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Introduction & Market Context
Orion Oyj B (HEL:ORNBV) reported strong financial results for the first quarter of 2025, with significant growth in both net sales and operating profit. The company’s stock responded positively, rising 3.95% to €49.44 following the April 23 presentation, continuing the momentum seen in previous quarters. This performance builds on Orion’s strong finish to 2024, when the company saw 35.3% year-over-year net sales growth in Q4.
Quarterly Performance Highlights
Orion’s Q1 2025 financial results demonstrated robust growth across key metrics. Net sales increased by 14.9% to €354.6 million compared to €308.5 million in Q1 2024. More impressively, operating profit surged by 39.1% to €77.9 million from €56.0 million in the same period last year, resulting in an operating profit margin expansion from 18.2% to 22.0%.
As shown in the following chart of quarterly financial highlights:
The company did report a 29.7% decrease in operating cash flow per share, which fell to €0.55 from €0.78 in Q1 2024. However, this was overshadowed by the strong performance in other key metrics.
The net sales growth was primarily driven by four of Orion’s five business divisions, with only Fermion showing a decline. The following bridge chart illustrates the contributions from each division:
Similarly, the operating profit bridge reveals the key factors behind the 39.1% profit growth:
Product Performance
Nubeqa® (darolutamide) continues to be the standout performer in Orion’s portfolio, with product sales to Bayer (OTC:BAYRY) increasing by an impressive 84.9% to €91.5 million compared to €49.5 million in Q1 2024. This strong performance follows Nubeqa® achieving blockbuster status in 2024, when it exceeded €1 billion in global sales.
The following chart highlights Nubeqa®’s remarkable growth trajectory:
Beyond Nubeqa®, Orion’s Branded Products division also performed well, with sales increasing by 9.7% to €77.0 million. Within this division, the Easyhaler® product portfolio grew by 8.1%, driven by a 14.9% increase in the budesonide-formoterol combination product. The respiratory segment represents 60% of Branded Products sales, as illustrated in the following breakdown:
Orion’s top 10 products show the company’s diversified revenue streams, with Nubeqa® leading the pack:
Strategic Initiatives
Orion announced plans to open a new Biologics R&D Centre in Cambridge, UK in 2025, signaling the company’s commitment to expanding its capabilities in biological therapies. This strategic move aligns with industry trends toward increased focus on biologics and could open new growth avenues for the company.
The company’s clinical development pipeline remains robust, with multiple Phase III trials underway. A notable addition since Q4 2024 is the LEVEL/TNX-103 (oral levosimendan) for PH-HFpEF, a Phase III trial with Tenax Therapeutics. The pipeline includes several promising candidates targeting prostate cancer, solid tumors, and insomnia:
On the sustainability front, Orion published its first CSRD report in March and highlighted a 21% reduction in Scope 1 and Scope 2 emissions, along with a 94% completion rate for Code of Conduct training.
Forward-Looking Statements
Orion provided a positive outlook for 2025, projecting net sales between €1,550–1,650 million and operating profit between €350-450 million:
This guidance aligns with the company’s performance trajectory, supported by continued growth of Nubeqa® and other key products. During the Q4 2024 earnings call, CEO Lisa Hurome had noted that "Nubeka became a blockbuster during 2024, exceeding EUR 1,000,000,000 of sales," setting the stage for continued strong performance in 2025.
The company also announced its upcoming Capital Markets Day in Helsinki on May 22, 2025, where it plans to provide more detailed insights into its business strategy and R&D pipeline.
Divisional Performance
While Innovative Medicines and Branded Products were standout performers, Orion’s other divisions showed mixed results. Generics and Consumer Health saw modest growth of 0.7% to €131.7 million, with generic prescription drugs increasing from €96.8 million to €98.4 million.
Animal Health rebounded strongly with a 10.4% increase in sales to €35.2 million, despite a decrease in the animal sedatives product group. This growth is particularly notable given the strong comparison period.
Fermion was the only division to show a decline, with external net sales decreasing by 27.3% to €13.5 million. The company attributed this to increased capacity allocation for internal use and timing of deliveries.
The following chart shows the performance of Animal Health and Fermion:
Conclusion
Orion’s Q1 2025 results demonstrate continued momentum following a strong 2024, with Nubeqa® remaining the primary growth driver. The company’s diversified business model, robust clinical pipeline, and strategic investments in biologics position it well for sustained growth. With a positive outlook for 2025 and expanding profit margins, Orion appears well-positioned to capitalize on its current momentum.
Investors will be looking forward to the upcoming Capital Markets Day in May for more detailed insights into the company’s long-term strategy and growth prospects, particularly regarding its biologics initiatives and clinical development pipeline.
Full presentation:
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