Bloomberg News

Lundbeck Third-Quarter Profit Drops 43 Percent on Restructuring

November 09, 2011

Nov. 9 (Bloomberg) -- H. Lundbeck A/S, the maker of the antidepressant Lexapro, said third-quarter net income fell 43 percent on write-offs for restructuring as the company faces the loss of patent protection for its best-selling drug in the U.S. next year.

Net income fell to 352 million kroner ($65.2 million) from 622 million kroner a year earlier, the Copenhagen-based company said in a statement today. That missed the 508.3 million-kroner average of 12 analyst estimates compiled by Bloomberg. Lundbeck wrote off 341 million kroner for research and development restructuring in the period, it said.

Revenue from Lexapro fell 12 percent to 498 million kroner as overall sales rose 10 percent to 3.98 billion kroner. Revenue and profit for the year will be at the upper end of the company’s forecast ranges, Lundbeck said.

“We expect a continuous impact from generics in some EU countries as well as from health-care reform implementation in the EU,” said Caroline Valldecabres, an analyst at Societe Generale SA in London, before the results were announced.

The Danish drugmaker will seek approval in Europe of its anti-alcoholism drug nalmefene by the end of the year. Lundbeck also plans to file for approval of a new antidepressant known as LU AA21004 in the U.S. and Europe in the second half of next year. Chief Executive Officer Ulf Wiinberg said in February that he expects annual sales for the drug to exceed $1 billion.

Lundbeck in August said its partners Mochida Pharmaceutical Co. Ltd. and Mitsubishi Tanabe Pharma Corp. started selling Lexapro in Japan. The company expects to get as much as $200 million a year from royalty payments for Japan sales.

U.S. Approval

The company last month won U.S. approval for Onfi to treat seizures associated with a rare and severe form of childhood epilepsy. Lundbeck expects annual sales to reach about 1 billion kroner and intends to market it only in the U.S., where Onfi will be protected by market exclusivity.

In August, the company said it will fire as many as 175 research employees and hire 200 to 300 sales people to promote new products in markets including the U.S. and Asia where the Danish drugmaker wants to expand.

Lundbeck rose 1 percent to close at 105 kroner yesterday in Copenhagen.

--Editors: Phil Serafino, Thomas Mulier

To contact the reporter on this story: Makiko Kitamura in London at mkitamura1@bloomberg.net

To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net


Ebola Rising
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus