Strong sales of the antidepressant Lexapro in the USA has helped Denmark's Lundbeck to post stronger-than-expected profits for the second quarter but investors are still worried about a very bare-looking pipeline.
Net income leapt over 230% to 498 million kroner, about $90.3 million, while revenues were up 19% to 2.61 billion kroner. Sales of the blockbuster Lexapro (escitalopram), sold in the USA by licensee Forest Laboratories, drove growth again, with sales rising 47% to 641 million kroner, while turnover of Lundbeck's own Cipralex brand of the antidepressant advanced 20% to 1.03 billion kroner.
The Alzheimer's disease drug Ebixa (memantine) climbed 21% to 409 million kroner and two of the firm's newer products - Azilect (rasagiline) for Parkinson's disease and Serdolect (sertindole) for schizophrenia - contributed 40 million and 6 million kroner, respectively.
A reasonable set of results on the face of it, but investors are not impressed and at 10am, its share price was down 3.3% to 132.50 kroner as pipeline worries pervaded the financial figures. The company remains exposed to the weak US dollar and looming patent expiries starting in 2012 of Cipralex and Lexapro.
The company also recently announced disappointing Phase III data for the new stroke drug desmoteplase, which came a couple of months after Lundbeck and partner Merck & Co said that data from Phase III studies suggested that the clinical profile for gaboxadol in insomnia did not support further development.