New products helping overcome generic competition for Lexapro, says Lundbeck

Danish CNS drugmaker Lundbeck reported first-half 2012 sales of 7.34 billion Danish kroner ($1.22 billion), a decline of 11% on the like, year-earlier period, as the company faces up to generic competition for its flagship antidepressant Cipralex/Lexapro (escitalopram), which is sold by Forest Labs in the USA.

Lundbeck reports first half revenue of 6.83 billion kroner, excluding Lexapro in the USA, an increase of 1%. EBITDA and EBIT, excluding restructuring costs were 1.74 billion kroner and 1.26 billion kroner, respectively, corresponding to an EBITDA margin of 24% and an EBIT margin of 17%. 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.
Lundbeck now expects full-year revenue to be in the lower end of its forecast range of 14.5 billion kroner to 15.2 billion kroner because of increasing pressure from health-care reforms in Europe. The firm’s shares fell as much as 8.5% in morning trading yesterday.

New products increased 65% and now constitutes 13% of revenue, the company noted, adding that revenue in the USA, excluding Lexapro, increased 19% and revenue from International Markets increased 12% compared to the first half of 2011. The launch of Lexapro in Japan is on track and Lexapro now holds a market share of 4%