DnB Markets - H. Lundbeck A/S (LUN) Lundbeck (Buy, TP: DKK255.00) - Covid-19 and weak USD hurt

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DnB Markets

Rune Majlund Dahl

EUR 92.33 For Business Accounts Only

Lundbeck (Buy, TP: DKK255.00) - Covid-19 and weak USD hurt

We are above consensus on key products for Q4 and believe Lundbeck will reach its 2020 guidance. We believe focus will be on 2021 with the loss of exclusivity (LoE) for Northera and the weak USD putting pressure on the outlook, which is not well reflected in consensus, we believe. We remain positive on the long-term growth outlook and believe Vyepti will start to show its potential in 2021. We reiterate our BUY and DKK255 target price.

24/01/2021 19 EN

Underlying

H. Lundbeck A/S

H. Lundbeck develops, produces and markets drugs for treating diseases of the central nervous system. Products include antidepressants for the treatment of depression, panic disorder, and prevention of relapse/recurrence. Antipsychotic products for psychotic disorders; schizophrenia, anxiety, restlessness and insomnia; treatment of psychotic disorders; acute psychotic episodes, exacerbation of psychotic disorders. Co.'s products inclue Cipralex®/Lexapro® for the treatment of depression and anxiety; Ebixa® for the treatment of Alzheimer's disease; Azilect® for the treatment of Parkinson's disease; Xenazine®, Sabril®, Saphris® Sycrest®, Onfi, and other.

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DK0010287234 Nasdaq Nordic Copenhagen Denmark

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DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

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Analysts

Rune Majlund Dahl

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Lundbeck (Buy, TP: DKK255.00) - Covid-19 and weak USD hurt

Lundbeck (Buy, TP: DKK44.00) - New guidance structure

Lundbeck (Buy, TP: DKK44.00) - Focus on guidance and M&A

Lundbeck (Buy, TP: DKK44.00) - Focus on progressing the pipeline

Medistim (Hold, TP: NOK190.00) - Sales in Americas weaken

Catena (Buy, TP: SEK515.00) - Time to put the money to work

Kesko (Hold, TP: EUR17.00) - Technical(ly) weak

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