UCB's 2024 Outperformance: A Decade-Long Growth Catalyst in Biopharma

The biopharmaceutical industry is no stranger to volatility and innovation-driven cycles. However, in 2024, UCB (Euronext: UCB) has emerged as a standout performer, demonstrating strategic execution, robust R&D innovation, and margin resilience that positions it as a compelling long-term investment. With a decade-long growth trajectory and a diverse portfolio of high-potential therapies, UCB has captured the attention of institutional investors and analysts alike.

Strategic Product Launches: The Five Pillars of UCB's Growth

UCB's 2024 success can be attributed to its five key growth drivers, each of which has shown remarkable performance and commercial potential:

1. BIMZELX® (bimekizumab): This IL-17A and IL-17F inhibitor has become a cornerstone of UCB's portfolio. With approvals in multiple countries for psoriasis, psoriatic arthritis, ankylosing spondylitis, and hidradenitis suppurativa, BIMZELX has demonstrated triple-digit growth in newly launched markets. The positive phase 3 study in Chinese patients with moderate to severe plaque psoriasis further validates its efficacy and broad market potential.

2. EVENITY® (romosozumab): The monoclonal antibody for postmenopausal osteoporosis has achieved peak sales of €103 million in Europe, with a 71% increase from 2023. Its global expansion through partnerships with Amgen and Astellas has already reached over 900,000 patients by the end of 2024.

3. FINTEPLA® (fenfluramine): This treatment for rare epileptic syndromes has reached over 7,600 patients globally. Despite a patent dispute affecting exclusivity, UCB expects to maintain market presence until Q4 2033 in the U.S.

4. RYSTIGGO® (rozanolixizumab-noli): The treatment for generalized myasthenia gravis (gMG) has been launched in the U.S., Japan, and Europe, reaching over 1,200 patients by the end of 2024.

5. ZILBRYSQ® (zilucoplan): The first and only once-daily subcutaneous C5 complement inhibitor for gMG has reached over 560 patients and continues to expand globally.

These five growth drivers have collectively contributed to a 17% increase in revenue to €6.15 billion and a 15% rise in net sales to €5.61 billion in 2024, demonstrating the power of UCB's strategic product launches.

R&D Innovation: Fueling the Next Wave of Growth

UCB's commitment to R&D innovation is evident in its robust clinical pipeline. In 2024, the company made significant progress across multiple therapeutic areas:

• Dapirolizumab pegol in systemic lupus erythematosus (SLE) showed positive results in its first phase 3 trial, with a second phase 3 trial (PHOENYCS FLY) initiated in December 2024.
• UCB9741/galvokimig, a bispecific antibody targeting IL-13 and IL-17A/IL-17F, demonstrated positive and convincing data in a phase 2a study in atopic dermatitis.
• Doxecitine and doxribtimine for thymidine kinase 2 deficiency (TK2d) saw regulatory submissions accepted in the U.S. and EU in February 2025.
• Bepranemab for Alzheimer's disease showed encouraging phase 2a results in early disease, with consistent treatment benefits observed in key subgroups.

UCB's pipeline is not only diverse but also addresses high-unmet medical needs, ensuring long-term growth potential and differentiation in the competitive biopharma landscape.

Margin Resilience: A 30% EBITDA Target for 2025

One of the most compelling aspects of UCB's 2024 performance is its margin resilience. The company has guided for a 30% adjusted EBITDA margin in 2025, driven by several key factors:

• Gross margin enhancement through efficient manufacturing and supply chain optimization
• Operating leverage from top-line growth, particularly in newly launched products
• Stable R&D expenses despite the high-potential pipeline
• Earnings contribution from EVENITY®, which has demonstrated strong commercial performance

UCB's financial discipline and strategic focus on efficiency have allowed it to maintain profitability even in the face of pricing pressures and biosimilar competition. The company's 2025 guidance reflects confidence in its ability to continue expanding its margins while investing in innovation.

Navigating Challenges: Biosimilars and Pricing Pressures

Despite its strong performance, UCB is not immune to the broader challenges facing the biopharma industry. Biosimilars, in particular, pose a significant threat to pricing power, with studies estimating that biosimilar savings in the U.S. from 2021 to 2025 could total $38.4 billion. However, UCB has taken proactive steps to mitigate these risks:

• Major investment in a new biologics manufacturing facility in the U.S., expected to deliver an economic impact of approximately $5 billion
• Expansion of U.S. operations, including a 73% increase in its U.S. workforce since 2017
• Partnerships with U.S. Contract Manufacturing Organizations (CMOs) to ensure supply chain resilience
• Strategic acquisitions, such as Zogenix Inc., which added FINTEPLA® to its portfolio for the treatment of Dravet Syndrome and Lennox-Gastaut Syndrome

These initiatives demonstrate UCB's commitment to maintaining its competitive edge and navigating the evolving biopharma landscape.

Long-Term Outlook: A High-Conviction Biopharma Play

UCB's 2024 outperformance is not an isolated event but rather a continuation of its decade-long growth trajectory. With a strong balance sheet, a robust pipeline, and a diversified portfolio of high-potential therapies, the company is well-positioned for long-term success. The 30% EBITDA margin target for 2025 reflects UCB's confidence in its ability to maintain profitability and deliver value to shareholders.

Investors seeking exposure to the biopharma sector should consider UCB as a high-conviction play. The company's strategic product launches, R&D innovation, and margin resilience create a durable value proposition that is well-suited for long-term investors.

In conclusion, UCB's 2024 performance demonstrates its ability to navigate the complex biopharma landscape while delivering strong financial results. With a decade-long growth trajectory and a clear path to a 30% EBITDA margin in 2025, UCB represents a compelling long-term investment opportunity for those willing to ride the wave of innovation in the biopharmaceutical industry.