Lundbeck posts solid operational performance though sales decline

Danish CNS specialist Lundbeck (LUND: CO) has reported financial results, showing that revenue reached 12,246 million Danish kroner ($1,902 million) in the first nine months of 2021, a decline of 5% in local currencies primarily due to loss of exclusivity erosion on Northera (droxidopa).

Earnings before interest and taxes (EBIT) grew 29% compared to the same period in 2020 and reached 2,004 million kroner. EBIT margin reached 16.4%. EPS grew by 28% for the period, reaching DKK 6.64.

In aggregate, strategic brands grew 17% in local currencies reaching 6,815 million kroner in the first nine months, representing 56% of total revenue. In the third quarter of 2021, all strategic brands have continued their double-digit growth. Based on trends in Trintellix (vortioxetine) and Rexulti (brexpiprazole) in the USA, there is a gradual uptick in new patient starts as the pandemic wanes, further supporting positive growth.