Earnings call transcript: Camurus AB Q2 2025 earnings beat expectations

Camurus AB reported its second-quarter earnings for 2025, revealing a robust financial performance with earnings per share (EPS) of 4.08, significantly surpassing the forecasted 3.27. The company’s revenue also exceeded expectations, reaching 675.5 million SEK, compared to the forecast of 629.3 million SEK. According to InvestingPro data, the stock is trading near its 52-week high, with impressive gross profit margins. Despite this positive financial outcome, the stock saw a slight decline of 1.09% in the latest trading session, closing at 690 SEK.

Key Takeaways

• Camurus AB achieved a 24.77% earnings surprise, significantly beating EPS expectations.
• Revenue growth was strong, with a 7.34% surprise over forecasts.
• The company received EU approval for OXESSA, marking a significant milestone.
• A strategic partnership with Eli Lilly was announced, enhancing future growth prospects.

Company Performance

Camurus AB demonstrated a solid performance in Q2 2025, with a substantial year-over-year revenue growth of 52%. The company continues to strengthen its market position, particularly in the long-acting injectable buprenorphine market, where it holds an estimated 25% market share. InvestingPro analysis reveals the company maintains a "GREAT" financial health score of 3.3, with liquid assets exceeding short-term obligations. Despite a slight quarter-on-quarter decline in product sales, the overall financial health remains strong, supported by a high gross margin of 93.9%. For deeper insights into Camurus AB’s financial health and valuation metrics, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Financial Highlights

• Revenue: 675.5 million SEK, a 52% increase year-over-year.
• Earnings per share: 4.08, surpassing the forecast by 24.77%.
• Gross margin: 93.9%, up by 106 basis points year-over-year.
• Cash position: 3,350 million SEK.

Earnings vs. Forecast

Camurus AB’s actual EPS of 4.08 beat the forecast of 3.27 by a notable 24.77%. Revenue also exceeded expectations, with a 7.34% surprise, highlighting the company’s effective execution and market demand for its products.

Market Reaction

Despite the positive earnings surprise, Camurus AB’s stock experienced a slight decline of 1.09%, closing at 690 SEK. InvestingPro analysis indicates the stock is trading at high earnings and EBITDA multiples, with RSI suggesting overbought territory. This movement may reflect investor caution regarding future growth sustainability or broader market conditions. InvestingPro subscribers have access to 18 additional proprietary tips and comprehensive valuation metrics for more informed investment decisions.

Outlook & Guidance

Camurus AB maintains its full-year 2025 guidance, targeting significant growth in its Buvidal and Brixadi products in the second half of the year. The company is also preparing for the launch of OXESSA in early 2025, which is expected to further bolster its market position.

Executive Commentary

Fredrik Thibault, CEO, stated, "Camurus had an excellent quarter with record high revenues," reflecting the company’s strong operational performance. Richard Jameson, CCO, reiterated the company’s ambition to reach 100,000 Buvidal patients by 2027, emphasizing ongoing growth efforts.

Risks and Challenges

• Potential market saturation in key therapeutic areas.
• Macroeconomic pressures affecting consumer demand.
• Regulatory challenges in expanding new product approvals.

Q&A

During the earnings call, analysts inquired about the impact of Medicaid on the opioid treatment market and sought clarification on Brixadi’s sales growth dynamics. The strategic partnership with Eli Lilly was also a focal point, with discussions on potential market expansion strategies.

Full transcript - Camurus AB (CAMX) Q2 2025:

Einar, Conference Moderator: Session. Now I’ll hand the conference over to CEO, Fredrik Thibault. Please go ahead.

Fredrik Thibault, CEO, Camurus: Thank you, Einar, and hello, everyone. Welcome to our second quarter earnings call. Here are our forward looking statements. So the agenda for our call today is a summary of highlights in the quarter, followed by financial and commercial performance reviews, then an update on the pipeline and business development before finishing off with Q and A. So with me to provide the financial update is John Garai, CFO.

Also present are Richard Jameson, Chief Commercial Officer and Anders Waldshort, incoming CFO. So Chemerus had a successful second quarter with good performances across our business. Financially, we delivered all time record revenues, high profitability, further strengthening our cash position for planned expansions and pipeline investments. And on the corporate side, we entered a strategically important license agreement for long acting incretins with Eli Lilly, as you know, a world leader in cardiometabolic disease. Commercially, our teams continued execution with pivotal growing in Europe and the rest of the world, Brixadi regaining momentum after a quiet first quarter And in the R and D pipeline, key milestones were achieved.

Of course, the EU approval of OXISSA for the treatment of acromegaly was a clear highlight, which is now the first of a new generation products based on our innovative fluid crystal technology. We also received positive results from the Positano study and also the ACROEnova extension trials. So with this notable progress, I hand over to John for actually his final review of our financial performance. So Yes, here,

John Garai, CFO, Camurus: indeed, Frederic. Thanks a lot. Frederic, and good afternoon, everyone. Camurus delivered a strong financial performance in Q2, and I would like to share now the main highlights. Camurus achieved million total revenue in the quarter, delivering a 52% growth compared to the same period last year.

