meeting, the parent  
company is allowed to purchase treasury shares, up to 10% of the share capital. The parent company  
has purchased treasury shares in connection with the issuance of share-based incentive plans. All  
shares are paid in.  
Accounting policies  
Acquisition and sales sums arising on the purchase and sale of treasury shares and dividends on  
treasury shares are recognised directly in retained earnings under equity.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
83  
Section 4 – Capital structure and financing  
4.2 Financial risks and financial instruments  
Financial risk management policy  
As a result of operations, investments and financing, the ALK Group is exposed to exchange and interest  
rate changes. ALK-Abelló A/S manages the ALK Group’s financial risks centrally and coordinates the  
ALK Group’s cash management, including the raising of capital and investment of excess cash. The ALK  
Group complies with a policy, approved by the Board of Directors, to maintain a low risk profile, ensuring  
that the ALK Group is only exposed to foreign exchange rate risk, liquidity risk, interest rate risk, and  
credit risk in connection with its commercial activities.  
Capital structure  
The ALK Group manages its capital to ensure that all entities will be able to continue as going concern  
while maximising the return to stakeholders through the optimisation of the debt and equity balances.  
The capital structure of the ALK Group consists of net debt and equity. The dividend policy of the ALK  
Group is to distribute maximum possible dividend to ALK-Abelló A/S.  
The ALK Group’s Risk Committee reviews the capital structure annually. As a part of this review, the  
committee considers the cost of capital and the risks associated with each class of capital.  
rate fluctuations. The greatest exposure is to USD and in 2022, 17% (2021: 15%) of the revenue was  
denominated in USD. The sales are not deemed to be exposed to EUR due to Denmark’s participation in  
the European Exchange Rate Mechanism.  
The ALK Group is exposed to exchange rate risks when intercompany balances and net assets of foreign  
subsidiaries are translated into DKK. In accordance with the ALK Group’s accounting policies, such  
currency translation adjustments are recognised in the income statement and in other comprehensive  
income, respectively.  
No exchange rate hedge contracts were open at 31 December 2022 or 31 December 2021.  
Sensitivity to a 10% increase in USD exchange rate  
The table below shows the estimated effect of a 10% increase in the USD exchange rate on revenue,  
EBIT and equity levels, respectively. A decrease in the exchange rates will have a corresponding  
adverse effect. In the sensitivity analysis, data for revenue and EBIT are based on current short-term  
expectations and data for equity are based on actual equity at 31 December 2022.  
Revenue  
EBIT  
Equity  
Amounts in DKKm  
31 December 2022  
USD  
approx. +80  
approx. +5  
approx. +15  
31 December 2021  
USD  
approx. +65  
approx. -10  
approx. 0  
Foreign exchange rate risk  
Foreign exchange rate risk arises due to imbalances between revenue and expenses in each individual  
currency. Foreign exchange rate exposure relating to future transactions and assets and liabilities is  
evaluated and hedged through matching of payments received and paid in the same currency. This  
serves to limit the impact on the financial results of any exchange rate fluctuations. The exchange  
rate exposure relating to net investments in foreign subsidiaries is not hedged by forward exchange  
contracts. In case it is evaluated to be relevant, the ALK Group hedges significant exchange rate  
exposures regarding future sales and purchase of goods in the coming six months in accordance with  
the ALK Group’s policy.  
The general objective of the ALK Group’s foreign exchange risk management is to limit and delay  
any adverse impact of exchange rate fluctuations on earnings and cash flows and thus increase  
the predictability of the financial results. The most significant financial risk relates to exchange  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
84  
Section 4 – Capital structure and financing  
4.2 Financial risks and financial instruments – continued  
Net positions  
Amount  
Net  
Cash Receivables  
Liabilities  
hedged  
position  
Amounts in DKKm  
31 December 2022  
DKK  
(12)  
89  
(909)  
-
(832)  
USD  
111  
228  
(328)  
-
11  
EUR  
48  
433  
(956)  
-
(475)  
GBP  
2
18  
(21)  
-
(1)  
SEK  
2
34  
(16)  
-
20  
Other  
70  
180  
(90)  
-
160  
Total  
221  
982  
(2,320)  
-
(1,117)  
31 December 2021  
DKK  
(9)  
69  
(957)  
-
(897)  
USD  
67  
123  
(176)  
-
14  
EUR  
75  
342  
(1,093)  
-
(676)  
GBP  
4
12  
(21)  
-
(5)  
SEK  
3
39  
(19)  
-
23  
Other  
54  
135  
(84)  
-
105  
Total  
194  
720  
(2,350)  
-
(1,436)  
Liquidity risk  
In connection with the ALK Group’s ongoing financing of operations, including refinancing, efforts  
are made to ensure adequate and flexible liquidity. This is guaranteed by placing free funds in credit-  
worthy, liquid, interest bearing instruments of relatively short durations in accordance with the ALK  
Group’s policy.  
The liquidity risk is considered to be minimal due to the ALK Group’s current capital structure.  
Liquidity exposure  
Revaluation/payment date  
Carrying  
Total  
Within  
From  
After  
Amounts in DKKm  
amount cash flow*  
1 year  
1-5 years  
5 years  
31 December 2022  
Mortgage debt and bank loans  
429  
432  
229  
73  
130  
Trade payables  
131  
131  
131  
-
-
Lease liabilities  
267  
292  
46  
167  
79  
Other financial liabilities  
994  
994  
994  
-
-
Financial liabilities  
1,821  
1,849  
1,400  
240  
209  
31 December 2021  
Mortgage debt and bank loans  
466  
472  
245  
76  
151  
Trade payables  
115  
115  
115  
-
-
Lease liabilities  
244  
269  
43  
134  
92  
Other financial liabilities  
973  
973  
973  
-
-
Financial liabilities  
1,798  
1,829  
1,376  
210  
243  
*
Total cash flow includes interest.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
85  
Section 4 – Capital structure and financing  
4.2 Financial risks and financial instruments – continued  
Interest rate risk  
The ALK Group does not hedge its interest rate exposure, as this is not considered to be financially viable.  
Concerning the ALK Group’s financial assets and financial liabilities, the earlier of the contractual  
revaluation and redemption date is applied. Effective interest rates are stated on the basis of the  
current level of interest rates on the balance sheet date.  
An increase in the interest rate of 1 percentage point on mortgage debt and bank loans would decrease  
net profit and equity by approximately DKK 4 million (2021: decrease of DKK 4 million). An increase in  
the interest of 1 percentage point on cash would increase net profit and equity by approximately DKK 2  
million (2021: increase of DKK 2 million).  
Credit risk  
The ALK Group’s primary credit exposure is related to trade receivables and cash. The ALK Group has  
no major exposure relating to one single customer or business partner. According to the ALK Group’s  
policy for assuming credit exposure, all customers and business partners are credit rated regularly.  
Trade receivables are monitored at the local level and are distributed across a number of markets and  
customers. Therefore, the credit risk is considered to be low. For more information, see note 3.5.  
Interest rate exposure  
Carrying  
Fixed/  
Effective  
amount  
Currency Expiry date  
floating interest rate  
Amounts in DKKm  
31 December 2022  
Cash  
221  
Various  
Floating  
(0.6)-4.75  
Interestbearing assets  
221  
Mortgage debt  
221  
DKK  
2035  
Floating  
0.2  
Lease liabilities  
267  
Various  
2023-2036  
Fixed  
2.0  
Bank loans  
208  
Various  
2023  
Fixed  
2.8-3.3  
Interestbearing liabilities  
696  
31 December 2021  
Cash  
194  
Various  
Floating (1.09)-(0.10)  
Interestbearing assets  
194  
Mortgage debt  
240  
DKK  
2035  
Floating  
0.2  
Lease liabilities  
244  
Various  
2022-2033  
Fixed  
2.0  
Bank loans  
226  
EUR  
2022  
Fixed  
0.4-0.5  
Interestbearing liabilities  
710  
Embedded derivative financial instruments  
The ALK Group has made a systematic review of contracts that might contain terms that would make  
the contract or parts thereof a derivative financial instrument. The review did not lead to recognition of  
derivative financial instruments relating to the contracts.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
86  
Section 4 – Capital structure and financing  
4.2 Financial risks and financial instruments – continued  
Categories of financial instruments  
2022  
2021  
Amounts in DKKm  
Financial assets  
Financial assets measured at  
amortised cost  
Impairment method  
Receivables from group companies  
12m ECL  
18  
12  
Prepayments  
12m ECL  
94  
29  
Trade receivables  
Lifetime ECL (simplified approach)  
764  
583  
Other receivables  
12m ECL  
82  
82  
Cash  
221  
194  
Total  
1,179  
900  
Financial liabilities  
Financial liabilities measured at  
amortised cost  
Mortgage debt  
221  
240  
Bank loans  
208  
226  
Lease liabilities  
267  
244  
Trade payables  
131  
115  
Other payables  
978  
950  
Total  
1,805  
1,775  
Measurement and fair value hierarchy  
Revaluation/payment date  
Fair  
Within  
From  
After  
Amounts in DKKm  
value  
1 year  
1-5 years  
5 years  
31 December 2022  
Mortgage debt  
225  
18  
74  
133  
Bank loans  
208  
208  
-
-
Total  
433  
226  
74  
133  
31 December 2021  
Mortgage debt  
243  
18  
73  
152  
Bank loans  
226  
226  
-
-
Total  
469  
244  
73  
152  
All financial assets and liabilities are measured at cost or amortised cost. The carrying amounts for  
these approximate fair value.  
Fair value for mortgage debt is measured by level 1 input (quoted prices in active markets) from the  
