Oncopeptides AB (FRA:OND) Q4 2024 Earnings Call Highlights: Strong European Sales Growth and ...

In This Article:

  • Q4 Revenue: SEK9.9 million.

  • Full Year 2024 Revenue: SEK31.6 million.

  • Cash Position: SEK179 million at year-end.

  • Total Operating Expenses (2024): SEK390 million.

  • Marketing and Sales Costs (Q4): SEK43 million.

  • Administrative Costs (Q4): SEK8 million.

  • Research and Development Costs (Q4): SEK43 million.

  • European Sales Growth: 35% increase in Q4 versus Q3.

  • Germany Prescriber Increase: 30% increase in Q4 versus Q3.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Oncopeptides AB (FRA:OND) reported a 35% increase in European sales in Q4 compared to Q3, indicating positive sales momentum.

  • The company has secured regional access in Spain and reached an agreement with the Italian medicine's agency for pricing and reimbursement, paving the way for sales growth in these markets.

  • Oncopeptides AB (FRA:OND) is advancing in Japan with regulatory alignment and is in advanced negotiations for a licensing deal, which could have significant financial impact.

  • The company has a strong cash position of SEK179 million, aligning with plans to achieve cash flow positivity by the end of 2026.

  • Positive real-world experience data from the US market supports the efficacy and safety of their product, enhancing market confidence.

Negative Points

  • Despite growth, Oncopeptides AB (FRA:OND) is not yet at the desired level of sales, indicating room for improvement.

  • The company faces challenges in market access in France, where reimbursement for their product was advised against.

  • R&D expenses increased in Q4 due to one-off costs, impacting overall financial performance.

  • The company relies on concluding additional business development partnerships to achieve cash flow positivity, adding uncertainty to financial projections.

  • Market access negotiations in Norway are ongoing and challenging, potentially delaying sales in that region.

Q & A Highlights

Q: Could you describe the relative sales contributions from Spain and Japan in Q4 and how you see them developing in 2025? A: Germany had the greatest contribution in Q4, with Spain showing an encouraging start. Spain's sales volume is less than Germany's, but the progress is promising. Japan is a large market comparable to Germany in terms of patient numbers, but with a lower incidence of multiple myeloma. We are in advanced negotiations for a licensing deal in Japan, which could have a significant financial impact.

Q: How long do you estimate your cash position will last, and do you expect to use the loan arrangement with the EIB? A: Our cash position is estimated to take us to cash flow positivity by 2026, contingent on continued sales growth and additional business development opportunities. The EIB loan is a backup plan, but the core plan is for our business to achieve cash flow positivity.