H Lundbeck B reported second-quarter revenue of DKK6.46 billion, 4% ahead of consensus estimates and 1% above Jefferies' projection, as growth in its migraine drug Vyepti offset higher operating costs.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached DKK1.98 billion, 2% above consensus but 3% below Jefferies' estimate, reflecting lower gross margins and increased spending on research and development, sales and administrative expenses. Adjusted earnings per share (EPS) totaled DKK1.54, 3% above expectations.
Shares of Lundbeck fell 5.5% to DKK42.34 on Wednesday, trading near Jefferies' DKK42 price target, as the company maintained its 2026 revenue growth guidance of 7%-9% in constant currencies and adjusted EBITDA growth target of 8%-14%. The unchanged outlook disappointed investors, who had anticipated an upward revision to the upper end of guidance following the earnings beat.
Jefferies noted that consensus estimates were already near the top of Lundbeck's guidance ranges, leaving limited room for further upgrades. The firm had expected shares to decline by low-to-mid single digits, citing profitability headwinds that included commission costs in partner markets, an unfavorable product and geographic mix, and the higher contribution from Vyepti, which pressured gross margins.
Looking ahead, Jefferies highlighted medium-term revenue risks beginning in 2027, as generic competition intensifies for key products such as Abilify Maintena and Trintellix/Brintellix. The loss of exclusivity for Rexulti in 2029 and the limited offset from newer assets entering the market from 2028 onward further cloud the outlook. Lundbeck maintained its "hold" rating and DKK42 price target on the shares.
