Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Lundbeck's Results Easing A Lot Of Anxiety

Denmark's H. Lundbeck A/S (or "Lundbeck") (OTCPK:HLUYY) (LUN.KO) continues to do a commendable job of restructuring and repositioning itself to come back from significant patent cliffs. Not only has the company launched two potential, albeit uncertain, blockbusters in the last two years, the company's cost restructuring effort seems ahead of plan. With the company now offering a credible trajectory toward 20%-plus free cash flow margins and respectable revenue growth, a fair value of DKK247/$37.25 seems reasonable today.

Strong Results, With One Notable Exception

Lundbeck's fourth quarter results were quite strong, with better-than-expected performance across several metrics, and management's guidance was strong relative to prior expectations.

Revenue rose 15% as reported and 15% on a "core" basis, with

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