Lundbeck profit down 52% on Flurizan failure

Copenhagen, Denmark-based firm Lundbeck reported a 52% drop in profit year-on-year for the second quarter of 2008, related to write-downs from failed late-stage Alzheimer's disease treatment, Flurizan (tarenflurbil).

Revenue during the period was up 12% to 2.94 billion kroner ($591.2 million). Net profit was 240.0 million kroner, or 1.22 kroner per share, versus 498.0 million, or 2.41 kroner per share, in the same period of the year before. This was due to a 481.0 million kroner write-down of the rights to Flurizan, which failed to reach the primary endpoint in a late-stage trial. Nonetheless, the firm has maintained its financial guidance for the year, predicting revenue of between 11.0 billion kroner and 11.5 billion kroner, with profit from operations from 2.8 billion kroner to 2.9 billion kroner.

Cipralex/Lexapro (escitalopram), the most widely-used branded antidepressant in Europe and the USA, according to the firm, produced 1.2 billion kroner in the USA during the period and was up 20% on the year-earlier period, whereas European sales reached 692.0 million kroner, an 8% increase. AD treatment Ebixa's (memantine) sales were also up, 14% to 467.0 million kroner. Parkinson's disease drug, Azilect (rasagiline), rose 58% to 63.0 million kroner and schizophrenia treatment Serdolect (sertindole), was up 121% to 14.0 million kroner.