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Lundbeck

H. Lundbeck A/S, commonly known as Lundbeck, is a Danish company headquartered in that specializes in the research, development, manufacturing, and commercialization of pharmaceutical treatments for diseases, with a primary focus on psychiatric and neurological disorders. Founded on 14 August 1915 by Hans Lundbeck as a general dealing in goods such as machinery and biscuits, it transitioned into the pharmaceutical sector in the by importing and later producing medicines, establishing its first research laboratory in 1937. By the late , Lundbeck had shifted its emphasis to , launching pioneering antipsychotics like Truxal in 1959 for and antidepressants such as Cipramil in 1989, which became registered in over 70 countries. Today, Lundbeck operates globally with approximately 5,700 employees, products available in more than 80 countries, and 2024 of DKK 22 billion, of which strategic brands accounted for DKK 16.5 billion. The Lundbeck Foundation, which owns about 70% of the company's shares, supports its mission to advance brain health through substantial annual grants for . Lundbeck's portfolio includes therapies for conditions like , , and , reaching over 7 million people daily and reflecting more than a century of commitment to innovative CNS .

Corporate Overview

Founding and Organizational Structure

Lundbeck was founded on 14 August 1915 by Hans Lundbeck in , , initially operating as a that supplied a wide range of goods to the Danish market, including machinery, biscuits, , sweeteners, cinema equipment, cameras, , aluminum foil, and rentals. In its formative years, the company expanded into pharmaceuticals during the mid-1920s by incorporating products such as suppositories, painkillers, , and creams. A key milestone came in with the hiring of Eduard Goldschmidt, who introduced pharmaceutical agency contracts and a tablet compression machine, enabling initial drug manufacturing capabilities; this was followed by a relocation to larger premises in in 1927. By the 1930s, Lundbeck had transitioned to independent pharmaceutical production and packaging within , achieving chemical product sales of DKK 42,000 in 1933, which laid the groundwork for its specialization in brain health therapeutics. Lundbeck maintains a two-tier featuring an independent and Executive Management, in line with Danish practices. The 11-member Board approves overarching strategy, establishes performance goals, and supervises and controls via committees such as the , which advises on financial reporting integrity. Executive Management, separate from the Board, directs operational activities, including internal controls for financial processes and sustainable value creation for stakeholders. Headquartered in Valby, , the company employs around 5,700 people across more than 50 countries, with products available in over 80 nations; it has been publicly traded on since 1999, where the Lundbeck Foundation controls approximately 70% of shares.

Mission, Focus Areas, and Global Operations

Lundbeck's purpose is to advance health and transform lives through the , , , and delivery of innovative treatments for brain diseases. The company emphasizes a patient-driven approach, striving to empower individuals with brain disorders by addressing unmet needs in areas with limited therapeutic options. Within brain health, Lundbeck concentrates on and , targeting underlying disease mechanisms in conditions such as , , , and . This focus extends to neuro-specialty and neuro-rare disorders, with efforts to promote prevention, early diagnosis, and holistic management of brain disorders. Headquartered in Valby, , Lundbeck operates globally with affiliates in more than 50 countries and commercial teams supporting sales in key markets. The company maintains manufacturing facilities in and , alongside centers in and the . In September 2025, Lundbeck announced a strategic restructuring to sharpen its commercial focus, initiating partnerships for operations in 27 markets while retaining direct presence in over 20 priority markets, including the , , , , , , , and select Western European and ; this move is expected to impact more than 600 employees.

Historical Development

Inception and Early Diversification (1915–1940s)

Lundbeck was founded on 14 August 1915 by Hans Lundbeck in , , as a initially dealing in diverse goods such as machinery, biscuits, and . The firm hired its first employee, a young woman who later became Grete Lundbeck, and operated primarily as a general trader during its initial years. In 1924, Edouard Goldschmidt joined as a , expanding the into pharmaceutical agencies. From the mid-1920s, Lundbeck diversified by incorporating pharmaceuticals into its , including imports of suppositories, painkillers, and other medicinal products from European and American suppliers. This shift marked the company's entry into the healthcare sector, with chemical product sales reaching DKK 42,000 by 1933. In 1927, the company relocated to a larger office in to accommodate growth. The 1930s saw further diversification into domestic production and . Lundbeck began manufacturing and packaging its own pharmaceuticals in , establishing initial chemical facilities in 1939 under Oluf Hübner, who had been hired in to initiate R&D efforts. That year, the company moved to a new facility in Valby to enhance manufacturing capacity. Key early products included Epicutan®, launched in in collaboration with the as Lundbeck's first original medicinal product, and Lucosil® in 1940 for treating urinary tract infections. Hans Lundbeck passed away in 1943, amid Denmark's German occupation, during which the company's production activities persisted despite wartime challenges. This period solidified Lundbeck's transition from a general trading enterprise to a specialized pharmaceutical producer focused on and domestic capabilities.