fair value hierarchy and fair value for bank loans is measured by level 2 input (inputs other than quoted  
markets that are observable) from the fair value hierarchy.  
No financial derivatives were used in 2022 or 2021.  
Financial resources  
The ALK Group has a DKK 1,500 million credit facility which runs until the end of 2025. By the end of 2022,  
DKK 208 million was drawn.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
87  
Section 4 – Capital structure and financing  
4.2 Financial risks and financial instruments – continued  
Accounting policies  
Financial assets  
On initial recognition, investments and other financial assets are measured at cost, corresponding to  
fair value. They are subsequently measured at fair value either through the income statement or through  
comprehensive income.  
Financial liabilities  
Other financial liabilities, including bank loans, lease liabilities, trade payables, and other payables,  
are on initial recognition measured at fair value. The liabilities are subsequently measured at amortised  
cost.  
Debt  
Trade payables, other payables, including sales discounts and rebates as well as debt to public  
authorities etc., are measured at amortised cost.  
Mortgage debt  
Mortgage debt is recognised on the raising of a loan at cost, equalling fair value of the proceeds  
received, and net of transaction costs incurred. Subsequently, mortgage debt is measured at amortised  
cost.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
88  
Section 5 – Other disclosures  
5.1 Share-based payments  
The ALK Group has established long-term equity-based incentive plans linked to the creation of  
shareholder value and the fulfilment of strategic goals. The plans are established for the members of  
Board of Management and other key employees, reward long-term value creation and align to interests  
of the shareholders.  
The incentive plans consist of share options and performance share units that are considered  
sufficiently covered by treasury shares.  
Ordinary incentive plans  
The share options entitle the holder to acquire one existing B share of DKK 0.5 nominal value in the  
company per share option and the performance share units entitle the holder to receive one existing B  
share per performance share unit free of charge.  
The vesting period for both share options and performance share units is three years after grant.  
Vesting is conditional upon certain targets being met and upon the participant not having resigned.  
Target achievement is met upon fulfilment of strategic key performance indicators. In case performance  
is below the threshold there will be no units vesting, and if above target, a multiplier is applied that can  
increase the vesting by up to 100%.  
The exercise of share options is possible in the trading windows following the release of annual and  
interim reports conditional upon the share option holder not having resigned at the time of exercise.  
For performance share units, the final transfer of ownership takes place at vesting three years after the  
grant.  
Special incentive plan 2018  
ALK’s special incentive plan was a one-time scheme designed to implement ALK’s growth strategy and  
consisted of both share options and performance share units with a vesting period of three years.  
The special incentive plan was adopted at the annual general meeting in March 2018 and vested in  
March 2021. The grant value of the plan did not exceed 50% of the Executive’s 2018 annual base salary  
on the grant date. The plan was conditional upon strategic key performance indicators being attained.  
Based on the financial results for 2020, the KPI achievements exceeded their targets increasing the  
granted number of performance shares and share options by 100%. However, the overall payout of the  
plan on the vesting date for the performance shares and on the exercise date for the share options can  
never exceed a total value of 300% of the recipient’s 2018 annual base salary.  
Share split  
In March 2022, ALK-Abelló A/S completed a share split at a ratio of 1:20, each existing share of a  
nominal value of DKK 10 was split into 20 new shares of a nominal value of DKK 0.50 each. As a result  
of the share split, comparison figures for number of share options and performance share units,  
share prices, exercise prices, and calculated fair value of granted share options have been adjusted  
accordingly.  
Expensed in the income statement:  
2022  
2021  
Amounts in DKKm  
Cost for the year regarding share-based payments is recognised as follows:  
Cost of sales  
4
5
Research and development expenses  
7
7
Sales and marketing expenses  
8
11  
Administrative expenses  
8
12  
Financial expenses  
-
1
Total  
27  
36  
In 2022, the total cost of share-based payments did not include a financial expense due to the exercise  
and cash settlement of share options (2021: DKK 1 million). The total cost included DKK 3 million related  
to adjustment in the share options and performance share units expected to vest (2021: DKK 11 million).  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
89  
Section 5 – Other disclosures  
5.1 Share-based payments – continued  
Specification of outstanding share options and performance share units:  
Share options  
Performance share units  
Board of  
Other key  
Weighted average  
Board of  
Other key  
Management  
employees  
Total  
exercise price  
Management  
employees  
Total  
units  
units  
units  
DKK  
units  
units  
units  
2022  
Outstanding at 1 January  
1,285,800  
768,18 0  
2,053,980  
59  
130,220  
518,180  
648,400  
Additions  
261,420  
2 27,4 20  
488,840  
108  
58,860  
244,980  
303,840  
Exercised/settled  
(851,200)  
(356,860)  
(1,208,060)  
48  
(92,720)  
(328,540)  
(421,260)  
Cancellations  
(105,900)  
-
(105,900)  
90  
(17, 3 4 0)  
(10,700)  
(28,040)  
Outstanding at 31 December  
590,120  
638,740  
1,228,860  
82  
79,020  
423,920  
502,940  
Total number of vested share options  
5 07,18 0  
Average remaining life at year end (years)  
2.0  
Exercise prices at year end (DKK)  
41-141  
2021  
Outstanding at 1 January  
1,795,160  
1,186,760  
2,981,920  
49  
268,880  
708,520  
97 7,4 0 0  
Additions  
596,220  
509,880  
1,106,10 0  
56  
125,000  
215,980  
340,980  
Exercised/settled  
(1,105, 58 0)  
(926,460)  
(2,032,040)  
42  
(263,660)  
(406,320)  
(669,980)  
Expired  
-
(2,000)  
(2,000)  
40  
-
-
-
Outstanding at 31 December  
1,285,800  
768,180  
2,053,980  
59  
130,220  
518,180  
648,400  
Total number of vested share options  
984,940  
Average remaining life at year end (years)  
2.1  
Exercise prices at year end (DKK)  
40 -116  
The Board of Directors decided for four trading windows in 2022 to settle share options by shares and a total of 1,208,060 share options were exercised.  
The Board of Directors decided for one trading window in 2021 to settle share options by cash and a total of 1,339,720 share options were exercised and total cash payments amounted to DKK 62 million. For three  
trading windows the Board of Directors decided to settle share options by shares and a total of 692,320 share options were exercised.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
90  
Section 5 – Other disclosures  
5.1 Share-based payments – continued  
Outstanding share options and performance share units have the following characteristics:  
Share options  
Performance share units  
Average  
exercise  
Exercise  
price  
Vested periode  
Vested  
Plan  
Units  
DKK  
as per  
(years)  
Units  
as per  
2016 Plan  
14,000  
56  
1 Mar 2019  
4
2018 Plan  
22,660  
40  
1 Mar 2021  
2
2018 Plan – special plan*  
238,920  
40  
1 Mar 2021  
2
2019 Plan  
231,600  
57  
1 Mar 2022  
2
2020 Plan  
340,520  
73  
1 Mar 2023  
2
213,140  
1 Mar 2023  
2021 Plan  
200,500  
122  
1 Mar 2024  
2
150,120  
1 Mar 2024  
2022 Plan  
180,660  
148  
1 Mar 2025  
2
139,680  
1 Mar 2025  
Outstanding at  
31 December  
1,228,860  
502,940  
*
The payout upon exercise of the outstanding options cannot exceed DKK 5 million according to the conditions of the plan.  
Fair value of share options and performance share units granted:  
Share options  
Fair value at grant date is measured in accordance with the Black & Scholes model for valuation of share  
options, using the following assumptions:  
2022  
2021  
Plan  
Plan  
Average share price (DKK)  
141  
116  
Expected exercise price (DKK)  
152  
125  
Expected volatility rate, based on the historical volatility  
35% p.a.  
36% p.a.  
Expected option life  
4 years  
4 years  
Expected dividend per share  
-
-
Risk-free interest rate  
0.14% p.a. -0.49% p.a.  
Calculated fair value of granted share options (DKK)  
33 29  
Performance share units  
Performance share units have been granted at DKK 141 per share (2021: DKK 116 per share).  
Accounting policies  
Share-based incentive plans (equity-settled share-based payments), which comprise share options  
and performance share units, are measured at the grant date at fair value and recognised in the income  
statement under the respective functions over the vesting period and offset in equity.  
The fair value of share options is determined using the Black & Scholes model. The exercise price is  
equivalent to the average market price of the share for the five trading days immediately preceeding the  
date of grant and is increased by 2.5% p.a. and reduced by dividends paid. The fair value of performance  
share units is determined using the average share price (closing) five days after annual general meeting.  
The ALK Group settles the equity-settled share-based incentive plans in shares. However, the share  
option agreement entitles the ALK Group to demand cash settlement of the options. The ALK Group  
recognises share options, in case of cash settlement, as other liabilities and adjusts to fair value as from  
the time when the ALK Group has an obligation to settle in cash. The ALK Group recognises subsequent  
