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1. Company Snapshot

1.a. Company Description

UCB SA, a biopharmaceutical company, develops products and solutions for people with neurology and immunology diseases.The company's primary products include Cimzia for inflammatory TNF mediated diseases, as well as ankylosing spondylitis, axial spondyloarthritis, Crohn's disease, non-radiographic axial spondyloarthritis, plaque psoriasis, psoriatic arthritis, and rheumatoid arthritis; Vimpat, Keppra, and Briviact for epilepsy; Neupro for Parkinson's disease and restless legs syndrome; Nayzilam, a nasal spray rescue treatment for epilepsy seizure clusters; and Zyrtec and Xyzal for allergies.It also offers Evenity for the treatment of osteoporosis in postmenopausal women; BIMZELX for treating psoriasis, psoriatic arthritis, axial spondyloarthritis, and hidradenitis suppurativa; and dapirolizumab pegol for systemic lupus erythematosus.


In addition, the company is involved in developing rozanolixizumab to treat myasthenia gravis, immune thrombocytopenia, and chronic inflammatory demyelinating polyneuropathy; zilucoplan to treat myasthenia gravis and immune-mediated necrotizing myopathy; staccato alprazolam to treat tereotypical prolonged seizure; Bepranemab to treat Alzheimer's disease; and UCB0599 to treat Parkinson's disease.Further, it engages in contract manufacturing activities.UCB SA has collaboration agreements with Amgen, Biogen, Roche/Genentech, Novartis, Otsuka, and doc.ai.


It operates in the United States, Japan, Germany, rest of Europe, Spain, France, Italy, the United Kingdom, Ireland, China, Belgium, and internationally.The company was incorporated in 1925 and is headquartered in Brussels, Belgium.

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1.b. Last Insights on UCB

UCB's recent momentum is driven by its robust fundamentals and growth prospects. The company's valuation has been gaining attention, with investors warming up to its story. A key factor is the lack of a clear catalyst, suggesting a shift in market sentiment. UCB's 1-year total shareholder return of 0.5% reflects investor confidence. Additionally, the company's positioning in the market, with no major events or announcements, indicates a quiet yet steady climb. This uptrend may be attributed to an underappreciated story unfolding.

1.c. Company Highlights

2. UCB's Extraordinary Growth Continues

UCB's half-year financial report revealed an extraordinary 26% growth in revenue, reaching EUR 3.32 billion, driven by the company's five key growth drivers, including BIMZELX, which generated EUR 800 million in sales. The company's adjusted gross profit grew 28% to EUR 2.8 billion, with an adjusted gross margin improvement of 2 percentage points to 79%. Operating expenses increased by 15%, but the company reported an adjusted EBITDA of EUR 1.033 billion, up 58%, and a profit of EUR 475 million, more than doubling from the previous year. EPS came out at EUR 3.61, beating estimates of EUR 3.38. According to Emmanuel Caeymaex, the commercial chief, "the successful launch of new indications, including hidradenitis suppurativa, which now accounts for 21% of BIMZELX's sales."

Publication Date: Aug -05

📋 Highlights
  • Revenue Growth:: UCB's net sales reached EUR3.32 billion, a 26% increase, driven by strong performance of BIMZELX and other recently launched assets.
  • BIMZELX Performance:: BIMZELX generated EUR800 million in sales, quadrupling from the same period last year, with a 35% market share in the US IL-17 segment.
  • Financial Performance:: Adjusted gross profit grew 28% to EUR2.8 billion, with an EBITDA margin of 29.6%, up 58% year-over-year.
  • Guidance Upgrade:: UCB raised its revenue guidance to at least EUR7 billion for 2025, with an EBITDA margin target of at least 30%.
  • Pipeline Progress:: Key pipeline advancements include bepranemab's encouraging Phase IIa results and BIMZELX's expansion into new indications like palmoplantar pustulosis (PPP).

Financial Performance

The company's financial performance was impressive, with a 26% growth in revenue, driven by BIMZELX, FINTEPLA, and other recently launched assets. BIMZELX net sales quadrupled to nearly EUR 800 million, with strong volume growth in all regions and indications. The company's EBITDA margin increased to 29.6%, and the company upgraded its guidance for the year, increasing revenue guidance to at least EUR 7 billion, EBITDA margin to at least 30%, and core EPS to at least EUR 7.25.

BIMZELX's Growth Driver

BIMZELX, a key growth driver, generated EUR 800 million in sales in the first half, with a broadened and deepened reach globally, touching 82,000 patients in 50 countries. The company expects a sustained CAGR of at least 175,000 patients on systemic biologic treatment by the end of the decade. According to Sandrine Dufour, the CFO, "the company has levers to continue to increase EBITDA margin with top-line growth and operating leverage."

Valuation Metrics

At current prices, UCB trades at a P/E ratio of 33.34, a P/B ratio of 3.54, and a P/S ratio of 5.77. The EV/EBITDA ratio is 18.55, and the dividend yield is 0.64%. The free cash flow yield is 2.73%, and the ROIC is 5.44%. The ROE is 11.22%, and the net debt/EBITDA ratio is 0.73. These valuation metrics suggest that the stock may be slightly expensive, but the company's growth prospects and strong financial performance may justify the premium.

