Orexo Q2 2023 Interim Report
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.