adjustment to fair value in the income statement under financial income or financial expenses.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
91  
Section 5 – Other disclosures  
5.2 Cash flow  
Adjustment for non-cash items  
Amounts in DKKm  
2022  
2021  
Tax on profit  
112  
60  
Financial income and expenses  
23  
13  
Share-based payments  
27  
36  
Depreciation, amortisation and impairment  
238  
242  
Other adjustments*  
6
49  
Total  
406  
400  
*
In 2021, other adjustments included non-cash transactions related to the divestment of ALK’s part-share of a formulation  
production line for tablets to production partner Catalent of DKK 33 million.  
Changes in working capital  
Amounts in DKKm  
2022  
2021  
Change in inventories  
(74)  
(84)  
Change in receivables and prepayments  
(172)  
(5)  
Change in short-term payables  
11  
61  
Total  
(235)  
(28)  
Reconciliation of liabilities arising from financing activities  
Amounts in DKKm  
2022  
2021  
Liabilities from financing activities at 1 January  
710  
943  
Proceeds from borrowings  
60  
226  
Repayment of borrowings  
(94)  
(464)  
Lease additions, modifications and, disposals  
56  
34  
Instalments of lease liabilities  
(39)  
(32)  
Exchange rate adjustments  
3
3
Liabilities from financing activities at 31 December  
696  
710  
Financial reserves  
Amounts in DKKm  
2022  
2021  
Cash  
221  
194  
Undrawn facilities  
1,292  
1,277  
Total  
1,513  
1,471  
ALK has a DKK 1,500 million credit facility which runs until the end of 2025. By the end of 2022, DKK 208  
million was drawn.  
Accounting policies  
Cash flow  
The cash flow statement of the ALK Group is presented using the indirect method and shows cash flows  
from operating, investing and financing activities as well as cash at the beginning and at the end of the  
financial year.  
The cash effect of acquisitions and divestments is shown separately under cash flows from investing  
activities. In the cash flow statement, cash flows concerning acquired companies are recognised from  
the date of acquisition, while cash flows concerning divested companies are recognised until the date of  
divestment.  
Cash flows from operating activities are stated as net profit, adjusted for non-cash operating items and  
changes in working capital, less the income tax paid and plus net financial items.  
Cash flows from investing activities comprise payments in connection with acquisition and divestment of  
companies and financial assets as well as purchase, development, improvement and sale of intangible  
and tangible assets.  
Cash flows from financing activities comprise changes to the parent company’s share capital and  
related costs as well as the raising and repayment of loans, instalments on interest-bearing debt, lease  
liabilities, purchase of treasury shares, and settlement of share options and payment of dividends.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
92  
Section 5 – Other disclosures  
5.2 Cash flow – continued  
5.4 Events after the reporting period  
No events have occured after the reporting period, that influence the evaluation of the consolidated  
financial statements.  
Cash flows in currencies other than the functional currency are recognised in the cash flow statement  
using average exchange rates for the individual months if these are a reasonable approximation of the  
actual exchange rates at the transaction dates. If this is not the case, the actual exchange rates for the  
specific days in questions are used.  
Cash comprise cash subject to an insignificant risk of changes in value less any overdraft facilities that  
are an integral part of the ALK Group’s cash management.  
5.5 Approval of financial statements  
The financial statements were approved by the Board of Directors and authorised for issue on 3  
February 2023.  
5.3 Related parties  
Related party exercising control  
ALK-Abelló A/S is controlled by the Lundbeck Foundation (Lundbeckfond Invest A/S) domiciled in  
Copenhagen, Denmark, which holds 67.2% of the total number of votes in ALK Abelló A/S. The remaining  
shares are widely held. ALK-Abelló A/S is parent company, and ultimate parent for the ALK Group is the  
Lundbeck Foundation (Lundbeckfond Invest A/S, incorporated in Denmark).  
Other related parties comprise ALK’s Board of Management and Board of Directors, companies in  
which the majority shareholder exercises control, and such companies’ subsidiaries, in this case e.g,  
H. Lundbeck A/S and Falck A/S and their subsidiaries.  
Transactions and balances  
Transactions and balances with the parent company’s majority shareholder:  
•
ALK-Abelló A/S received DKK 52 million (2021: DKK 26 million) concerning outstanding company tax  
from the Lundbeck Foundation (Lundbeckfond Invest A/S). The company tax relates to ALK-Abelló  
A/S and ALK-Abelló Nordic A/S.  
•
Receivables from group companies to ALK-Abelló A/S relate to outstanding company tax of DKK 18  
million (2021: DKK 12 million) covering ALK-Abelló A/S and ALK-Abelló Nordic A/S.  
Transactions with key management personnel consist of remuneration and exercise of share options,  
see notes 2.4 and 5.1 of the consolidated financial statements.  
No other transactions have taken place during the year with Board of Directors, Board of Management,  
major shareholders or other related parties.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
93  
Section 5 – Other disclosures  
5.6 List of companies in the ALK Group  
Activity  
Production  
Sales and distribution  
Research and development  
Services  
Percentage of  
Entity  
Country shares owned  
Activity  
Parent company  
ALK-Abelló A/S  
Denmark  
Subsidiaries by geographical area  
Europe  
ALK-Abelló Allergie-Service GmbH  
Austria  
100%  
ALK-Abelló Nordic A/S  
Denmark  
100%  
ALK-Abelló Nordic A/S (branch)  
Finland  
100%  
ALK-Abelló Nordic A/S (branch)  
Norway  
100%  
ALK-Abelló Nordic A/S (branch)  
Sweden  
100%  
ALK-Abelló S.A.S.  
France  
100%  
ALK-Abelló Arzneimittel GmbH  
Germany  
100%  
ALK-Abelló B.V.*  
Netherlands  
100%  
ALK-Abelló Sp. z o.o.  
Poland  
100%  
ALK Slovakia s.r.o.  
Slovakia  
100%  
ALK Slovakia s.r.o. – odšteˇpny´ závod (branch)  
Czech Republic  
100%  
ALK-Abelló S.A.  
Spain  
100%  
ALK-Abelló S.p.A.  
Italy  
100%  
ALK AG (in liquidation)  
Switzerland  
100%  
ALK-Abelló AG  
Switzerland  
100%  
ALK-Abelló Ltd.  
United Kingdom  
100%  
*
Exemption for local audit of the 2022 accounts under the ruling of the Article 2:403 of the Dutch Civil Code is intended –  
Btw-nr. NL005302766B01  
Percentage of  
Entity  
Country shares owned  
Activity  
North America  
ALK-Abelló Pharmaceuticals, Inc.  
Canada  
100%  
ALK-Abelló, Inc.  
USA  
100%  
OKC Allergy Supplies, Inc.  
USA  
100%  
ALK-Abelló Source Materials, Inc.  
USA  
100%  
OKC Crystal Laboratory, Inc.  
USA  
100%  
International markets  
ALK-Abelló A/S (branch)  
China  
100%  
ALK (Shanghai) Medical Technology Co., Ltd.  
China  
100%  
ALK (Shanghai) Medical Technology Co., Ltd. Beijing (branch)  
China  
100%  
ALK (Shanghai) Medical Technology Co., Ltd. Guangzhou (branch)  
China  
100%  
ALK (Guangzhou) Medical Technology Co., Ltd.  
China  
100%  
Tasfiye Halinde ALK Ilac ve Alerji Ürünleri Ticaret Anonim Sirketi  
(in liquidation)  
Turkey  
100%  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022  
94  
Definitions  
Term  
Definitions  
Alternative Performance Measures  
Amounts in DKKm  
2022  
2021  
Gross margin – %  
EBITDA margin – %  
EBIT margin – %  
Gross profit x 100 / Revenue  
EBITDA x 100 / Revenue  
EBITDA reconciliation to net profit  
Net profit  
Tax on profit  
335  
112  
(4)  
27  
238  
708  
219  
60  
(10)  
23  
242  
534  
EBIT x 100 / Revenue  
Net asset value per share  
Invested capital  
Net asset value / Number of shares end of period  
Financial income  
Financial expenses  
Depreciation, amortisation and impairment  
EBITDA  
Intangible assets, tangible assets, inventories and current  
receivables reduced by liabilities except for mortgage debt and bank  
loans  
Return on equity (ROE) – %  
Pay-out ratio – %  
Net profit/(loss) for the period x 100 / Average equity  
Proposed dividend x 100 / Net profit/(loss) for the year  
Net asset value  
Equity  
Net asset value  
3,988  
3,988  
3,480  
3,480  
Earnings/(loss) per share  
(EPS)  
Net profit/(loss) for the period / Average number of  
outstanding shares  
Invested capital reconciliation  
Intangible assets  
Tangible assets  
642  
2,018  
1,297  
764  
18  
24  
82  
239  
(236)  
(226)  
(49)  
(131)  
(41)  
(4)  
622  
1,814  
1,204  
583  
12  
14  
82  
314  
(324)  
(207)  
(42)  
(115)  
(37)  
(4)  
(12)  
(23)  
(950)  
2,931  
Earnings/(loss) per share  
diluted (DEPS)  
Net profit/(loss) for the period / Average number of  
outstanding shares diluted  
Inventories  
Trade receivables  
Cash flow per share (CFPS)  
Cash flow from operating activities / Average number of outstanding  
shares  
Receivables from group companies  
Income tax receivables  
Other receivables  
ROIC incl. goodwill – %  
Price earnings ratio (PE)  
Markets  
Operating profit x 100 / Average invested capital incl. goodwill  
Share price / Earnings per share  
Prepayments  
Pensions and similar liabilities  
Lease liabilities (non-current)  
Deferred income (non-current)  
Trade payables  
Lease liabilities (current)  
Deferred income (current)  
Provisions (current)  
Income tax payables (current)  
Other payables  
Invested capital  
Geographical markets (based on customer location):  
•
•
•
Europe comprises the EU, UK, Norway and Switzerland  
North America comprises the USA and Canada  
International markets comprise Japan, China and all other  
countries  
(3)  
(16)  
(978)  
3,400  
The definitions are aligned with generally accepted financial ratios applied by financial analysts.  
The definitions are part of the Management’s review.  
 
