Orion Group Interim Report January–September 2025

Core Insights - The company reported a decline in net sales and operating profit for Q3 2025, primarily due to the absence of major milestone payments that were recorded in the previous year [3][4][6] - Despite the reported decline, underlying net sales and operating profit showed significant growth when excluding major milestone payments [3][4] - The company has specified its outlook for 2025, projecting net sales between EUR 1,640 million and EUR 1,720 million, and operating profit between EUR 410 million and EUR 490 million [6][8] Financial Performance - Q3 2025 net sales were EUR 423.2 million, down 10.2% from EUR 471.3 million in Q3 2024 [2] - Q3 2025 operating profit was EUR 121.0 million, a decrease of 40.1% from EUR 202.0 million in Q3 2024 [2] - Basic earnings per share for Q3 2025 were EUR 0.68, down 40.4% from EUR 1.14 in Q3 2024 [2] - Research and development expenses increased by 35.8% in Q3 2025, totaling EUR 49.8 million [2] Business Segments - The Innovative Medicines division experienced a decline in reported net sales due to the absence of major milestone payments, although Nubeqa showed strong growth [4] - The Generics and Consumer Health divisions continued to grow solidly, while growth in Branded Products and Animal Health was more moderate [4] - The company anticipates growth in the Branded Products division driven by the Easyhaler product portfolio and other products [14] Market and Regulatory Developments - The European Commission approved darolutamide for use in patients with metastatic hormone-sensitive prostate cancer, which is expected to support Nubeqa's growth [5] - The company does not foresee a material impact from U.S. tariffs on its operations for the current year [5] Research and Development Focus - The company has discontinued the development of ODM-105 for insomnia due to lack of efficacy in clinical trials and will focus on advancing other assets [7] - Orion aims to initiate a Phase 2 program with ODM-212 in oncology next year and plans to bring at least one biological candidate to clinical development [7][8] Capital Expenditure and Financial Outlook - Capital expenditure is expected to grow in 2025, reflecting the company's commitment to strengthening its research and development pipeline [18] - The outlook for 2025 has been revised to reflect anticipated growth in net sales and operating profit, excluding any material milestone payments [6][11]