Product sales reached SEK470 million, growing 17% versus prior year, but declining 3% versus prior quarter. Swedish kronor appreciation impacted reported figures negatively by six points versus prior quarter and nine points versus same period prior year. BREXADI sales in The U. S. Represented an million royalty income in the quarter, 100% versus prior year and 21% versus prior quarter.

Swedish kronor appreciation has impacted negatively royalty reported figures by 11 points versus prior quarter. Company profit before taxes was SEK $3.00 7,000,000, representing 45% of our sales and growing 195% versus prior year. Earnings per share after dilution was SEK 4.08 equivalent to a profit after tax of SEK $245,000,000 in the quarter. Finally, our cash position was SEK 3,350,000,000.00 at the end of the quarter. Moving to next slide, we can see the main components of our profit before taxes.

Company gross margin reached 93.9% in the quarter, representing an improvement of 106 basis points versus same period prior year. The improvement was driven by two major factors. Firstly, the Saudi royalty and license revenue from collaboration agreement with Lilly represented a 146 basis points positive impact. And secondly, FX represented again a negative impact of 40 basis points in the quarter. No material variances occurred in Buvidal gross margin.

Total OpEx reached SEK $343,000,000 growing 4% versus same period prior year driven by following factors. Marketing and distribution investment to support market penetration in own territories, expansion of Wabidar into new markets and U. S. Operations grew 2% to SEK133 million. Administrative expenses aligned with corporate evolution to substantiate company development grew 118% versus same period last year to million.

R and D investment reached SEK151 million, representing a 13% decline versus same period prior year, driven by lower milestones in our ongoing clinical trials and acromegaly study ramp down. Company profit before taxes reached SEK $3.00 7,000,000, growing 195% versus prior year, representing 45% of our sales. Company cash position at quarter end was SEK 3,350,000,000.00. Camus improved its cash position by SEK $05,000,000,000 in the quarter driven by two main factors. Firstly, company operations generated SEK $349,000,000.

And secondly, a stock option program exercised by employees delivered 126,000,000. Finally, other minor concepts as mainly lease liabilities update represented a negative impact of SEK 5,000,000. As end of quarter, Camurus has no debt. All in all, Camurus closes 2025 with a solid financial position, interesting growth opportunities. And based on financial performance to date, the company maintains the full year guidance.

Having said that, I would like to pass the word to Richard. Thank you, everyone, for your attention.

Richard Jameson, Chief Commercial Officer, Camurus: Thank you, John. So I’ll start with an update in Cameras Markets and then move over to The U. S. So Moved Out continued to grow in Cameras Markets, increasing three percent quarter on quarter 26% year on year at constant exchange rates, with performance being led by Australia, Spain and The Nordics. At the end of the period, we estimated that about sixty five thousand patients were in treatment with Buvedal.

Overall, buvidal sales are growing in accordance with internal expectations and are aligned with its contribution to our guidance. In the quarter, reported sales were affected by exchange rates with a 6% points impact, and purchase order patterns from distributors and wholesalers, while in The UK there was a short term delay in committed funding reaching the clinics. As part of our expansion plans for Buvedel, we also initiated the launch in Portugal, which has nearly 20,000 patients in opioid dependence treatment. The interest and the feedback from healthcare professionals have been very positive, and we have a clear opportunity to gain meaningful market shares over the coming years. Based on the current market development for Buvedel, we expect improved growth in the second half of the year as we address funding hurdles, improve access to treatment, and order flows are stabilised.

Now moving across The US, where Brixadi gained momentum in the second quarter. Our royalties on net sales grew 21% versus the first quarter, and reaching SEK89 million, a quarter on increase of 32% at constant exchange rate. The renewed growth reflects our US licensee Braver’s continued execution and the easing of the first quarter headwinds including seasonal prescription authorisations and the impact of last year’s cuts in federal funding in the criminal justice system. Braeburn expects Brixandi to continue its growth in the coming quarters, supported by state level initiatives to expand and improve access to OUD treatments and of course long acting injectable buprenorphine. Furthermore, Federal Medical Assistance percentage for Medicaid seems to remain unchanged at current levels, and the Budget Reconciliation Bill exempts substance use disorder patients from the work requirements.

So on that brief update, I’ll hand back to Fredrik.

Fredrik Thibault, CEO, Camurus: Okay, thank you, Richard. And then over to a pipeline update, starting with CAM twenty twenty nine, which is under development for treatment of acromegaly, gastroentropancreatic neuroendocrine tumors and polycystic liver disease. So in the quarter, we were pleased to receive a positive opinion from the CHMP recommending approval of OXUESA, the EU trade name for Camprex twenty nine in acromegaly. This was followed by a final approval by the European Commission on the June 30 for the indication of maintenance treatment in adult patients with acromegaly, who have responded to and tolerated treatment with somatostatin analogues. This is aligned with the product information of current standard of care with Sandostatin and Somatuline and provides a really good starting point for establishing OxyESA as a first line treatment of acromegaly.

