Downsizing

Lundbeck posts nine-month loss on restructuring charges; sales rise 5 percent
(Ref: GlobeNewswire, MarketWatch)
November 4th, 2015
By: Matthew Dennis
Tags:

• Top Story
  
• Abilify Maintena
  
• Azilect
  
• Brintellix
  
• Cipralex
  
• Northera
  
• Onfi
  
• Rexulti
• Lundbeck
  
• Corporate Affairs

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Lundbeck announced Wednesday a loss of 6.4 billion Danish kroner ($937 million) for the first nine months of 2015, versus a profit of 937 million kroner ($137 million) in the prior-year period, after the company recorded large costs associated with an ongoing restructuring programme. Meanwhile, sales lifted 5 percent to 10.7 billion kroner ($1.6 billion), driven by key products such as Abilify Maintena, Brintellix and Northera.

CEO Kare Schultz said "it is an interesting period Lundbeck is going through with strong growth for our new products and in the important US market. At the same time we see sharp deterioration of our European franchise following generic exposure and timing of market access."

In the US, sales jumped 75 percent in the nine-month period to 4.6 billion kroner ($674 million), while international revenue decreased 8 percent to just under 3 billion kroner ($440 million), with Lundbeck noting that generic erosion of Cipralex in Canada was partly mitigated by growth of other products such as Azilect. Further, revenue in Europe declined 27 percent to 2.9 billion kroner ($425 million), as a result of generic erosion mainly to Cipralex.

Lundbeck noted that sales of key products, which also include Onfi and Rexulti, grew 188 percent to 2.5 billion kroner ($367 million), representing 23 percent of total revenue. Specifically, sales of Abilify Maintena surged 262 percent to 458 million kroner ($67 million), with Brintellix generating revenue of 418 million kroner ($61 million). In addition, sales of Onfi grew 105 percent to 1.2 billion kroner ($176 million).

For the full year, Lundbeck indicated that it still expects sales of around 14 billion kroner ($2.1 billion), although earnings are now forecast to be around 700 million kroner ($103 million), up from prior guidance of about 500 million kroner ($73 million).

Lundbeck added that its restructuring programme, which will see the loss of around 1000 jobs, is progressing as planned and is still expected to reduce the cost base by approximately 3 billion kroner ($440 million) in 2017. The company said that restructuring costs of 1.8 billion kroner ($264 million) were recognised in the third quarter.

GOOD GOD!! What the hell? This loss is huge! We are bleeding money! I know what we need to do, let's have another pocket meeting! This doesn't really instill confidence in the company or our leadership going forward!

 

This article references old news. This also refers to Denmark jobs not US

 

Lundbeck posts nine-month loss on restructuring charges; sales rise 5 percent
(Ref: GlobeNewswire, MarketWatch)
November 4th, 2015
By: Matthew Dennis
Tags:

• Top Story
  
• Abilify Maintena
  
• Azilect
  
• Brintellix
  
• Cipralex
  
• Northera
  
• Onfi
  
• Rexulti
• Lundbeck
  
• Corporate Affairs

• 0
  Email
• Print

Lundbeck announced Wednesday a loss of 6.4 billion Danish kroner ($937 million) for the first nine months of 2015, versus a profit of 937 million kroner ($137 million) in the prior-year period, after the company recorded large costs associated with an ongoing restructuring programme. Meanwhile, sales lifted 5 percent to 10.7 billion kroner ($1.6 billion), driven by key products such as Abilify Maintena, Brintellix and Northera.

CEO Kare Schultz said "it is an interesting period Lundbeck is going through with strong growth for our new products and in the important US market. At the same time we see sharp deterioration of our European franchise following generic exposure and timing of market access."

In the US, sales jumped 75 percent in the nine-month period to 4.6 billion kroner ($674 million), while international revenue decreased 8 percent to just under 3 billion kroner ($440 million), with Lundbeck noting that generic erosion of Cipralex in Canada was partly mitigated by growth of other products such as Azilect. Further, revenue in Europe declined 27 percent to 2.9 billion kroner ($425 million), as a result of generic erosion mainly to Cipralex.

