February 5, 2019 / 7:20 AM / 5 months ago

Drugmaker Lundbeck lowers dividend range to fuel growth

COPENHAGEN, Feb 4 (Reuters) - Danish drugmaker Lundbeck said on Tuesday it will lower dividends to shareholders as it seeks to invest more to make up for declining sales of older drugs.

Lundbeck, which specialises in neurological and psychological diseases such as depression and Alzheimer’s, said it would pay 30-60 percent of net profit in dividends instead of 60-80 percent.

“We now have the capacity to pursue acquisitions and partnerships that can drive future growth,” said Chief Executive Deborah Dunsire in an emailed statement, referring to an increase in net cash holdings.

The Copenhagen-based company is looking to make up for declining sales of older drugs whose patents have expired and which face generic competition.

It said it expects 2019 revenue between 16.1 billion Danish crowns ($2.47 billion) and 16.7 billion, down from 18.1 billion last year. ($1 = 6.5308 Danish crowns) (Reporting by Jacob Gronholt-Pedersen, editing by Louise Heavens)

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