Financial statements • Parent company financial statements  
ALK annual report 2022  
95  
Parent company  
financial statements  
Financial statements  
Notes  
Income statement  
Balance sheet  
96  
97  
98  
99  
1
2
Accounting policies  
99  
12 Mortgage debt and bank loans  
13 Pensions and similar liabilities  
14 Lease liabilities  
105  
106  
106  
Revenue and segment  
information  
100  
100  
101  
101  
101  
102  
103  
104  
105  
105  
Statement of changes in equity  
Notes  
3
4
5
6
7
8
9
Staff costs  
15 Income tax payables to  
group companies  
Special items  
106  
Financial income and expenses  
Income tax  
16 Contingent liabilities  
and commitments  
106  
106  
17 Related parties  
Intangible assets  
Property, plant and equipment  
Deferred tax  
18 Fees to ALK-Abelló A/S’ auditors 107  
19 Proposed appropriation  
of net profit  
107  
10 Investments in subsidiaries  
11 Inventories  
20 Events after the reporting period 107  
 
Financial statements • Parent company financial statements  
ALK annual report 2022  
96  
Income statement  
Amounts in DKKm  
Note  
2022  
2021  
Revenue  
2
2,114  
1,044  
1,070  
2,299  
1,030  
1,269  
Cost of sales  
Gross profit  
3,4  
Research and development expenses  
Sales and marketing expenses  
Administrative expenses  
3,4  
3,4  
622  
341  
124  
(17)  
577  
263  
114  
315  
3,18  
Operating profit/(loss) (EBIT)  
Income from investments in subsidiaries  
Financial income  
10  
5
427  
24  
15  
21  
Financial expenses  
5
20  
23  
Profit before tax (EBT)  
414  
328  
Tax on profit/(loss)  
6
(40)  
27  
Net profit  
19  
454  
301  
 