Lundbeck noted that sales of key products, which also include Onfi and Rexulti, grew 188 percent to 2.5 billion kroner ($367 million), representing 23 percent of total revenue. Specifically, sales of Abilify Maintena surged 262 percent to 458 million kroner ($67 million), with Brintellix generating revenue of 418 million kroner ($61 million). In addition, sales of Onfi grew 105 percent to 1.2 billion kroner ($176 million).

For the full year, Lundbeck indicated that it still expects sales of around 14 billion kroner ($2.1 billion), although earnings are now forecast to be around 700 million kroner ($103 million), up from prior guidance of about 500 million kroner ($73 million).

Lundbeck added that its restructuring programme, which will see the loss of around 1000 jobs, is progressing as planned and is still expected to reduce the cost base by approximately 3 billion kroner ($440 million) in 2017. The company said that restructuring costs of 1.8 billion kroner ($264 million) were recognised in the third quarter.

GOOD GOD!! What the hell? This loss is huge! We are bleeding money! I know what we need to do, let's have another pocket meeting! This doesn't really instill confidence in the company or our leadership going forward!

 

I think you need to take a reading course. The article absolutely does not reference ANY country with regards to the 1,000 person layoff. Also, IT'S NOT old news! It just came out yesterday!!!!!!! Damn, you can't read a simple article! This is our 3rd Qtr. 2015 earnings report! Read the damn thing! It's the first 9 months of 2015, and the 3rd Qtr. It says we LOST $937,000,000 for the 1st 9 months of 2015! This report is horrible!

 

Clean your glasses and check the date: November 4, 2015

 

This is not good folks. This is a significant loss for Lundbeck, any way you want to cut it. Maybe this is why they are screwing with our sales data. They need to limit bonus payout because we losing money by the minute!

 

Seriously do you foresee decent bonuses with these sales results...

 

and why did we add Gamma?

 

The sales data is constantly being manipulated for the purposes of reducing the company payout on bonuses. The company's earnings were a nightmare, and we continue to waste money on meetings etc. We are nothing more than a "BIG PHARMA" like company, micromanaged to death. The culture has done a 180. People are looking to leave all over. Rexulti's launch is a joke! Docs are starting to give up writing it already because of piss poor managed care, and no samples. Otsuka has literally no idea what they are doing. It's a real mess.

 

Welcome to Lundbeck Psychiatry! World Class in all we do. It's all perception. If you need a job this place is great. If you want a career- conventional wisdom says look elsewhere!

 

JA is such a tool. He is all talk, no action.

 

Psych completely hijacked this company. Neuro was a solid division paying the bills. This will be a "psych" only company shortly, with co-promotes only. Change the name to quintiles or ventiv.

 

Nothing could be more true. At least we all got great experience to take with us in the next places we land. Never thought it would end this way.

 

I agree. Psych- 3 years in January and Neuro did have it awesome at Lundbeck. I thought Psych would be like Neuro- Patient focused with a Foundation approach. Psych turned into big Pharma and drug Neuro down in the pit as well. No one wanted to see that happen. Almost the entire Original Alpha team has left, no one wants to be a contract rep for Otsuka or Takeda. Everyone will find other career opportunities it will just take time.

 

I can't believe how quickly it has come to an end.

 

Believe it...it's over...They don't even have the integrity to let people know if they have a job or not..they lied about not laying anyone off and are keeping everyone's livelihoods up in the air.. They know now but are making everyone stress for weeks.. Really classless and cruel..

 

Not sure what you are talking about. Who will be laid off? DM's, reps, who?

 

Glad to see the "salesforce expansion" is still on track! How fucking stupid do they think we are. They need to expand they're brain capacity.

 

I'm confused by your post? We are expanding.