So in preparation for the launch in the first EU markets estimated to early twenty twenty five, we have been active meeting with stakeholders, including having advisory boards, engaging with payers, preparing commercial and medical affairs readiness. And we have had a significant presence at key scientific meetings to communicate Accurinova results and inform about our product, including at the European Society for Endocrinology meeting in Copenhagen in May and at last week’s International Pituitary Society Congress and the ENDO meeting in San Francisco. Overall, we’re getting excellent feedback. This has included both oral presentations, posters, as well as educational programs. So adding to the existing evidence base for CAM-twenty twenty nine, in the quarter we received new compelling results from an extension study of ACRINOVA2 from a subset of patients that were treated for an additional twelve months with CAM-twenty twenty nine to a total of two years.

And these patients, they constituted two different groups, those who continued treatment with CAM-twenty twenty nine directly after finishing the ACRINOVA2 main trial. That’s there illustrated on the left side. And patients who were reinvited to treatment with CAM-twenty twenty nine after an intermediate period back on treatment with standard of care. The interesting thing with this study is that for both groups, clear improvements were seen in the response rate to IGF-one below one time upper limit of normal after switching from standard of care to treatment with CAM-twenty twenty nine for two or one years. Interestingly also, as you can see on the right hand side, a clear decrease in response rate was seen for reinvited patients when they were switched back to treatment with standard of care following a period on CAM twenty twenty nine.

And then this was, of course, reversed going the other way. So the improvement that we see in the response rate may very well be related to the high octreotide exposure provided by CAMP-twenty twenty nine. And it’s, of course, potential and very interesting for other trials, including the SORAMETO study. As in previous studies, treatment with CAM-twenty twenty nine also resulted in improvements in acromegaly symptoms and treatment satisfaction, further emphasizing the potential benefits of the CAM-twenty twenty nine treatment for patients with acromegaly. So in the quarter, we also received positive results from the Positano study in patients with polycystic liver disease.

PLD is a genetic condition, a rare genetic condition associated with progressive growth of cysts in the liver that can cause a range of symptoms and reduce the quality of life of patients. There is currently no approved treatment available for these patients. So CAM-twenty twenty nine has orphan drug designation for isolated autosomal dominant polycystic liver disease in The U. S. And Europe.

And applications are also under review for PLD associated with polycystic kidney disease, which is the larger proportion of patients with this disease condition. So the study, the positano study was a fifty three week randomized placebo controlled three arm study of two dose groups of CAM-twenty twenty nine versus placebo, in patients who had symptomatic polycystic liver disease. The primary endpoint was the relative liver volume change from baseline to week fifty three between the combined CAM-twenty twenty nine groups and the placebo. Secondary endpoints included total cyst volume, kidney volume change, polycystic liver disease symptoms and quality of life scores, as well as pharmacokinetics and pharmacodynamics, including insulin growth factor one and safety, of course. So the study met the primary endpoint showing a statistically significant relative reduction of the height adjusted liver volume from baseline to week fifty three of 4.3% with a p value of 0.044 for the combined groups versus placebo.

This was also supported by sensitivity analysis. The time evolution of the liver volume change versus placebo is shown on the figure on the right. Interestingly, in the study, we also measured the change in total liver cyst volume, which was suggested by the FDA as an alternative endpoint to total liver volume. This has to our knowledge and also to our investigators not been assessed in previous polycystic liver disease trial. As can be seen in the graph on the left hand side, the total liver cyst volume continued growing for fifty three weeks in the patients on placebo, whereas it was stabilized in CAM-twenty twenty nine treated patients.

The relative change between CAM-twenty twenty nine and placebo groups increased, and that’s on the right hand side then, to a mean of 8.7%, minus 8.7% at week fifty three in favor of CAM twenty twenty nine with a p value of 0.016. Going forward, we are continuing tomorrow in nature of these outcomes in the two point five year extension study that is currently ongoing. So overall, we are really pleased with the outcome of the Positano study, which met the primary endpoint, as well as indicated other important outcomes, including the cyst volume, and provided symptom improvements as measured by Kemer’s own developed PLDS questionnaire, and other patient reported outcome measures. We also saw a robust decrease of plasma IGF-one levels with CAM-twenty twenty nine versus placebo. The safety profile was consistent with that of other injectable somatostatin receptor ligands.

And overall, both treatment and study retention was high in the trial, and all eligible patients chose to enter the two point five year extension period after the court phase. So in summary, for CAM-twenty twenty nine, significant progress was made during the quarter. In acromegaly, the EU approval of OXESA was, of course, the highlight. The corresponding application in The U. S.

Is ready for resubmission. Following the announcement of an upcoming routine GMP inspection of the third party manufacturer by a national authority here in Q3, we have decided to appropriately await this inspection before submitting the NDA to the FDA. We believe the submission will be done during September. In Gepnet, the Sorento Phase three trial has progressed according to plan. And the randomized part of the trial is expected to be completed in the 2026 as communicated earlier.

