Lundbeck establishes a sponsored Level I ADR programme in the US
Posted: 24 May 2012 | | No comments yet
H. Lundbeck A/S announced that the company has established a sponsored Level I ADR programme in the United States…
H. Lundbeck A/S (Lundbeck) today announced that the company has established a sponsored Level I American Depositary Receipt (ADR) programme in the United States. Deutsche Bank acts as depositary bank for the ADR programme.
In line with Lundbeck’s ongoing strategy to grow and globalize the company’s specialty CNS business, Lundbeck entered the US pharmaceutical market in 2009 with the acquisition of Lundbeck US.
An ADR is a receipt that is issued by a depositary bank representing ownership of a company’s underlying shares. ADR programmes are created to facilitate US investors to hold shares in non-US companies and trade them in the same way as US securities.
Lundbeck ADRs will now be available for trading in the US over-the-counter (OTC) market. One ADR represents one Lundbeck share (1 ADR: 1 ordinary share). The ticker symbol is HLUYY.
“Lundbeck is now a truly global health care company with a strong growth platform in the United States and for many years US investors have been an important part of our shareholder base.”, says Anders Götzsche, Executive Vice President and CFO at Lundbeck, and continues: “The new ADR programme now allows them to invest in Lundbeck in their home market and in local currency, providing them with the opportunity to participate in our company’s future development.”
The Lundbeck share is listed on the NASDAQ OMX Copenhagen exchange and is a member of the Copenhagen C20 index.
About Sponsored Level I ADR programme
ADRs are US dollar-denominated negotiable instruments issued by a depositary bank. They can represent a fraction of a share, a single share, or multiple shares of the foreign stock. The price of an ADR often tracks the price of the foreign stock in its home market, adjusted for the ratio of ADRs to foreign company shares, but may vary according to other factors. Level I depositary receipts are the first level of sponsored ADRs that can be issued and may only be traded on the OTC market. When a company establishes a sponsored ADR programme, it appoints a depositary bank who also acts as its US transfer agent. The majority of sponsored ADR programmes currently trading are Level I programmes.