Growth Prospects

The company expects strong momentum from BIMZELX and other growth drivers to continue in the second half. The company has a significant unmet need in the atopic dermatitis treatment market and has initiated a Phase III trial in palmoplantar pustulosis (PPP). The company is open to addressing the issue of high patient prices and out-of-pocket costs in the US, driven by intermediaries and 340B shops that capture about half of the value generated.

Competition and Market Potential

The company noted that Astra's once-weekly subcu C5 inhibitor met its Phase III endpoint, but believes ZILBRYSQ has demonstrated significant improvement and sustained effects. The company expects some erosion in net price over time but not double-digit price cuts annually. The market potential for BIMZELX in PPP is significant, with a potential market size of EUR 3-4 billion by the end of the next decade.

3. NewsRoom

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UCB (ENXTBR:UCB): A Fresh Look at Valuation as Momentum Builds

Oct -03

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UCB Soars to Record as Rival MoonLake Crashes on Trial Data

Sep -29

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CoreWeave, AstraZeneca, GSK, BYD, Tesla: Trending Stocks

Sep -29

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Stocks to Watch Monday: Carnival, GSK, Alibaba

Sep -29

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UCB Soars to Record as Rival MoonLake Crashes on Trial Data

Sep -29

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Europe Refractory Epilepsy Treatment Research Report 2025 | Market to More Than Double to Reach $2.82 Billion by 2035, Driven by CBD Growth, Uptake of Neuromodulation Therapies, Strong R&D Pipeline

Sep -16

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Gen Z and Millennial Patients with Chronic Rheumatic Diseases Are Opening Up to Raise Awareness for Improved Care

Sep -10

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Societe Generale: shares & voting rights as of 31 August 2025

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.00%)

6. Segments

Biopharmaceuticals

Expected Growth: 12.0%

UCB SA's biopharmaceuticals segment growth of 12.0% is driven by strong sales of Cimzia (certolizumab pegol) for autoimmune diseases and Vimpat (lacosamide) for epilepsy. Increased investment in research and development, successful commercialization of new products, and expanded indications for existing therapies contribute to this growth.

7. Detailed Products

Keppra

Keppra is an antiepileptic drug used to treat partial onset seizures, tonic-clonic seizures, and myoclonic seizures.

Luxturna

Luxturna is a gene therapy treatment for inherited blindness caused by mutations in the RPE65 gene.

Cimzia

Cimzia is a medication used to treat rheumatoid arthritis, psoriatic arthritis, and Crohn's disease.

Xcopri

Xcopri is an antiepileptic medication used to treat partial onset seizures.

8. UCB SA's Porter Forces

Forces Ranking

Threat Of Substitutes

UCB SA operates in the pharmaceutical industry, where substitutes are available but not always effective. While there are alternative treatments for some conditions, UCB SA's focus on rare and severe diseases makes substitutes less readily available.

Bargaining Power Of Customers

Patients often rely on UCB SA's products for life-altering treatments, reducing their bargaining power. Additionally, healthcare systems and insurance companies typically dictate treatment options, further limiting customer bargaining power.

Bargaining Power Of Suppliers

UCB SA likely sources raw materials and manufacturing services from a range of suppliers. While some suppliers may have significant bargaining power, UCB SA's scale and negotiating capacity mitigate this force.

Threat Of New Entrants

The pharmaceutical industry has high barriers to entry, including significant R&D investment, regulatory hurdles, and patent protection. These obstacles limit the threat of new entrants.

Intensity Of Rivalry

The pharmaceutical industry is highly competitive, with numerous established players. UCB SA competes with major pharmaceutical companies, and the market is characterized by intense rivalry, innovation, and marketing efforts.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.18%
Debt Cost 5.74%
Equity Weight 76.82%
Equity Cost 6.09%
WACC 6.01%
Leverage 30.17%

11. Quality Control: UCB SA passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
GSK

A-Score: 5.7/10

Value: 3.9

Growth: 2.2

Quality: 6.5

Yield: 6.9

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
UCB

A-Score: 5.0/10

Value: 1.5

Growth: 5.2

Quality: 7.7

Yield: 1.9

Momentum: 9.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Novo Nordisk

A-Score: 4.4/10

Value: 3.5

Growth: 8.8

Quality: 8.0

Yield: 5.0

Momentum: 0.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Regeneron Pharmaceuticals

A-Score: 4.2/10

Value: 4.2

Growth: 6.4

Quality: 8.6

Yield: 0.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Argenx

A-Score: 4.0/10

Value: 0.0

Growth: 7.4

Quality: 8.8

Yield: 0.0

Momentum: 4.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Vertex Pharmaceuticals

A-Score: 3.8/10

Value: 1.5

Growth: 3.9

Quality: 8.9

Yield: 0.0

Momentum: 2.0

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

247.5$

Current Price

247.5$

Potential

-0.00%

Expected Cash-Flows