Lundbeck keeps 7%-9% growth outlook despite strong second-quarter sales

Lundbeck retained its full-year forecast after second-quarter revenue exceeded analysts' expectations, with Chief Executive Charl van Zyl saying there was no concern about a slowdown in demand for its two main growth drugs, migraine-preventing infusion treatment Vyepti and antipsychotic pill Rexulti. The Danish drugmaker expects revenue to grow 7% to 9% at constant exchange rates and adjusted core earnings to increase 8% to 14% this year. Van Zyl said first-half results benefited from effects that would not recur, including inventory building tied to Lundbeck's new partner-market model. Generic versions of schizophrenia treatment Abilify Maintena are expected to begin entering markets in the second half of the year, mainly in Australia and Canada, putting pressure on sales. Quarterly revenue rose 7% to 6.46 billion Danish crowns ($1.00 billion), above the 6.23 billion-crown analyst consensus, while adjusted earnings before interest, taxes, depreciation and amortisation reached 1.98 billion crowns versus expectations of 1.95 billion. Lundbeck is using cash from established brands to expand beyond psychiatry and migraine into rare neurological diseases as older medicines lose exclusivity. Its experimental migraine treatment bocunebart and rare hormonal Cushing's disease drug asedebart delivered promising mid-stage study results published in June. Van Zyl said the period of generic pressure should be manageable and that acquisitions were not needed to bridge any potential gap before newer pipeline drugs reach the market.

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