Orexo Q2 2023 Interim Report

Rhea-AI Summary

Orexo, a pharmaceutical company, has reported Q2 2023 financial highlights, including total net revenues of SEK 157.7m, EBITDA of SEK 5.6m, and net earnings of SEK -12.6m. The US Pharma segment saw net revenues of SEK 145.4m, and the company updated its financial outlook. Orexo also won a patent litigation against Sun Pharmaceutical and announced that ZUBSOLV® is now reimbursed by Medicaid in Indiana state.

Positive

• Orexo reported total net revenues of SEK 157.7m in Q2 2023, a 6.6% increase compared to the same period last year.
• The company's EBITDA for Q2 2023 was SEK 5.6m, compared to -32.5m in Q2 2022.
• Orexo's US Pharma segment achieved net revenues of SEK 145.4m in Q2 2023.
• The company won a patent litigation against Sun Pharmaceutical in the US District Court for the District of New Jersey.
• ZUBSOLV® is now reimbursed by Medicaid in Indiana state as of July 1, 2023.

Negative

• None.

UPPSALA, Sweden, July 18, 2023 /PRNewswire/ -- The patent win critical enabler for future growth

Q2 2023 highlights
›     Total net revenues of SEK 157.7 m (147.8)
›     EBITDA of SEK 5.6 m (-32.5), EBITDA excluding legal costs and costs for non-­repeating ­clinical trials, SEK 30.3 m (11.4) 
›     Net earnings of SEK -12.6 m (-35.8)
›     US Pharma segment (ZUBSOLV® US) net revenues of SEK 145.4 m (139.6), in local currency USD 13.8 m (14.2), US Pharma EBIT of SEK 71.2 m (77.2)
›     Cash flow from operating activities of SEK -12.7 m (14.5), cash and invested funds of SEK 251.1 m (467.7)
›     Earnings per share before and after dilution amounted to -0.37 (-1.04)
›     Due to issues in the outsourced packaging line FDA has requested Orexo to resubmit the NDA, which is planned to take place in Q3, 2023
›     US District Court for the District of New Jersey ruled in favor of Orexo in the patent litigation against Sun  Pharmaceutical
›     Updated financial outlook, view page 15

Important events after the end of the ­period 
 ›     ZUBSOLV® reimbursed by Medicaid in Indiana state as of July 1, 2023

SEK m unless otherwise stated	2023 Apr-Jun	2022 Apr-Jun	2023 Jan-Jun	2022 Jan-Jun	% change quarter	2022 Jan-Dec
Net revenues	157.7	147.8	316.8	307.3	6.6 %	624.3
Cost of goods sold	-17.2	-21.2	-46.0	-48.7	-19.1 %	-102.6
Operating expenses	-153.4	-176.4	-343.0	-321.5	-13.0 %	-705.6
EBIT	-12.9	-49.7	-72.3	-62.9	-74.0 %	-183.9
EBIT margin	-8.2 %	-33.6 %	-22.8 %	-20.5 %	-25.4 %	-29.5 %
EBITDA	5.6	-32.5	-35.4	-29.7	-117.2 %	-115.2
Earnings per share. before dilution. SEK	-0.37	-1.04	-2.22	-1.73	-64.4 %	-5.17
Earnings per share. after dilution. SEK	-0.37	-1.04	-2.22	-1.73	-64.4 %	-5.17
Cash flow from operating activities	-12.7	14.5	-70.5	-47.1	-187.1 %	-156.6
Cash and invested funds	251.1	467.7	251.1	467.7	-46.3 %	351.9

 

Comments by the CEO, Nikolaj Sørensen

 Good progress towards profitability

"During the last three years the uncertainty from the patent litigation against Sun Pharmaceutical to protect the innovation and exclusivity of ZUBSOLV®, has had significant negative impact on all areas of the Orexo business. To prevail in the patent litigation is similar to a new beginning for the company, foremost as it removes a lot of uncertainty around our main product. However, our ability to grow is equally dependent on our financial strength and our ability to innovate. I am pleased to report a considerable improvement in our financial result from Q1 2023 with a positive EBITDA of SEK 5.6 million in Q2 (SEK -32,5 million Q2, 2022, and SEK -41.1 million Q1, 2023). The improvement is a result of strengthened revenues explained by slightly increased ZUBSOLV® sales in USD and some tailwind from exchange rate effects in combination with significantly reduced expenses primarily related to the patent litigation process. I am pleased to see this financial development to be in line with our communication during the first half of 2023 and it shows how Orexo, when excluding sizeable non-recurring expenses, is approaching profitability. In addition we also see potential for income from business development in the second half of the year where we continue to see strong interest and progress from potential partners in our pipeline and technology." 

To read the full CEO Comments, view attached PDF

Contact persons quarterly report
Nikolaj Sørensen, President and CEO, Fredrik Järrsten, EVP and CFO, or Lena Wange, IR & Communications Director
Tel: +46 18 780 88 00, +1 855 982 7658, E-mail: ir@orexo.com.

Presentation
At 3 pm CET the same day as the announcement of the ­report, Orexo invites analysts, investors 
and media to attend a presentation where ­Nikolaj Sørensen, CEO and Fredrik Järrsten, CFO, will ­present the report and host a Q&A.

To attend via teleconference where you can ask questions verbally: 
https://conference.financialhearings.com/teleconference/?id=5007950 
When registered you will be provided ­phone ­numbers and a conference ID to access the ­conference.

To attend via webcast:
https://ir.financialhearings.com/orexo-q2-2023 
Prior to the call, presentation material will be ­available on Orexo´s website Investors/Reports/Audiocasts.

This information is information that Orexo AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact persons set out above at 8 am CET on July 18, 2023.

The following files are available for download:

https://mb.cision.com/Main/694/3806332/2193546.pdf

Orexo Q2 2023 Interim Report published July 18

 

View original content:https://www.prnewswire.com/news-releases/orexo-q2-2023-interim-report-301879362.html

SOURCE Orexo

FAQ

What were Orexo's total net revenues in Q2 2023?

Orexo reported total net revenues of SEK 157.7m in Q2 2023.

What was Orexo's EBITDA in Q2 2023?

Orexo's EBITDA for Q2 2023 was SEK 5.6m.

What were the net revenues of Orexo's US Pharma segment in Q2 2023?

Orexo's US Pharma segment achieved net revenues of SEK 145.4m in Q2 2023.

What was the outcome of Orexo's patent litigation against Sun Pharmaceutical?

Orexo won the patent litigation against Sun Pharmaceutical in the US District Court for the District of New Jersey.

Is ZUBSOLV® reimbursed by Medicaid?

Yes, ZUBSOLV® is now reimbursed by Medicaid in Indiana state as of July 1, 2023.