Lundbeck 1st-qtr profits savaged by generics, but still beat expectations

Danish CNS specialist Lundbeck (LUN: CO) this morning reported first-quarter 2015 financial results, with core revenue of 3.56 billion Danish kroner ($535.8 million), a dip of 1% (-10% in local currencies) compared with the like period of 2014, but beating estimates of Reuters poll of 3.18 billion kroner.

Revenue in International Markets was stable at 1.15 billion kroner as generic erosion of Cipralex (escitalopram) was mitigated by strong growth of other products and product launches, representing 32% of revenue. Lundbeck’s shares rose 13.6% to 148.20 kroner by 9.45 this morning.

Core earnings before interest and tax (EBIT) plunged 70% to 216 million kroner, and core earnings per share came in at 0.66 kroner, a fall of 71%. Report EBIT was a loss of 32 million kroner, compared to a profit of 569 million kroner a year earlier, or a negative EPS of 0.41 kroner, versus a positive 1.69 kroner. Reuters polled a loss 152 million kroner. The downturn is primarily explained by loss in revenue due to the patent expiries.