Lundbeck beats expectations, despite Lexapro slump

Danish CNS drug specialist Lundbeck (LUND: DC) this morning reported third-quarter 2012 financial results, showing that revenue came in at 3.56 billion Danish kroner ($611.4 million), an increase of 2% excluding its former best selling drug Lexapro (escitalopram), whose patent expired in the USA in March. US sales of Lexapro fell to 54 million kroner from 498 million kroner. Lundbeck’s shares rose 5.8% to 102 kroner in morning trading.

Profit from operations before depreciation and amortisation (EBITDA) and profit from operations (EBIT) were 846 million kroner and 661 million kroner, respectively, corresponding to an EBITDA margin of 23.4% and an EBIT margin of 18.2%. Operating profit of 661 million kroner in the quarter compared with the forecast 580 million kroner forecast in a Reuters poll and 660 million kroner in the same period of 2011. Profits were affected by the increase in launch costs associated with Lundbeck's newer products, as well as the loss of revenue from Lexapro due to generic competition.

New Products* increased 100% and constituted 17% of revenue for the third quarter. Commenting on the results, Lundbeck president and chief executive Ulf Wiinberg said:"We are now one step closer to the launch of our novel antidepressant, vortioxetine, following the filing in Europe, Canada and the very important US market [The Pharma Letters September 21 and October 3]. I am also very pleased with the strategic progress of our new product launches and our geographic expansion."