Belgium's UCB beats expectations in H1 on new drug growth

Belgian pharmaceutical group UCB reported better than expected first-half results on Monday after sales of new drugs accelerated, offsetting declines in blockbusters now facing generic competition. Sales of Cimzia, used to treat rheumatoid arthritis and bowel disorder Crohn's disease, more than tripled, while those for its next generation epilepsy drug, Vimpat, were more than twice year ago levels.

Analysts had forecast growth, but not to this extent. UCB, which specialises in the central nervous system and immunology, is entering a key transition from long-standing successes now facing generic competition - epilepsy drug Keppra and antihistamine Zyrtec -- to three newly launched medicines. Keppra sales were down 1 per cent, a weaker decline than analysts had forecast. Revenue rose 3 per cent to €1.64 billion ($2.14bn), against market expectations of a 2 per cent fall. Core profit (EBITDA) was up 10 per cent at €398m, against expectations of just a 4 per cent increase. The Belgium-based company retained its 2010 forecast of revenue of about €3.0b, recurring EBITDA of some €700m and core earnings per share of 1.76 euros.