Finally, as we already have alluded to in PLD, we are preparing for an end of Phase two meeting with the FDA to discuss this design of a registration of Phase three program of CAM-twenty 20 nine in polycystic liver disease. So alongside the advances in the CAM-twenty 29 programs, we have progressed the Phase one study of our once monthly semaglutide formulation, CAM-two thousand fifty six in patients with overweight or obesity. The last patient visit is scheduled in the third quarter and results are expected in Q4. In addition, we have entered strategically important collaboration, as noted before, a licensing agreement with Eli Lilly for the development of and commercialization of long acting incretins in the cardiometabolic space. This license agreement includes up to four Lilly proprietary compounds, which are then selected from one of the three groups, dual GIP GLP-one receptor agonist, triple GIP glucagon GLP-one receptor agonists, and an option to include amylin receptor agonists.

The agreement does not include our semaglutide development, which we intend to continue to develop separately from the Lilly collaboration. So in return for the agreement, Camrys is eligible to up to $290,000,000 in license fees, development and regulatory milestone payments, $580,000,000 in sales based milestone payments, and on top of that, a tiered mid single digit royalty on global net product sales. We are really delighted to enter into this agreement with Lilly and look forward to a productive and successful collaboration. So to conclude, cameras had an excellent quarter with record high revenues. We received EU approval for our second commercial product, OXYSA in a new therapeutic area, got positive results from both the Positano and the ACRA Nova extension studies and signed a strategically important license agreement with Lilly.

So with this, I would like to thank you all for listening and move over to Q and A. Then Einar, can you please take over the call?

Einar, Conference Moderator: Yes. Thanks, Frederic. The first question is from Christopher Ouede from SEB. Please go ahead. Your line is open.

Christopher Ouede, Analyst, SEB: Hi there. Thanks for taking my questions. I have a few. The first one is on BRIXADI, and I guess it’s in sort of parts because I’m really just trying to understand the dynamics of the market there. Do you continue to expect an acceleration of growth over the remainder of 2025?

What can you tell us about the market dynamics in general? Then in particular about why your market share of injectable buprenorphine has plateaued and what steps can be taken to gain grow share again? You mentioned in the report that the oral buprenorphine decline came as a result of injectables growth.

: Sorry. Sorry.

Christopher Ouede, Analyst, SEB: My question is, did the oral buprenorphine decline come as a result of injectables growth only, or were there other meaningful factors at play? Thanks. That’s the first one.

Fredrik Thibault, CEO, Camurus: Thank you, Christoph. Well, mean, overall, in The U. S, I mean, think the most important conclusion from this report is that growth is back in The U. S. In terms of Brixaris, and it was, I think, very strong quarter.

We had we were not sure how quickly this would return, but we are pleased with the growth that we have seen in the second quarter. Of course, the reason for this, I think, is a combination, as I indicated in the report, of the headwinds being largely overplayed in terms of the seasonal authorizations and the other points I raised in the previous quarter. And I think looking at the positive dynamics, there is a number of states that have prioritized substance use disorder treatment. I think it’s 19 states that have initiatives ongoing to increase access to treatment. So I think that can certainly be one important component of the growth drivers.

When it comes to market share, I think our most interesting question or the most interesting question is, of course, to gain share from sublingual buprenorphine because that’s the bulk of the market and that’s where we can grow. As regards to the share of the long acting injectable space, I believe, we have been in a static phase in Q1. And I think that will come and change over time. And I’m expecting to see continued growth in the segment as well. But I think that’s the response I have.

Any further comments from the team here? Does that answer your questions, Christopher?

Christopher Ouede, Analyst, SEB: Yeah. That’s that’s great. If I could ask then a quick one on OCS for acromegaly in Europe. How how should we think about the early ramp up?

Fredrik Thibault, CEO, Camurus: So I mean, we will follow a country by country approach similar to what we have done with Birvedal. So we see a large interest in the market, but obviously this is a smaller indication. And but the interest is very large. So but it will be a country by country approach.

Christopher Ouede, Analyst, SEB: Okay, great. And then so Positano, what are potential conferences you’re considering to submit an abstract to? And have you seen any signs of a dose response or differences between responses in ADP LD and ADPKD that you can kind of share?

Fredrik Thibault, CEO, Camurus: Well, when it comes to conferences, there are not any really important conferences in the late autumn or winter period. So our focus will be on the main event of the year is EASL, E A S L. And I think it will be in May next year. The abstracts are due, I mean, I think early January. So that’s going to be our focus for the main results from the study.

In terms of the response, we did not see a difference between the ADPKD patients and the so the ADPKD associated PLD and the ADPLD patients. Of course, you have to consider the fact that this is it was a small study. So you might have to have larger numbers, but our analysis did not show any difference between those patient groups.

Christopher Ouede, Analyst, SEB: Okay. And you had two dose levels, right?

Fredrik Thibault, CEO, Camurus: Yes. We will come into that later. One parameter, there is a difference that we need to further understand that and whether or not it’s more of a chance effect due to the small groups or if it is a real effect. But overall, it seemed to be a similar response between the two dose groups.

