) reported 2013 earnings per share of $2.56, down 8% on a
reported basis but up 1% at constant exchange rates (CER).
Earnings missed the Zacks Consensus Estimate of $2.84.
Revenues for 2013 were approximately $4.5 billion (down 1% on
a reported basis but up 2% at CER), in line with the Zacks
Consensus Estimate. UCB's revenues primarily include sales of
Cimzia, Vimpat, Neupro and Keppra.
All growth rates mentioned below are on a year-on-year basis
and at CER.
Cimzia (Crohn's disease and inflammatory arthritis) sales went
up 32% to €594 million in 2013, and Vimpat (epilepsy) sales came
in at €411 million, reflecting an increase of 27%. Neupro, which
is marketed as a treatment for Parkinson's disease (PD) and
restless legs syndrome (RLS), recorded sales of €182 million, up
However, sales of Keppra, another epilepsy treatment, declined
12% to €712 million in 2013. Sales were hurt by generic
competition in Europe.
The combined sales of Cimzia, Vimpat and Neupro accounted for
about 34.8% of total revenues in 2013.
In 2013, research and development (R&D) expenses were €856
million, down 2% year over year. In 2013, general and
administrative expenses were €205 million, down 5% while selling
and marketing expenses were €802 million, up 4%.
Vimpat as monotherapy met its primary endpoint in a phase III
study on epilepsy in the U.S. in Mar 2013. The data from the
study was submitted as part of the supplemental New Drug
Application (sNDA) with the U.S. Food and Drug Administration
(FDA). This sNDA was accepted in early Oct 2013. A phase III
study on Vimpat for the indication of f adjunctive epilepsy in
children is ongoing. The first results will be out in 2017.
The European Commission granted the amended marketing
authorization for Cimzia for active axial spondyloarthritis
(axSpA) in Oct 2013. The U.S. FDA approved Cimzia for the
treatment of active psoriatic arthritis (PsA) and active
ankylosing spondylitis (AS) in September and October,
respectively. A complete response letter was issued by the FDA
for the supplemental Biologics License Application of Cimzia for
Other phase III candidates in UCB's pipeline include
brivaracetam (results expected in the second half of 2014) as
adjunctive therapy for the treatment of partial onset seizures in
adults with epilepsy, romosozumab (first half of 2016) in
osteoporosis in post-menopausal women, and epratuzumab (first
quarter of 2015) in systemic lupus erythematosus (SLE).
UCB expects revenues to about €3.5 million to €3.6 million in
2014. UCB expects recurring EBITDA in the range of €740-770
million and earnings per share in the band of €1.90-€2.05.
UCB carries a Zacks Rank #3 (Hold). Strong performance of
three products (Cimzia, Vimpat and Neupro) along with strength in
the emerging markets has driven UCB's growth. Investors looking
for better-ranked stocks in the biopharma sector may consider
Lannett Co., Inc.
Biogen Idec Inc.
). Actelion and Biogen carry a Zacks Rank #2 (Buy) while Lannett
holds a Zacks Rank #1 (Strong Buy).
ACTELION LTD (ALIOF): Get Free Report
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UCB SA (UCBJF): Get Free Report
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