Lundbeck plans job losses despite solid profits

Growth increased by almost a tenth (9%) at Lundbeck in Q2 of 2011 after revenue in several products and in key markets improved.

Sales of Cipralex, Ebixa and Azilect all continued to rise with revenue for Xenazine up 42% to DKK 209 million and Sabril increased 113% to DKK 80 million.

But despite the solid sales figures, Lundbeck still plans to cut between 125-175 R&D jobs in Denmark and the US.

Ulf Wiinberg, President and CEO at Lundbeck, says the job losses are regretful but necessary “in order to strengthen our long term growth prospects”.

As part of the company’s ‘optimisation process’ it also plans to write off between DKK 300-400 million on buildings and IP.

Operating profit increased 4% before depreciation and amortisation (EBITDA) to reach DKK 1,250 million and corresponding to an EBITDA margin of 30.5%.

Lundbeck now anticipates sales to reach between DKK 15.3-15.8 million and EBITDA to reach the upper end of guidance ranges of DKK 4.3-4.6 billion.

“Again our key products deliver solid growth and during the quarter we received positive and encouraging data from the phase III trials with nalmefene,” said the President. “We continue to invest in product and geographical diversification in order to deliver on our growth opportunities.”