Christopher Ouede, Analyst, SEB: Got it. And then my last question would be on just the incretins. So what was your spreadsheet to CTA time, if if I may phrase it that way, for semaglutide? And how long ago did you expand the development work to include other incretins?

Fredrik Thibault, CEO, Camurus: Oh, well, I mean, in terms of we had a very rapid process from which is the start of our preclinical program for semaglutide and the clinical trial, but I don’t want to go into that. But it a quick process. And I assume that you’re alluding to or thinking about the next steps and so forth. But I mean, it’s ideally, it can be done quite quickly.

Christopher Ouede, Analyst, SEB: Okay. I mean, should we be thinking like a year or less or more?

Fredrik Thibault, CEO, Camurus: I don’t want to give I mean, because if you’re trying to use that for our partners’ timelines, I think it’s better to report them once they are once they occur. Understood. I think

: Okay. Thank you so much. Yeah.

Fredrik Thibault, CEO, Camurus: Thank you.

Einar, Conference Moderator: The next question is from Susana Kwikburner from Sanska Andersbanken. Please go ahead, Susana. Your line is open.

Susana Kwikburner, Analyst, Sanska Andersbanken: Hello. Thank you for taking my questions. I want to ask a few regarding Bouvadar. I noticed that you had 2,000 net additions of new patients in q two. That’s an average of 3,000 patients, and I think seasonally q two is also expected to be quite strong.

So perhaps starting with that, maybe, Richard, you could say a few words about that.

Richard Jameson, Chief Commercial Officer, Camurus: Yes, sure. Yes. I mean underlying demand remains strong, I think, is the point to get across. I mean, it was affecting the quarter, as I said, by various factors, including some stock, the distribution wholesalers and their ordering patterns. And there was a short term delay in The UK as the committed funding by the government hasn’t reached the clinics yet, but that we’re expecting that in the next three quarters and that would accelerate from there.

So yes, it was a little light, but I think we’ll catch up going forward.

Susana Kwikburner, Analyst, Sanska Andersbanken: So this is a stocking effect delayed effect. It’s not something representing saturation of the market or something like that?

Richard Jameson, Chief Commercial Officer, Camurus: Yes, that’s correct.

Susana Kwikburner, Analyst, Sanska Andersbanken: Okay. As a follow-up question, I wanted to ask about the Eli Lilly deal. Going forward, what kind of ability will you actually have to shed progress in this? Are we going to get any press releases? Or is the new float completely owned by Eli Lilly?

Fredrik Thibault, CEO, Camurus: Well, I mean, we will report material developments as a part of our obligations as a listed company and that will be things relating for to revenue streams as well as major clinical events or clinical events, I would say. So we are expecting to be able to report continuously on more important events, but perhaps not on less so.

Susana Kwikburner, Analyst, Sanska Andersbanken: Finally, on your guidance that you haven’t changed since the beginning of the year. Given the weaker Brixari sales in Q1, but now the upfront payment for the Yireille deal, you haven’t made any revisions. How should we think about the second half of the year? Is there going to be a clear pickup from both Uvedal and Brixadi? Or how do you expect to reach your top line guidance?

Fredrik Thibault, CEO, Camurus: So I think it’s important that we have stated and this is also the information we have received from our partner in The U. S. Is that we are expecting growth to continue in the third and fourth quarter. Richard just said that we are also expecting to see growth in the second half of the year for BIVRAL. So both of those are, of course, key considerations when we have reviewed our and updated our guidance.

And they are major components of that.

Einar, Conference Moderator: The next question is from Sean Homer from Jefferies. He disappeared.

Fredrik Thibault, CEO, Camurus: So please

Einar, Conference Moderator: come by. Your line is open.

Victor, Analyst, Jefferies: Victor? Okay. Yes. Yes. Hi.

Thanks for taking my question. Yes. So a quick one maybe on Boubidol. You mentioned UK with a lane funding. Will that be back already in Q3?

Or will you believe that, that will linger on for some more quarters? I don’t really understand your answer to an earlier question. It would also be nice to get any update on Germany and that reimbursement situation as well. Thank you.

Richard Jameson, Chief Commercial Officer, Camurus: Yes. Sure. I mean, so so the the government have committed the funding for treatment in opioid dependence for the for this coming year, and and it is just a a bureaucratic slowness in in that money moving from government departments into the clinic. So that’s why we’re we’re we’re positive that it’s gonna change, and we expect it to come in the next three quarters because the NHS here runs from March to April. So we certainly expect to see in the next two quarters this year a pickup as that money comes in.

Germany? Oh, in Germany yeah. Germany, we’re progressing. I mean, we still have the same remuneration challenge, but we know there’s movement. It’s not something we’re involved with, of course, but there’s there’s movement there to try and resolve that issue.

There’s ongoing pilots in a number of areas, so we’re watching the space carefully on that and are expecting a resolution relatively quickly, hopefully.

Victor, Analyst, Jefferies: Okay. And also a question here on the Lilly deal. I know how much you can disclose around this. But I just wanted to get some more details around how this deal materialized. Did you speak to other parties here before this deal was done?