Shift to Pharmaceuticals and Initial Innovations (1950s–1970s)

In the early , Lundbeck expanded its pharmaceutical capabilities by developing its own products, including Tyrosolvin and Tyrosolvetter, under the guidance of Ladislaus Szabo, which bolstered its presence in the U.S. market. This period marked a transition from reliance on agency distribution of third-party goods to in-house , building on the company's earlier diversification into pharmaceuticals since the mid-1920s. In 1950, Lundbeck restructured as a stock company with DKK 1 million in , providing a foundation for increased investment in research. A pivotal shift toward psychiatric treatments occurred in 1954 with the licensing and launch of Lacumin®, a from Chemische Fabrik Promonta, which ignited Lundbeck's interest in (CNS) disorders. This move aligned with the post-World War II surge in , as antipsychotics and antidepressants began addressing unmet needs in . Concurrently, the establishment of the Lundbeck Foundation by Grete Lundbeck supported long-term R&D efforts. By 1959, Lundbeck introduced Truxal® (), one of the world's first thioxanthene-class antipsychotics for , which rapidly became the company's flagship product and drove production expansions, including the 1961 acquisition of a facility in Lumsås, , for scaled . The 1960s solidified Lundbeck's focus on CNS innovations, with the early-decade launch of Saroten® (imipramine), a that complemented Truxal® and expanded the portfolio into mood disorders. Employee numbers doubled to 680 by 1970, with approximately 100 positions abroad, reflecting international growth fueled by these products' commercial success—Truxal® alone dominated sales through the decade. In 1972, Lundbeck established its subsidiary, Lundbeck Ltd., in , further embedding its operations in key European markets. By the late 1970s, after decades of balancing pharmaceuticals with non-core agencies, Lundbeck committed to a dedicated CNS-focused model, phasing out diversified product lines to prioritize proprietary drug development and marketing. This strategic pivot, informed by the proven efficacy and revenue from Truxal® and Saroten®, positioned the company as a specialist in brain health therapeutics, divesting from broader trading origins.

Breakthrough Products and International Expansion (1980s–2000s)

In the 1980s, Lundbeck shifted its operations to exclusively focus on (CNS) disorders, phasing out non-pharmaceutical activities and prioritizing research, development, and commercialization of treatments for brain diseases. This strategic pivot culminated in the 1989 launch of Cipramil® (), Lundbeck's first major original CNS product, an (SSRI) for treating . Cipramil quickly gained traction, receiving regulatory approval in that year and expanding to markets including the by 1995. The success of Cipramil fueled rapid international growth throughout the , with the drug registered in over 70 countries for and anxiety disorders by decade's end, treating more than 50 million patients worldwide by 2002. Revenue reached DKK 0.5 billion in 1990, supported by eight international affiliates and 189 overseas employees, marking Lundbeck's transition from a primarily European entity to one with broader global reach. In 1999, the company listed its shares on the , providing capital for further expansion and acquisitions. Entering the 2000s, Lundbeck introduced breakthrough follow-on products, including Cipralex®/Lexapro® () in 2002, the therapeutically active S-enantiomer of , which launched in approximately 100 countries and became a primary revenue driver. That same year, Ebixa® () was launched for management. Expansion accelerated through acquisitions, such as VIS Farmaceutici in in 2000 for active substance production and Synaptic Pharmaceuticals in the in 2003 to bolster CNS research capabilities. By 2000, Lundbeck operated 30 subsidiaries, solidifying its international footprint while maintaining a CNS-centric portfolio.

