Copenhagen - Arabstoday
Danish drugmaker Lundbeck reported consensus-beating second-quarter profits driven by strong sales and said full-year results would be at the upper end of its guided range.Operating profit rose to 1.10 billion Danish crowns ($210 million) in April-June from 936 million in the same quarter last year, exceeding analysts’ average forecast of 992 million in a Reuters poll. Lundbeck’s shares were up 5.2 per cent at 0808 GMT, against a 0.6 per cent rise in the STOXX Europe 600 healthcare index and a 0.9 per cent rise in the Copenhagen Bourse’s benchmark index.“The first half of 2011 has been the best half year in Lundbeck’s history,” Chief Executive Ulf Wiinberg said on Wednesday.New products such as Xenazine, which treats chorea associated with Huntington’s disease, and Sabril, used to treat seizures and infantile spasms, continued to see a positive sales development, Lundbeck said. Revenue from Xenazine rose 42 per cent to 209 million crowns while revenue from Sabril grew 113 per cent to 80 million crowns.“We are experiencing increasing pressure from generic competition and from healthcare reforms in many countries, and therefore it is necessary for us to focus sharply on keeping our costs under control,” said Wiinberg.In response to those challenges, the company will cut 125-175 research and development jobs and add 200-300 sales staff in the United States and international markets. Lundbeck said it still saw 2011 operating profit of 3.3 billion to 3.6 billion crowns, unchanged from its earlier forecast. But it said full-year earnings before interest, tax, depreciation and amortisation (EBITDA) should be at the upper end of an earlier guided range of 4.3-4.6 billion crowns and revenues at the high end of guidance for 15.3-15.8 billion. “Lundbeck’s Q2 looks a lot stronger than the market had expected... it is rare that we see Lundbeck upgrade to the high end of the guidance range this early in the year, so there is no doubt it is going well,” said Alm. Brand analyst Michael Jorgensen. Lundbeck gets most of its revenue from antidepressant Cipralex, sold as Lexapro in the United States and marketed by Forest Laboratories. Cipralex sales rose to 1.53 billion crowns, narrowly missing analysts’ average estimate of 1.55 billion. From / Gulf Today