H. Lundbeck (LUN) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 16% year-over-year to DKK 6,235m, with strategic brands up 24% and now 77% of total revenue, led by Vyepti (+62%) and Rexulti (+28%).

• Adjusted EBITDA increased 24% to DKK 2,173m, with margin up 1.9pp to 34.9% year-over-year.

• Net profit rose 15% to DKK 1,152m; adjusted EPS up 11% to DKK 1.53.

• Full-year 2025 guidance raised: revenue growth expected at 8–11% CER, adjusted EBITDA growth at 8–14% CER.

• Strong business momentum supported by robust R&D pipeline and continued investment in late-stage neurospecialty and neuro rare disease assets.

Financial highlights

• Q1 2025 revenue: DKK 6,235m (+16% CER); gross profit: DKK 5,151m (+19% CER); adjusted gross margin: 88.9%.

• EBIT up 33% to DKK 1,698m; EBIT margin increased to 27.2%.

• Adjusted EBITDA: DKK 2,173m (+24% CER); margin: 34.9% (+1.9pp).

• Net profit: DKK 1,152m (+15%); adjusted EPS: DKK 1.53 (+11%).

• Net debt/EBITDA increased to 2.3x due to Longboard acquisition.

Outlook and guidance

• Full-year 2025 revenue growth expected at 8–11% CER; adjusted EBITDA growth at 8–14% CER.

• Adjusted gross margin guided at 88–89%; R&D spend between DKK 5.0–5.2bn.

• Net financial expenses expected at DKK 535–585m, mainly due to Longboard-related financing.

• Effective tax rate guided at 21–24%; actual Q1 2025 rate was 22.0%.

• Guidance reflects anticipated generic competition for Trintellix in Canada and Abilify Maintena in Europe, and transition of Trintellix U.S. to Takeda.