If everything works out, H. Lundbeck A/S (OTCPK:HLUYY)
is going to be one of the best European mid-cap drug stocks over the
next couple of years. If a few key programs fail to work out, though,
it's going to be hard to justify even today's price, let alone a higher
one. That puts Lundbeck squarely into an investing grey zone, as the
risk and reward are much higher than for a typical pharmaceutical
company, but quite a bit less than for a true biotech.
I continue
to be bullish on the company's outlook and prospects. Lundbeck is a CNS
specialist, and one that has been clearly trying to learn from industry
experience in depression, Alzheimer's, schizophrenia, and other diseases
to design more effective drugs with better tolerability. The weakness
of the early-stage pipeline argues for M&A, while investor
impatience with the Brintellix roll-out could also be a threat to the
stock. Several key data readouts in 2014 should move these shares, and I
continue to believe there is 20% upside from current levels.
Read more here:
Lundbeck Offering A Lot Of 'If's' And Potential
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