And also in terms of the upfront at face value, it’s a great deal, but it just looks like the upfront is quite small compared to other deals done in this space. So any comment you can give on the rationale of the financial structure of this deal is the upfront versus the longer term milestone dynamic that because of the sales potential royalties that could come up from this in the future, is that what attracted you and made you do the deal in the structure that you did rather than demand a bigger upfront, etcetera? I just wanted to get some more details there, if it’s possible.

Fredrik Thibault, CEO, Camurus: Yes, sure. I mean, on the financials first of all, on the financials, I can say that we focus on other things than the short term. Our financial situation is, as you see, strong. So we have focused on other aspects of the transaction. So that’s the main reason for the milestones.

When it comes to other discussions, I cannot unfortunately, Victor, as you understand, comment on that. But we are very pleased with the structure of the transaction that we have now because it fulfills our purpose with the deal. I can’t say more than that.

Victor, Analyst, Jefferies: Okay. Yes, I fully understand. And also, had a final question. I guess, the market now sees a bit more of your platform potential after the Lilly deal. So I just wanted to, ask a quick question of, of your of your program with your gonadotropin releasing hormone agonist with a fluid crystal.

What’s the next step here? What’s the opportunity in terms of perhaps market size, unmet need, etcetera, especially in comparison with other current long acting formulations? ChemCV, as you know, every six months administration will have Lupron in this space, etcetera.

Fredrik Thibault, CEO, Camurus: Don’t think I mean

Victor, Analyst, Jefferies: Any comment there would be.

Fredrik Thibault, CEO, Camurus: Yes. To be quite frank, it’s not the focus area for us right now. It’s more of an opportunistic approach to that. So we have other developments that are prioritized.

Victor, Analyst, Jefferies: Okay. So any comments what’s next, you think, in line after the programs that you have in focus here that you are prioritizing?

Fredrik Thibault, CEO, Camurus: We will come up with that at our upcoming meetings. So we will certainly prioritize that in short. But it’s not the time for those announcements today.

Victor, Analyst, Jefferies: Thank you very much. Sean

Einar, Conference Moderator: Homer from Jefferies. Please go ahead. Your line is open.

Susana Kwikburner, Analyst, Sanska Andersbanken: Hi, thank you. Just a few

Sean Homer, Analyst, Jefferies: from me, please. So I believe if I remember correctly, the aim was to have over one hundred thousand bupidol treated patients by 2027. Obviously, you’re currently at sixty five thousand. So that requires sort of a step up if by 2027 means at the beginning of that year. Which countries can we expect to actually drive this acceleration?

And then what is the potential for methadone switches? So that’s my first question.

Fredrik Thibault, CEO, Camurus: Yes. I think I’ll leave that question to Richard.

Richard Jameson, Chief Commercial Officer, Camurus: Yes, I think it’s a good question. Our ambition still remains to 100,000 patients by the end of twenty twenty seven. Clearly, we’re working across the major geographies to try and address the funding and improve access to buvidal. But I think what’s clear is the benefit that buvidal is bringing to patients, families and society. There’s no doubt that’s continuing to build demand for the product.

And that includes demand for the methadone segment as well. Haven’t seen that with sublingual necessarily, but we’re certainly seeing with buvidal that patients are interested in moving over because the benefits that long acting product preparations confer to patients. And we’re very active at the moment supporting clinics on how to transfer. It’s not such an easy transfer from sublingual, but we’re supporting that with through medical education and ongoing programs to help that. We continue to expand into new markets as well.

I talked about Portugal. That’s a big opportunity for us. So so, yeah, the 100,000 still remains our ambition. Certainly, it’s still achievable, and we have some plans to try and address the hurdles that are preventing that.

Sean Homer, Analyst, Jefferies: Brilliant. Thank you. And that was you said by the end of twenty twenty seven?

Richard Jameson, Chief Commercial Officer, Camurus: Yes.

Sean Homer, Analyst, Jefferies: Okay, great. And then just on Brixadi, so where do you stand in terms of long acting injectable buprenorphine market share versus your peers?

Fredrik Thibault, CEO, Camurus: Well, I mean, the last time we have actually announced market share and we’ll see once our peers have reported, but we said that it was in the region of 25%. So we haven’t made further developments there or talked about it. So and that was, I think, in the end of Q4 in the Q4 report.

Sean Homer, Analyst, Jefferies: Understood. Thank you so much. And then just finally, sort of given your cash position of strength and particularly on the Lilly upfront, has that sort of increased your appetite for M and A? Or is the focus sort of on preserving optionality and reinvesting within the pipeline?

Fredrik Thibault, CEO, Camurus: We are very active in on the BD side and looking at different target opportunities. We are not looking for it to be a serial acquisitive, but we are definitely working hard on that. And I think there are interesting opportunities. However, they will not be communicated until they have been settled, so to speak. So but we have a very active agenda ongoing.

Sean Homer, Analyst, Jefferies: Got it. Thank you so much. That’s all for me.

