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Investing.com - Jefferies downgraded H Lundbeck A/S (CSE:HLUNB) from Hold to Underperform and lowered its price target to DKK39.00 from DKK50.00, citing concerns about the pharmaceutical company’s upcoming patent expirations.
The downgrade focuses on H Lundbeck’s looming 2029+ patent cliff, which puts approximately 60% of the company’s sales at risk. Jefferies expressed particular concern about the future performance of key products in the company’s portfolio.
Jefferies noted it maintains a more conservative outlook than consensus on Rexulti and Abilify due to competitive and generic pressures, respectively. This assessment was supported by the firm’s proprietary survey data.
The firm did acknowledge some positive developments, including an upward revision to peak sales estimates for Vyepti based on survey data. However, these positive factors were insufficient to offset the broader patent concerns.
Jefferies emphasized that business development execution will be critical for H Lundbeck’s future, but noted that competition in this area is intensifying as larger pharmaceutical companies face similar patent pressures.
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