UCB has announced its consolidated half year 2012 financial results. The first half year was marked by continuous execution and growth of core medicines Cimzia® (certolizumab pegol), Vimpat® (lacosamide) and Neupro® (rotigotine) with combined net sales total exceeding EUR 413 million (+45%). Strong performance of Keppra® (levetiracetam) in Japan was offset by lower sales in Europe and U.S., reaching net sales of EUR 445 million (-12%).
"With growth of 45% in the first half of 2012, Cimzia®, Vimpat® and Neupro® have reached over 354,000 patients and sales exceeding EUR 400 million. This performance further confirms our ambition to reach more than 1.5 million patients with Cimzia®, Vimpat® and Neupro®, with a peak sales target of at least EUR 3.1 billion in the second half of the decade," said Roch Doliveux, Chief Executive Officer of UCB. "This and solid Keppra® contribution allows UCB to even further invest in our future growth as we have now three phase 3 projects in clinical development aiming at more breakthrough innovation to people living with severe diseases."
Revenue in the first six months of 2012 increased by 2% to EUR 1 706 million. Net sales amounted to EUR 1 527 million or 2% higher (-2% at constant exchange rates) than the previous interim period because of the solid performance of the core medicines Cimzia®, Vimpat® and Neupro® as well as E Keppra® in Japan.
Cimzia® (certolizumab pegol) for Crohn's disease (CD) and rheumatoid arthritis (RA) reached net sales of EUR 209 million (+46%, +38% at constant rates). The anti-epileptic medicine, Vimpat® (lacosamide) reports net sales of EUR 150 million (+54%; +46% at constant rates). The Neupro® (rotigotine) patch for Parkinson’s disease and restless legs syndrome had net sales increasing by 20% to EUR 54 million. Since 16 July 2012, Neupro® is also available in U.S. retail pharmacies.
The anti-epileptic Keppra® (levetiracetam) reached net sales of EUR 445 million which is 12% (-15% at constant rates) lower than last year. The continued post-patent expiry erosion in North America (-10%) and the increasing post-patent expiry erosion in Europe (-25%[1]) stands against a strong performance in the 'Rest of World' (+70%) driven by the growth of E Keppra® in Japan.
Royalty income & fees reached EUR 83 million (-13%) due to expiration of patents, despite higher royalties received for Toviaz® (fesoterodine) which increased by 21%. Other revenue for the first half of 2012 increased to EUR 95 million (+16%) mainly driven by income received from UCB's collaborations in Japan, namely Otsuka and Astellas.
Gross profit reached EUR 1 183 million and is 2% higher than in first half 2011 following the increase of total revenue.
Operating expenses increased by 14% to EUR 956 million in first half 2012 with 9% increase in marketing & selling expenses reflecting the U.S. Neupro® and other regional launches of UCB's core medicines and with a 24% growth in research & development expenses progressing advanced development projects and strengthening the early portfolio. General & administrative expenses were held to a 3% increase.
As a result and in-line with the financial guidance for 2012, underlying profitability - recurring EBITDA - went down by 22% to EUR 347 million reflecting an increase in revenue contrasted by higher operating expenses.
Net financial expenses were up by EUR 13 million and reached EUR 76 million (20%) mainly due to one-off financial expenses of EUR 9 million.
The average tax rate on recurring activities is 14% in the first half of 2012 compared to 21% in the same period of last year. The main reasons for the lower tax rate are reduction of tax rates, further recognition of tax losses and release of provisions.
Net profit after minority interest for the first half year is EUR 137 million (-31%). Core earnings per share (EPS), which reflect the after tax effects of non-recurring items, financial one-offs and amortisation of intangibles, decreased from EUR 1.44 in June 2011 to EUR 1.09 in June 2012, based on 179.1 million weighted average shares outstanding in June 2012 after 179.5 million in June 2011.
About UCB
UCB, Brussels, Belgium is a global biopharmaceutical company focused on the discovery and development of innovative medicines and solutions to transform the lives of people living with severe diseases of the immune system or of the central nervous system. With more than 8 500 people in about 40 countries, the company generated revenue of EUR 3.2 billion in 2011. UCB is listed on Euronext Brussels (symbol: UCB).