UCB SA (UCBJF) posted first-half 2012 adjusted earnings of 1.09 (approx. $1.40) per share, down 25% from the year-ago earnings. The decline in earnings was attributable to higher operating expenses.
Half-yearly sales increased 2% on a reported basis and decreased 2% at constant exchange rates (:CER).
Revenues primarily comprise of sales of Cimzia, Vimpat, Neupro and Keppra.
Cimzia (Crohns disease and rheumatoid arthritis) sales went up 46% to 209 million during the period, and Vimpat (epilepsy) sales came in at 150 million, reflecting an increase of 54%. Neupro, which is marketed as a treatment for Parkinsons disease and restless legs syndrome, recorded sales of 54 million, up 20% from the year-ago sales. Neupro was launched in the US for the aforementioned indications in July 2012.
However, sales of Keppra, another epilepsy treatment, declined 12% to 445 million in the first half of 2012. Sales were hurt by generic competition primarily in North America and Europe. Despite the decline, the drug accounted for 26% of the total revenues recorded by UCB in the first half of 2012.
The combined sales of the other three drugs Cimzia, Vimpat and Neupro accounted for about 24% of total revenue in the first half of 2012.
Outlook for 2012
The company expects 2012 adjusted earnings per share to be approximately 1.70 (previous guidance: 1.60 to 1.70 per share), on revenues of 3.2 billion (previous guidance: 3.1 billion). UCB expects Cimzia, Vimpat and Neupro to continue performing strongly throughout 2012. Robust sales of the drugs are expected to drive earnings.
We currently have a Zacks #3 Rank (short-term Hold rating) on the stock.
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UCB Earnings Fall but Guides Up