The COVID-19 pandemic has created many challenges across the healthcare sector, but it has been even a little more challenging for H. Lundbeck (OTCPK:HLUYY) as the CNS drugs that make up Lundbeck’s focus are more sensitive to in-patient visits. Still, the company has executed reasonably well, with better than expected progress on cost-cutting.
As has been the case for some time, the pipeline is the main sticking point. Another clinical failure of a once-promising asset means no novel compounds in Phase II or Phase III testing, and the jury is still very much out on the value of the company’s forays into M&A. Without M&A and/or successful follow-on indications, Lundbeck has all the assets its going to have for at least the next five years, and the real question is whether management can prudently deploy the free cash flow the company will generate. I do think the shares are somewhat undervalued now, but the pipeline/new drug development issues are significant.
Click this link to continue:
Lundbeck Seeing Healthy Double-Digit Growth From New Drugs, But The Pipeline Is Very Thin
No comments:
Post a Comment