Alk-Abello A/S

ALK B

Equity

ISIN DK0061802139 / Valor 117689788

Nasdaq Copenhagen Equities (2025-04-04)

DKK 141.10-0.91%

Alk-Abello A/S
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About company

ALK-Abelló A/S, commonly referred to as ALK, is a Denmark-based pharmaceutical company specializing in the development and production of treatments for allergies. Since its inception in 1923 by pharmacist Peter Barfod and physician Kaj Baagøe, ALK has been at the forefront of allergy treatment innovation. The company has a rich history of pioneering advancements in the field, including the development of the first pharmaceutically manufactured allergen extract and the introduction of standardized methods for large-scale manufacturing of allergen extracts. In recent years, ALK has focused on expanding its portfolio of sublingual allergy immunotherapy (SLIT) tablets, aiming to cover five of the most common respiratory allergies. These include house dust mite, grass, trees from the birch family, ragweed, and Japanese cedar allergies, with products already available in many markets. Additionally, in 2018, ALK launched klarify.me, a sister brand offering a range of drug-free products and services to help individuals manage their allergies. The company's strategic investments and innovations underscore its commitment to transforming into a broader-based allergy company, reaching a wider audience and capturing a larger share of the global allergy market.

Summarized from source with an LLMView SourceSector: Healthcare

Revenue Growth

In the third quarter of 2024, Alk-Abello A/S reported an expected revenue growth of 14-16% organically in local currencies. This growth is anticipated to be driven by broad-based expansion across various sales regions and product groups, with European tablet sales playing a crucial role in this increase.

EBIT Margin Improvement

Alk-Abello A/S projects an improvement in its EBIT margin to 19-21% for Q3 2024, up from 14% the previous year. This enhancement is primarily attributed to high sales growth, particularly in the European market, and is expected to be supported by improved pricing and efficiencies.

European Market Performance

The company expects robust, double-digit revenue growth in Europe for Q3 2024, with European tablet sales being the main growth driver. This growth is significantly above the levels seen in 2023, fueled by an influx of new patients and improved pricing strategies.

North American and International Markets

For Q3 2024, Alk-Abello A/S anticipates single-digit revenue growth in North America and International markets. While tablet sales in these regions are expected to grow, the rates are projected to be lower than those in 2023, with North American growth particularly slowing down in the latter half of the year.

Capacity Costs and Investments

Alk-Abello A/S plans to improve its capacity cost-to-revenue ratio by leveraging existing platforms and reducing R&D expenses. For Q3 2024, CAPEX investments are projected at around DKK 350 million, with a focus on building up inventories to support revenue growth. The company also anticipates a negative free cash flow of around DKK 500 million due to upfront payments related to a license agreement.

Summarized from source with an LLMView Source

Key figures

15.6%1Y

-9.75%3Y

86.1%5Y

Performance

36.5%1Y

40.3%3Y

38.2%5Y

Volatility