Orexo: Blue Skies
Edison | Oct 29, 2018 08:55AM ET
The growing US Zubsolv franchise continues to drive Orexo’s quarterly performance. Total Q3 revenue growth of c 30% puts Orexo in an attractive position with potential business development partners. Orexo’s Q318 results were the first since Zubsolv’s exclusivity was strengthened for another 13 years in the US, so with Zubsolv sales growing by 1.2% q-o-q in Q3, against the backdrop of a 0.3% decline in the buprenorphine/naloxone market volumes, and continued material CoGS improvements, Orexo AB (ST:ORX) is moving from strength to strength.
Q318 results
Total net revenues in Q318 were SEK216.6m, a 30.3% y-o-y increase, slightly below our estimates due to lower royalties from Abstral and Edluar. The main event – Zubsolv US revenue – was SEK165.4m (up 36.6% y-o-y in SEK terms, 24.3% in local currency), SEK4.4m above our estimates. The manufacturing efficiency programme reduced CoGS to SEK42.4m; lower than our recently reduced Q3 estimates of SEK49.6m and including a SEK1.5m stability testing cost. Gross cash balance at end-Q3 was SEK516.6m (SEK494.8m at end-Q218). Selling expenses of SEK51.5m were one-third lower than our estimates (despite integrating the US contract salesforce), as were R&D expenses, which, at SEK37.5m, were c 18% below our estimates. Administrative expenses of SEK50.8m were 60% higher than our estimates due to the SEK31.2m legal expense for the IP litigations. We have made adjustments accordingly but keep to FY18 opex guidance of c SEK500m. Profitability was enhanced by a SEK31.8m tax adjustment, which we are assuming was not a one-off and in Q318, it more than offset the IP litigation costs.
To read the entire report Please click on the pdf File Below.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.