Lundbeck Earnings: Strong Growth Across Strategic Brands Supports Pipeline; Shares Undervalued

No-moat Lundbeck reported robust growth in the first quarter, highlighted by total revenue of DKK 6.2 billion, increasing 18% year over year. Lundbeck experienced strong demand across all geographies, and its strategic brands (Vyepti, Rexulti, Abilify Maintena, and Trintellix) accounted for 77% of total revenue and grew 28% from the prior year. Management raised its 2025 revenue guidance by 100 basis points at the midpoint of its previous expectations. Investors reacted favorably to Lundbeck’s results and sent the stock up 10%. We forecast Lundbeck will achieve total 2025 revenue of DKK 23.7 billion. We maintain our fair value estimate of DKK 42.50 per share, and we view the stock as undervalued, currently trading at a 20% discount to our fair value estimate.