AXSM - Lundbeck On A Better Path But With Some Risks
2024-01-25 23:11:51 ET
Summary
- Lundbeck's new CEO has laid out a plan to maximize the value of the company's current portfolio, reorganize R&D, and deploy capital towards growth-sustaining M&A.
- The company aims to maximize the value of its current portfolio, particularly focusing on marketing Rexulti and Vyepti in the Alzheimer's-associated agitation and migraine markets, respectively.
- Lundbeck is shifting its M&A strategy to focus on near-to-market acquisition opportunities with peak sales of $500M to $800M that complement its existing marketing infrastructure.
- The clinical pipeline still lacks late-stage candidates, but Lundbeck is moving multiple high-potential candidates into early testing.
- The market is taking an overly conservative view on Lundbeck's prospects, even allowing for the high-risk nature of the pipeline.
Denmark’s H. Lundbeck A/S (“Lundbeck”) ( HLUBF ) ( HLBBF ) (HLUNa.CO) (HLUNb.CO) is in a better place today, at least in some meaningful respects, than it was when I last wrote about the company. Though the local share price performance is only slightly better than the broader pharma space since that September article (and worse than the S&P 500), Lundbeck’s new CEO has, in a relatively short period of time, laid out a cogent plan for maximizing the value of the current portfolio, reorganizing the R&D strategy, and deploying capital toward growth-sustaining R&D....
Lundbeck On A Better Path, But With Some Risks