Stock market today: S&P 500 drops for fifth day as focus shifts to Powell’s speech
Introduction & Market Context
Oncopeptides AB (OTC:ONCO) presented its Q2 2025 financial results on August 21, 2025, highlighting strong sales growth but also revealing financial challenges that prompted a significant stock price decline. Shares fell nearly 20% following the presentation as investors reacted to the company’s announcement of a SEK 150 million rights issue despite the positive sales trajectory.
The Swedish biotech company, which specializes in peptide-drug conjugates for treating multiple myeloma, reported its third consecutive quarter of double-digit growth while continuing to expand its European commercialization efforts for its lead product Pepaxti.
Quarterly Performance Highlights
Oncopeptides reported net sales of SEK 19.2 million for Q2 2025, representing a 135% increase compared to SEK 8.2 million in Q2 2024 and a 45% sequential increase from Q1 2025. This marks the third consecutive quarter with over 30% growth, demonstrating strong commercial momentum for Pepaxti in European markets.
As shown in the comprehensive financial summary below, the company reduced its operating loss to SEK 56.2 million from SEK 73.3 million in the same period last year:
Despite the improved sales performance, Oncopeptides ended Q2 with a cash position of SEK 70.1 million, down significantly from SEK 160 million at the end of Q1 2025. The company’s liquidity trend shows a concerning downward trajectory, necessitating the announced rights issue:
Operating expenses remained relatively stable at SEK 73.8 million in Q2 2025 compared to SEK 80.4 million in Q2 2024, reflecting the company’s focus on cost efficiency while supporting commercial expansion:
European Commercialization Progress
Oncopeptides’ European commercialization strategy continues to gain traction, with Pepaxti now available in Germany, Austria, Spain, and Italy. The company reported that more than 450 patients have been treated with Pepaxti since its EMA approval in 2022.
The presentation highlighted several drivers of European growth, including innovative pricing agreements, national guideline updates, inclusion in EHA/EMN guidelines, and growing real-world data supporting Pepaxti’s effectiveness:
In Germany, Oncopeptides’ most established market, physician awareness and willingness to prescribe Pepaxti have increased dramatically. A survey of German physicians showed that 93% would now use Pepaxti in fourth-line or fifth-line treatment, up from 62% in September 2024:
The company has also made significant progress in securing regional access in Spain (97%) and Italy (80%), enabling broader market penetration. To optimize its commercial efforts in Spain, Oncopeptides announced a strategic partnership with SD Pharma to complement its efforts and broaden physician reach.
Strategic Initiatives
Oncopeptides announced a SEK 150 million rights issue, guaranteed up to SEK 130 million, with subscription commitments of SEK 16 million. According to the presentation, the proceeds will be used to:
The company is also in advanced discussions with potential partners for the Japanese market, which represents a significant opportunity with approximately 7,000 new multiple myeloma cases per year and favorable pricing conditions. CEO Sofia Heigis indicated that a deal would include an upfront payment, several milestone payments, and a double-digit royalty:
Beyond Pepaxti, Oncopeptides is advancing its pipeline assets, including OPD5 and OPDC3, which are peptide-drug conjugates with potential applications across multiple indications. The FDA has removed the clinical hold on OPD5, allowing development to proceed.
Forward-Looking Statements
Oncopeptides maintains that it is on track to achieve cash flow positivity by the end of 2026, based on projected quarter-over-quarter sales growth of 30-40%. The company estimates the European market potential for Pepaxti at approximately SEK 1.5+ billion annually.
The presentation concluded with a summary of the investment case for Oncopeptides, highlighting its growth momentum, European market potential, strategic expansion plans, and pipeline value drivers:
While the company’s sales growth narrative is compelling, investors appear concerned about the pace of cash burn and the dilutive impact of the rights issue. With a current cash position of SEK 70.1 million and quarterly operating expenses of approximately SEK 75 million, the additional funding is critical to sustaining operations until the projected cash flow positive milestone in late 2026.
The market’s negative reaction to the Q2 results suggests skepticism about Oncopeptides’ ability to maintain its growth trajectory while managing its financial challenges. However, if the company can successfully execute its European commercialization strategy, secure a favorable Japanese partnership, and advance its pipeline assets, it may eventually deliver on its promise of sustainable profitability.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.