Friday, September 4, 2015

Seeking Alpha: Should Investors Push Their Luck With Lundbeck?

H. Lundbeck (OTCPK:HLUYY) (LUN.CO) has not been my most popular call, partly due to the company's own issues with launching drugs like Brintellix and Abilify Maintena against well-established rivals, but also partly due to its relative obscurity in the U.S. Nevertheless, the shares are up about 25% since my last piece (in a pretty terrible market), and up more than 50% from my initial piece - and that's not too shabby relative to other drug companies over that time.

I'm starting to think, though, that it may be time to call it a day and take some profits. I do believe new CEO Kare Schultz can do a lot of good things for this company, and I do also believe that Brintellix, Abilify Maintena, and Rexulti still have the opportunity to outperform. I also believe that the company's Alzheimer's platform is comparatively undervalued and could surprise to the good. That said, the shares are now above my "as is" fair value, and I don't feel too comfortable owning any company largely on the basis of upside potential in Alzheimer's (a notoriously difficult disease for drug development).

Read more here:
Should Investors Push Their Luck With Lundbeck?

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