UBS upgrades Lundbeck to 'buy' on epilepsy drug conviction
UBS upgraded H Lundbeck to "buy" from "neutral", citing strong conviction in its developing epilepsy drug bexicaserin, which it forecasts could offset patent expirations for its key drug Rexulti in 2029 and achieve $2 billion in peak sales. The brokerage added that Lundbeck's strong cash generation provides firepower for additional acquisitions.
UBS raised Danish drugmaker H Lundbeck to "buy" from "neutral" on high conviction in its developing epilepsy drug bexicaserin. The broker said the treatment could offset the 2029 patent expiry for key drug Rexulti and could be the first major data point showing the company's research and development turnaround is working. UBS said bexicaserin could be the "go to" drug for developmental and epileptic encephalopathy (DEE), a group of severe childhood epilepsies, providing seizure control before the diagnosis of specific DEE subtypes. The brokerage forecasts $2 billion unadjusted peak sales and a 65% probability of success.
UBS said bexicaserin could drive 20-45% upside if successful. It added that Lundbeck's strong cash generation provides $2 billion to $3 billion in firepower for additional acquisitions to support long-term growth. Lundbeck expects results from its bexicaserin Phase 3 trial in late Q4 2026. Seven out of 13 analysts covering Lundbeck rate it "strong buy"/"buy", four "hold" and two "sell", LSEG data showed.