By Mette Fraende
COPENHAGEN |
Wed Dec 19, 2012 9:39am EST
COPENHAGEN (Reuters) – Shares in Danish drugs organisation Lundbeck fell to their lowest turn in over 12 years on Wednesday after it cut a increase foresee for a subsequent dual years as European sales delayed and spending on new products arise to fight general competition.
The association has already warned that gain would case until 2015 due to inexpensive general foe for a existent drugs, definition new products will be critical for destiny earnings.
But Chief Executive Ulf Wiinberg pronounced on Wednesday that a disastrous impact on income from medical reforms in Europe had also been bigger than approaching in a final dual years and that negligence European sales and general foe were hurting.
As a outcome a association pronounced handling increase would tumble serve than formerly foresee in 2014 as it increases investments in a late-stage drugs expansion tube and product launches.
Lundbeck is operative to find new drugs to reinstate mislaid income from products entrance off obvious insurance such as a calmative Cipralex, that is sole as Lexapro in a United States and Japan, and Alzheimer’s drug Ebixa.
Wiinberg pronounced 2014 would be a company’s rise investment year for a new products pipeline, charity it a plain substructure for expansion starting in 2015.
“You usually get one possibility to launch a product and we have to do it well,” Wiinberg pronounced during a lecture for investors.
He was commenting after a association warned in a matter that it now expects income in 2014 of about 14 billion Danish crowns ($2.5 billion) and an handling distinction of between only 0.5 billion and 1 billion crowns.
Analysts have on normal been forecasting a distinction of over 2.5 billion crowns for 2014 on turnover of over 14.7 billion crowns, according to Thomson Reuters I/B/E/S Estimates.
Two years ago Lundbeck expected a annual revenues over a duration 2012-2014 would surpass 14 billion crowns a year while gain before seductiveness and taxation (EBIT) would surpass 2 billion crowns a year.
Next years’ income is now foresee to be in a operation of 14.1 billion and 14.7 billion crowns to furnish an handling distinction of 1.6 billion to 2.1 billion crowns, with no change to a company’s foresee for 2012.
Analysts’ forecasts for this year are for handling distinction to dump 41 percent to 1.99 billion crowns on income down 8 percent during 14.7 billion crowns, while for 2013 they envision a distinction of 2.26 billion crowns on income of 14.5 billion crowns.
Lundbeck’s shares were trade down 17 percent during 79.90 crowns during 12.44 p.m. British time, dropping subsequent 80 crowns for a initial time given Apr 2000.
“In a brief term, gain are underneath pressure,” Sydbank researcher Soren Hansen said.
Lundbeck pronounced that it expects a division payout ratio of about 35 percent of net increase in a 2012-14 period. Last year it paid 3.49 crowns on simple gain per share of 11.64 crowns, a payout ratio of 30 percent.
Analysts have been presaging a 27-30 percent cut this year to 2.53-2.28 crowns, according to Thomson Reuters StarMine data.
But a series of analysts doubt that income from new products will be adequate to secure income expansion in 2015, compensating for mislaid income from Cipralex, Lexapro and Ebixa that together accounted for about 70 percent of organisation income in 2011.
Lundbeck is operative on new products such as calmative Brintellix in Europe and a United States for launch during a finish of subsequent year or start of 2014, as good as ethanol dependency diagnosis Selincro in Europe in midst 2013.
“It is formidable to see income from a smaller products compensating for a vast products,” pronounced Hansen.
“They have a lot of new products in a portfolio and a lot of products in a pipeline, though income expansion in 2015 is not really likely,” he said. ($1=5.6458 Danish crowns)
(Editing by Greg Mahlich)
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