Generic pressures will drive down UCB’s pharmaceutical sales after short-term growth.
By Justin Burns, Analytics Analyst
21 July 2016
Datamonitor Healthcare forecasts that UCB’s prescription pharmaceutical sales will rise during the initial part of the forecast period to a peak of $5.3bn in 2021. This will be driven by expanding market share of Cimzia (certolizumab) and Vimpat (lacosamide), as well as the launch of Briviact (brivaracetam) from its central nervous system (CNS) portfolio. However, generic erosion of multiple brands in UCB’s CNS portfolio will drive the company’s prescription pharmaceutical sales down from 2022 to $3.7bn in 2025. UCB’s divestment of its US generics business will also free up capital for potential acquisitions
In November 2015, UCB sold its U.S. specialty generic pharmaceuticals subsidiary, Kremers Urban Pharmaceuticals, Inc. to the Lannett Company for $1.23bn. This strategic divestment provides the company with the financial leverage to seek out acquisition targets that can stem the declining top-line revenues in the latter part of the forecast period. With UCB’s expertise in the CNS and immunology and inflammation (I&I) markets it can be expected that any future acquisitions will be in those therapy areas. I&I will be an important area of focus following the cancellation of UCB’s development partnership with Immunomedics for epratuzumab following the candidate’s late 2015 failure in Phase III trials for systemic lupus erythematosus (SLE). The failure leaves Cimzia as the only branded product currently included in UCB’s I&I portfolio.
Datamonitor Healthcare’s company analysis on UCB explores global corporate strategy, marketed portfolio, pipeline potential, and financial performance over 2015–25.
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