Lundbeck stock falls after Q4 revenue miss

Published 05/02/2025, 10:44
© Reuters.

Investing.com -- Shares of Lundbeck dropped by 7% following the release of its fourth-quarter financial results, which revealed revenues falling short of consensus estimates. The Danish pharmaceutical company reported key products Rexulti and Vyepti underperforming against expectations, with sales 6% and 8% below consensus, respectively.

Although Trintellix/Brintellix sales were 4% ahead, and Abilify Maintena was in line with estimates, the overall revenue was 2% shy of consensus, contributing to the stock’s decline.

Lundbeck’s fourth-quarter revenue came in at DKK 5.54 billion, compared to the consensus estimate of DKK 5.63 billion. The company’s adjusted EBITDA was reported at DKK 1.15 billion, aligning with consensus. The adjusted earnings per share (EPS) of DKK 1.36 exceeded the consensus estimates of DKK 0.81.

Despite the revenue shortfall, the company’s outlook for 2025 suggests potential top-line upgrades of up to 4%, while adjusted EBITDA projections remain in line with current estimates. Lundbeck anticipates increased R&D investments, which could reach between DKK 5-5.2 billion in 2025, up from DKK 4.0 billion in 2024, excluding the MAGLi impairment loss.

Analysts from Jefferies commented on the stock’s valuation in light of the earnings report, stating: "Shares appear fully valued at these levels, already pricing-in perhaps best case revenue growth, whilst margins will be constrained by a need to deliver on top-line promise and R&D execution to address upcoming LoEs."

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