In This Article:
-
Total Revenue: SEK146 million for Q1.
-
Subsol Revenue: SEK133 million, representing 91% of total revenues, with a 3% year-over-year increase.
-
Subsol Sales in USD: USD12.5 million, similar to Q1 last year.
-
EBIT: Minus SEK5.2 million.
-
EBITDA: Positive SEK5.9 million.
-
Gross Margin: Decreased from 90% to 88% year-over-year.
-
Operating Expenses: SEK131 million, stable compared to last year.
-
Cash Flow from Operations: SEK33 million, with a positive change in working capital of SEK43 million.
-
Total Cash Flow: Plus SEK7 million for the period.
-
FX Impact on EBIT: Negative SEK11 million.
-
Financial Outlook for 2025: Subsol net sales expected between USD50 to USD55 million; Group EBITDA expected to be positive for the full year.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Orexo AB (LTS:0H19) reported stable revenue in both SEK and US dollars compared to last year, with a slight increase driven by lower inventory decline.
-
The company achieved a positive cash flow from operations, indicating effective financial management.
-
Successful clinical trials for OX640 have attracted significant partner interest, with several companies conducting due diligence.
-
Orexo AB (LTS:0H19) has a natural hedge against currency fluctuations due to a significant portion of expenses being in US dollars.
-
The company is optimistic about reaching a partnership agreement for OX640 later this year, which could enhance future growth prospects.
Negative Points
-
Orexo AB (LTS:0H19) faced challenges due to changes in Medicare policies in the US, impacting volume and pricing.
-
The strengthening of the SEK against the US dollar negatively impacted the company's cash position.
-
There are ongoing uncertainties with the FDA, causing delays in drug approvals and impacting timelines for product launches.
-
The company experienced a decline in volumes for its main product, Subsol, particularly due to high deductibles and Medicare policy changes.
-
Market volatility and geopolitical factors have slowed down potential strategic partnerships and business development activities.
Q & A Highlights
Q: Can you provide more details on the transition to the new device for OX124 and the timeline for this process? A: Nikolaj Sorensen, CEO: The transition to the new device for OX124 involves minimal changes, primarily in the handling of the device. We are starting the manufacturing switch now and do not anticipate major work. The timeline depends on FDA discussions, but we are using the delay in receiving the original device component to prepare for the new device. We expect minimal commercial implications and will update once we have FDA feedback.