Research, Development, and Product Portfolio

Therapeutic Focus in Brain Health

Lundbeck's therapeutic focus centers on health, with dedicated efforts in and to develop treatments for disorders that impair cognitive, emotional, and motor functions. Neurological conditions targeted by the company contribute to a leading cause of global disability and the second-leading , accounting for approximately 9 million fatalities annually, while psychiatric disorders affect around 970 million individuals and account for one in five years lived with disability worldwide. In , Lundbeck prioritizes mood and psychotic disorders, including (MDD), bipolar depression, , and (PTSD), where unmet needs persist in symptom management and relapse prevention. The company's research emphasizes modulating neuronal circuitry and neurohormonal signaling to address core disease mechanisms, such as aberrant or serotonin pathways implicated in these conditions. Within neurology, therapeutic development targets neurodegeneration, , and circuitry disruptions in diseases like (including developmental and epileptic encephalopathies), , , , and rare disorders such as . Lundbeck employs diverse modalities, including small molecules, antibodies, and vaccines, to intervene in , , and protein clearance pathways, aiming to halt disease progression rather than merely alleviate symptoms. The R&D strategy integrates multidisciplinary teams, genetic collaborations (e.g., with 23andMe), and digital tools like wearable technologies for real-world evidence, spanning a 10-15 year timeline from target identification to regulatory approval. This patient-centric approach draws on over 70 years of neuroscience expertise to advance brain health holistically, encompassing not only treatment innovation but also advocacy for early diagnosis and prevention of brain disorders.

Key Approved Products and Their Impact

Lundbeck's key approved products primarily target psychiatric disorders such as (MDD), , and anxiety, reflecting the company's focus on (CNS) therapies. These include , , and , which have generated substantial revenue and reached millions of patients globally. In 2024, the company's reached 22 billion Danish kroner (DKK), with strategic brands like these driving growth amid patent expirations on older molecules. Lundbeck's products are registered in over 100 countries and treat an average of more than 7 million people daily. Escitalopram (marketed as Cipralex or Lexapro) is a (SSRI) approved by the FDA in August 2002 for MDD in adults, with subsequent approval for in December 2003. Developed by Lundbeck in collaboration with , it treats and anxiety by enhancing serotonin and has been prescribed in over 100 countries. As one of the most widely used antidepressants, escitalopram contributed to Lundbeck's early commercial success in , though generic competition post-patent expiry has reduced branded sales; it remains a cornerstone for first-line treatment due to its efficacy and tolerability profile in clinical guidelines. Vortioxetine (Trintellix or Brintellix), a , received FDA approval on September 30, 2013, for MDD in adults, acting via serotonin receptor modulation and reuptake inhibition to address cognitive symptoms often persistent in . Available in 95 countries, it demonstrated superior improvements in sexual functioning and compared to in head-to-head trials, offering benefits for patients with inadequate response to standard SSRIs. In 2024, generated 4.85 billion DKK in revenue, underscoring its role as a growth driver amid Lundbeck's shift toward innovative CNS therapies. Brexpiprazole (Rexulti), a D2 and serotonin 5-HT1A , was FDA-approved on July 10, 2015, initially for in adults and as adjunctive therapy to antidepressants for MDD. Co-developed with and marketed in 62 countries, it provides efficacy with potentially lower rates of metabolic side effects than some atypicals. Supplemental approvals expanded its use, including for in Alzheimer's in 2023. In 2024, brexpiprazole achieved 5.2 billion DKK in sales, representing a key pillar of Lundbeck's portfolio and contributing to 14% overall revenue growth through expanded indications like potential MDD combinations. These products have collectively bolstered Lundbeck's market position in , with combined revenues exceeding 10 billion DKK in 2024 and enabling reinvestment in R&D despite challenges from generics. Their impact extends to improved patient outcomes in cases, though real-world effectiveness varies, as evidenced by studies showing adjunctive benefits in life engagement and symptom reduction.

Current Pipeline and Emerging Therapies

Lundbeck's pipeline centers on novel therapies targeting underlying disease mechanisms in and , with a strategic emphasis on unmet needs in conditions such as , , (MSA), (PTSD), and developmental and epileptic encephalopathies (DEEs). As of 2025, the company maintains multiple candidates across phases, including three in Phase 3 or regulatory filing stages, reflecting a commitment to advancing innovations through monoclonal antibodies, small molecules, and receptor modulators. This approach prioritizes disease-modifying potential over symptomatic relief, informed by multi-disciplinary efforts to address neurodegeneration, , and circuit dysfunction. Key late-stage assets include amlenetug (Lu AF82422), a designed to inhibit pathological α-synuclein aggregation and spreading in , a rare neurodegenerative disorder lacking approved treatments. The Phase 2 AMULET (NCT05104476), a randomized, double-blind, placebo-controlled study, evaluated , safety, and progression over 48-72 weeks with an open-label extension, supporting advancement to the ongoing Phase 3 (NCT06706622), which assesses outcomes over 72 weeks across global sites. Bexicaserin, a agonist, is in Phase 3 for DEEs, with positive interim results from the open-label extension of the PACIFIC reported in April 2025, indicating tolerability and potential in seizure reduction and neurodevelopmental support. , a serotonin-dopamine activity modulator in collaboration with , is under regulatory filing for PTSD as a lifecycle extension of its approved uses in . Earlier-phase candidates address diverse mechanisms. Lu AF28996, a D1/D2 , is in Phase 1 for , aiming to improve motor fluctuations through concerted receptor stimulation in patients responsive to levodopa (NCT04291859). The MAGLi program, including Lu AG06466 as a monoacylglycerol lipase inhibitor to modulate endocannabinoid signaling, remains in Phase 1 for indications following exploratory Phase 2a data in . In migraine prevention, (anti-CGRP ) is in filing for Asian markets post-Phase 3 trials (), while Lu AG09222 (anti-PACAP ) is in Phase 2. Lu AG13909, an anti-ACTH , received orphan drug designations in June 2025 for and is in Phase 1 for and related neurohormonal dysfunctions.
CandidateIndicationPhaseMechanism
AmlenetugPhase 3Anti-α-synuclein mAb
BexicaserinDevelopmental and Epileptic EncephalopathiesPhase 35-HT2C agonist
PreventionFilingAnti-CGRP mAb
PTSDFilingSerotonin-dopamine modulator
Lu AF28996Phase 1D1/D2 agonist
Lu AG09222 PreventionPhase 2Anti-PACAP mAb
Lu AG13909Neurohormonal Dysfunctions (e.g., CAH, Cushing's)Phase 1Anti-ACTH mAb
MAGLi (e.g., Lu AG06466)Phase 1 inhibitor
Lundbeck anticipates three to four Phase 3 programs by 2026, bolstered by Phase 2 efforts, amid a refined by discontinuations like earlier Parkinson's candidates foliglurax. Clinical trial transparency is maintained via disclosures on efficacy, safety, and disease insights.

Pay-for-Delay Agreements and EU Antitrust Actions

In 2002, amid impending patent expiry for its blockbuster (SSRI) antidepressant —marketed as Cipramil—Lundbeck faced legal challenges from generic manufacturers seeking early market entry via alternative crystal forms of the , prompting lawsuits. To resolve these disputes, Lundbeck concluded six settlement agreements with four generic groups—Generics (affiliated with Merck KGaA), Arrow Group, Alpharma (later Xellia), and Ranbaxy—spanning 2002 to 2005, which included direct financial payments, guaranteed purchases of generic firms' active pharmaceutical ingredients at inflated prices, and distribution deals for Lundbeck products. These arrangements restricted the generics from launching or continuing sales of in the (EEA), delaying competition by six to 30 months across countries like the , , and , thereby preserving Lundbeck's market dominance and high pricing. On 19 June 2013, the European Commission issued its decision (AT.39226) fining Lundbeck €93.8 million and the generic parties a collective €52.2 million, totaling €146 million, for infringing Article 101 TFEU through "pay-for-delay" pacts that constituted restrictions of competition by object, without requiring proof of actual anticompetitive effects. The Commission determined that the value transfers from Lundbeck to generics were not justified by legitimate settlements, as they exceeded potential litigation risks and extended beyond disputed patent scopes, effectively buying market exclusivity. This was the Commission's inaugural enforcement against pharmaceutical pay-for-delay schemes, signaling stricter scrutiny of patent settlements that incorporate reverse payments. Lundbeck and the generics appealed the decision to the EU General Court (cases T-472/13 et al.), which on 8 September 2016 upheld the findings in full, affirming that such agreements harm competition inherently when they involve transfers discouraging generic entry, regardless of validity or context. The court rejected arguments that the pacts merely enforced intellectual property rights, emphasizing their potential to foreclose rivals beyond protected inventions. Subsequent appeals to the (cases C-591/18 et al.) were dismissed on 25 March 2021, solidifying the Commission's approach by ruling that pay-for-delay deals infringe by object if they limit generics' independent efforts to challenge or enter markets, even absent explicit market allocation. The ECJ also imposed a duty on firms to retain documents during sector inquiries, citing Lundbeck's prior destruction of evidence in a related probe. These rulings established a for evaluating hybrid patent settlements under antitrust rules, influencing subsequent cases like Servier while underscoring that does not confer blanket immunity from enforcement.

