New drugs boost UCB full-year 2010 results, but 2011 looks like being tough

Belgian drugmaker UCB (Euronext Brussels: UCB) announced its consolidated full year 2010 financial results yesterday, claiming it was another year of solid execution and delivery. The new medicines Cimzia (certolizumab pegol) for rheumatoid arthritis and Crohn’s disease, the antiepileptic Vimpat (lacosamide) brought and Neupro (rotigotine) patch for Parkinson’s disease and restless legs syndrome are enjoying strong growth - exceeding 400 million euros ($549.9 million) of net sales in 2010- and all new products in development reached their clinical milestones on time, the company said.

Total revenue increased 3% to 3.22 billion euros, driven by the new products. The firm noted strong underlying profitability, with recurring EBITDA rising 5% to 731 million euros; core earnings per share increased from 1.74 euros in 2009 to 1.99 euros in 2010. Net profit decreased to 103 million euros reflecting a strong operational result and higher non-cash, one-time write offs and impairments charges resulting from year end impairment tests partially offset by one-off income taxes. Adjusted net profit increased 6% to 239 million euros.

However, as a result of patent expires due this year, UCB expects 2011 to be flat, with total revenue of between 3.0 billion and 3.1 billion euros; recurring EBITDA expected to be in the range of 650 million and 680 million euros; and core earnings per share expected to reach approximately 1.60 to 1.70 euros.