Unless otherwise stated in this report, all data refers to the Group. Figures in
parentheses relate to the corresponding period in 2015.
Orexo reports positive cash flow for the quarter
First quarter 2016
· Total net revenues MSEK 151.0 (149.0).
· Zubsolv® net revenue MSEK 98.4 (94.5).
· Earnings after tax MSEK -34.5 (-15.5).
· Earnings per share SEK -1.0 (-0.45).
· Cash flow from operating activities MSEK 22.5 (6.5).
· Cash and cash equivalents MSEK 233.0 (289.3).
· AstraZeneca acquired all rights to Orexo´s OX-CLI project for MUSD 5. The
agreement also includes potential future royalties and milestone payments.
MSEK 2016 2015 2015
Jan-Mar Jan-Mar Jan-Dec
Net revenues 151.0 149.0 643.3
Revenues from launched products 110.2 149.0 643.3
EBIT -26.2 -8.1 -169.0
EBITDA -19.4 -5.1 -88.3
Earnings after tax -34.5 -15.5 -198.0
Earnings per share, SEK -1.0 -0.45 -5.74
Cash flow from operating activities 22.5 6.5 -102.2
Cash and cash equivalents 233.0 289.3 198.1
Teleconference
CEO Nikolaj Sørensen and CFO Henrik Juuel will present the report at a
teleconference on April 21, 2016 at 2:00 p.m. CET (08:00 a.m. EDT).
Presentation slides are available via the link and on the website.
Internet: http://financialhearings.nu/?160421/orexo
Telephone: +46 8 566 426 62 (SE), +44 20 300 898 04 (UK), +1 646 502 5116 (US)
For further information, please contact:
Nikolaj Sørensen, CEO or Henrik Juuel, EVP and CFO
Tel: +46 (0)18 780 88 00, E-mail: ir@orexo.com
CEO’s comments
I am pleased to report a positive cash flow from operations, despite the CVS
Caremark loss, for the first quarter of 2016. This even excludes the MUSD 5 from
the agreement with AstraZeneca for OX-CLI which we will receive in the second
quarter. I am also encouraged to see the amount of Zubsolv® in milligram
prescribed increased by 7 percent in March compared with January. On an annual
level our net sales for Zubsolv increased by 15 percent compared to first
quarter last year when adjusted for inventory changes. The improvement in net
sales is driven by a more favorable gross to net ratio, the price increase
announced in January and the increase in the value per prescription due to
higher average dosage strengths with the launch of three new dosages in 2015.
The highlight of the quarter has been the extensive work on a federal level in
the US to improve access to treatment of opioid dependence, e.g. Zubsolv. During
the quarter the Senate committee (HELP) responsible for improving treatment of
opioid dependence proposed a legislation to increase the amount of patients each
physician can treat from 100 to 500. Shortly thereafter the United States
Department of Health and Human Services (HHS) proposed a new regulation
increasing the number of patients from 100 to 200. Additionally, the House of
Representatives is also in the process of proposing legislation to raise the cap
potentially up to 450. All proposals are still being discussed, but it is clear
that the question is no longer if improvements in patient access will happen,
but how and when. This will have positive impact on our ability to continue
growing the number of patients being treated, Zubsolv sales and market share.
Our experience from the market tells us that Zubsolv is more successful
capturing patients new to treatment, than converting existing patients from
their current treatment. Thus, improvements in access to treatment will have
positive effects on Zubsolv and Orexo.
We maintain a positive outlook for Orexo and Zubsolv in 2016 and beyond,
reinforced by a positive sales trajectory excluding CVS Caremark, expected
improvements in patient’s access to treatment in the US and good progress in the
contract negotiations with a partner for Zubsolv outside the US. These
negotiations are expected to be finalized in the second quarter. However, we
also recognize the need to show financial strength and improvements in
profitability. We are constantly assessing the optimal allocation of our
resources and expect lower operating expenses in 2016 than 2015 with the current
market conditions. As soon as we know how the anticipated positive changes, on a
US federal level, affect the market conditions, we will assess our level of
investments to ensure we are well positioned to fully capture these
opportunities.
Nikolaj Sørensen
President and CEO
Please note
Orexo AB (publ) discloses the information provided herein pursuant to the
Financial Instruments Trading Act and/or the Securities Market Act. The
information was provided for public release on April 21, 2016, at 8:00 a.m. CET.
This report has been prepared in both Swedish and English. In the event of any
discrepancy in the content of the two versions, the Swedish version shall
prevail.
Interim Report January-March 2016
| Source: Orexo AB
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