DB downgrades Lundbeck to 'sell' on Rexulti patent cliff risk
BUZZ-DB downgrades Lundbeck to 'sell' on Rexulti patent cliff risk ** Deutsche Bank downgrades Lundbeck HLUNb.CO to "sell" from "hold" due to a looming patent cliff risk and other headwinds for the Danish drugmaker's key antipsychotic Rexulti
** Rexulti faces upcoming pressure from competing drugs, a 2028 price cut under the U.S. Inflation Reduction Act and a patent expiration in 2029, the broker says
** Ahead of a Q4 readout from the DEEp OCEAN epilepsy drug trial, DB says Lundbeck "will need to search the OCEAN for some pearls"
** It raises estimates for late-stage pipeline assets but warns this does not offset the Rexulti value drop, forecasting a low single-digit percent sales decline from 2026 to 2030
** The broker cuts PT by 10% to DKK 36 to capture risks related to the patent cliff, M&A and the expected revenue decline
** Six out of 13 analysts covering the stock rate it "strong buy"/"buy", five "hold", two "sell" - SEG data
(Reporting by Vera Dvorakova)
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