First half report 2011 - The solid momentum continues. Expected full year results to be in the upper end of the guidance range
H. Lundbeck A/S (Lundbeck) reports second quarter revenue of DKK 4,100 million growing 9% compared to the same period last year. In constant exchange rates revenue for the quarter increased 13%. The growth was driven by increasing revenue from all key products and geographic regions. Profit from operations was DKK 1,102 million, increasing 18% and corresponding to an EBIT margin of 26.9%. Operating profit before depreciation and amortisation (EBITDA) was DKK 1,250 million, increasing 4% and corresponding to an EBITDA margin of 30.5%.
Continued growth for the key products Cipralex®, Ebixa® and Azilect®, which grew 2%, 16% and 12% respectively.
Revenue from Xenazine® was DKK 209 million and increased 42%.
Revenue from Sabril® increased 113% to DKK 80 million.
Net profit increased 21% to DKK 797 million, corresponding to earnings per share of DKK 4.06.
As part of the ongoing optimization programme Lundbeck will reduce head count by 125-175 employees in R&D primarily in Denmark and the US. As a consequence of the optimization process there will be a write off mainly on buildings and IP of DKK 300-400 million.
Lundbeck now anticipates revenue and EBITDA to be in the upper end of the guidance ranges of DKK 15.3-15.8 billion and 4.3-4.6 billion respectively. The EBIT and net profit guidance is maintained as the better performance reflected in the revenue and EBITDA guidance will be offset by write-offs.
Distribution of revenue
Growth
DKK million Q2 2011 Q2 2010 Growth at CER*
Cipralex® 1,531 1,507 2% 6%
Lexapro® 715 630 13% 13%
Ebixa® 707 610 16% 19%
Azilect® 299 267 12% 14%
Xenazine® 209 147 42% 59%
Sabril® 80 37 113% 138%
Europe 2,091 1,982 6% 6%
USA 1,123 950 18% 24%
International Markets 824 780 6% 17%
Total revenue 4,100 3,767 9% 13%
* Constant exchange rates
In connection with the second quarter report, Lundbeck's President and CEO Ulf Wiinberg said:
"Again our key products deliver solid growth and during the quarter we received positive and encouraging data from the phase III trials with nalmefene. We continue to invest in product and geographical diversification in order to deliver on our growth opportunities. At the same time we maintain our optimization programme and as a consequence we plan to reduce staff in R&D particularly in Denmark and the US. This is something we very much regret, but it is necessary in order to strengthen our long term growth prospects."