U.S. Patient Assistance and Kickback Allegations

In 2011, Lundbeck LLC, the U.S. subsidiary of the Danish pharmaceutical company H. Lundbeck A/S, allegedly donated millions of dollars to a specific fund administered by the Access Network (PAN) Foundation, ostensibly to assist patients with in covering co-payments for medications. According to the U.S. Department of Justice (DOJ), Lundbeck was the sole donor to this fund, which primarily covered co-pays for beneficiaries prescribed Xenazine (), Lundbeck's drug for treating associated with , rather than providing broad support for the disease as claimed. This arrangement purportedly violated the federal Anti-Kickback Statute (42 U.S.C. § 1320a-7b(b)), which prohibits pharmaceutical manufacturers from offering or paying remuneration to induce the purchase or prescription of federally reimbursed drugs, including indirect subsidies for patient co-pays that could steer patients toward higher-cost branded products. The DOJ alleged that Lundbeck's donations to the PAN Foundation fund were not truly independent charitable contributions but served as a mechanism to disguise kickbacks, ensuring patient adherence to Xenazine despite its high out-of-pocket costs under , where Lundbeck's own patient assistance program excluded Medicare enrollees. prosecutors further claimed that Lundbeck tracked the fund's usage to confirm it predominantly benefited Xenazine patients, undermining the appearance of arms-length and potentially inflating drug prices by reducing pressure on manufacturers to negotiate lower reimbursements. In June 2018, Lundbeck disclosed its intent to settle these claims for $52.6 million, without admitting liability, as part of broader scrutiny into pharmaceutical funding of patient assistance charities that disproportionately aid specific drugs. The settlement was finalized in April 2019, with Lundbeck paying $52.6 million to the and participating states to resolve the civil allegations under the . As part of the resolution, Lundbeck entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG), requiring enhanced oversight of third-party funding, annual reporting on charitable contributions, and restrictions on directing s to specific assistance programs. This agreement aimed to prevent future misuse of patient assistance foundations as conduits for inducements, a practice criticized by regulators for distorting spending—estimated at billions annually on co-pay support—without genuine charitable intent. The case paralleled similar DOJ actions against and , contributing to a total of over $122 million in combined settlements, highlighting systemic concerns over pharma-charity ties in the U.S. healthcare system.

