November 7, 2018 / 12:08 PM / 10 months ago

UPDATE 1-Lundbeck shares slide as Danish drugmaker's new drugs disappoint

(Adds details, comments from CEO and analysts)

Nov 7 (Reuters) - Shares in Lundbeck fell 5 percent on Wednesday after third-quarter sales of the Danish drugmaker’s new drugs disappointed and it had to rely on its old line up to prop up revenues.

The company, which develops drugs for brain disorders, raised its guidance for full-year earnings before interest and tax (EBIT) to 5.1 billion-5.4 billion Danish crowns ($786 million-$832 million) from 4.9-5.2 billion crowns.

But this failed to cheer analysts. Jefferies financial services company said its estimates were “already nearer the upper end” and Credit Suisse said consensus forecasts were already predicting those levels.

Revenue generated by the firm’s existing leading drugs was broadly in line with forecasts but sales of new drugs, such as Northera which is used to treat disorders caused by an underlying neurological disease, were disappointing.

“One of the growth drivers, Northera, is actually performing a lot worst than expected,” Sydbank analyst Søren Løntoft Hansen said.

The company delivered a third-quarter operating profit of 4.45 billion Danish crowns, broadly in line with the 4.44 billion forecasts by analysts in a Reuters poll.

Lundbeck said it was expecting to see growth for 2018 in all regions, although sales of its epilepsy disorder drug Onfi were expected to slide from the fourth quarter as the patent expires.

The company initially said it expected Onfi sales to fall 40-50 percent in the final quarter of 2018, but the company said it was not offering a forecast for a decline now, saying the price of generics were typically below the levels forecast.

Lundbeck has also had to deal with the failure of its Lu AF35700, a drug candidate for treatment-resistant schizophrenia. In October, a phase III study for Lu AF35700 missed its primary endpoint, driving the company’s share price lower.

“The setback with Lu AF35700 was a great disappointment, but we have also had good progress in our R&D work with four new projects moved into the clinical pipeline in 2018,” said Deborah Dunsire, who was appointed chief executive in September.

Jefferies said it saw uncertainties for 2018-2019 sales growth and predicted 2021 headwinds.

Lundbeck plans to present the future strategy with the annual report for 2018 in February 2019.

$1 = 6.4926 Danish crowns Reporting by Izabela Niemiec in Gdynia Editing by Edmund Blair

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