Lundbeck 1st-qtr sales and profits slump on generic competition

Danish CNS drug specialist Lundbeck (LUND: CO) took a significant hit from generic competition in the first quarter of 2014, when the company posted a 21.6% drop in revenues to 4.58 billion Danish kroner ($850.8 million). However, this still beat analysts’ expectations of 3.61 billion kroner, according to the Wall Street Journal’s Market Watch.

Core revenues were down 7% at 3.59 billion kroner. For the quarter, net profit plunged 69% to 331 million kroner and earnings before interest and taxes plunged to 569 million kroner, from 1.53 billion in the like 2013 period, but again beating forecasts of323 million kroner and 507 million kroner, respectively. Lundbeck shares dipped 1.2% to 152.30 kroner in early trading.

Commenting on the results, Lundbeck’s chief executive Ulf Wiinberg stated: "In this quarter we have launched Brintellix [vortioxetine] in the USA and even though it is early days, we are pleased with the launch of this product. 2014 is a heavy investment year for Lundbeck in order to position the company for long-term growth. This quarter provides a solid and important base for the remainder of the year, which will be heavily impacted by increased generic pressure, intensified launch costs and new development activities."