Company Profiles

H. Lundbeck

Denmark

H. Lundbeck's (Lundbeck) principal operations are in research, development, production, and marketing of drugs for the treatment of psychiatric and neurological disorders. Lundbeck understands its greatest environmental impacts "derive from [its] consumption of raw materials - primarily organic solvents, energy, and water - along with waste production and the emission of solvents into the air." Lundbeck stands out for its commitment to avoid or reduce its use of hazardous chemicals through "challeng[ing] all new production processes from the early development stages." For example, Lundbeck recently replaced the hazardous solvent heptane with water and alcohol in one of its processes. By replacing heptane with more benign substances the company was able to address toxicity issues, eliminate six washing procedures, improve process times, and significantly reduce water usage, which provided both environmental and financial benefits. Lundbeck is also making capital investments to improve the efficiency of its production processes. Initiatives have reduced overall consumption of raw materials and solvents and decreased air emission levels while increasing the production of finished goods. Despite the company's commitment to reducing the use of dangerous chemicals in its pharmaceuticals, it appears Lundbeck is utilizing polyvinyl chloride (PVC) in its packaging. Portfolio 21 has asked the company to disclose additional information on its use of PVC as well as set a timeline for eliminating PVC from its packaging.

Biotechnology Involvement

While Lundbeck does not publish a biotechnology policy, Portfolio 21's dialogue with the company has confirmed that it passes our biotechnology requirements. Lundbeck utilizes biotechnology only for medical applications, which is allowable under our policy as long as our criteria of knowledge, transparency, fairness, and containment are met. The company conducts environmental toxicology tests for all new drug compounds and exceeds European Union legislative requirements. Prior to disposal, Lundbeck sterilizes all genetically modified organisms, regardless of their biosafety categorization (rather than sterilizing only those categorized as higher risk). This indicates the seriousness with which Lundbeck regards issues and concerns associated with biotechnology. Biotechnology Policy.

To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 9/30/09 and may not reflect current opinions or subsequent events.