Lundbeck shares spike after positive mid-term profit guidance (updated)

H Lundbeck A/S

07/02/2023 12:48

(Adds quote, detail)
       COPENHAGEN/OSLO, Feb 7 (Reuters) - 
    Shares in Lundbeck  HLUNDb.CO  rose 9% on Tuesday after the
Danish drug maker posted fourth-quarter sales above forecasts
and projected a more rapid increase in its profit margin in the
coming years than analysts had expected. 
        Lundbeck expects revenue to grow this year to between
19.4 billion and 20 billion Danish crowns ($2.79 billion-$2.88
billion) from 18.2 billion crowns last year, a slower pace than
the 12% increase seen last year.
  
        The Copenhagen-based company, which specialises in drugs
to treat brain diseases, said it expects "solid growth" of its
strategic brands and faces limited impact from patent
expirations over the next three to four years.
  
        It expects to reach an earnings before interest, tax,
depreciation and amortisation (EBITDA) margin of 30%-32% during
that period, sooner that forecast by analysts.
  
        Lundbeck shares, which are trading near their lowest
level since 2015, were up 8.4% by 1222 GMT on Tuesday.
  
        It posted fourth-quarter sales up 15% to 4.68 million
crowns, above the 4.56 million forecast by analysts in a poll
done by the company.
  
        Its EBITDA more than doubled to 910 million crowns,
though fell short of the 940 million forecast by analysts.
  
        For this year, Lundbeck expects EBITDA to rise to
between 4.8 billion and 5.2 billion crowns from 4.66 billion in
2022 after growing by 25% in 2022.
  
        ($1 = 6.9506 Danish crowns)
 (Reporting by Jacob Gronholt-Pedersen and Terje Solsvik;
editing by Essi Lehto and Jason Neely)
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70))