Lundbeck Cuts Forecasts on New-Product Costs; Shares Plunge
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H. Lundbeck A/S, the Danish drugmaker that won regulatory backing last week to sell a pill against binge drinking, cut sales and profit forecasts for the next two years because of higher new-product costs and generic competition. The stock fell to the lowest in almost 13 years.
Revenue in 2013 will total 14.1 billion kroner ($2.5 billion) to 14.7 billion kroner, and earnings before interest and taxes will amount to 1.6 billion kroner to 2.1 billion kroner, Lundbeck said in a statement today. For 2014, revenue will be “around 14 billion kroner” with a profit of 500 million kroner to 1 billion kroner, depending on new drugs’ performance.