Monday, February 10, 2014

Seeking Alpha: Lundbeck Offering A Lot Of 'If's' And Potential

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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