Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Orion Oyj (ORINY, Financial) reported a 15% increase in net sales and a 39% growth in operating profit for Q1 2025.
- All four business divisions, including Innovative Medicines, Branded Products, Generics, and Animal Health, showed growth.
- The company has expanded its R&D capabilities by opening a new site in Cambridge to strengthen pharmaceutical development for biologics.
- The Innovative Medicines division experienced a 70.4% growth, contributing significantly to the company's sales.
- Orion Oyj (ORINY) has a strong clinical pipeline with multiple ongoing Phase III projects, including those for Nubeqa and levosimendan.
Negative Points
- Cash flow decreased due to the timing of royalty and milestone payments.
- Fermion, one of Orion Oyj (ORINY)'s divisions, did not show growth, although it is primarily focused on internal operations.
- There is uncertainty regarding potential US import tariffs, which could impact Orion Oyj (ORINY)'s income, particularly from Nubeqa.
- Operating expenses were lower than anticipated, but there is an expectation of catch-up costs later in the year.
- Generic competition is impacting sales of certain products like Simdax and dex portfolios, leading to a decline.
Q & A Highlights
Q: Nubeqa's product sales were strong in Q1. Was this due to prebuying for possible tariffs or strong underlying demand?
A: According to Liisa Hurme, CEO, the strong sales were due to underlying market demand and not related to tariffs.
Q: Operational expenses were lower than anticipated. What explains this, and will these savings return later in the year?
A: Rene Lindell, CFO, explained that while expenses grew year-over-year due to increased R&D and sales efforts, some costs are expected to catch up later in the year.
Q: When will Tenax complete its Phase III studies with levosimendan?
A: Tuukka Hirvonen, Head of Investor Relations, stated that the primary readout for the current LEVEL trial is expected in 2026, with another Phase III trial planned to start this year.
Q: Could US import duties impact Orion's Nubeqa franchise, and are there ways to mitigate this?
A: Liisa Hurme noted that the situation is unclear, but any tariffs could impact Orion's income. The company is monitoring the situation closely.
Q: Is there any appetite to divest lower-growth businesses like Generics and Consumer Health?
A: Liisa Hurme confirmed that there is currently no appetite to divest any of Orion's divisions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
