UCB shares jump 13% after revenue and adjusted earnings growth outlook raised
Key Facts
UCB raised its financial outlook for 2026, targeting revenue growth in the low twenties percent, according to a company statement followed by a jump in its shares during European morning trading on October 22. The company now expects adjusted earnings before interest, taxes, depreciation and amortization to grow in the low-to-mid forties percent. Both estimates are at constant exchange rates, with adjusted earnings targeted to grow faster than revenue. Shares rose 13% in morning trading, erasing their losses for the year, according to Dow Jones. The market move followed an update the company linked to stronger U.S. performance for Bimzelx, driven by demand and pricing.
The new forecasts exceed the ranges announced alongside the company's first-half results, when it expected revenue growth in the low-to-mid teens percent. Its forecast for adjusted earnings before interest, taxes, depreciation and amortization growth at that time ranged from the mid-teens to the low twenties percent. Those previous forecasts were also at constant exchange rates, according to the company's first-half results statement. The expected revenue growth range has thus moved into the twenties, while the growth range for the adjusted profitability measure has moved into the forties. The increases in both forecasts come after the company had already improved its annual guidance when announcing first-half results.
Explaining the latest upgrade, UCB pointed to stronger performance for Bimzelx in the U.S. market, attributing it to "strong patient demand and favorable net pricing dynamics." The drug was not the only contributor to the guidance increase, as Dow Jones reported that continued contributions from Cimzia, the older anti-inflammatory drug, also supported the update. About 150 thousand patients had received Bimzelx since its launch, according to Investing's coverage of the company's presentation to JPMorgan, published on September 23. When announcing its first-half results, the company raised its estimate for Bimzelx's peak sales to at least 7 billion euros. That estimate concerns long-term peak sales, while the latest annual guidance upgrade focuses on its improved U.S. performance.
The reported improvement in Bimzelx's net pricing follows earlier concerns about price cuts during the second half of the year. Following the first-half results, Jefferies warned that the drug faced further cuts, according to Investing's coverage published on August 3. In its September presentation to JPMorgan, UCB management addressed the timing of the impact of rebate negotiations on prices and sales volumes. It said price reductions resulting from those negotiations take effect as soon as contracts are signed, while sales volume gains come later. In the latest update, the company cited improved net pricing alongside strong patient demand among the reasons for the drug's stronger U.S. performance.
First-half results showed UCB's revenue rising to 4.27 billion euros, a reported increase of 22% from the corresponding period, according to the company statement. Adjusted earnings before interest, taxes, depreciation and amortization reached 1.74 billion euros over the same period. This profitability measure rose 68% from the corresponding first half, outpacing reported revenue growth. Basic earnings per share in the first-half results were 6.84 euros. These results formed the backdrop to the previous guidance, which the company raised again in its latest update for the current year.
The updated guidance excludes proceeds from the sale of a regulatory priority review voucher, according to UCB's statement. The company said the voucher sale would add to revenue growth and adjusted earnings before interest, taxes, depreciation and amortization growth. It estimated this contribution in the low-to-mid single-digit percentage-point range for the current year. The sale's contribution therefore comes on top of the growth rates in the updated guidance announced by the company. UCB will announce its annual results and formal guidance for the following year on February 25, 2027.