Lundbeck: Pipeline, Products, Performance, Potential

Date: June 22, 2010
Pages: 70
Price:
US$ 1,040.00
Publisher: Espicom Business Intelligence
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: L9A5B225443EN
Leaflet:

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Lundbeck: Pipeline, Products, Performance, Potential
Lundbeck is a research-based pharmaceutical company which, since 1989, has concentrated on a single core therapeutic area, namely the development and sale of pharmaceuticals for the treatment of diseases of the central nervous system (CNS). To date, the company has largely focused on drugs for psychiatry and neurology, however it has broader ambitions, namely to become one of the world’s leading specialist suppliers of drugs to treat CNS diseases. Lundbeck sees these areas as complementary to each other and, using its core competencies within brain research, it believes it can achieve substantial synergy in both R&D and sales and marketing.

Lundbeck has over 50 years experience developing and commercialising CNS pharmaceuticals, and continued its strong performance through 2009. Revenue from new pharmaceuticals accounted for 82.0 per cent of total consolidated revenue, corresponding to an average annual growth of 79.5 per cent in the pharmaceuticals since 2006. Overall sales growth was 19.5 per cent and Lundbeck expects a consistently positive trend for its new pharmaceuticals in 2010.

Having maximised its market presence in the EU, Lundbeck is looking to expand in the International markets. Lundbeck still remains dependent on its partners in Japan and the US for sales in international markets. However, the company seeks further commercial autonomy and will look to accelerate its own marketing presence. The need for this was felt in 2006 when Forest Laboratories opted to reduce its US Lexapro inventories after experiencing increased competition. This severely impacted Lundbeck's revenues, as the company relies heavily on its agreement with Forest with 17.8 per cent of its revenues coming via this route. By the end of 2009, Forest's inventories stood at about six months of commercial supply, compared to 16 months at the end of 2005. This led to extraordinarily low US sales revenues from Lexapro in 2006, although US income is recovering through 2009 onwards. Lundbeck's first autonomous venture was the launch of Ebixa by its own subsidiary in China, which will build Lundbeck's experience and success in non-European marketing.

As Lundbeck's plan to establish its own sales forces in the US and Japan moves forward, it has received some knock-backs. March 2007 saw the discontinuation of the gaboxadol programme with Merck & Co due to insufficient clinical trial outcomes. This was not only detrimental to Lundbeck's pipeline, but also closed the company's option to form its own gaboxadol sales force in the US and Japan as part of the agreement.

In Europe, Lundbeck expects price reductions to continue, putting further pressure on sales of its key products. We believe that Lundbeck is facing a tough time in the short term as it tries to recover from the loss of exclusivity for Cipramil and lower than expected income from Forest for Lexapro, following the inventory reduction. It seems unlikely that Forest will need to increase its inventory to previous levels, meaning that income from Forest for Lexapro will remain at a lower level than originally anticipated.

It also seems unlikely that the potential new line extension for Lexapro will sufficiently offset this decrease in the short term. However, sales growth from Ebixa, as well as revenues from the re-launch of Serdolect and launch of Circadin, may allow Lundbeck to recover these losses over the medium term.

This new strategic analysis report Lundbeck: Pipeline • Products • Performance • Potential, provides a complete and critical review of the company and includes unique and independent assessments and forecasts of key products. Buyers of the web edition receive online access for one year via an easy-to-use interface with fast navigation and a full text search facility. All formats are the same price.
EXECUTIVE SUMMARY

A detailed and comprehensive overview of current financial position, company strategy, product and pipeline analysis.

THERAPEUTIC AREA FOCUS

Key product analysis and forecasting

Central Nervous System
  Cipralex/Lexapro (escitalopram)
  Ebixa (memantine)
  Serdolect/Serlect (sertindole)
  Agilect/Azilect (rasagiline)

OPERATIONAL DATA

A wealth of background and detail
A full 5-year financial performance assessment
Key corporate events
Key agreements
Infrastructure
Subsidiaries and joint ventures
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