UCB first-half 2011 beats forecasts on less than expected generic competition

Belgium’s largest drugmaker, UCB (UCB: BR), reported first-half 2011 financials that beat market expectations because generic competition did not erode European sales of its main drug as much as anticipated.

Revenue for the first six months of 2011 increased 2% to 1.68 million euros ($2.41 billion). Net sales amounted to 1.5 billion euros, a rise of 5% higher than the previous interim period because of the solid performance of the core medicines Cimzia (certolizumab pegol), Vimpat (lacosamide) and Neupro (rotigotine), as well as Keppra (levetiracetam) in Europe and Japan.

Reflecting the rise in revenues, UCB reported strong underlying profitability, with recurring EBITDA of 443 million euros (+11%), well above the 399 million euros expected on average by analysts polled by Reuters. Net profit increased 34% to 199 million euros, reflecting a strong operational result, lower net financial and income tax expenses. Core earnings per share rose to 1.44 euros from 1.17 euros in the first half 2010.