Lundbeck upbeat despite generics hit to sales and earnings

Danish CNS specialist Lundbeck (LUND: CO) today released financials for the first nine months of 2019, which saw lower sales and earnings, but with a raised full-year guidance, pleasing investors as the firm’s shares were up 4.14% at 244.20 Danish kroner by late morning.

Revenue reached 12,615 million kroner ($1.88 billion in the first nine months of 2019 representing a decline of 9% (-9% in local currencies) compared to the same period last year. The decline was expected and a result of generic competition on Onfi (clobazam), sales of which slumped 69% to 840 million kroner, though excluding Onfi, revenue grew by 5%

Core earnings before interest and tax (EBIT) was 4,010 million kroner, corresponding to a core EBIT margin of 31.8% and down 23%. EBIT reached 3,317 million kroner in the period, down 26% compared to 4,453 million kroner in 2018 and the EBIT margin reached 26.3%. Core earnings per share (EPS) were 15.40 kroner in the period compared to19.96 kroner the year before and reported EPS declined 25% to 12.27 kroner