Financial statements • Parent company financial statements  
ALK annual report 2022  
97  
Balance sheet – Equity and liabilities  
Balance sheet – Assets  
31 Dec.  
2022  
31 Dec.  
2021  
31 Dec.  
2022  
31 Dec.  
2021  
Amounts in DKKm  
Note  
Amounts in DKKm  
Note  
Non-current assets  
Equity  
Intangible assets  
Intangible assets  
Share capital  
111  
3,490  
2
111  
2,993  
3
7
146  
146  
127  
127  
Retained earnings  
Capitalised development costs  
Total equity  
Tangible assets  
3,603  
3,107  
Land and buildings  
Plant and machinery  
Other fixtures and equipment  
Property, plant and equipment in progress  
8
8
8
8
273  
233  
47  
303  
856  
312  
244  
47  
194  
797  
Liabilities  
Non-current liabilities  
Mortgage debt  
Pensions and similar liabilities  
Lease liabilities  
12  
13  
14  
203  
60  
93  
222  
58  
120  
42  
Other non-current assets  
Investments in subsidiaries  
Receivables from group companies  
Prepayments  
10  
1,058  
1,780  
88  
1,057  
1,840  
23  
Deferred income  
49  
Income tax payables to group companies  
15  
120  
525  
115  
557  
Deferred tax assets  
9
282  
311  
Income tax receivables  
146  
3,354  
122  
3,353  
Current liabilities  
Mortgage debt  
12  
12  
18  
208  
48  
974  
11  
18  
223  
58  
1,156  
10  
Bank loans  
Trade payables  
Payables to group companies  
Lease liabilities  
Total non-current assets  
Current assets  
4,356  
4,277  
14  
Inventories  
11  
526  
79  
451  
60  
205  
1,321  
420  
53  
372  
56  
275  
1,176  
Deferred income  
Other payables  
3
2
Trade receivables  
Receivables from group companies  
Other receivables  
Prepayments  
318  
1,580  
373  
1,840  
Total liabilities  
2,105  
5,708  
2,397  
5,504  
Total equity and liabilities  
Cash  
31  
51  
Total current assets  
1,352  
1,227  
Total assets  
5,708  
5,504  
 
