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OPKO Health Reports Third Quarter 2024 Business Highlights and Financial Results

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OPKO Health (NASDAQ: OPK) reported Q3 2024 financial results with consolidated revenues of $173.6 million. The company completed the sale of select BioReference Health assets to Labcorp for $237.5 million and entered a $250 million note purchase agreement with HealthCare Royalty. Key financial highlights include operating income of $14.2 million and net income of $24.9 million ($0.03 per diluted share). The company initiated a $100 million share repurchase program, with 14.9 million shares already repurchased for $23.8 million. Additionally, OPKO received $51 million in BARDA funding for COVID and influenza programs development.

OPKO Health (NASDAQ: OPK) ha riportato i risultati finanziari del terzo trimestre del 2024, con ricavi consolidati di 173,6 milioni di dollari. L'azienda ha completato la vendita di alcune attività di BioReference Health a Labcorp per 237,5 milioni di dollari ed è entrata in un accordo di acquisto di note da 250 milioni di dollari con HealthCare Royalty. I principali punti salienti finanziari includono un utile operativo di 14,2 milioni di dollari e un utile netto di 24,9 milioni di dollari (0,03 dollari per azione diluita). L'azienda ha avviato un programma di riacquisto di azioni da 100 milioni di dollari, con 14,9 milioni di azioni già riacquisite per 23,8 milioni di dollari. Inoltre, OPKO ha ricevuto 51 milioni di dollari in finanziamenti da BARDA per lo sviluppo di programmi contro il COVID e l'influenza.

OPKO Health (NASDAQ: OPK) reportó los resultados financieros del tercer trimestre de 2024, con ingresos consolidados de 173,6 millones de dólares. La compañía completó la venta de selectos activos de BioReference Health a Labcorp por 237,5 millones de dólares y entró en un acuerdo de compra de notas por 250 millones de dólares con HealthCare Royalty. Los aspectos financieros clave incluyen un ingreso operativo de 14,2 millones de dólares y un ingreso neto de 24,9 millones de dólares (0,03 dólares por acción diluida). La compañía inició un programa de recompra de acciones de 100 millones de dólares, con 14,9 millones de acciones ya recompradas por 23,8 millones de dólares. Además, OPKO recibió 51 millones de dólares en financiamiento de BARDA para el desarrollo de programas contra el COVID y la influenza.

OPKO Health (NASDAQ: OPK)는 2024년 3분기 재무 결과를 보고하며, Consolidated 매출이 1억 7360만 달러에 달한다고 발표했습니다. 회사는 Labcorp에 BioReference Health의 선택된 자산을 2억 3750만 달러에 매각 완료하였고, HealthCare Royalty와 함께 2억 5000만 달러 채권 구매 계약을 체결했습니다. 주요 재무 하이라이트로는 1420만 달러의 운영 수익과 2490만 달러의 순수익(희석 주당 0.03 달러)이 포함됩니다. 회사는 1억 달러 규모의 자사주 매입 프로그램을 시작했으며, 이미 1490만 주를 2380만 달러에 매입했습니다. 또한 OPKO는 COVID 및 독감 프로그램 개발을 위해 BARDA로부터 5100만 달러의 자금을 받았습니다.

OPKO Health (NASDAQ: OPK) a publié ses résultats financiers pour le troisième trimestre 2024, avec des revenus consolidés de 173,6 millions de dollars. L'entreprise a finalisé la vente de certains actifs de BioReference Health à Labcorp pour 237,5 millions de dollars et a conclu un accord d'achat d'obligations de 250 millions de dollars avec HealthCare Royalty. Les faits marquants financiers incluent un revenu opérationnel de 14,2 millions de dollars et un revenu net de 24,9 millions de dollars (0,03 dollars par action diluée). L'entreprise a lancé un programme de rachat d'actions de 100 millions de dollars, avec déjà 14,9 millions d'actions rachetées pour 23,8 millions de dollars. En outre, OPKO a reçu 51 millions de dollars de financement de la part de BARDA pour le développement de programmes sur le COVID et la grippe.

