UCB HOLD Conviction: 2/5 $17B

UCB SA

Current: $165 · PT: $160
Investment Thesis
Belgian biopharma transitioning from legacy neurology (Vimpat LOE) to immunology growth (Bimzelx). Strong MG franchise with Rystiggo/Zilbrysq competing against ARGX Vyvgart. Evenity partnership with Amgen provides bone health exposure.
Bull Case
Bimzelx becomes blockbuster ($4B+) as best-in-class IL-17A/F in psoriasis/PsA/axSpA. HS indication expands TAM significantly. MG drugs gain share despite Vyvgart competition. Pipeline (dapirolizumab in SLE) delivers.
Bear Case
Vimpat generic erosion accelerates. Bimzelx struggles vs entrenched IL-17s (Cosentyx, Taltz). MG market dominated by Vyvgart subcutaneous. SLE pipeline fails.
Drug Portfolio (19)
Bimzelx APPROVED
100% ownership
Immunology Antibody SC
Cimzia APPROVED
100% ownership
Immunology Antibody SC
Rystiggo APPROVED
100% ownership
Neurology Antibody SC
Vimpat APPROVED
100% ownership
Neurology Small molecule PO
Keppra APPROVED
100% ownership
Neurology Small molecule Oral/IV
Nayzilam APPROVED
100% ownership
Neurology Small molecule Nasal
Fintepla APPROVED
100% ownership
Neurology Small molecule Oral
Neupro APPROVED
100% ownership
Neurology Small molecule Transdermal
Galvokimig PHASE2
100% ownership
Immunology Multi-specific antibody SC
Donzakimig PHASE2
100% ownership
Immunology Multi-specific antibody SC
Bepranemab PHASE2
100% ownership
Neurology Antibody IV
Glovadalen PHASE2
100% ownership
Neurology Small molecule Oral
STACCATO alprazolam PHASE3
100% ownership
Neurology Small molecule (inhaled) Inhaled
MT1621 APPROVED
100% ownership
Rare Disease Small molecule Oral
Evenity APPROVED
50% ownership
CVRM Antibody SC
Dapirolizumab pegol PHASE3 CO_DEVELOPER
50% ownership
Immunology Antibody fragment SC
DrugStageRoleOwnershipAreaModality
BriviactAPPROVEDORIGINATOR100%NeurologySmall molecule
ZilbrysqAPPROVEDORIGINATOR100%NeurologyPeptide
PadsevonilPHASE3ORIGINATOR100%NeurologySmall molecule
Financials (EUR)
PeriodRevenue ($M)Gross MarginR&DSG&AOp IncomeOp MarginNet IncomeEPS
2023A$6,30075.0%$1,260$1,890$1,57525.0%$1,140$11.40
2024A$6,70076.0%$1,340$1,940$1,81227.0%$1,354$13.54
2025A$7,40077.0%$1,480$2,072$2,14629.0%$1,637$16.37
2026E$8,10077.0%$1,620$2,268$2,34929.0%$1,792$17.92
2027E$8,80077.0%$1,760$2,464$2,55229.0%$1,950$19.50
2028E$9,40077.0%$1,880$2,632$2,72629.0%$2,080$20.80
Recent Quarters
QuarterRevenue ($M)Gross MarginOp MarginEPS
Q4 2025$1,93078.0%30.9%$4.39
Q4 2024$1,75078.0%29.5%$3.41
Q3 2025$1,90077.0%29.0%$4.20
Q3 2024$1,72076.0%27.5%$3.61
Q2 2026E$2,00077.0%29.0%$4.40
Q2 2025$1,82077.0%29.0%$4.00
Catalysts (12)
Donzakimig - Atopic Dermatitis - Ph2a - Results
CLINICAL
UCB Pipeline page (ucb.com/innovation/pipeline) H2 2025
STACCATO Alprazolam - Seizures - Ph3 - Headline Results
CLINICAL SM
UCB Pipeline page (ucb.com/innovation/pipeline) H1 2026
Galvokimig - Atopic Dermatitis - Ph2b - Start/Updates
CLINICAL
UCB EADV 2025 PR, ucb.com Sep 2025 2026
UCB - FY 2025 Results & 2026 Guidance
GUIDANCE SM
ucb.com/investors (Financial Calendar) Feb 26, 2026
Evenity - Commercial Uptake (with Amgen)
COMMERCIAL
UCB JPM 2026 Presentation 2026
Fintepla - Commercial Updates
COMMERCIAL
UCB JPM 2026 Presentation 2026
Bimzelx - Commercial Momentum Updates
COMMERCIAL SM
UCB JPM 2026 Presentation 2026
Rystiggo - MOG Antibody Disease - Ph3 - Headline Results
CLINICAL SM
UCB Pipeline page (ucb.com/innovation/pipeline) H2 2026
Bimzelx vs Risankizumab - PsA - Head-to-Head Data
CLINICAL
UCB Pipeline page (ucb.com/innovation/pipeline) H2 2026
Padsevonil - Drug-Resistant Epilepsy - Ph3 - Updates
CLINICAL
UCB Pipeline page 2026
Bepranemab - PSP/Alzheimer's - Ph2 - Updates
CLINICAL
UCB Pipeline page 2026
Dapirolizumab Pegol - SLE - Ph3 - Topline (PHOENYCS FLY)
CLINICAL SM
ClinicalTrials.gov NCT06617325, Biogen/UCB PR 2027-2028
Open Debates (2)
Underappreciated Growth Driver: Bimzelx in Hidradenitis Suppurativa (HS)
Bull
Bimzelx ($850M FY24, growing fast) is already best-in-class IL-17A/F in psoriasis. HS affects ~1% of the population — a massive, severely underserved market with only Humira (poorly effective) and a few IL-17s approved. Bimzelx's dual IL-17A/F mechanism targets the neutrophilic inflammation central to HS pathophysiology. If HS is approved, the TAM effectively doubles — from $4B (dermatology) to $7-8B. HS patients are high-value (chronic, severe, high burden of disease).
Bear
HS is a difficult market — high placebo response, heterogeneous disease. Cosentyx (Novartis) is also pursuing HS. The $4B peak already prices in some label expansion.
Conviction: 5/5
Underappreciated Risk: Dual Legacy Erosion — Vimpat + Cimzia Cliff
Bull
Bimzelx growth ($850M and accelerating) plus Rystiggo/Zilbrysq in MG will offset. UCB has managed transitions before (Keppra → Vimpat). The growth portfolio is diversified.
Bear
Vimpat ($1.45B) + Cimzia ($1.65B) = $3.1B of revenue facing generic/biosimilar erosion. That is ~30% of UCB's revenue. Bimzelx needs to grow from $850M to $3B+ just to offset — while simultaneously competing with Cosentyx, Taltz, and Skyrizi in psoriasis. Rystiggo and Zilbrysq are in a market dominated by ARGX Vyvgart. The math requires everything to go right simultaneously.
Conviction: 5/5
Data from Supabase · Updated 2026-03-24