Financial statements • Parent company financial statements  
ALK annual report 2022  
98  
Statement of changes in equity  
Reserve for  
capitalised  
Retained development  
Share  
capital  
Proposed  
dividend  
Total  
equity  
Amounts in DKKm  
earnings  
costs  
2022  
Equity at 1 January  
111  
2,993  
3
-
3,107  
Appropriated from net profit  
Share-based payments  
-
-
-
-
-
-
-
454  
27  
-
-
-
-
-
-
-
-
-
-
-
454  
27  
Share options settled  
(11)  
42  
(11)  
42  
Sale of treasury shares  
Transfer to/(from) legal reserves  
Tax related to items recognised directly in equity  
Other transactions  
1
(1)  
-
(16)  
497  
-
(16)  
496  
(1)  
Equity at 31 December  
111  
3,490  
2
-
3,603  
See note 4.1 in the consolidated financial statements for information on treasury shares.  
 
Financial statements • Parent company financial statements  
ALK annual report 2022  
99  
Notes  
1
Accounting policies  
General  
The parent company’s accounting  
policies for recognition and  
measurement are in accordance with  
the ALK Group’s accounting policies  
with the following exceptions:  
the fair value of the net assets acquired  
at the acquisition date.  
recognised in the statement of equity.  
The reserve contains development  
costs, less amortisation/impairment  
losses, and less deferred tax,  
The financial statements of the parent  
company ALK-Abelló A/S for the period  
1 January to 31 December 2022 have  
been prepared in accordance with the  
Danish Financial Statements Act for  
large reporting class D enterprises.  
Goodwill  
Goodwill is measured at cost less  
accumulated amortisation and  
impairment. Amortisation is calculated  
using the straight-line method over the  
expected useful life, estimated at 10  
years. This estimate was made based  
on estimated useful lives of the assets  
acquired.  
capitalised since 1 January 2016.  
Income statement  
Other accounting  
information  
From 1 January 2022, ALK-Abelló  
A/S was merged with its wholly  
owned subsidiary ALK e-com A/S  
(CVR number 39266881). Intragroup  
business combinations are accounted  
for under the aggregation method.  
Under this method, the two enterprises  
are combined at carrying amounts,  
and no differences are identified.  
Any considerations which exceed  
the carrying amount of the acquired  
enterprise are recognised directly in  
equity. The aggregation method is  
applied as if the two enterprises had  
always been combined by restating  
comparative figures.  
Results of investments in  
subsidiaries  
Dividends from investments in  
subsidiaries are recognised in the  
parent company’s financial statements  
when the right to the dividend finally  
vests, typically at the date of the  
company’s approval in general meeting  
of the dividend of the company in  
question less any write-downs at the  
investments.  
Cash flow statement  
Investments in subsidiaries  
Investments in subsidiaries are  
measured at cost.  
As allowed under section 86 (4) of the  
Danish Financial Statements Act, no  
cash flow statement is presented, as  
this is included in the consolidated cash  
flow statement.  
Where the recoverable amount of the  
investments is lower than cost, the  
investments are written down to this  
lower value.  
In addition, cost is written down to  
the extent that dividends distributed  
exceed the accumulated earnings in the  
company since the acquisition date. In  
the event of indications of impairment,  
an impairment test is performed of  
investments in subsidiaries.  
Balance sheet  
Acquisition of activities from  
subsidiaries  
The financial statements are presented  
in Danish kroner (DKK), which is also the  
functional currency of the company.  
Acquisition of activities from  
subsidiaries is accounted for using  
the purchase method. On initial  
recognition, goodwill is measured  
and recognised as the excess of the  
consideration transferred exceeding  
The accounting policies are unchanged  
from last year.  
Capitalisation of development costs  
A reserve for capitalisation of  
development costs less deferred tax is  
 
Financial statements • Parent company financial statements  
ALK annual report 2022 100  
Notes  
2
Revenue and segment information  
3
Staff costs  
Amounts in DKKm  
2022  
2021  
Amounts in DKKm  
2022  
2021  
Sale of goods  
Royalties  
2,014  
93  
2,218  
81  
Wages and salaries  
Pensions  
667  
63  
654  
59  
Services  
7
-
Other social security costs, etc.  
Share-based payments  
Total  
13  
12  
Total revenue  
2 ,114  
2,299  
18  
24  
761  
749  
Europe  
1,682  
432  
1,972  
327  
International markets  
Total revenue  
Staff costs are allocated as follows:  
Cost of sales  
2 ,114  
2,299  
307  
240  
66  
295  
219  
94  
Research and development expenses  
Sales and marketing expenses  
Administrative expenses  
Included in the cost of assets  
Total  
99  
96  
49  
45  
761  
749  
Remuneration to Board of Management and Board of Directors:  
See note 2.4 and 5.1 in the consolidated financial statements  
Employees  
Average number (FTE)  
Number year end (FTE)  
928  
901  
913  
954  
 
Financial statements • Parent company financial statements  
ALK annual report 2022 101  
Notes  
4
Special items  
6
Income tax  
Amounts in DKKm  
2022  
2021  
Amounts in DKKm  
2022  
2021  
Impairment of intangible assets  
Impairment of tangible assets  
Impairment of investments in subsidiaries  
Total  
-
-
-
-
11  
7
Current income tax  
(36)  
(11)  
Adjustment of deferred tax  
Prior years adjustments, income tax  
Prior years adjustments, deferred tax  
Total  
2
-
38  
3
4
22  
(6)  
(40)  
(3)  
27  
In 2021, the impairment of intangible assets included DKK 11 million relating to impairment of software.  
In the income statement, the impairment of intangible assets was recognised as sales and marketing  
expenses. The impairment of tangible assets included DKK 7 million related to impairment of plant  
and machinery. In the income statement, the impairment of tangible assets was recognised with DKK  
6 million as cost of sales and DKK 1 million as research and development expenses. The impairment  
of investments in subsidiaries included DKK 4 million impairment of ALK-Abelló A/S' investment in its  
subsidiary in Turkey.  
Profit before tax  
414  
328  
Income tax, tax rate of 22%  
91  
(108)  
-
72  
(13)  
3
Permanent differences  
Prior years adjustments, income tax  
Prior years adjustments, deferred tax  
Other taxes and adjustments  
Tax on profit for the year  
(6)  
(3)  
(32)  
27  
For the assets where ALK estimates that there is a recoverable amount, such amount was determined  
based on the fair value less cost to sell or the value in use of the respective asset.  
(17)  
(40)  
5
Financial income and expenses  
Amounts in DKKm  
2022  
2021  
Interest on receivables from group companies  
Other interest income  
17  
6
11  
4
Currency gain, net  
1
6
Total financial income  
24  
21  
Other interest expenses*  
20  
23  
Total financial expenses  
20  
23  
*
In 2022, other interest expenses include net interest related to uncertain tax position of DKK 0 (2021: DKK 3 million) and IFRS 16  
interest expenses of DKK 2 million (2021: DKK 3 million).  
 
Financial statements • Parent company financial statements  
ALK annual report 2022 102  
Notes  
7
Intangible assets  
Patents,  
trademarks  
and rights  
Development  
cost*  
Assets in  
progress  
Amounts in DKKm  
Goodwill  
Software  
2022  
2021  
Cost beginning of year  
Additions  
867  
69  
-
23  
19  
-
308  
7
35  
28  
1,302  
54  
1,284  
43  
-
-
Disposals  
-
(4)  
(8)  
(12)  
-
(25)  
-
Transfer to/from other groups  
Cost year end  
-
-
-
27  
(27)  
867  
69  
42  
338  
28  
1,344  
1,302  
Amortisation and impairment beginning of year  
Amortisation for the year  
867  
68  
-
9
1
231  
26  
-
-
-
-
-
1,175  
27  
1,155  
25  
-
-
Disposals during the year  
-
-
(4)  
(4)  
(16)  
11  
Impairment during the year  
-
-
-
-
-
Amortisation and impairment year end  
867  
68  
10  
253  
1,198  
1,175  
Carrying amount year end  
-
1
32  
85  
28  
146  
127  
*
The capitalised development cost relates to development of medical device products where the individual minor development projects are running for short-term periods and are subject to limited risk. The development projects are generating economic benefits in  
the form of sale of goods. At 31 December 2022, the capitalised development cost relates to the development of the adrenaline auto-injector for the European and US markets.  
 