OPKO Health (NASDAQ: OPK) hat die Finanzzahlen für das dritte Quartal 2024 veröffentlicht, mit konsolidierten Einnahmen von 173,6 Millionen Dollar. Das Unternehmen hat den Verkauf bestimmter Vermögenswerte von BioReference Health an Labcorp für 237,5 Millionen Dollar abgeschlossen und einen Kaufvertrag über Anleihen in Höhe von 250 Millionen Dollar mit HealthCare Royalty unterzeichnet. Zu den wichtigsten finanziellen Eckdaten gehören ein Betriebsgewinn von 14,2 Millionen Dollar und ein Nettogewinn von 24,9 Millionen Dollar (0,03 Dollar pro verwässerter Aktie). Das Unternehmen leitete ein Aktienrückkaufprogramm im Wert von 100 Millionen Dollar ein, wobei bereits 14,9 Millionen Aktien für 23,8 Millionen Dollar zurückgekauft wurden. Darüber hinaus erhielt OPKO 51 Millionen Dollar an BARDA-Finanzierung für die Entwicklung von Programmen gegen COVID und Influenza.

Positive
  • Sale of BioReference Health assets to Labcorp for $237.5 million
  • Secured $250 million note purchase agreement with HealthCare Royalty
  • Net income of $24.9 million compared to net loss of $84.5 million in prior year
  • Operating income of $14.2 million vs loss of $64.4 million in 2023
  • NGENLA royalty payments increased to $7.0 million from $4.9 million YoY
Negative
  • Consolidated revenues declined to $173.6M from $178.6M YoY
  • Rayaldee sales decreased to $5.8M from $7.3M YoY
  • Diagnostic services revenue dropped to $121.3M from $131.7M YoY
  • Pharmaceutical operating loss increased to $32.2M from $25.4M YoY
  • Higher research and development expenses in ModeX programs

Insights

The Q3 2024 results reveal significant strategic moves and financial improvements. The $237.5M sale of BioReference Health assets to Labcorp and $250M note purchase agreement have substantially strengthened OPKO's balance sheet, with cash and equivalents reaching $400.1M. The $100M share repurchase program demonstrates management's confidence, with $36.8M already executed. Net income improved to $24.9M ($0.03/share) from a loss of $84.5M in Q3 2023, though revenue slightly declined to $173.6M. The NGENLA royalty stream and $51M BARDA funding provide additional revenue visibility. The streamlined operations and strong cash position position OPKO for improved financial performance.

The pipeline developments show promising momentum. MDX2001's Phase 1 trial for solid tumors represents a novel approach with its tetraspecific antibody design. The expanded BARDA contract for COVID and influenza multispecific antibodies ($110M total funding) validates the platform technology. The oral oxyntomodulin analog results are particularly interesting, potentially offering a competitive entry into the lucrative GLP-1/glucagon obesity market. These developments, combined with NGENLA's growing commercial presence, create multiple paths for value creation in both near and long-term horizons.

Conference call begins at 4:30 p.m. Eastern time today

MIAMI, Nov. 07, 2024 (GLOBE NEWSWIRE) -- OPKO Health, Inc. (NASDAQ: OPK) reports business highlights and financial results for the three and nine months ended September 30, 2024.

Highlights from the third quarter of 2024 and recent weeks include the following:

