OPKO Health(OPK) - 2025 Q2 - Quarterly Results

Business Highlights OPKO advanced its clinical pipeline, including a Phase 1 Epstein-Barr virus vaccine and immuno-oncology candidates, and received FDA approval for its 4Kscore® Test without DRE, expanding its utility - Merck advanced the Phase 1 trial for the Epstein-Barr virus vaccine candidate, with results expected to inform the decision on Phase 2 studies[1] - ModeX's immuno-oncology portfolio is advancing, with MDX2001 in Phase 1, MDX2004 expected to enter clinic later in 2025, and MDX2003 trials planned for early 2026[1] - Preclinical data for OPK-88006, a GLP-1/glucagon dual agonist, showed superior therapeutic benefits on MASH hallmarks compared to semaglutide and survodutide in a mouse model[1] - The FDA approved a supplemental application for the 4Kscore® Test, allowing its use without digital rectal examination (DRE) information, which is significant as over 90% of PSA screening tests are done by primary care providers who don't routinely perform DREs[4] - An abstract for an oral GLP-2 tablet for short bowel syndrome, developed with Entera Bio, was selected for presentation at the 2025 ESPEN Congress[4] Financial Results OPKO's Q2 2025 consolidated revenues decreased to $156.8 million, leading to a $148.4 million net loss, significantly impacted by a one-time convertible note exchange expense Consolidated Financials Q2 2025 consolidated revenue decreased to $156.8 million, with net loss widening to $148.4 million due to a one-time convertible note exchange expense Q2 2025 Consolidated Financial Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues (in millions) | $156.8 | $182.2 | | Operating Loss (in millions) | $60.0 | $61.7 | | Net Loss (in millions) | $148.4 | $10.3 | | Loss Per Share (in dollars) | $0.19 | $0.01 | - The net loss in Q2 2025 was significantly impacted by a $91.7 million non-recurring expense related to a convertible note exchange that closed on April 1, 2025[3] - The prior-year period (Q2 2024) included a $60.5 million unrealized gain in the fair value of GeneDx Holdings Corp., which contributed to the lower net loss in that quarter[3] Segment Performance Pharmaceuticals segment revenue slightly increased to $55.7 million, while Diagnostics revenue decreased to $101.1 million due to asset sales, though its operating loss narrowed Pharmaceuticals Segment Performance (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue from products (in millions) | $40.7 | $40.5 | | Revenue from IP & other (in millions) | $15.0 | $12.3 | | Total Revenue (in millions) | $55.7 | $52.8 | | Operating Loss (in millions) | $28.7 | $24.8 | Diagnostics Segment Performance (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue from services (in millions) | $101.1 | $129.4 | | Operating Loss (in millions) | $18.2 | $26.6 | - The decrease in Diagnostics revenue was primarily due to lower clinical test volume resulting from the sale of certain BioReference assets[7] Financial Position and Corporate Actions OPKO held $285.4 million in cash, exchanged $159.2 million in convertible notes, and authorized an additional $100 million for its stock repurchase program - Cash, cash equivalents, and restricted cash stood at $285.4 million as of June 30, 2025[7] - In Q2 2025, OPKO exchanged $159.2 million of outstanding convertible notes for 121.4 million shares of common stock and approximately $63.5 million in cash[7] - The Board of Directors authorized an additional $100 million for its common stock repurchase program, increasing the total capacity to $200 million. As of June 30, 2025, $58.5 million had been repurchased[4] Financial Statements The condensed consolidated financial statements detail OPKO Health's financial position as of June 30, 2025, with total assets of $1,973.0 million and total liabilities of $676.1 million, alongside operational results Condensed Consolidated Balance Sheets As of June 30, 2025, OPKO Health's total assets were $1,973.0 million, with total liabilities decreasing to $676.1 million due to reduced convertible notes Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $271.7 | $431.9 | | Total current assets | $583.3 | $662.1 | | Total Assets | $1,973.0 | $2,200.2 | | Total current liabilities | $171.2 | $193.1 | | Long-term portion of convertible notes | $80.5 | $173.6 | | Total Liabilities | $676.1 | $834.8 | | Total Equity | $1,296.9 | $1,365.4 | Condensed Consolidated Statements of Operations For Q2 2025, OPKO reported total revenues of $156.8 million and a net loss of $148.4 million, with six-month revenues at $306.8 million and a net loss of $216.1 million Condensed Consolidated Statement of Operations (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenues | $156.8 | $182.2 | | Total costs and expenses | $216.8 | $243.9 | | Operating loss | $(60.0) | $(61.7) | | Other income (expense), net | $(102.5) | $51.1 | | Net loss | $(148.4) | $(10.3) | Condensed Consolidated Statement of Operations (in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenues | $306.8 | $355.9 | | Operating loss | $(127.1) | $(133.1) | | Net loss | $(216.1) | $(92.1) |