Einar, Conference Moderator: The next question from Oscar Hoffenlamm from Stifel. Please go ahead. Your line is open.

Oscar Hoffenlamm, Analyst, Stifel: Thank you for taking my question. So my question would be, how should we think in terms of ForEx impact for H2? So basically, what type of impact are you seeing based on the current exchange rates? And then maybe as a follow-up, what was the exchange rate you did use for the current guidance? Thank you.

John Garai, CFO, Camurus: So, I mean, I was asking, in terms of second half of the year FX impact, we are working with three banks. We usually review within the estimates every month, but we are not using any specific scenario. We are simulating a number of scenarios, and we know that we are in between these scenarios in our guidance. So we don’t see any problem. Discussed in prior earnings call, we apply hedging.

We have already hedging a structure implemented already three years ago. So that’s why in profitability point of view, we have limited impact on FX fluctuation. Regarding the rates we use when we provide the guidance, we don’t disclose the rates we provide the guidance, but we provide guidance and reported rates. And the scenario is the same. We work with three banks.

We simulate something like twenty, thirty scenarios, and we are pretty sure that we are inside those scenarios even today, even in Q2. With the head appreciation of Schuldes Kruner, somehow we were already anticipating it and we hedge for that. The main impact has been in U. S. Dollars, where we have been impacted by 11 points quarter on quarter.

So the Brixadi growth more or less at constant rate is 32%. And the second one is Bouvidal, where we have been impacted in Australian dollar, GBPP, pounds and euro, and it is something like £6 quarter on quarter. So that’s a bit of the overview.

Oscar Hoffenlamm, Analyst, Stifel: Yeah. Very clear. Thank you. Then maybe a second question on the PLD program. Do you already have some kind of idea what type of clinical endpoints you might be using in the upcoming phase three?

Fredrik Thibault, CEO, Camurus: Yes, we have an idea and they will likely reflect the endpoints or at least some of the endpoints that we have been referring to today. But before going into that, we will await our end of Phase II meeting with the FDA, which we are preparing for.

Oscar Hoffenlamm, Analyst, Stifel: Okay. Thank you. Very clear. That’s all for me.

Einar, Conference Moderator: The next question from Georg Tigalonov Bjarke from ABG Sundal Komir. Please go ahead, Georg.

Fredrik Thibault, CEO, Camurus0: Hi. This is Georg Tigalonov Bjarke from ABG Sundal Komir. Thank you for taking my questions. I have one left. So given the recent development of the Bixali sales, could you perhaps provide some insight into when we might expect the first sales milestones from Braeburn?

And does this, to an extent, factor into your decision not to revise the 2025 guidance? Thank you.

Fredrik Thibault, CEO, Camurus: So the information that we have provided in regards to the milestones is that there are three milestones at different sales levels and all are within what we call very reasonable sales levels. Whether or not they will be impacting this year. I don’t think we have had any discussions. Would you like to comment on that, John? Or is it

John Garai, CFO, Camurus: No. We have not disclosed if our guidance includes milestones or not. We are working closely with Verebon, and we need to see the the sales performance in the second half of the year, we and will provide more information at the right time. So

Fredrik Thibault, CEO, Camurus: that’s the amount of information that we have available at this moment. Are you okay with that, George?

Susana Kwikburner, Analyst, Sanska Andersbanken: Okay. Thank you.

Fredrik Thibault, CEO, Camurus: Yes. Thank you.

Einar, Conference Moderator: The next question from Christian Glennie from Stifel. Please go ahead, Christian. Your line is open.

: Hi, guys. Thanks for taking the question. Follow-up on the Stifel side. A couple, please. Just maybe around some points of data point, I guess, clarification as much as you can.

So if we look at prescription data for BRIXARDIA in The U. S, it’s up about sort of fourteen percent, fifteen percent, but you’ve done double or you implied sort of double that in terms of absolute sales. So is there something else going on here that might explain that disconnect? Is there other parts of the market maybe things like CGS is getting better? Or could there be some restocking going on here?

Typically, you obviously see some destocking in Q1. Just trying to understand a bit of that disconnect or quite significant disconnect between what’s showing in prescriptions versus what you’re implied your royalty number?

Fredrik Thibault, CEO, Camurus: Yes, that’s a very good question. So I mean, first of all, as we know the numbers that come by IQVIA and other data providers, is a limited data set and it doesn’t cover the full market, especially not specialty distributors. So that may be one source of the kind of disconnect between the data provider numbers and the numbers that we provide. Then I should, of course, also comment on the fact that our numbers are from our partner. So we are we haven’t got full detail into the these the actual sources of oil growth drivers And whether or not there is a component of pre or destocking in the data, I cannot comment on at this stage.

We haven’t had any signals of that, but so but I think the most important thing is that there is, generally speaking, a disconnect between the overall market and what is available through data providers.

: Okay. Thank you. And then on the just in terms of just to clarify what you seem to be sort of implying as much as you’re aware on the sort of CGS part of the market, the funding, the budget issues, it seems to be you seem to be saying that sort of has at least stabilized. Has it improved through the second quarter, do you think?

