Lundbeck Falls as Danske Sees Profit Declining: Copenhagen Mover
H. Lundbeck A/S (LUN) snapped a four-day advance in Copenhagen trading after Danske Bank A/S said the Nordic region’s second-largest drugmaker will face hurdles in 2014 and 2015 as profit declines.
Lundbeck fell as much as 4.1 percent, the most since April 19, which made the stock today’s biggest loser in the OMX Copenhagen 20 index. (KFX) The shares fell 3.9 percent to 109.70 kroner at 9:50 a.m., with trading volume at 43 percent of the three-month daily average.
Lundbeck, which is focusing on developing new drugs as patents on its bestselling anti-depressant Lexapro expire, had jumped 38 percent in market value this year before today, compared with an 8.4 percent gain in the C20 index. Danske today lowered its recommendation on the stock to sell from hold citing the “strong share price surge,” according to a note.
“We still see substantial challenges and declining earnings in 2014-2015,” Danske said. “A potential pick-up after this needs to be driven by new products, which of course involves more risk.”
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