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Investing.com -- Orion stock rose 1.5% during intraday trading after the pharmaceutical company upgraded its 2025 financial outlook, citing stronger-than-expected performance from its cancer drug Nubeqa.
The Finnish drugmaker raised its 2025 net sales guidance to €1,630m-€1,730m from the previous €1,550m-€1,650m range. The company also increased its operating profit (EBIT) outlook to €400m-€500m, up from €350m-€450m previously.
According to Orion, the improved outlook is driven by Nubeqa’s product sales and royalty income growing faster than anticipated during the first half of the year. The company expects this positive momentum to continue through the remainder of 2025.
The revised guidance suggests potential consensus estimate upgrades of up to 5% for sales and approximately 16% for EBIT. Orion also noted that a €180 million milestone payment from partner Bayer (OTC:BAYRY) related to Nubeqa sales could potentially be recorded in 2025, earlier than the original expectation of 2026. However, due to timing uncertainty, this payment is not included in the current outlook.
Jefferies analysts commented on the market reaction: "We think lacklustre reaction in shares likely reflects that investor expectations are ahead of cons, but we see scope for further upside."
The upgraded outlook positions Orion’s new targets above current market consensus of €1,642m for net sales and €431m for EBIT, indicating stronger performance than analysts had previously anticipated.
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