H. Lundbeck (LUN) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered 21% revenue growth at constant exchange rates (CER), with all regions and strategic brands like VYEPTI and REXULTI contributing significantly and supporting an upgrade in full-year guidance.

• Pipeline advanced with milestones in migraine, Parkinson’s, and rare sleep disorders, including phase III trials for amlenetug and bexicaserin, and positive phase IIb results for bocunebart.

• Strong cash generation enabled rapid deleveraging and a robust balance sheet, with net debt/EBITDA reduced to 1.2x.

• Strategic shift to a partner-led commercial model in 27 markets expanded reach and distribution, with one-off inventory build impacting Q1.

• Appointment of Chief AI Officer and strong AI adoption accelerated digital transformation and operational efficiency.

Financial highlights

• Q1 revenue reached DKK 7,125 million, up 21% CER (14% in DKK), with adjusted gross margin at 87.0%.

• Adjusted EBITDA grew 31% CER to DKK 2,783 million, margin at 39.1%.

• EBIT increased 32% CER to DKK 2,155 million; net profit up 48% to DKK 1,658 million; adjusted net profit up 41% to DKK 2,148 million.

• Adjusted EPS rose 41% year-over-year to DKK 2.16.

• Net debt reduced to DKK 9,129 million, reflecting strong cash generation and deleveraging.

Outlook and guidance

• Full-year 2026 revenue growth guidance raised to 7–9% CER, with adjusted EBITDA growth at 8–14% CER.

• R&D costs expected in the range of DKK 5.6–5.9 billion; effective tax rate guided at 20–24%.

• Guidance assumes stable macroeconomic and currency conditions and excludes major business development transactions.

• Upward revision driven by VYEPTI momentum, delayed ABILIFY MAINTENA generic entry, and strong partner market contributions.

• Q1 expected to be the strongest quarter, with normalization in subsequent quarters.