This article first appeared on GuruFocus .
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Revenue:DKK 24.6 billion, growing 13% at constant exchange rates.
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Strategic Brands Growth:19% growth, driven by Rexulti and Vyepti.
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Adjusted Gross Margin:87.5%.
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Sales and Distribution Costs:Decreased by 2% to DKK 7.7 billion.
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Administrative Expenses:DKK 1.5 billion, a 4% increase at constant exchange rates.
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R&D Costs:Increased by 10% to DKK 4.9 billion.
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Adjusted EBITDA:Grew 24% at constant exchange rates, with a margin of 32%.
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EBIT:Increased by 59% to DKK 5.3 billion.
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Net Financials:Expense of DKK 788 million.
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Effective Tax Rate:28.9%.
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Net Profit:Increased by 2% to DKK 3.2 billion.
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Adjusted Net Profit:Increased by 5% to DKK 5.2 billion.
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Dividend Proposal:DKK 1.15 per share, a 21% increase from the previous year.
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Cash Flow from Operating Activities:DKK 5.5 billion.
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Cash Flow from Investing Activities:Outflow of DKK 611 million.
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Cash Flow from Financing Activities:Outflow of DKK 6 billion.
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2026 Revenue Growth Guidance:5 to 8% at constant exchange rates.
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2026 Adjusted EBITDA Growth Guidance:4 to 12% at constant exchange rates.
Release Date: February 04, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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H. Lundbeck AS ( HLUBF ) reported a record year in 2025 with double-digit growth across its strategic portfolio.
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The acquisition of Longboard has bolstered the late-stage pipeline, positioning the company with 5 to 6 mid to late-stage assets.
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Strong growth in strategic brands, with BEPT growing 59% and Rexulti growing 23% in 2025.
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The company has implemented a sharpened commercial model, focusing on 12 key markets and partnering in 27 others.
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H. Lundbeck AS ( HLUBF ) has maintained a strong financial position, with a 24% growth in adjusted EBITDA and a 32% margin expansion.
Negative Points
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The company faces increased generic competition for Abilify Maintena and Brintellix in 2026.
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There are headwinds from the transition to a partner-driven model, which will reduce net revenue due to commission fees.
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Higher R&D costs are expected due to the progression of phase three programs and mid-stage pipeline maturation.
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The effective tax rate increased to 28.9% in 2025 due to non-recurring items, impacting net profit growth.
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There is uncertainty regarding the impact of the IRA listing on Rexulti's growth dynamics and potential competition from new entrants like J&J's Caplyta.
Q & A Highlights
Q: Can you provide more detail on Rexulti's growth dynamics and the potential impact of the IRA listing Rexulti from 2028? Also, any initial impact from J&J's Caplyta on Rexulti's growth trajectory? A: Rexulti's inclusion in the IRA price setting for 2028 was expected. Since its approval in 2015, Rexulti has treated over 1 million patients. Despite new competition from Caplyta, Rexulti continues to grow strongly, with a 24.2% TRX demand growth in Q4 2025. The impact of Caplyta is minimal, with only 1.5% of its business coming from Rexulti. (Thomas Gibbs, Executive Vice President, Head of Lundbeck - United States)
Q: Could you reconcile your R&D strategy considering both internal and external opportunities, especially after the bid for Avadel? A: We focus on building a sustainable pipeline through both internal development and external opportunities. We are open to external innovations that offer more potential than our current projects, allowing us to make strategic trade-offs. This approach ensures long-term sustainability by supplementing our internal efforts with external innovations. (Charl Van Zyl, President, Chief Executive Officer)
Q: Can you discuss the broad R&D expense range and the probability of success for the pay cap progression? A: The R&D expense range reflects investments in our phase 3 programs and the advancement of anti-pay cap and anti-ACTH. The pay cap progression is a key investment trigger, and while we await data, prior studies like the HOPE trial provide encouraging insights. (Johan Luthman, Executive Vice President, Research and Development)
Q: How do you view the competitive landscape for your anti-ACTH asset compared to Crinetics' molecule in CAH? A: Crinetics' molecule targets the adrenal gland stage, whereas our antibody approach offers a broader symptomatic effect across different adrenal hormones. This differentiation could provide a more comprehensive treatment for CAH. (Johan Luthman, Executive Vice President, Research and Development)
Q: What are the growth drivers for Vyepti in 2026, and what is the expected impact of approvals in the APEC region? A: Key growth drivers include new patient starts and maximizing the written to infusion ratio. The majority of patients are on the 300 mg dose due to observed efficacy. We expect more sales impact from Vyepti in Asia in 2027 following approvals. (Thomas Gibbs, Executive Vice President, Head of Lundbeck - United States)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
