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Newsroom Press Releases

UCB continues to deliver on its growth strategy

Brussels (Belgium), 28 July 2016 – 7:00 (CEST) – regulated information –
UCB Half Year Report 2016:

  • Continued core product growth drive top and bottom line
  • UCB's epilepsy franchise strengthened by Briviact® launch in the EU and North America; Vimpat® for epilepsy approved in Japan
  • Continued increased focus on core business: nitrates business divested
  • R&D update: BLA to FDA submitted for romosozumab

Financial outlook 2016 confirmed: Revenue expected at approximately € 4.0-4.1 billion, recurring EBITDA of € 970– 1010 million, Core EPS in the range of € 2.90-3.20

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Revenue and net sales increased to € 2.0 billion (+5%; +5% CER) and € 1.9 billion (+10%; +9% CER) respectively driven by continued core product growth.

Royalty income went down to € 51 million (-40%; -38% CER) due to patent expirations, royalty adjustment for fesoterodine and divestment. Other revenue decreased to € 92 million (-28%; -27% CER), mainly due to lower milestone payments received in H1 2016 compared to H1 2015.

Gross profit increased to € 1.45 billion (+6%, +4% CER), due to net sales growth and the improved product mix. Operating expenses decreased by 2% reaching €1.02 billion (0% CER). This reflects 4% higher marketing and selling expenses of € 451 million, 2% lower research and development expenses of € 458 million and 12% lower general and administrative expenses of € 87 million.

Underlying profitability –recurring EBITDA2- reached € 549 million (+18%; +11% CER), driven by the higher gross profit and the decrease of operating expenses in the first six months 2016.

Non-recurring income was € 50 million after € 80 million, a gain from the divestiture of UCB's nitrates established brands (€ 75 million) offset with an impairment of oncology molecules and other non-recurring charges. Net financial expenses increased to € 65 million from € 47 million, which was driven by an impairment of the Lannett warrants received in connection with the Kremers Urban divestiture in November 2015. Income tax expenses were € 91 million reflecting an average tax rate on recurring activities of 25%. Profit/loss from discontinued operations, reflecting the divestiture and activities respectively of Kremers Urban, reached a loss of € 9 million after a profit of € 28 million in 2015. In November 2015, the divestiture of UCB's U.S. specialty generics business, Kremers Urban, to Lannett was successfully closed.

Profit of the Group was € 316 million (+9%; 0% CER) of which € 300 million is attributable to UCB shareholders and € 16 million to non-controlling interests. For the first six months 2015, profit was € 289 million, which included profit from discontinued operations, and of which € 267 million were attributable to UCB shareholders and € 22 million to non-controlling interests.

Core earnings per share, which reflect profit attributable to UCB shareholders after tax effects of non-recurring items, financial one-offs and amortization of intangibles, reached € 1.72 per share based on 188 million weighted average shares outstanding from € 1.18 per share based on 192 million shares in HY 2015. (+46%; +34% CER)

Outlook 2016 confirmed - UCB expects continued growth. 2016 revenue should reach approximately € 4.0 - 4.1 billion; recurring EBITDA2 should increase to approximately € 970 - 1 010 million. Core earnings per share are expected in the range of € 2.90 - 3.20 based on an expected average of 188 million shares outstanding.

HY 2016 – Financial highlights
Find the full financial reports on the UCB website: www.ucb.com/investors/Financials/

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For further information, UCB:

Investor Relations
Antje Witte         
Investor Relations, UCB
T +32.2.559.94.14 antje.witte@ucb.com

Isabelle Ghellynck,
 Investor Relations, UCB
T+32.2.559.9588, isabelle.ghellynck@ucb.com

Corporate Communications
France Nivelle 
Global Communications, UCB
T +32.2.559.9178 france.nivelle@ucb.com

Laurent Schots
Media Relations, UCB 
T+32.2.559.92.64  Laurent.schots@ucb.com

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About UCB
UCB, Brussels, Belgium (www.ucb.com) 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 7 500 people in approximately 40 countries, the company generated revenue of € 3.9 billion in 2015. UCB is listed on Euronext Brussels (symbol: UCB). Follow us on Twitter: @UCB_news

Forward looking statements
This press release contains forward-looking statements based on current plans, estimates and beliefs of management. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including estimates of revenues, operating margins, capital expenditures, cash, other financial information, expected legal, political, regulatory or clinical results and other such estimates and results. By their nature, such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions which could cause actual results to differ materially from those that may be implied by such forward-looking statements contained in this press release. Important factors that could result in such differences include: changes in general economic, business and competitive conditions, the inability to obtain necessary regulatory approvals or to obtain them on acceptable terms, costs associated with research and development, changes in the prospects for products in the pipeline or under development by UCB, effects of future judicial decisions or governmental investigations, product liability claims, challenges to patent protection for products or product candidates, changes in laws or regulations, exchange rate fluctuations, changes or uncertainties in tax laws or the administration of such laws and hiring and retention of its employees.

Additionally, information contained in this document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction. UCB is providing this information as of the date of this document and expressly disclaims any duty to update any information contained in this press release, either to confirm the actual results or to report a change in its expectations.

There is no guarantee that new product candidates in the pipeline will progress to product approval or that new indications for existing products will be developed and approved. Products or potential products which are the subject of partnerships, joint ventures or licensing collaborations may be subject to differences between the partners. Also, UCB or others could discover safety, side effects or manufacturing problems with its products after they are marketed.
Moreover, sales may be impacted by international and domestic trends toward managed care and health care cost containment and the reimbursement policies imposed by third-party payers as well as legislation affecting biopharmaceutical pricing and reimbursement.


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