SEK2349.9m market cap

SEK67.7 last close

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.

Investment summary

Orexo reported a record performance for Q319 with revenue of SEK231.2m (+6.7% year-on-year). The top line was lifted by a combination of factors including currency and a shift in the reimbursement landscape for Zubsolv in the US toward higher-margin business, translating into a record EBIT of SEK105.9m, over three times that of Q318, and SEK135.7m in operating cash flow. Orexo ended the period with SEK813m in cash (SEK524m net), which we expect the company will reinvest in new assets and its pipeline, including the initiation of a Phase I study of OX338 (complete in Q419).

Y/E Dec
Revenue (SEKm)
EPS (öre)
P/E (x)
P/CF (x)
2017A 643.7 57.4 29.7 67.00 101.0 15.2
2018A 783.1 95.8 92.2 399.01 17.0 15.9
2019E 874.9 264.6 292.0 847.71 8.0 12.7
2020E 860.1 229.4 271.7 759.29 8.9 12.2
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 15/11/2019
Share price graph
Balance sheet
Forecast net cash (SEKm) 576.2
Forecast gearing ratio (%) N/A
Price performance
Actual 29.9 12.8 14.2
Relative* 24.2 (1.1) (5.0)
52-week high/low SEK85.7/SEK51.6
*% relative to local index
Key management
Martin Nicklasson Chairman
Nikolaj Sorensen CEO
Joseph DeFeo CFO

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