  • Completed sale of select assets of BioReference Health to Labcorp for $237.5 million. OPKO completed the sale of BioReference Health’s laboratory testing businesses focused on clinical diagnostics and women’s health, excluding operations in New York and New Jersey, for $237.5 million. BioReference Health will continue to offer oncology and urology diagnostic services nationwide, as well as maintain its full operations in New York and New Jersey. This transaction streamlines BioReference Health’s laboratory services business while retaining its core operations to better position the division for sustained growth and profitability. Net sales from operations continuing at BioReference Health exceeded $400 million in 2023.
  • Entered into a $250 million note purchase agreement with HealthCare Royalty secured by profit share payments related to NGENLA. Under the terms of the note purchase agreement, in the near term OPKO retains a significant portion of the profit share payments from Pfizer received pursuant to its license agreement relating to NGENLA with upside over the long term, as well as the full $100 million of remaining potential milestone payments.
  • OPKO’s Board of Directors authorized a $100 million share repurchase program. Under the program, OPKO may repurchase shares of its common stock from time to time through open-market purchases, block trades, privately negotiated transactions, accelerated share repurchase transactions and/or pursuant to Rule 10b5-1 plans, in compliance with applicable securities laws and other legal requirements. The Company repurchased and retired 14.9 million shares for approximately $23.8 million during the three months ended September 30, 2024, and thereafter, through November 6, 2024 repurchased and retired an additional 8.7 million shares for approximately $13.0 million. In addition, the Company repurchased approximately $3.5 million in principal of its Convertible Notes.
  • Enrollment and dosing underway in the MDX2001 Phase 1 trial for the treatment of solid tumor cancers. MDX2001, a tetraspecific antibody, is designed to optimize T-cell function while preventing tumor antigen escape. This Phase 1 open-label trial is expected to enroll up to 45 patients at four clinical trial sites. The Phase 1a portion is primarily designed to evaluate the safety and immunogenicity of ascending doses of MDX2001 in patients with various solid tumors.
  • Awarded $51 million of additional funding under an existing BARDA contract to develop COVID multispecific antibodies and to initiate an influenza program. ModeX Therapeutics was awarded $26.9 million of additional funding under an existing contract with the Biomedical Advanced Research and Development Authority (BARDA). This funding will support the development of a second novel multispecific antibody to SARS-CoV-2 from preclinical through Phase 1 trials, as well as preclinical work on gene-based expression of multispecific antibodies to SARS-CoV-2 including mRNA and/or DNA vectors. In addition, BARDA activated an option for the second phase of funding totaling $24.1 million for ModeX to begin development of influenza multispecifics with gene and/or protein delivery modalities. Together, these funds bring the total support awarded to ModeX to $110 million, with up to $205 million in total, if all options are executed.
  • Announced promising results of an orally delivered oxyntomodulin analog. OPKO is continuing to progress development of its long-acting oxyntomodulin analog in both its subcutaneous and oral formulations. The polyethylene glycol (PEG) linked peptide was studied and progressed to Phase 2 clinical trials before it was suspended due to dose limiting its formulation. The same key peptide as an acylated compound, OPK-88006, has been confirmed in in vitro assays and animal disease models to be a strong candidate for once-weekly subcutaneous administration. Entera and OPKO recently announced results from their ongoing collaborative research combining OPK-88006 and Entera’s proprietary N-Tab™ technology. The program is focused on developing the first oral dual-agonist GLP-1/glucagon peptide as a potential once-daily treatment for patients with obesity and metabolic disorders. In vivo studies in rodent and pig models showed single dose administration, delivered orally, resulted in a desirable PK profile and bioavailability.

Third Quarter Financial Results

  • Consolidated: Consolidated total revenues for the third quarter of 2024 were $173.6 million compared with $178.6 million for the comparable period of 2023. Operating income for the third quarter of 2024 was $14.2 million compared with operating loss of $64.4 million for the 2023 quarter. The third quarter of 2024 included a gain of $121.5 million from the sale of certain BioReference assets and a gain of $10.5 million from the sale of shares of GeneDx, as well as non-cash other income of $35.4 million compared with non-cash other expense of $8.3 million in the year-ago quarter related to the change in the fair value of the GeneDx Holdings investment. As a result, net income for the third quarter of 2024 was $24.9 million, or $0.03 per diluted share, compared with net loss of $84.5 million, or $0.11 per share, for the 2023 quarter.
  • Pharmaceuticals: Revenue from products in the third quarter of 2024 was $39.1 million compared with $40.7 million in the third quarter of 2023, reflecting lower Rayaldee sales and foreign currency exchange fluctuations. Revenue from sales of Rayaldee was $5.8 million compared with $7.3 million in the same period in 2023. Revenue from the transfer of intellectual property and other was $13.2 million in the third quarter of 2024 compared with $6.2 million in the 2023 period, primarily attributable to $5.5 million related to the BARDA contract. Gross profit share and royalty payments for NGENLA and Pfizer's Genotropin was $7.0 million in the 2024 quarter compared with $4.9 million in the same period for 2023. Total costs and expenses increased to $84.6 million in the third quarter of 2024 from $72.3 million in the prior-year period primarily due to higher research and development expenses related to increased activity within the ModeX development programs. Operating loss was $32.2 million in the third quarter of 2024, which included $18.0 million of depreciation and amortization expense, compared with $25.4 million in the third quarter of 2023, which included $17.8 million of depreciation and amortization expense.
  • Diagnostics: Revenue from services in the third quarter of 2024 was $121.3 million compared with $131.7 million in the prior-year period, with the decrease primarily due to lower clinical test volume, principally as a result of the Labcorp transaction and a reduction in reimbursement rates. Total costs and expenses, net of the gain on the sale of assets, were $62.7 million in the third quarter of 2024 compared with $160.8 million in the third quarter of 2023. The decrease in costs and expenses were primarily attributable to a $121.5 million gain on the Labcorp transaction, partially offset by severance expense of $26.3 million and costs related to the closure of an office building, which reflect the continued progress with cost-reduction initiatives. The third quarter of 2024 included revenue from services of approximately $19.9 million and total costs and expenses of approximately $31.7 million related to assets acquired by Labcorp. Operating income was $58.5 million in the third quarter of 2024 compared with a loss of $29.1 million in the 2023 period and included $6.1 million and $8.4 million of depreciation and amortization expense, respectively.
  • Cash, cash equivalents, marketable securities and restricted cash: Cash and cash equivalents were $400.1 million, marketable securities, principally shares of GeneDx were $92.2 million and restricted cash and escrow was $43.7 million (including $6.3 million of current restricted cash) as of September 30, 2024. In the third quarter, OPKO entered into a $250 million note purchase agreement secured by OPKO’s profit share payments to be received from Pfizer relating to NGENLA. In addition, OPKO received $237.5 million upon closing of the Labcorp transaction, of which $23.7 million was deposited in an escrow account and will be released upon the one-year anniversary of the transaction close less any outstanding adjustments or claims.

