Lundbeck reported a mixed set of numbers in Q2. While the revenue decline of 10% (at CER) was lower than the street’s expectations, higher SG&A conspired to reduce the net margin by 2.7ppt to 18.6%. The generic erosion of Onfi (-67% at CER) and Sabril (-30% at CER) continued to spoil the strong momentum of the core portfolio (+30%). Management reiterated its FY19 estimates. The company’s openness towards the acquisition of late-stage molecules was the only positive strategic a
19 Aug 2019
Generics eroding the strength of the core portfolio
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Generics eroding the strength of the core portfolio
Lundbeck reported a mixed set of numbers in Q2. While the revenue decline of 10% (at CER) was lower than the street’s expectations, higher SG&A conspired to reduce the net margin by 2.7ppt to 18.6%. The generic erosion of Onfi (-67% at CER) and Sabril (-30% at CER) continued to spoil the strong momentum of the core portfolio (+30%). Management reiterated its FY19 estimates. The company’s openness towards the acquisition of late-stage molecules was the only positive strategic a