UBS upgrades Lundbeck to 'buy' on high epilepsy drug conviction

H Lundbeck A/S

21/09/2026 11:08

** UBS upgrades Danish drugmaker H Lundbeck HLUNb.CO to "buy" from "neutral" due to high conviction in its developing epilepsy drug bexicaserin
** The broker says the treatment could offset the 2029 patent expiration for key drug Rexulti and be the first major data point proving the company's research and development turnaround is working
** UBS says the medicine could be the "go to" drug for developmental and epileptic encephalopathy (DEE), a group of severe childhood epilepsies, providing seizure control before the diagnosis of specific DEE subtypes
** UBS forecasts $2 billion unadjusted peak sales and 65% probability of success
** "We think bexicaserin could drive 20-45% upside, if successful," the broker says
** The brokerage adds that Lundbeck's strong cash generation provides $2 billion to $3 billion in firepower for additional acquisitions to support long-term growth
** Lundbeck expects the results from its bexicaserin Phase 3 trial in late Q4 2026 
** Seven out of 13 analysts covering Lundbeck rate it "strong buy"/"buy", four "hold", two "sell" -- LSEG data   

(Reporting by Vera Dvorakova)
((vera.dvorakova@thomsonreuters.com))