Depression Tie to Help Lundbeck Pill to Curb Drink Binges
H. Lundbeck A/S (LUN), the Danish drugmaker that won regulatory backing last week for a new anti- binge-drinking pill, cut its sales and profit forecasts for the next two years to reflect higher costs to introduce new products. The stock plunged the most in almost 10 years.
Revenue next year will be 14.1 billion kroner to 14.7 billion kroner and earnings before interest and taxes will be 1.6 billion kroner to 2.1 billion kroner, the company said in a statement today. In 2014 the company said it expects revenue of “around 14 billion kroner” and profit of 500 million kroner to 1 billion kroner, depending on the success of new products, Lundbeck said.
The lower forecasts reflect the expense of introducing Selincro, the drug to treat alcohol abuse, a once-monthly version of the Abilify schizophrenia treatment and Brintellix, a depression treatment, the company said. Lundbeck also will have higher research costs for developing an experimental treatment for Alzheimer’s disease.
“Lundbeck has never had so many product offerings and is now in a unique position to enhance the value of several products that significantly can change the lives of millions of individuals suffering from diseases like depression, schizophrenia, Alzheimer’s disease, alcohol dependence and stroke,” said Chief Executive Officer Ulf Wiinberg.
Lundbeck fell 16 percent to 81 kroner at 9:10 a.m. in Copenhagen. The stock plunged as much as 19 percent, the biggest intraday drop since March 10, 2003.
Lundbeck will provide detailed financial forecasts for 2013 on Feb. 6, when it announces 2012 earnings, the company said.
The drugmaker in 2010 had predicted annual revenue would exceed 14 billion kroner from 2012 to 2014, and that annual profit would exceed 2 billion kroner.
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