Core Viewpoint - Orion Corporation will receive a milestone payment of EUR 180 million related to Nubeqa® sales, impacting its financial outlook for 2025 [1] Financial Outlook Update - The new full-year outlook for 2025 estimates net sales to be between EUR 1,820 million and EUR 1,900 million [2] - Operating profit for 2025 is estimated to be between EUR 590 million and EUR 670 million [2] Previous Financial Outlook - The previous full-year outlook for 2025 estimated net sales to be between EUR 1,640 million and EUR 1,720 million [3] - Operating profit was estimated to be between EUR 410 million and EUR 490 million [3] Company Overview - Orion Corporation is a Nordic pharmaceutical company with over a hundred years of experience, focusing on human and veterinary pharmaceuticals [3] - The company has a diverse portfolio including proprietary and generic medicines, with core therapy areas in oncology and pain [3] - In 2024, Orion's net sales were EUR 1,542 million, employing approximately 3,700 professionals globally [3]

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]

Core Insights - The European Commission has granted marketing authorization for darolutamide, an oral androgen receptor inhibitor, in combination with androgen deprivation therapy for the treatment of metastatic hormone-sensitive prostate cancer [2][8] - The approval is based on the positive results from the Phase III ARANOTE trial, which demonstrated a 46% reduction in the risk of radiological progression or death compared to placebo [2][7] Company Overview - Darolutamide, marketed as Nubeqa®, is developed jointly by Orion and Bayer and is already approved in over 85 countries for various indications related to prostate cancer [3][8] - Orion Corporation is a Nordic pharmaceutical company with a focus on oncology and pain management, employing approximately 3,700 professionals and generating net sales of EUR 1,542 million in 2024 [15][17] Industry Context - Prostate cancer is the second most common cancer among men globally, with an estimated 1.5 million new cases diagnosed in 2022 and projected to rise to 2.9 million by 2040 [4] - The ARANOTE trial involved 669 patients and aimed to assess the efficacy and safety of darolutamide plus ADT, with the primary endpoint being radiological progression-free survival [5][6]

Core Insights - Orion Corporation reported significant growth in net sales and operating profit for the first half of 2025, with net sales increasing by 21.1% to EUR 771.0 million and operating profit rising by 49.8% to EUR 182.5 million [1][4][8] - The company upgraded its outlook for 2025, estimating net sales between EUR 1,630 million and EUR 1,730 million, and operating profit between EUR 400 million and EUR 500 million [4][8] Financial Performance - In Q2 2025, net sales reached EUR 416.5 million, a 26.9% increase from EUR 328.2 million in Q2 2024 [1][4] - EBITDA for Q2 2025 was EUR 118.6 million, up 50.6% from EUR 78.8 million in Q2 2024, representing 28.5% of net sales [1][4] - Basic earnings per share for Q2 2025 were EUR 0.59, compared to EUR 0.37 in Q2 2024, marking a 58.7% increase [1][4] Business Segments - The performance of Nubeqa® was highlighted as a key driver of growth, with both royalty income and product sales showing strong increases [3][4] - The Branded Products and Animal Health divisions also reported double-digit growth, contributing to the overall positive performance [4][5] Research and Development - Research and development expenses increased by 12.5% to EUR 49.1 million in Q2 2025, reflecting the company's commitment to innovation [1][4] - The company opened a new research and development center in Cambridge, UK, and expanded collaborations in various business areas [6][7] Market Outlook - The outlook for 2025 anticipates continued growth in Nubeqa® royalties and product sales, although predicting exact levels remains challenging [12][14] - The Branded Products division is expected to grow, driven by the Easyhaler® product portfolio and other products, while the Animal Health division is anticipated to see slight growth [13]

Core Viewpoint - Orion Corporation has upgraded its full-year outlook for 2025 due to better-than-expected product sales and royalty income in the first half of the year, which is anticipated to continue for the remainder of the year [1][2]. Financial Outlook - The new full-year outlook estimates net sales to be between EUR 1,630 million and EUR 1,730 million, and operating profit to be between EUR 400 million and EUR 500 million [3]. - The previous outlook estimated net sales between EUR 1,550 million and EUR 1,650 million, and operating profit between EUR 350 million and EUR 450 million [4]. Milestone Payments - The 2025 outlook does not include any material milestone payments, although Orion is entitled to receive a milestone payment of EUR 180 million from Bayer related to the sale of Nubeqa® [2]. - There is uncertainty regarding the timing of this milestone payment, which is why it has not been included in the 2025 outlook estimate [2].

Core Insights - The U.S. FDA has approved darolutamide in combination with androgen deprivation therapy (ADT) for patients with metastatic castration-sensitive prostate cancer (mCSPC), marking the third indication for this drug [2][9] - The approval is based on the Phase III ARANOTE trial, which demonstrated a 46% reduction in the risk of radiological progression or death compared to placebo plus ADT [2][10] - Darolutamide is already approved in over 85 markets globally for various indications related to prostate cancer, including mHSPC and non-metastatic castration-resistant prostate cancer (nmCRPC) [5][6] Company Overview - Darolutamide, marketed as Nubeqa®, achieved blockbuster status with annual sales of EUR 1.52 billion reported by Bayer for the full year of 2024 [6] - The drug is developed jointly by Orion and Bayer, indicating a strong collaboration in the oncology sector [6][11] - Orion Corporation has a robust clinical development program for darolutamide, exploring its efficacy across various stages of prostate cancer [13] Industry Context - Prostate cancer is the second most common cancer in men, with an estimated 1.5 million diagnoses and approximately 397,000 deaths worldwide in 2022 [4] - The incidence of prostate cancer is projected to rise to 2.9 million by 2040, highlighting the growing need for effective treatment options [4] - The ARANOTE trial involved 669 patients and assessed the efficacy and safety of darolutamide plus ADT, reinforcing the drug's established safety profile [7][8]