Financial statements • Parent company financial statements  
ALK annual report 2022 103  
Notes  
8
Property, plant and equipment  
Property, plant  
and equipment  
in progress  
Land and  
buildings  
Plant and  
machinery  
Other fixtures  
and equipment  
Amounts in DKKm  
2022  
2021  
Cost beginning of year  
Additions  
622  
6
536  
9
62  
8
194  
133  
-
1,414  
156  
1,330  
103  
-
Lease contract modifications  
Disposals  
(18)  
(6)  
1
-
-
(18)  
(64)  
-
(51)  
21  
515  
(7)  
-
(19)  
-
Transfer to/from other groups  
Cost year end  
2
(24)  
303  
605  
65  
1,488  
1,414  
Depreciation and impairment beginning of year  
Depreciation for the year  
310  
24  
292  
41  
15  
10  
(7)  
-
-
-
-
-
-
617  
75  
557  
72  
Disposals during the year  
(2)  
-
(51)  
-
(60)  
-
(19)  
7
Impairment during the year  
Depreciation and impairment year end  
332  
282  
18  
632  
617  
Carrying amount year end  
273  
233  
47  
303  
856  
98  
797  
125  
186  
of which assets held under leases*  
97  
-
1
-
Value of land and buildings subject to mortgages  
176  
*
Land and buildings in Denmark include buildings on land leased from Scion DTU A/S, Hørsholm. The leases are open-ended and the estimated lease terms are 15 years.  
 
Financial statements • Parent company financial statements  
ALK annual report 2022 104  
Notes  
9
Deferred tax  
Intangible  
assets  
Tangible  
assets  
Current and  
other assets  
Tax losses  
carried forward  
Amounts in DKKm  
Liabilities  
Total  
2022  
Carrying amount beginning of year  
Adjustment to prior years  
(17)  
(64)  
(1)  
-
24  
-
40  
1
328  
6
311  
6
-
-
Adjustment of receivables from group companies  
Recognised in the income statement, net  
Recognised in equity, net (share-based payments)  
Carrying amount year end  
-
-
(17)  
12  
(17)  
(2)  
(2)  
-
4
(11)  
(32)  
(19)  
(5)  
-
-
16  
(16)  
282  
(19)  
(61)  
36  
345  
2021  
Carrying amount beginning of year  
Adjustment to prior years  
(5)  
3
(65)  
60  
-
30  
-
321  
-
341  
3
-
Adjustment of receivables from group companies  
Recognised in the income statement, net  
Recognised in equity, net (share-based payments)  
Carrying amount year end  
-
-
1
-
-
(5)  
(21)  
33  
(5)  
(38)  
10  
(15)  
-
(13)  
(23)  
24  
10  
-
-
(17)  
(64)  
40  
328  
311  
ALK-Abelló A/S is included in a joint Danish taxation scheme with the Lundbeck Foundation (Lundbeckfond Invest A/S) and its Danish subsidiaries.  
ALK-Abelló A/S recognises deferred tax assets including the tax value of tax losses if it is probable that it can be utilised against future taxable income within a foreseeable future. This includes an assessment of the  
possibilities to utilise tax losses in the joint Danish taxation scheme with the Lundbeck Foundation (Lundbeckfond Invest A/S).  
 
Financial statements • Parent company financial statements  
ALK annual report 2022 105  
Notes  
10 Investments in subsidiaries  
12 Mortgage debt and bank loans  
Amounts in DKKm  
2022  
2021  
Amounts in DKKm  
2022  
2021  
Cost beginning of year  
1,469  
1
1,469  
-
Debt to mortgage credit institutions secured by buildings  
Capital contribution in subsidiaries during the year  
Cost year end  
Mortgage debt is due as follows:  
Within 1 year  
1,470  
1,469  
18  
73  
18  
73  
From 1-5 years  
After 5 years  
Write-down beginning of year  
Write-down during the year, cf. note 4  
Write-down year end  
412  
-
408  
4
130  
221  
149  
240  
Total  
412  
412  
Bank loans  
Carrying amount year end  
1,058  
1,057  
Bank loans are due as follows:  
Within 1 year  
208  
223  
From 1-5 years  
After 5 years  
-
-
-
-
In the income statement, income from investments in subsidiaries is dividends, which amounts to DKK  
427 million (2021: DKK 19 million) less write-down of investments in subsidiaries which amounts to  
DKK 0 (2021: DKK 4 million).  
Total  
208  
223  
For an overview of all subsidiaries see note 5.6 in the consolidated financial statements.  
11 Inventories  
Amounts in DKKm  
2022  
2021  
Raw materials  
115  
372  
39  
102  
284  
34  
Work in progress  
Manufactured goods and goods for resale  
Total  
526  
420  
Amount of write-down of inventories during the year  
18  
2
13  
8
Amount of reversal of write-down of inventories during the year  
 
Financial statements • Parent company financial statements  
ALK annual report 2022 106  
Notes  
13 Pensions and similar liabilities  
16 Contingent liabilities and commitments  
Amounts in DKKm  
2022  
2021  
In December 2022, ALK-Abelló A/S issued a hold-harmless letter to ALK -Abelló Arzneimittel GmbH  
regarding costs under the ongoing tax audits in Germany (unlimited guarantee). The hold-harmless  
letter replaces the letter issued in December 2021.  
Pensions and similar liabilities expire as follows:*  
Within 1 year  
From 1-5 years  
After 5 years  
Total  
-
3
-
3
Provisions recognised as debt to affiliates have been made to cover such exposures and the mentioned  
possible uncertainties are in addition to what is already provided for.  
57  
60  
55  
58  
For more information on contingent liabilities and commitments, see note 3.10 in the consolidated  
financial statements.  
*
Pensions and similiar liabilities relate to the provision for transition period for the Danish Holiday Act.  
17 Related parties  
14 Lease liabilities  
ALK-Abelló A/S is included in the consolidated financial statements of the Lundbeck Foundation  
(Lundbeckfond Invest A/S, incorporated in Denmark).  
Amounts in DKKm  
2022  
2021  
ALK-Abelló A/S has had transactions with susidiaries during 2022. All subsidiaries are owned 100%.  
The transactions are eliminated in the consolidated financial statements.  
Lease liabilities expire as follows:  
Within 1 year  
11  
35  
10  
41  
From 1-5 years  
After 5 years  
Transactions with the majority shareholder are disclosed in note 5.3 in the consolidated financial  
statements. Apart from remuneration, no other transactions have taken place during the year with  
Board of Directors, Board of Management, major shareholders or other related parties.  
58  
79  
Total  
104  
130  
Remuneration etc. to Board of Directors and Board of Management  
For information on remuneration and exercise of share options for the ALK Group’s Board of Directors  
and Board of Management, see note 2.4 and 5.1 in the consolidated financial statements.  
15 Income tax payables to group companies  
Non-current income tax payables to group companies of DKK 120 million (2021: DKK 115 million) is  
expected to expire between 1 to 5 years.  
 