Fredrik Thibault, CEO, Camurus: I think it’s I think the effect has absolutely stabilized, but improvement is difficult to give you a view So can you give me a little bit more clarity into your question? Or maybe I’m missing something. Oh, do you want to take

: More around. We know that the

Fredrik Thibault, CEO, Camurus: So I mean, I think the important thing is that we the federal level, we know I mean, financing has not improved. It’s the consequence of the reduction has disappeared. However, the state on the state level, there is a large interest in the CGS sector.

: Yes, fine. Thank you. And then another data point would be the minus 5% for oral buprenorphine in the second quarter. Again, look again, as much as you can read across from IQVIA on orals looks about flat in the second quarter. Obviously, you’re referencing some claims data again and the thing that might be different there in terms of the disconnect between those two.

And are you in that same claims data, is it the implication is that LII has taken that share? Or is there something else that might be explained that minus five?

Fredrik Thibault, CEO, Camurus: I mean, there is clearly a gain in share from LII versus oral, at least in our data sets. Again, there is quite a disconnect between also between data providers in their coverage. So I mean, I cannot say this is the data we are using. It’s possible that IQVIA data or whatever you are referring to are representative as well or maybe even more representative. That’s not for me to say.

But our data supports a slight decrease in but a stabilized situation compared to Q1.

: Okay. Thanks, guys. Appreciate it.

Einar, Conference Moderator: Before we go into the last questions, I’ll just reconnect. We we seem to have a short, short delay. So I reconnect the the telco, and we go forward in a second. Now we are ready to take Richard Romani’s question from Red Oak. Please go ahead.

Your line is open.

Fredrik Thibault, CEO, Camurus1: Good afternoon. I had two questions about your clinical development programs. Firstly, your montisimaglutide, CHAM2056, will you have to do a Phase III study after the Phase I before approving for an approval? And CHAM2019PLD, Could you give us some more details about the time line for the Phase III study?

Fredrik Thibault, CEO, Camurus: Well, I mean, on the first question, we have not I mean, are possibilities to go into a larger study very shortly after the initial because this is really a Phase 1b study. However, we haven’t announced anything and we have a number of activities ongoing to further elaborate on that. When this comes to the second study on the PLD program, it will depend on the time line and the amount of time that will be needed to kind of secure the as you saw in some data, there is a continued increase between placebo and active. So it will be depending on very much the outcome with the regulatory authorities. So I think that’s at a level that we can communicate now.

We will update on this in the next quarter when we or at least in the next half of the year as things get more clear instead of speculating.

Fredrik Thibault, CEO, Camurus1: All right. Thank you.

Fredrik Thibault, CEO, Camurus: Thank you.

Einar, Conference Moderator: The next question from Christopher Udo with a follow-up from SEB. Please go ahead, Christopher. Your line is open.

Christopher Ouede, Analyst, SEB: Hi. Thanks for taking my follow ups. Just so obviously we’ve had some news from the Trump administration, I guess a little bit more clarity over the past quarter around Medicaid. What can you tell us about your thoughts around the potential impact on the opioid dependence market from any changes in access as a result of Medicaid cuts? Thanks.

Fredrik Thibault, CEO, Camurus: So I mean, Richard said that, I mean, one of the important things is that the kind of Medicaid, the percentage remains at least to our understanding remains unchanged. So that is a positive. And then there has been the work requirement, which to my understanding, the big beautiful bill kind of exempts the substance use disorder treatments from population from that requirement. So that’s also a positive. Then there is another detail on that, and that’s the more frequent authorizations that would be required.

But that’s something that probably can be handled by the TREEP know, but should I say, the stakeholders involved in the treatment. So overall, I think that, you know, looks quite positive in the context of the, you know, general political development in The US.

Christopher Ouede, Analyst, SEB: Okay. That’s that’s very helpful. And then just one last one on the guidance. Just kind of following on from Susan Susan’s question, which was so, I mean, if you have this 100,000,000 milestone, 115,000,000 milestone, that’s almost 50 or 40% or so of of the range on pretax profit. Is it a fair assumption that without that you would have had to lower the pretax profit guidance?

Fredrik Thibault, CEO, Camurus: No, that’s probably not a fair assumption. I would say that we haven’t communicated whether or not the milestone was part of our original thinking, but you could very well consider that. So that’s not the case.

Oscar Hoffenlamm, Analyst, Stifel: There

Einar, Conference Moderator: are no more questions from the telco at this time. So I hand the word back to you, Freddy, for closing comments.

Fredrik Thibault, CEO, Camurus: Okay. Thank you, everybody. It’s been a pleasure today. And I’m sure everybody is looking forward to some relaxing weeks coming forward. Before ending, I would just like to thank John for his contributions through these meetings over the years.

And it’s greatly appreciated. And we also welcome Anders, of course, to take his place going forward. So great to have you. A lot. And with that said, I wish everybody a wonderful summer and speak to you in Q3 or before.

Thank you.

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