Lundbeck hikes guidance on strong start to 2016, beating forecasts

Shares of Danish CNS specialist Lundbeck (LUND: CO) leapt 7.68% to 253.70 Danish kroner this morning after the company posted strong first-quarter 2016 financial results and said it was raising its full year guidance.

Lundbeck said revenue for the quarter reached 3.77 billion ($580 million), representing an increase of 6% both reported and in local currencies compared to the same period last year. This was ahead of analysts’ estimates of 3.62 billion. Reported earnings before interest and taxes (EBIT) came in at 483 million kroner compared with a loss of 32 million kroner in the like 2015 quarter, and significantly beating estimates of 254 million kroner of analysts polled by Reuters. Reported earnings per share were 0.94 kroner versus -0.41 kroner and core EBIT was 749 million kroner compared with 216 million kroner.

Total revenue have delivered a better performance than expected for the quarter primarily driven by key products - Abilify Maintena (aripiprazole), Brintellix/Trintellix (vortioxetine), Northera (droxidopa), Onfi (clobazam, Rexulti (brexpiprazole)and Xenazine(tetrabenazine).