By Jesus Calero and Vera Dvorakova
Aug 19 (Reuters) – H. Lundbeck sees no slowdown in demand for its two main growth drugs, its chief executive said on Wednesday, after the Danish drugmaker reiterated its full-year outlook despite stronger-than-expected second-quarter sales.
“There is no concern around slowdown,” Charl van Zyl told Reuters, pointing to continued strong growth in both migraine-preventing infusion drug Vyepti and antipsychotic pill Rexulti.
Lundbeck expects its revenue to grow 7% to 9% at constant exchange rates and adjusted core earnings to jump by 8% to 14% this year.
Van Zyl said the confirmed outlook reflected effects that had boosted first-half results but would not repeat, including a planned inventory build-up linked to Lundbeck’s new partner-market model.
He also said generic versions of Lundbeck’s schizophrenia drug Abilify Maintena were expected to begin entering markets in the second half of the year, mainly in Australia and Canada, which will impact sales.
Quarterly revenue rose 7% to 6.46 billion Danish crowns ($1.00 billion), above the 6.23 billion expected by analysts in a company-compiled consensus. Adjusted earnings before interest, taxes, depreciation and amortisation were 1.98 billion crowns, versus a consensus of 1.95 billion crowns.
Lundbeck is expanding beyond psychiatry and migraine into rare neurological diseases, relying on cash from current brands to fund future growth as older drugs, including Abilify Maintena, lose exclusivity.
Its experimental migraine treatment bocunebart and rare hormonal Cushing’s disease drug asedebart both showed promising results in mid-stage studies published in June.
Asked about concerns that generic competition could create a growth gap before newer pipeline drugs reach the market, van Zyl said this period should be manageable and did not see acquisitions as necessary to bridge it.
($1 = 6.4478 Danish crowns)
(Reporting by Vera Dvorakova and Jesus Calero in Gdansk, editing by Milla Nissi-Prussak)
