Lundbeck's EPS up 65%; shares fall on CEO exit

Full-year 2007 operating profit at Danish drugmaker H Lundbeck, including non-recurring items, was 2.69 billion Danish kroner ($556.3 million), up 51%, while earnings per share grew 65% to 8.63 kroner. The firm said that its receipt of a 420.0 million kroner payment from Takeda had offset a 381.0 million write-down related to its Seal Sands manufacturing facility, resulting in a 39.0 million kroner gain.

Lundbeck's revenue for the year increased some 19% to 10.99 billion kroner, with its Cipralex/Lexapro (escitalopram) franchise contributing 6.69 billion kroner. The firm's second best selling product, Ebixa (memantine), expanded 22% to 1.66 billion kroner.

Despite the generally positive results, the market reaction was negative. Lundbeck's share price fell 6% to 105.0 kroner on March 5 on concerns about its reliance on Lexapro, which loses exclusivity this year. The sudden departure of chief executive Claus Braestrup (Marketletter March 10) will also generate uncertainty, according to Jyske Bank analyst Peter Andersen.