Conference Call and Webcast Information

OPKO’s senior management will provide a business update, discuss third quarter financial results, provide financial guidance and answer questions during a conference call and live audio webcast today beginning at 4:30 p.m. Eastern time. Participants are encouraged to pre-register for the conference call here. Callers who pre-register will receive a unique PIN to gain immediate access to the call and bypass the live operator. Participants may register at any time, including up to and after the call start time. Those unable to pre-register may participate by dialing 833-630-0584 (U.S.) or 412-317-1815 (International). A webcast of the call can also be accessed at OPKO’s Investor Relations page and here.

A telephone replay will be available until November 14, 2024, by dialing 877-344-7529 (U.S.) or 412-317-0088 (International) and providing the passcode 6323665. A webcast replay will be available beginning approximately one hour after the completion of the live conference call here.

About OPKO Health

OPKO is a multinational biopharmaceutical and diagnostics company that seeks to establish industry-leading positions in large, rapidly growing markets by leveraging its discovery, development, and commercialization expertise and novel and proprietary technologies. For more information, visit www.opko.com.  

Cautionary Statement Regarding Forward Looking Statements

This press release contains "forward-looking statements," as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning, including statements regarding expected financial performance and expectations regarding the market for and sales of our products, whether our product development efforts will be successful and whether the expected benefits of our products will be realized, including whether enrollment in a Phase 1 clinical trial for MDX2001 will be successful and whether the data will be positive, whether efforts to develop a daily oral dual-agonist GLP-1/glucagon peptide will succeed, whether and how many of our shares we will repurchase under a buyback program, whether NGENLA profits will be sufficient to provide long term upside after satisfying our obligations under the note purchase agreement, whether we can successfully progress the development of oxyntomodulin in both subcutaneous and oral formulations, whether the relationship with our commercial and strategic partners will be successful, whether our commercial and strategic partners will be able to commercialize our products and successfully utilize our technologies, our ability to market and sell any of our products in development, whether we will continue to successfully advance products in our pipeline and whether they can be commercialized, whether BioReference will be able to streamline its laboratory services business and better position the division for sustained growth and profitability, whether BioReference’s attempts at returning its core business to profitability will be successful, as well as other non-historical statements about our expectations, beliefs or intentions regarding our business, technologies and products, financial condition, strategies or prospects. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described in our Annual Reports on Form 10-K filed and to be filed with the Securities and Exchange Commission and under the heading “Risk Factors” in our other filings with the Securities and Exchange Commission, as well as the continuation and success of our relationship with our commercial partners, liquidity issues and the risks inherent in funding, developing and obtaining regulatory approvals of new, commercially-viable and competitive products and treatments. In addition, forward-looking statements may also be adversely affected by general market factors, competitive product development, product availability, federal and state regulations and legislation, the regulatory process for new products and indications, manufacturing issues that may arise, patent positions and litigation, among other factors. The forward-looking statements contained in this press release speak only as of the date the statements were made, and we do not undertake any obligation to update forward-looking statements. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.

