Lundbeck (Buy, TP: DKK41.00) - Set for a strong Q1 EBIT margin
Although we are c0.9% below consensus on Q1e sales, we are c7.8% above on reported EBIT, which we expect to benefit from c9.5% lower R&D costs YOY as several studies have ended. We expect FDA approval of Rexulti in Alzheimer’s agitation (PDFUA on 10 May) and a US launch in H2. We look for unchanged 2023 guidance of DKK19.4bn–20.0bn sales and DKK4.8bn–5.2bn EBITDA. We reiterate our BUY but have raised our target price to DKK41 (39).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.
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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