Lundbeck's first-quarter sales slide 8 percent on generic competition to Onfi

Headline results for the first quarter:

Revenue

4.3 billion Danish kroner ($645 million)

-8%

Profit

898 million kroner ($135 million)

Versus 1.1 billion kroner

Note: All changes are versus the prior-year period unless otherwise stated

What the company said:

"I am very pleased with the continued strong growth of our strategic brands, across all regions," remarked CEO Deborah Dunsire, adding "our costs are well controlled, and we are on track to deliver on our guidance for 2019."

Other results:

  • Cipralex/Lexapro: 619 million kroner ($93 million), down 7 percent
  • Brintellix/Trintellix: 601 million kroner ($90 million), up 29 percent
  • Rexulti: 481 million kroner ($72 million), up 30 percent
  • Abilify Maintena: 462 million kroner ($69 million), up 27 percent, showing "steady growth"
  • Northera: 435 million kroner ($65 million), up 10 percent, with double-digit demand growth impacted by fluctuations in specialty pharmacy buying patterns
  • Onfi: 325 million kroner ($49 million), down 64 percent, having lost exclusivity in October 2018 and is now facing generic competition
  • Sabril: 254 million kroner ($38 million), down 26 percent, having lost exclusivity in 2014 and 2016 for its two indications
  • North America: 2.2 billion kroner ($330 million), down 17 percent, hit by the uptake of generic versions of Onfi
  • International markets: 1.1 billion kroner ($165 million), up 13 percent, driven by Abilify Maintena and Brintellix, with "solid momentum" in China, the Middle East and South East Asia
  • Europe: 819 million kroner ($123 million), up 10 percent, boosted by "strong" underlying demand, as well as some stocking in connection with Brexit

Looking ahead:

Lundbeck now expects annual sales of between 16.3 billion kroner ($2.4 billion) and 16.7 billion kroner ($2.5 billion), with the bottom end of the guidance lifted from a previous estimate of 16.1 billion kroner ($2.4 billion), which the company attributed to "a good start on the year." Meanwhile, earnings are still seen in the range of 4.2 billion kroner ($630 million) to 4.6 billion kroner ($690 million), despite the recent agreement to acquire Abide Therapeutics for $250 million upfront.

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