ALK Abello sees sales and earnings decline in first quarter

Danish allergy immunotherapy specialist ALK-Abello (ALKB: DC) saw its shares drift 1.6% lower to 1,092 Danish kroner in early trading after the company posted first-quarter 2017 results showing a decline in both revenue and earnings.

Total revenue amounted to 789 million kroner ($116.5 million). When adjusted for one-off milestone payments and acquisitions, revenue decreased by 7% organically.Operating profit was 140 million kroner, versus 277 million kroner in the like 2016 quarter as a result of planned cost increases to support long-term growth, as well as a changed sales mix. Last year, US pharma giant Merck & Co (NYSE: MRK) ended its partnership with ALK on allergy products in the USA, Canada and Mexico.

However, ALK said the performance was in line with expectations and on course to meet the full-year guidance for 2017. Despite the negative impact of lower SCIT sales and a gradual market normalization in Europe, revenue came close to first-quarter 2016 when adjusted for a one-off milestone payment. Revenue was significantly higher than before the market disruptions and ALK, to a large extent, retained its market share gains and remained the market leader.