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Investing.com -- Shares of Camurus (STO:CAMX) tumbled by 8.5% as the company reported first-quarter revenues that fell short of consensus estimates.
The Swedish pharmaceutical company disclosed that its 1Q revenues were 6% behind expectations, primarily due to a 29% shortfall in Brixadi royalties and a slight 1% miss on Buvidal sales. Despite the revenue miss, Camurus achieved a 21% profit before tax (PBT) and a 17% earnings per share (EPS) beat, attributed to reduced spending on sales, general, and administrative (SG&A) expenses, as well as research and development (R&D).
For the first quarter, Camurus posted revenues of SEK558 million, which did not meet the consensus forecasts. The company highlighted that Brixadi royalties came in at SEK74 million, around 11% lower than the previous quarter, mainly due to currency effects. However, at constant exchange rates (CER), the royalties remained broadly flat.
Camurus noted a 13% contraction in the overall US buprenorphine market compared to the fourth quarter of the previous year, which impacted new patient initiations and the overall number of patients in treatment. This market downturn was ascribed to a variety of factors, including insurance deductible resets, changes in Medicaid enrolment, and federal budget cuts affecting parts of the correctional system.
In contrast, Buvidal sales showed a positive trajectory, with a 30% increase at CER from the previous quarter, reaching SEK485 million. The growth was driven by increased penetration in markets like Germany, the UK, Australia, and the Nordics, with patient numbers rising from 60,000 to 63,000. New launches in Switzerland and Luxembourg, as well as upcoming sales in Portugal and a recent marketing authorization in Serbia, are expected to bolster future sales.
Despite the mixed first-quarter performance, Camurus reiterated its 2025 outlook, with revenue and PBT projections remaining in line with consensus at the midpoint and towards the top-end, respectively. The company anticipates R&D spending to remain consistent with 2024 levels, with consensus estimates aligned.
Camurus also maintains its ambitious 2027 target, aiming for a five-fold increase in revenue compared to 2022, which would equate to approximately SEK4.8 billion, and to achieve an operating margin of around 50%.
The company’s cash position has shown a marginal increase to SEK2,878 million from the previous quarter’s SEK2,853 million, providing a stable financial base as it navigates the current challenges and seeks to capitalize on its growth strategies in the coming years.
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