Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Shares of Orion Oyj (HE:ORNAV) rose more than 4% on Friday after the company reported second-quarter earnings that topped expectations, with growth driven by its prostate cancer drug, Nubeqa.
Net sales for the quarter ended June totaled €416.5 million, a 9% increase over the company-compiled consensus of €382.1 million.
Operating profit (EBIT) reached €104.6 million, 12% ahead of the consensus estimate of €93.2 million.
Net profit stood at €82.5 million, also 12% above the forecast of €73.5 million, according to Jefferies equity research published July 18.
Nubeqa contributed €140.1 million to revenue, consisting of €44.3 million in product sales and €95.7 million in royalties. This was in line with Jefferies’ prior projection.
The company reiterated its 2025 guidance. It expects full-year net sales between €1.63 billion and €1.73 billion, compared to the previous range of €1.55 billion to €1.65 billion.
EBIT guidance remains €400 million to €500 million, revised earlier from €350 million to €450 million.
The updated midpoints represent a 3% shortfall in sales and an 18% shortfall in EBIT compared with consensus, which was compiled before the guidance revision.
The forecast does not include a potential €180 million milestone payment from Bayer (OTC:BAYRY) tied to Nubeqa, which could be recognized in either 2025 or 2026.
Orion has set a 2024–2028 target for net sales to grow at a compound annual rate of at least 8%, excluding a €70 million Nubeqa milestone expected in 2024.
EBIT is projected to grow faster than net sales. This compares with Visible Alpha consensus forecasting 11% sales CAGR and 26% EBIT CAGR, excluding a combined €130 million in 2024 milestone and provision items.
Jefferies said attention during the company’s upcoming earnings call will likely center on the outlook for Nubeqa through year-end and updates on pipeline candidates ODM-105 and opevesostat.