Financial statements • Parent company financial statements  
ALK annual report 2022 107  
Notes  
18 Fees to ALK-Abelló A/S’ auditors  
19 Proposed appropriation of net profit  
Amounts in DKKm  
2022  
2021  
Amounts in DKKm  
2022  
2021  
Fees to the auditors appointed at the annual general meeting:  
Proposed dividend  
Retained earnings  
Net profit  
-
454  
454  
-
301  
301  
Audit services  
Tax advisory services  
Other services  
Total  
2
-
2
1
-
1
3
3
20 Events after the reporting period  
No events have occured after the reporting period, that influence the evaluation of the parent company  
financial statements.  
 
Financial statements • Consolidated financial statements  
ALK annual report 2022 108  
Financial highlights and key ratios by quarter for the ALK Group* (unaudited)  
Q4  
Q3  
Q2  
Q1  
Q4  
Q3  
Q2  
Q1  
Amounts in DKKm  
2022  
unaudited  
unaudited  
unaudited  
unaudited  
Amounts in DKKm  
2022  
unaudited  
unaudited  
unaudited  
unaudited  
Income statement  
Revenue  
Balance sheet  
Total assets  
Invested capital  
Equity  
4,511  
1,720  
665  
1,381  
276  
1,249  
478  
185  
372  
76  
1,062  
422  
161  
345  
67  
1,045  
404  
162  
358  
72  
1,155  
416  
157  
306  
61  
6,308  
3,400  
3,988  
6,308  
3,400  
3,988  
6,282  
3,292  
3,948  
6,207  
3,155  
3,786  
5,967  
3,067  
3,656  
Cost of sales  
Research and development expenses  
Sales and marketing expenses  
Administrative expenses  
Other operating items, net  
Operating profit (EBIT)  
Net financial items  
Profit before tax (EBT)  
Net profit  
Cash flow and investments  
Depreciation, amortisation and impairment  
Cash flow from operating activities  
Cash flow from investing activities  
– of which investment in intangible assets  
– of which investment in tangible assets  
Free cash flow  
238  
416  
63  
85  
60  
95  
58  
145  
(90)  
(10)  
(82)  
55  
57  
91  
1
-
1
-
-
470  
138  
(34)  
104  
78  
68  
49  
215  
2
(351)  
(55)  
(298)  
65  
(118)  
(24)  
(94)  
(33)  
(90)  
(13)  
(75)  
5
(53)  
(8)  
(23)  
447  
2
7
70  
56  
217  
163  
272  
(47)  
38  
335  
708  
52  
42  
EBITDA  
201  
128  
107  
Average number of employees (FTE)  
2,609  
2,676  
2,655  
2,617  
2,566  
Information on shares  
Dividend  
-
111  
-
111  
-
111  
-
111  
-
111  
Share capital  
Revenue  
Shares in thousands of DKK 0.50 each  
Share price, end period – DKK  
Net asset value per share – DKK  
222,824  
96  
222,824  
96  
222,824  
121  
222,824  
123  
222,824  
149  
(Growth in revenue in local currency %)  
Europe  
3,058  
1,266  
1,519  
273  
(9)  
(-1)  
871  
394  
421  
56  
(10)  
(8)  
683  
279  
314  
90  
(6)  
713  
267  
366  
80  
(14)  
(-1)  
791  
326  
418  
47  
(4)  
18  
18  
18  
17  
16  
– SCIT/SLIT-drops  
(-5)  
(13)  
(30)  
(-6)  
(15)  
(-1)  
– SLIT-tablets  
(13)  
(39)  
(5)  
(21)  
(54)  
– Other products and services  
(98)  
Key figures  
Gross margin – %  
62  
16  
62  
16  
60  
12  
6
61  
10  
4
64  
24  
North America  
857  
349  
151  
357  
(12)  
(3)  
226  
93  
(6)  
(-3)  
(4)  
228  
91  
(16)  
(5)  
217  
86  
41  
(19)  
(6)  
186  
79  
(8)  
(3)  
EBITDA margin – %  
– SCIT/SLIT-drops  
– SLIT-tablets  
EBIT margin - %  
10  
11  
19  
(14)  
(22)  
37  
36  
(8)  
(19)  
(35)  
37  
(27)  
(6)  
Earnings per share (EPS) – DKK  
Earnings per share diluted (DEPS) – DKK  
Cash flow per share (CFPS)– DKK  
Share price/Net asset value  
1.5  
0.4  
0.2  
0.2  
0.7  
– Other products and services  
96  
(17)  
101  
(32)  
90  
70  
1.5  
1.9  
5.4  
0.4  
0.4  
5.4  
0.2  
0.4  
6.8  
0.2  
0.7  
7. 3  
0.7  
0.4  
9.1  
International markets  
– SCIT/SLIT-drops  
596  
133  
432  
31  
(39)  
(57)  
(38)  
(-3)  
152  
(36)  
151  
37  
(24)  
(64)  
(18)  
(-8)  
115  
27  
(30)  
(93)  
(5)  
178  
(62)  
25 (-25)  
44 (179)  
– SLIT-tablets  
123  
(64)  
108  
6
73  
128  
(63)  
*
Management’s review comprises this page as well as pages 1-48 and Financial highlights and key ratios for the ALK Group on  
page 12.  
– Other products and services  
4
(-20)  
15 (206)  
6
(-61)  
Total revenue  
4, 511  
1,748  
2,102  
661  
(13) 1,249  
(12) 1,062  
(11) 1,045  
(17)  
(4)  
1,155  
449  
(11)  
(2)  
Definitions: see page 94.  
– SCIT/SLIT-drops  
– SLIT-tablets  
(3)  
(18)  
(27)  
512  
581  
156  
(4)  
(14)  
(37)  
407  
458  
197  
(1)  
(13)  
(29)  
380  
480  
185  
In March 2022, ALK-Abelló A/S completed a share split at a ratio of 1:20, each existing share of a nominal value of DKK 10 was  
split into 20 new shares of a nominal value of DKK 0.50 each. The company’s share capital remains DKK 111,411,960. As a result  
of the share split, comparison figures for EPS, DEPS, share price, share number, net asset value per share, and share price/net  
asset ratio have been restated accordingly.  
(18)  
(50)  
583  
123  
(24)  
(-5)  
– Other products and services  
 
ALK-Abelló A/S  
Bøge Allé 6-8  
DK-2970 Hørsholm  
Denmark  
CVR no. 63 71 79 16