Orexo

OMX: ORX

Market CapSEK2,194m

Last Close SEK63.2

Orexo is a Swedish speciality pharma company, with expertise in drug delivery/reformulation technologies (in particular sublingual formulations) and a US commercial infrastructure for opioid dependence therapy Zubsolv (also filed in Europe). Orexo also has two clinical assets and three preclinical programmes.

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Investment summary

Orexo first generated positive EBITDA and operating cash flow in FY16 and this has continued to date. US commercial and public formulary coverage is dynamic but exclusive contracts among private insurers and state Medicaid are having a positive impact on US Zubsolv volumes and sales. The IP infringement appeal on the US Zubsolv IP was resolved in Orexo’s favor without recourse. Zubsolv generics are precluded before September 2032 and the other patent cases against Actavis are subject to Orexo’s appeal. Zubsolv was approved in Europe in 2018 and is being partnered in the EU. Orexo’s focus now shifts to business development, M&A for sales force leverage while its CoGS reduction is expected to result in a material improvement in profitability.

Y/E Dec
Revenue (SEKm)
EBITDA (SEKm)
PBT (SEKm)
EPS (öre)
P/E (x)
P/CF (x)
2018A 783.1 95.8 92.2 399.01 15.8 9.0
2019A 844.8 231.2 227.9 633.00 10.0 7.6
2020E 775.4 164.1 200.3 562.19 11.2 9.7
2021E 918.6 199.3 245.5 682.08 9.3 10.6
Industry outlook

Opioid dependence diagnosis/treatment rates are low due to social stigma, limited access to therapy in parts of the US and affordability. Competition includes Suboxone film (Indivior), Bunavail (BDSI) and six generic bup/nal tablets.

Last updated on 27/04/2020
Content on Orexo
Orexo – Updates from the capital markets day
Healthcare | research Update | 20 March 2020
Orexo – Vorvida submitted to the FDA
Healthcare | research Update | 10 March 2020
Orexo – Zubsolv stabilizing enables R&D push
Healthcare | research Update | 6 February 2020
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Sector
Healthcare
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Share price graph
Balance sheet
Forecast net cash (SEKm) 719.4
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 25.2 (7.9) (9.8)
Relative* 13.0 7.3 (4.0)
52-week high/low SEK78.1/SEK41.2
*% relative to local index
Key management
Martin Nicklasson Chairman
Nikolaj Sorensen CEO
Joseph DeFeo CFO
Company website

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