Contacts:
Alliance Advisors IR
Yvonne Briggs, 310-691-7100
ybriggs@allianceadvisors.com
or
Bruce Voss, 310-691-7100
bvoss@allianceadvisors.com

—Tables to Follow—

OPKO Health, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions)
Unaudited
 As of
 September 30,
2024
 December 31,
2023
Assets:       
Cash, cash equivalents, and current restricted cash$406.4  $95.9 
Accounts receivable, net 106.6   123.4 
Other current assets 116.6   90.2 
Total current assets 629.6   309.5 
In-process research and development and goodwill 730.9   793.3 
Other assets 895.6   908.9 
Total Assets$2,256.1  $2,011.7 
        
Liabilities and Equity:       
Accounts payable$62.7  $69.7 
Accrued expenses 122.8   90.1 
Current portion of convertible notes 0.2   0.0 
Other current liabilities 25.9   40.3 
Total current liabilities 211.6   200.1 
Long-term portion of convertible notes 178.7   214.3 
Senior secured notes 245.4   0.0 
Deferred tax liabilities, net 128.4   126.8 
Other long-term liabilities, principally leases, and lines of credit 88.6   81.3 
Total Liabilities 852.7   622.5 
Equity 1,403.4   1,389.2 
Total Liabilities and Equity$2,256.1  $2,011.7 
        


OPKO Health, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in millions, except share and per share data)
Unaudited
 
 For the three months ended
September 30,
 For the nine months ended
September 30,
 2024
 2023
 2024
 2023
Revenues               
Revenue from services$121.3  $131.7  $377.5  $391.1 
Revenue from products 39.1   40.7   117.7   124.6 
Revenue from transfer of intellectual property and other 13.2   6.2   34.3   165.9 
Total revenues 173.6   178.6   529.5   681.6 
Costs and expenses               
Cost of service revenues 108.8   106.4   325.8   333.5 
Cost of product revenues 24.7   24.5   69.8   74.7 
Selling, general and administrative 98.2   72.3   237.2   227.7 
Research and development 28.8   19.4   74.8   70.2 
Contingent consideration 0.0   (1.1)  0.0   (1.0)
Amortization of intangible assets 20.4   21.5   62.3   64.5 
Gain on sale of assets (121.5)  0.0   (121.5)  0.0 
Total costs and expenses 159.4   243.0   648.4   769.6 
Operating income (loss) 14.2   (64.4)  (118.9)  (88.0)
Other income (expense), net 34.2   (14.0)  73.6   (23.8)
Income (loss) before income taxes and investment losses 48.4   (78.4)  (45.3)  (111.8)
Income tax provision (23.5)  (6.1)  (21.9)  (10.5)
Loss before investment losses 24.9   (84.5)  (67.2)  (122.3)
Loss from investments in investees (0.0)  (0.0)  (0.0)  (0.1)
Net income (loss)$24.9  $(84.5) $(67.2) $(122.4)


Income (loss) per share, basic
$0.04  $(0.11) 

$


(0.10


)
 

$


(0.16


)


Income (loss) per share, diluted
$0.03  $(0.11) 

$


(0.10


)
 

$


(0.16


)
Weighted average common shares outstanding, basic 694,622,466   751,525,007   699,675,944   751,716,692 
Weighted average common shares outstanding, diluted 998,363,636   751,525,007   699,675,944   751,716,692 

FAQ

What was OPKO Health's (OPK) revenue in Q3 2024?

OPKO Health reported consolidated revenues of $173.6 million in Q3 2024, compared to $178.6 million in Q3 2023.

How much did OPKO (OPK) receive from the Labcorp asset sale in 2024?

OPKO received $237.5 million from the sale of select BioReference Health assets to Labcorp in 2024.

What was OPKO's (OPK) net income in Q3 2024?

OPKO reported net income of $24.9 million, or $0.03 per diluted share, in Q3 2024.

How many shares did OPKO (OPK) repurchase in Q3 2024?

OPKO repurchased and retired 14.9 million shares for approximately $23.8 million during Q3 2024.

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