Orexo Interim Report Q3 2024
Rhea-AI Summary
Orexo reported Q3 2024 financial results with total net revenues of SEK 136.5m, down from SEK 156.1m in Q3 2023. The company posted a negative EBITDA of SEK -0.7m, improving from SEK -9.5m last year. US Commercial segment revenues declined to SEK 131.0m from SEK 140.4m. Net earnings deteriorated to SEK -41.9m from SEK -33.3m. The FDA requested additional technical data for OX124, their high-dose naloxone rescue medication. Despite challenges, including higher legal costs and lower Zubsolv sales, the company maintained its 2024 financial guidance and initiated a phase 1 study for OX640 in allergic rhinitis patients.
Positive
- EBITDA improved to SEK -0.7m from SEK -9.5m year-over-year
- Operating expenses decreased by 15%
- Operating cash flow improved to SEK -13.4m from SEK -21.9m
Negative
- Total net revenues declined to SEK 136.5m from SEK 156.1m
- Net earnings deteriorated to SEK -41.9m from SEK -33.3m
- US Commercial segment revenues decreased to SEK 131.0m from SEK 140.4m
- Cash position declined to SEK 114.9m from SEK 184.2m year-over-year
- FDA delayed OX124 approval requesting additional data
UPPSALA,
Q3 2024 highlights
› Total net revenues of
› EBITDA of
› Net earnings of
› US Commercial segment net revenues of
› Cash flow from operating activities of
› Earnings per share before and after dilution amounted to
› Orexo AB´s sustainability work ranked among the top five percent of all 70,000 businesses worldwide reviewed by EcoVadis
› For OX124, our high dose naloxone rescue medication for opioid overdose, a complete response letter was received from the FDA requesting additional technical data on the final commercial product as well as further information from a new human factors study (HF study). A new HF study was successfully conducted in July.
› The financial guidance for 2024 reiterated.
Important events after the end of the period
› An exploratory phase 1 clinical study was initiated for OX640 in participants with allergic rhinitis.
SEK m unless otherwise stated | 2024 Jul-Sep | 2023 Jul-Sep | 2024 Jan-Sep | 2023 Jan-Sep | 2023 Jan-Dec |
Net revenues | 136.5 | 156.1 | 429.7 | 472.8 | 638.8 |
Cost of goods sold | -20.1 | -22.8 | -49.7 | -68.8 | -88.9 |
Operating expenses | -138.1 | -161.9 | -422.3 | -505.0 | -659.5 |
EBIT | -21.7 | -28.6 | -42.2 | -100.9 | -109.5 |
EBIT margin | -15.9 % | -18.4 % | -9.8 % | -21.3 % | -17.1 % |
EBITDA | -0.7 | -9.5 | 20.2 | -44.8 | -32.5 |
Earnings per share, before dilution, SEK | -1.21 | -0.97 | -2.51 | -3.19 | -3.73 |
Earnings per share, after dilution, SEK | -1.21 | -0.97 | -2.51 | -3.19 | -3.73 |
Cash flow from operating activities | -13.4 | -21.9 | -38.8 | -92.4 | -95.0 |
Cash and cash equivalents | 114.9 | 184.2 | 114.9 | 184.2 | 171.0 |
CEO Comments in brief
The third quarter has been challenging, starting with the delay of OX124's approval and, from a financial perspective, we had a marginally negative EBITDA. This negative EBITDA result was primarily due to higher legal costs, retrospective adjustments of the Abstral® royalties and lower Zubsolv® sales. The development was partly compensated by a 15 percent drop in expenses. Zubsolv prescription volumes in the US are stable, but sales were negatively impacted by a reduction in inventory levels at wholesalers and a weakening USD.
Looking beyond the third quarter, I am pleased to see Zubsolv sales continuing to show stable demand and growth in some segments. We remain optimistic that we can get OX124, our high dose rescue medication for opioid overdose, approved and expand treatment alternatives for patients suffering from opioid use disorder. In the quarter we made progress in our business development efforts, attracting new companies to leverage our AmorphOX® technology, and we continue to see interest in OX640. Also, there are signs that we are making some progress to resolve the legal disputes in the US.
Nikolaj Sørensen
President and CEO
Contact persons quarterly report
Nikolaj Sørensen, President and CEO,
Fredrik Järrsten, EVP and CFO
ena Wange, IR & Communications Director
Tel: +46 18 780 88 00, +1 855 982 7658,
E-mail: ir@orexo.com.
Presentation
On October 24, at 2 pm CET analysts, investors and media are invited to attend a presentation, incl. a Q&A.
To attend via teleconference where you can ask questions verbally:
https://conference.financialhearings.com/teleconference/?id=50048738
When registered you will be provided phone numbers and a conference ID to access the conference.
To attend via webcast:
https://ir.financialhearings.com/orexo-q3-report-2024
Prior to the call, presentation material will be available on the website under Investors/Reports/ Archive.
This information is information that Orexo AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact persons set out above at 8 am CET on October 24, 2024.
This information was brought to you by Cision http://news.cision.com.
https://news.cision.com/orexo/r/orexo-interim-report-q3-2024,c4055702
The following files are available for download:
Orexo Q3 2024 Interim Report |
View original content:https://www.prnewswire.com/news-releases/orexo-interim-report-q3-2024-302285670.html
SOURCE Orexo
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