COPENHAGEN: Weekly Results Summary Feb 21
The OMX Copenhagen 25 index rose by +0.88% this week. The earnings season highlights a contrast in the healthcare sector: while ALK-Abelló is enjoying sales success, Genmab and Zealand Pharma are making costly bets on the future. In the industrial sector, the market rewarded DFDS's restructuring plan despite a loss, while FLSmidth's strong results led to profit-taking.
ALK-Abelló reported an exceptionally strong quarter, with operating profit soaring by 89%. The result was driven by a 15% increase in allergy tablet sales and the successful launch of its new drug, neffy®. Although the departure of the head of R&D raised some questions, the company raised its 2026 revenue forecast to a range of 11–15%. The stock finished the week up 1.2%, reflecting investor satisfaction with the strategy's execution.
DFDS's fourth quarter was weak as expected, turning to a loss due to costs from its Turkish unit. Despite this, the stock rallied 8.1% for the week as investors welcomed management's clear action plan to cut costs and restore profitability by 2026. The market is looking past the current difficulties, betting on the success of the company's restructuring plan, although analysts remain cautious.
Zealand Pharma continues to invest aggressively in obesity drugs, which pushed R&D costs up by 74% and kept the company in the red. The stock fell 1.7% for the week, reflecting uncertainty over the heavy spending. However, analysts (e.g., Goldman Sachs) see strong long-term potential thanks to the partnership with Roche, viewing the current cash burn as a necessary investment for future growth.
FLSmidth's operating profit grew by 48%, supported by cost cuts and a property sale. Despite the strong numbers, the stock fell 7.7% for the week, suggesting profit-taking after its recent rapid rise. The company's core business is improving, and Goldman Sachs raised its price target, but the market decided to 'sell on the news'. A new share buyback program should provide support going forward.
Genmab's operating profit plummeted by 81% due to large one-off investments and R&D expenses. The stock fell 2.7% for the week, a decline exacerbated by the failure of a trial for its cancer drug Epkinly and cuts to analyst profit forecasts. Investors are concerned about short-term profitability and the reliance on its main drug, DARZALEX, while awaiting clearer signs of success from new development projects.
Conclusion
This week's results underscore the importance of future expectations. Investors are willing to forgive losses when there is a clear plan (DFDS) but punish uncertainty (Genmab). In the healthcare sector, there's a clear distinction between those already reaping the rewards of their investments and those still sowing the seeds. In the coming weeks, the market will be watching closely to see if company forecasts hold up. Follow RYTM for the latest analysis.
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