On Tuesday, Citi reaffirmed its Buy rating on UCB SA (UCB:BB) (OTC: UCBJY), maintaining a price target of €178.00.
The firm's analysis suggests robust growth prospects for the company, with sales, EBITDA, and EPS expected to grow at compound annual growth rates (CAGRs) of 11%, 27%, and 32%, respectively, between 2024 and 2029. The confidence in UCB's financial performance is partly attributed to the successful launch trends and potential patent term extensions for its products Bimzelx and Rystiggo, with peak sales estimated at €5.0 billion and €1.2 billion, respectively.
"Our pipeline estimates continue to leave risks to the upside with 2030/2040 pipeline sales of €0.7bn/€4.7bn versus cumulative R&D spend of €28bn," said Citi.
The firm also anticipates positive dynamics for Cimzia, bolstered by further delays in the introduction of biosimilars and the possibility of UCB reclaiming the rights in Japan by 2026. UCB's launch trajectories for Bimzelx and Rystiggo in the United States are reportedly trending well.
The company's pipeline includes several other promising projects, although Citi currently assigns no expectations to the success of dapirolizumab, which is undergoing a Phase III lupus trial, and treatments for Alzheimer's and Parkinson's disease. The focus of Citi's pipeline forecasts remains on two bispecific antibody programs aimed at treating atopic dermatitis, suggesting significant potential for future growth in UCB's product offerings.
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