Generic competition hits Lundbeck 2019 revenues, but growth expected this year

Danish CNS specialist Lundbeck (LUND: CO) shares were down 2.3% at 295.40 Danish kroner by late morning today, after it released financial results for 2019, showing that revenues were down 6% at 17.14 billion Danish kroner ($2.53 billion), primarily driven by the loss of exclusivity of Lennox Gastaux syndrome drug Onfi (clobazam).

Core earnings before interest and taxes (EBIT) for 2019 reached 4,976 million kroner, which is a decline of 19% compared to 2018. The core EBIT margin increased significantly to 29.2% in 2019. EBIT for 2019 reached 3,608 million kroner, compared to 5,301 million kroner in 2018. The EBIT margin decreased to 21.2% in 2019, compared to 29.3% in 2018

Lundbeck’s total revenue is expected to reach between DKK 17.4 billion - 18.0 billion kroner in 2020, and EBIT is expected to be in the range between 2.2 billion - 2.7 billion kroner.