UCB announced today that the company expects to exceed the previous guidance of total revenue to reach at least €3 billion, a recurring EBITDA of approximately €700m and a Core EPS of €1.76.
At the same time, one time write offs and the year end impairment test will result in the recognition of impairment charges amounting to €240m–€250m thus surpassing 2009’s impairment charges of €126m.
Impairment charges are recognized as non-recurring expenses below the ‘recurring earnings before interest and taxes’ (recurring EBIT) line of UCB’s consolidated income statement.
“We are very satisfied with our operating performance in 2010,” says Detlef Thielgen, CFO of UCB.
“Our key financial performance indicators will surpass our financial outlook given earlier in 2010. While non-cash, one-time write offs and impairment charges impact our bottom line we are confident to show a positive net result for 2010.”
Exceeding UCB’s financial guidance is mainly driven by better than expected sales of the epilepsy drug Keppra® (levetiracetam), especially in the EU, and by solid performance of the company’s new core products: Cimzia® (certoluzimab pegol), Vimpat® (lacosamide) and Neupro® (rotigotine).
An impairment charge is recognized when the impairment tests shows significant deviation between the fair value and the balance sheet book value of non-financial assets at balance sheet date.
Based on latest market estimates, the year end impairment tests of the intangible assets showed a deviation as the book value for the fesoterodine franchise royalty stream no longer reflects latest market estimates as well as smaller deviations for some other products.
Additionally the disposal of UCB’s three manufacturing facilities in Germany and Italy to Aesica announced in December 2010, leads to a one-time write off.