Lundbeck posts strong 2011 results but warns of flat time ahead

Danish CNS drug specialist Lundbeck (LUND: DC) announced its full-year 2011 results yesterday, which it says fulfill all financial expectations and exceed expectations for revenue. Revenue for 2011 was 16.01 billion Danish kroner ($818.4 million), an increase of 8% compared to 2010, driven by a positive development in all regions.

EBITDA was 4.63 billion kroner, an increase of 5% and an EBITDA margin of 28.9%. EBIT was 3.39 billion kroner, a rise of 1% and corresponding to an EBIT margin of 21.2% for the year, the company noted.

However, Lundbeck warned earnings will stall until 2015 as its key antidepressant Cipralex (escitalopram) comes off patent and it invests in new product launches to secure future growth. "Growth in earnings will come in 2015, realistically," chief executive Ulf Wiinberg told Reuters."2012 to 2014 will be years which will see product launches at a speed not seen before," he added.