Patent Litigations and Intellectual Property Disputes

Lundbeck has been involved in numerous litigations primarily concerning its escitalopram oxalate s, the active ingredient in antidepressants marketed as Lexapro in the United States and Cipralex internationally. These disputes often pitted Lundbeck against manufacturers seeking to enter the before expiry or during extended terms, leading to claims of infringement, invalidity challenges, and negotiations. A significant portion of these cases centered on the validity and scope of Lundbeck's Australian Patent No. 200126435 (the '452 ) for the escitalopram , which expired in 2009 but received a term extension until June 2014. In , Lundbeck initiated proceedings against Pty Ltd in June 2014, immediately following the patent term extension, alleging infringement for Sandoz's generic sales during the extended period. The Federal Court initially found infringement and awarded Lundbeck damages exceeding AUD 10 million in 2018, but this was overturned on in 2020 by the Full Federal Court, which ruled that Sandoz held an implied license predating the extension, negating liability. The in March 2022 dismissed Lundbeck's , confirming that exclusive licensee Lundbeck Australia Pty Ltd lacked standing to sue independently without the patentee H. Lundbeck A/S joining, though it did not resolve the merits further. Litigation persisted, with the Australian Patent Office granting Sandoz a under section 223(9) in 2023 for historical sales, a decision upheld amid Lundbeck's challenges; as of December 2024, the Federal Court clarified the license's scope, limiting it to pre-extension activities and remitting the matter for reassessment of infringement claims. Internationally, Lundbeck faced setbacks in patent enforcement. In the , a 2006 ruling invalidated Lundbeck's against generic challengers, including Ranbaxy and Arrow, determining that the claimed single- process lacked inventive step over formulations. Similarly, in Europe, generic firms like Tiefenbacher successfully invalidated Lundbeck's (SPC) extensions in multiple jurisdictions by 2019, arguing insufficient novelty in the isolation method. In , however, Lundbeck prevailed in a 2020 infringement suit against Unisun and Medline, with courts confirming joint liability for unauthorized production and sales, awarding damages and injunctions in 2023. In the United States, Lundbeck pursued Hatch-Waxman actions against ANDA filers for generics. In H. Lundbeck A/S v. Lupin Ltd. (2023-2024), the Federal Circuit affirmed a district court's finding of no induced or contributory infringement of U.S. Nos. '096 and '910, ruling that labeling did not encourage off-patent uses and that accused products lacked the patented material components under 35 U.S.C. § 271(c). Earlier settlements, such as with Alphapharm (a Merck ) in 2005, resolved pending Australian infringement claims without admission of liability, allowing delayed entry. These cases highlight Lundbeck's aggressive defense of exclusivity, yielding mixed outcomes influenced by jurisdictional variances in interpretation and defenses like implied licenses or invalidity.

Business Performance and Strategic Evolution

Financial Growth and Market Position

Lundbeck achieved record of DKK 22,004 million in , reflecting a 14% increase at constant exchange rates () and 11% in Danish kroner (DKK) compared to , driven by across all regions and strategic brands including Rexulti, Trintellix, Abilify Maintena, and Vyepti. Adjusted EBITDA rose to DKK 6,347 million, up 20% at and 12% in DKK, supporting an EBIT margin of 14.9%. This continued into 2025, with first-half reaching DKK 12,258 million, a 14% increase, led by U.S. and European . The company's investment intensified, with an R&D ratio of 20.5% in 2024, up from 17.4% in 2023, underscoring commitment to pipeline advancement amid revenue expansion. stood at 13.4%, with an equity ratio of 43.9%, indicating solid financial health. reached approximately DKK 39.6 billion at 2024 year-end, equivalent to about $6.8 billion USD as of October 2025, positioning Lundbeck as a mid-cap player in the global pharmaceutical sector. In the (CNS) therapeutics market, projected to grow from USD 144.3 billion in 2024 to USD 431.0 billion by 2035, Lundbeck maintains a specialized niche in and , benefiting from aging populations and demand for targeted therapies like antipsychotics and treatments. Strategic brands accounted for accelerated growth, with 17% CER increases in early 2024 periods, supported by expanded prescriber bases and partnerships such as with Swixx for CNS access in multiple regions. Lundbeck's focus on high-barrier CNS innovation differentiates it from broader pharma giants, though it faces competition in a fragmented market emphasizing precision medicine and demographic-driven demand.

Recent Restructuring and Operational Shifts (2020s)

In November 2021, Lundbeck announced plans to eliminate approximately 300 positions worldwide as part of a "fine-tuning" of its operations, drawing lessons from the to reallocate resources toward growth in its CGRP therapies, including Vyepti (). The cuts primarily affected administrative and support functions, with savings redirected to support commercial expansion in amid intensifying competition from rivals like and . By September 2025, Lundbeck undertook a more substantial , withdrawing direct commercial operations from 27 non-U.S. markets—spanning , , parts of , and —that collectively accounted for about 12% of its 2024 earnings—to adopt a partnership-based model. Operations in these markets were transitioned to three partners: Swixx Group for 21 markets (including and ), Zuellig Pharma for select regions, and NewBridge Pharmaceuticals for , aiming to sharpen focus on high-priority areas like the U.S., core European countries, and . The shift impacted around 602 employees through redundancies and relocations, incurring one-time costs of 390 million Danish kroner (approximately $61 million USD) but projected to yield annual operating cost savings of about 500 million Danish kroner starting in 2026, with no effect on 2025 financial guidance. This move aligned with Lundbeck's broader strategy to prioritize capital for innovation in brain health therapies while leveraging external partners for lower-priority geographies.

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