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Introduction & Market Context
Oncopeptides AB (STO:ONCO) presented its Q3 2025 earnings results on November 5, showcasing strong sales growth for its multiple myeloma treatment Pepaxti, despite facing market skepticism. The company's stock fell 13.99% to close at SEK 4.98, significantly closer to its 52-week low of SEK 1.10 than its high of SEK 6.96, indicating investor concerns despite the positive operational metrics.
CEO Sofia Heigis and CFO Henrik Bergentoft led the presentation, highlighting the company's fourth consecutive quarter of growth and path toward profitability, while acknowledging seasonal challenges in European markets.
Quarterly Performance Highlights
Oncopeptides reported net sales of SEK 20.2 million in Q3 2025, representing a 174% increase compared to SEK 7.4 million in Q3 2024. The company maintained an impressive 99% gross margin, demonstrating the strength of its scalable business model.
As shown in the following financial summary:
Operating expenses decreased by approximately 3% both for the quarter and the nine-month period, reflecting disciplined cost management. The company's EBIT improved from -SEK 61.3 million in Q3 2024 to -SEK 47.1 million in Q3 2025, showing progress toward profitability despite remaining in negative territory.
A detailed breakdown of operating expenses reveals shifting priorities within the organization:
Sales and marketing costs increased from SEK 29.8 million to SEK 31.9 million year-over-year, reflecting investments in the Italian market following earlier expansion in Spain and Germany. Meanwhile, R&D expenses decreased from SEK 21.9 million to SEK 17.3 million due to no ongoing clinical studies, though the company continues advancing its pre-clinical portfolio.
Liquidity Position and Capital Raise
Oncopeptides ended Q3 with a cash position of SEK 147.9 million, bolstered by a successful rights issue that was oversubscribed to approximately 157%. This capital infusion is expected to provide runway until the company reaches cash flow positivity, targeted for the end of 2026.
The following chart illustrates the company's liquidity position over time:
The recent rights issue injected approximately SEK 150 million before issue-related costs, strengthening the balance sheet and supporting ongoing commercialization efforts in Europe and potential expansion into new markets.
European Commercialization Progress
Oncopeptides continues to expand its European presence, with Germany, Spain, and Italy as key markets. The company has secured full regional access in Spain and achieved 90% hospital-level access in Italy. By the end of Q3 2025, more than 550 patients had been treated with Pepaxti since its EMA approval in 2022.
The following graph demonstrates the company's European sales growth trajectory:
Market penetration has expanded significantly across Europe over the past two years, as visualized in the sequential maps:
In Germany, Oncopeptides' largest market, the company has steadily broadened its prescriber base despite facing seasonal challenges, particularly during the August vacation period:
Strategic Initiatives
Oncopeptides outlined its three-pronged approach to growth: expanding Pepaxti in Europe, pursuing partnerships for international markets, and advancing its pipeline assets.
The company's strategic framework is illustrated in this concentric model:
Particularly notable are the advanced partnership discussions for Japan, which the company expects to conclude during 2025. The potential deal would include an upfront payment, several milestone payments, and a double-digit royalty structure.
The global commercialization and partnership landscape shows Oncopeptides' current market presence and expansion targets:
Forward-Looking Statements
Oncopeptides estimates the European market potential for Pepaxti at approximately SEK 1.5 billion annually, with patent protection extending to 2037. The company projects reaching peak sales in key European markets by 2028 and achieving profitability by the end of 2026, contingent on continued sales growth.
Beyond Pepaxti, Oncopeptides is developing next-generation Peptide-Drug Conjugates (PDCs) and NK cell engagers through its SPIKE platform, targeting applications in multiple myeloma and potentially other indications including solid tumors and autoimmune diseases.
The company summarized its investment case with the following key points:
Oncopeptides will provide further details on its strategic initiatives during an upcoming Capital Markets Update scheduled for November 13, 2025.
Analyst Perspectives
Despite the impressive sales growth, market reaction to Oncopeptides' results was negative, with the stock declining nearly 14%. This disconnect appears to reflect investor concerns about the timeline to profitability and potential challenges in market expansion.
During the earnings call Q&A session, analysts reportedly questioned the impact of European vacation periods on sales performance and the consistency of the company's cost structure. The seasonal variability in healthcare professional activity was acknowledged as a factor affecting quarterly results, with July and September showing stronger performance than August.
While Oncopeptides maintains its trajectory toward profitability by end-2026, the market appears to be taking a wait-and-see approach, particularly regarding the company's ability to maintain its growth momentum and successfully expand beyond its current markets.
Full presentation:
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