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Total Revenue Growth: 16% increase.
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Strategic Brands Revenue: 24% growth, comprising 77% of total revenue.
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Vyepti Revenue Growth: 62% increase, with global net revenue of DKK1.042 billion.
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Rexulti Revenue Growth: 28% increase, with US revenue up 29%.
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Adjusted EBITDA Growth: 24% increase, margin expanded to 34.9%.
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EBIT Growth: 33% increase to DKK1.7 billion.
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Net Profit Increase: 15% to DKK1.2 billion.
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Adjusted EPS Growth: 11% increase, reaching DKK1.5 billion.
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Cash Flow from Operations: DKK632 million.
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R&D Costs: Increased by 19.6% to DKK1.2 billion.
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Sales and Distribution Costs: Increased 2% to DKK1.9 billion.
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Administrative Expenses: Increased 35% to DKK359 million.
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Effective Tax Rate: 22%, down from 23% last year.
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Full Year Revenue Growth Guidance: Expected to grow between 8% and 11% at constant exchange rates.
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Full Year Adjusted EBITDA Growth Guidance: Expected to grow between 8% and 14%.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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H. Lundbeck AS (HLUBF) reported a strong revenue growth of 16% in Q1 2025, with strategic brands growing by 24%.
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The companys key growth drivers, Vyepti and Rexulti, saw significant growth rates of 62% and 28%, respectively.
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The company is advancing its innovative pipeline, particularly in neuro-specialty and neuro-rare areas, with promising progress in phase III trials.
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H. Lundbeck AS (HLUBF) raised its full-year guidance, expecting revenue growth between 8% and 11% at constant exchange rates.
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The company achieved an adjusted EBITDA margin expansion to 34.9%, reflecting strong operational leverage and disciplined resource allocation.
Negative Points
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The company faces anticipated loss of exclusivity on some strategic brands, including Trintellix, which is expected to face generic entry in Canada.
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There is a potential delay in the launch of Brexpiprazole for PTSD due to postponed FDA advisory committee meetings.
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H. Lundbeck AS (HLUBF) reported higher financial expenses due to the acquisition of Longboard and unfavorable currency effects.
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The company expects further erosion in its mature brand portfolio, projecting a mid-single digit revenue decline.
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There is uncertainty regarding the impact of macroeconomic factors, such as tariffs, on the company's financial performance.
Q & A Highlights
Q: Could you provide updates on the enrollment in the deep sea and deep ocean trials for Pigi Catherine, and what should we expect from the phase Ib of the 909 trial? A: Enrollment for Pigi Catherine is in early stages, with global site activations ongoing. For the 909 trial, we are exploring further doses in a controlled environment, focusing on both Congenital Adrenal Hyperplasia and Cushing's syndrome. We have obtained orphan drug designation for Congenital Adrenal Hyperplasia.