Company Reports

Lundbeck reported solid half-yearly results, highlighted by total revenue of DKK 10.74 billion, representing 10% growth from the prior-year period. Robust performance from Lundbeck’s strategic brands (Vyepti, Rexulti, Abilify Maintena, and Trintellix) accounted for 73% of total revenue and grew 19% compared with the first half of 2024. Investors reacted favorably, sending the stock up 4%. Lundbeck is tracking our expectations, and we maintain our fair value estimate of DKK 42.50 per share. We view the stock as fairly valued, currently trading in 3-star territory.

Lundbeck reported a solid start to 2024, highlighted by revenue of DKK 5.28 billion, representing 5% growth from the prior-year period. Strong performance from Lundbeck’s strategic brands (Rexulti, Abilify Maintena, Vyepti, and Trintellix) accounted for DKK 3.75 billion of sales, growing 15% from the first quarter last year. Investors reacted favorably, sending the stock up nearly 6%. We maintain our fair value estimate of DKK 42.50 per share, and we view the stock as undervalued, currently trading in 4-star territory about 10% below our fair value estimate. We think shares look attractive for long-term investors with a high degree of risk tolerance.

Lundbeck reported solid year-end results, highlighted by 2023 revenue of DKK 19.9 billion, representing 9% growth from 2022. Continued strong performance from Lundbeck’s strategic brands (Rexulti, Abilify Maintena, Vyepti, and Trintellix) accounted for DKK 13.7 billion of sales in 2023. We maintain our fair value estimate of DKK 42.50 per share and view the stock as undervalued, currently trading in 4-star territory, about 25% below our fair value estimate. We think the shares look attractive for long-term investors with a high degree of risk tolerance.

Lundbeck focuses on central nervous system drugs, including antidepressants, antipsychotics, and antiepileptic products. While incremental innovations and label expansions have helped Lundbeck earn excess returns over the last several years, this was before many of Lundbeck’s patents reached their expirations. Since then, generic entry has created a lot of competition and pricing pressure for the company.

Lundbeck reported third-quarter results highlighted by revenue of DKK 4.95 billion. Strong performances from Lundbeck’s strategic brands Trintellix, Abilify Maintena, Rexulti, and Vyepti accounted for DKK 3.45 billion in sales, representing growth of 14% at constant exchange rates from the prior-year period. We maintain our fair value estimate of DKK 42.50 per share, and we view shares as undervalued, currently trading about 19% below our fair value estimate.

Lundbeck focuses on central nervous system, or CNS, drugs, including antidepressants, antipsychotics, and antiepileptic products. While incremental innovations and label expansions have helped Lundbeck earn excess returns over the last several years, this was before many of Lundbeck’s patents reached their expirations. Since then, generic entry has created a lot of competition and pricing pressure for the company.

Lundbeck reported second-quarter results highlighted by revenue of DKK 4.9 billion, representing a 10% increase from the prior-year period. Continued strong performance from Lundbeck’s strategic brands (Trintellix, Abilify Maintena, Rexulti, and Vyepti) accounted for nearly DKK 3.4 billion of sales, representing growth of 14%. We maintain our fair value estimate of DKK 42.50 per share, and we view shares as undervalued, currently trading about 17% below our fair value estimate.

Lundbeck focuses on central nervous system, or CNS, drugs, including antidepressants, antipsychotics, and antiepileptic products. While incremental innovations and label expansions have helped Lundbeck earn excess returns over the last several years, this was before many of Lundbeck’s patents reached their expirations. Since then, generic entry has created a lot of competition and pricing pressure for the company.

Lundbeck reported solid first-quarter results, highlighted by quarterly revenue of DKK 5 billion, representing a 15% increase from the prior-year period. Continued strong performance from Lundbeck’s strategic brands (Trintellix, Abilify Maintena, Rexulti, and Vyepti) accounted for nearly DKK 3.3 billion of sales, representing growth of 23%. We maintain our fair value estimate of DKK 42.50 per share, and we view the stock as undervalued, currently trading in 4-star territory, about 16% below our fair value estimate. We think shares look attractive for long-term investors with a high degree of risk tolerance.

Lundbeck reported solid year-end results, highlighted by quarterly revenue of DKK 4.7 billion, and full-year revenue of DKK 18.25 billion, representing 12% growth year-over-year. Continued strong performance from Lundbeck’s strategic brands (Trintellix, Abilify Maintena, Rexulti, and Vyepti) accounted for DKK 12 billion of sales in 2022.

We maintain our Lundbeck fair value estimate of DKK 42.50 per share, and we view the stock as undervalued, currently trading in 4-star territory. We believe Lundbeck merits a High Uncertainty Rating due to the elevated rate of failure associated with central nervous system drug development, upcoming patent losses, and pricing pressure from generic entry. Lundbeck's no-moat rating is centered on generic competition continuing to erode its legacy drugs and impending patent losses over the next 10 years. Lundbeck’s stable moat trend is based on label expansions for its existing portfolio and the continued development of its pipeline, which should support the stabilization of its intangible assets. We think Lundbeck’s strategic brands will help stabilize the negative impact of generic competition on the firm’s older drugs that have reached their patent expirations.

Amid the recent market pullback, Lundbeck is currently trading in 4-star territory, and shares look attractive for long-term investors with a high degree of risk tolerance. Shares are trading about 33% below our fair value estimate of DKK 42.50. We believe Lundbeck merits a high uncertainty rating due to the elevated rate of failure associated with central nervous system drug development, impending patent losses, and pricing pressure from generic entry. Lundbeck’s no-moat rating is centered on generic competition continuing to erode its legacy drugs and impending patent losses over the next 10 years. Lundbeck’s stable moat trend is based on label expansions for its existing portfolio and the continued development of its pipeline, which should support the stabilization of its intangible assets.

Lundbeck focuses on central nervous system, or CNS, drugs, including antidepressants, antipsychotics, and antiepileptic products. While incremental innovations and label expansions have helped Lundbeck earn excess returns over the last several years, this was before many of Lundbeck’s patents reached their expirations. Since then, generic entry has created a lot of competition and pricing pressure for the company.