Release Date: July 18, 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 27% increase in net sales, reaching EUR416.5 million for Q2 2025.
- Operating profit grew by 59%, with an operating profit margin of 25%.
- The company received FDA approval and CHMP recommendation for darolutamide in combination with ADT for metastatic hormone-sensitive prostate cancer.
- Orion Oyj (ORINY) expanded its research pipeline, including a new agreement with Glykos for antibody drug conjugates and a partnership with Shilpa for recombinant albumin.
- The Easyhaler portfolio is projected to exceed EUR300 million in annual sales, indicating strong growth potential.
Negative Points
- Fermion division experienced slightly lower sales due to capacity constraints.
- Simdax and Trexan prices are decreasing due to generic competition, impacting revenue.
- There is uncertainty in the second half of the year regarding Nubeqa sales and R&D expenses, leading to a wide guidance range.
- Potential US pharma tariffs could impact sales, though the exact effect remains uncertain.
- R&D expenses are expected to increase in the second half of the year, potentially affecting profitability.
Q & A Highlights
Q: Why is Orion maintaining a wide guidance range despite a strong first half of the year?
A: Rene Lindell, CFO, explained that uncertainties remain, particularly with Nubeqa's sales and royalty percentages, which peak in Q4. Additionally, R&D expenses can vary significantly based on project timing, affecting the financial outlook.
Q: Should we expect a significant increase in R&D costs in the second half of the year?
A: Rene Lindell noted that while R&D expenses were lower than expected in the first half, they are anticipated to rise slightly in the second half as projects progress, though not significantly.
Q: What are the CEO's current priorities and main challenges for Orion?
A: Liisa Hurme, CEO, emphasized filling the clinical pipeline and ensuring the success of Nubeqa with Bayer as top priorities. She also highlighted the importance of maintaining strong performance across all business divisions.
Q: How could potential US pharma tariffs impact Orion's business?
A: Liisa Hurme stated that while tariffs are a concern, they are not expected to materially impact this year's results. Orion is preparing for various scenarios, but no immediate changes are planned, such as establishing US production capacity.
Q: What is the status of Orion's R&D pipeline, and what developments are expected?
A: Liisa Hurme mentioned that Phase I for ODM-202 is expected to conclude by the end of the year, potentially leading to Phase II in 2026. Additionally, new biologics are anticipated to enter the clinical pipeline within the next 12 to 24 months.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
