Lundbeck H1 2025 slides: Raises guidance as strategic brands drive 14% revenue growth

Executive Summary

H. Lundbeck A/S (CPH:LUN) has raised its full-year 2025 guidance following strong performance in the first half of the year, according to the company’s H1 2025 business update and financial results presentation. The Danish pharmaceutical company reported 14% revenue growth, driven by a 21% increase in its strategic brands, with particularly strong performance from Vyepti and Rexulti.

The neuroscience-focused company has increased its 2025 revenue growth guidance to 11-13% (from a previous 8-11%) and adjusted EBITDA growth guidance to 16-21% (from 8-14%), reflecting continued momentum across its portfolio and the impact of its capital reallocation program.

"The momentum continues across key areas of our Focused Innovator Strategy," stated Charl van Zyl, President & CEO, highlighting the company’s progress in growth, innovation, and funding priorities.

Strategic Brands Performance

Lundbeck’s strategic brands, which now account for 77% of total revenue according to recent earnings data, delivered exceptional growth in H1 2025. The portfolio is led by strong performances from Rexulti and Vyepti, which grew 28% and 56% at constant exchange rates, respectively.

Rexulti (brexpiprazole) continues to show strong double-digit growth, with U.S. TRx growth of 23.3% in H1 2025. The growth is significantly driven by the AADAD (Agitation Associated with Dementia of Alzheimer’s Disease) indication, which has seen a 550% increase since FDA approval and now makes up approximately 22% of total brand performance.

As shown in the following chart of Rexulti’s revenue performance:

Vyepti (eptinezumab) delivered the strongest growth among Lundbeck’s strategic brands at 56% CER, with revenue reaching DKK 2,105 million in H1 2025 compared to DKK 1,342 million in H1 2024. The growth was supported by broad adoption, with the U.S. market contributing DKK 1,834 million (54% growth) and international markets adding DKK 271 million (68% growth).

The company’s presentation highlighted that Vyepti is outgrowing competitors in the U.S. market and outperforming the market in Europe and Canada:

Brintellix/Trintellix showed more modest growth of 3% CER, with mixed performance across regions. While Europe and International Operations delivered 7% growth, the U.S. market declined by 6%, resulting in total revenue of DKK 2,390 million for H1 2025.

The Abilify LAI franchise grew by 10% CER, reaching DKK 1,902 million, with growth driven by the 2-month formulation. The U.S. market grew by 8% while Europe and International Operations delivered 12% growth.

Financial Analysis

Lundbeck reported strong financial results for H1 2025, with revenue reaching DKK 12,258 million. The company maintained a high gross margin of 82.3% (88.6% adjusted), while delivering an adjusted EBITDA of DKK 4,221 million, representing a margin of 34.4%.

The comprehensive financial performance is illustrated in the following summary:

Net profit reached DKK 2,118 million, with adjusted net profit of DKK 2,860 million. This translated to earnings per share (EPS) of DKK 2.14 and adjusted EPS of DKK 2.88.

The company’s balance sheet reflects the impact of the Longboard acquisition, resulting in a net debt position of DKK 11,156 million and a net debt/EBITDA ratio of 1.8x. Despite this, Lundbeck maintained strong cash flows from operations at DKK 3,264 million and free cash flow of DKK 2,023 million for H1 2025.

Raised Guidance

Based on the strong H1 2025 performance, Lundbeck has raised its full-year guidance. The company now expects revenue growth of 11-13%, up from the previous guidance of 8-11% mentioned in the Q1 earnings call. This upgrade is primarily driven by the continued strong performance of Vyepti and Rexulti:

Similarly, the adjusted EBITDA growth guidance has been increased to 16-21%, compared to the previous 8-14%. The company expects the full-year adjusted EBITDA margin to exceed 30%, supported by gross profit growth and the impact of the capital reallocation program:

Pipeline and Innovation

Lundbeck continues to advance its pipeline across both neuro-specialty and neuro-rare disease areas. Key Q2 pipeline highlights include regulatory submissions for Vyepti in South Korea and progress with Lu AG09222 and Lu AF28996:

The company is focusing on innovation in neuro-rare diseases, with two promising molecules: Bexicaserin for developmental and epileptic encephalopathies (DEEs) and Amlenetug for multiple system atrophy (MSA). These programs aim to deliver first-in-class treatments for conditions with significant unmet needs:

Clinical data for Bexicaserin has shown promising efficacy in reducing seizures, epileptiform activity, and seizure duration. For Amlenetug, the AMULET Phase II study demonstrated a 27% slowing of clinical progression in MSA with a 96.9% probability, and the company is now advancing to a Phase III trial.

Capital Reallocation Program

Lundbeck is accelerating its capital reallocation program to support the growth of strategic brands, optimize its commercial model, and improve operational effectiveness. The program involves one-time costs of approximately DKK 1.2 billion between 2025-2027 and is expected to deliver an impact of approximately DKK 1.3-1.5 billion by 2027.

"Capital reallocation program delivers impact through focused investments," noted the company in its conclusion slide, emphasizing the importance of this initiative in supporting its strategic priorities.

Forward-Looking Statements

Looking ahead, Lundbeck expects continued momentum in both neuro-specialty and neuro-rare disease areas. The company is focused on expanding its presence in migraine and headache disorders through multiple approaches, including Vyepti, anti-PACAP therapies, combination approaches, and novel targets.

In the epilepsy space, Lundbeck is addressing significant unmet needs, particularly in developmental and epileptic encephalopathies (DEEs), where the majority of conditions currently have no approved treatment options.

The company’s pipeline includes potential first-in-class assets across multiple neurological conditions, positioning Lundbeck to maintain its leadership in neuroscience while delivering sustainable growth in the coming years.

Full presentation:

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