H. Lundbeck (LUN) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered 21% revenue growth at constant exchange rates to DKK 7,125 million, with strategic brands VYEPTI and REXULTI driving performance and contributing 74% of total revenue.

• Robust execution of an innovation-focused strategy, supported by successful transition to a partner-led commercial model in 27 markets.

• Pipeline advanced with key milestones, including early completion of the MASCOT trial for amlenetug, positive phase IIb results for bocunebart, and progress in late-stage and mid-stage assets.

• Strong cash generation enabled rapid deleveraging and a robust balance sheet.

• Full-year 2026 guidance was raised, reflecting strong fundamentals, delayed generic competition, and partner market performance.

Financial highlights

• Q1 revenue reached DKK 7,125 million, up 21% CER (14% in DKK), with underlying growth of 13% after adjusting for one-off partner model effects.

• Adjusted EBITDA grew 31% to DKK 2,783 million, with a margin of 39.1%; EBIT increased 30% to DKK 2,155 million.

• Net profit rose 48% to DKK 1,658 million; adjusted net profit up 41% to DKK 2,148 million; adjusted EPS also up 41%.

• Operating cash flow was DKK 1,588 million; net debt reduced to DKK 9,129 million, with net debt/EBITDA at 1.2x.

• Gross margin was 81.7% (adjusted: 87.0%).

Outlook and guidance

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

• Upgrades driven by strong VYEPTI volumes, delayed ABILIFY MAINTENA generic entry, and better-than-expected partner market performance.

• 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.