Friday, May 10, 2019

Lundbeck, Like The Dude, Will Try To Abide

Danish pharmaceutical company H. Lundbeck’s (OTCPK:HLUYY) (LUN.KO) first quarter is likely to be pretty much par for the course for the near term – double-digit growth from its portfolio of newer offsets that can’t offset the generic erosion of its old portfolio, with investors hoping for updates on pipeline-building deals.

The multiple misses in the growth portfolio were disappointing, but not entirely surprising given the track record here. The deal for Abide looks somewhat promising, but Lundbeck needs to do quite a bit more to replenish its portfolio, and the clock is ticking with respect to patent coverage on Northera (2021/22) and Trintellix (2026). Given where the shares are, and the risks involved in recharging the portfolio, it’s hard to make a compelling must-own case for these shares.

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Lundbeck, Like The Dude, Will Try To Abide

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