OPKO Health, Inc. OPK delivered a loss per share of 10 cents in the first quarter of 2025, narrower than the year-ago period’s loss of 12 cents per share. However, the metric was wider than the Zacks Consensus Estimate of a loss of 6 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
OPK’s Revenues in Detail
OPKO Health registered revenues of $149.9 million in the first quarter, down 13.7% year over year. The figure missed the Zacks Consensus Estimate by 8.9%.
The overall top line was dampened by lower revenues from products and services, which was partly offset by strength in revenues from the transfer of intellectual property.
Shares of this company lost nearly 1.4% at the end of yesterday’s trading.
OPKO Health’s Segmental Revenues
OPKO Health manages its operations through two reportable segments – Diagnostics and Pharmaceuticals.
Within the Diagnostics arm, revenues from services amounted to $102.8 million in the reported quarter, down 18.9% year over year. This was primarily due to lower clinical test volume, principally resulting from the sale of certain assets of BioReference Health (BioReference), partially offset by higher clinical test reimbursement rates. This compares to our projection of $101 million from services revenues in the first quarter.
Within the Pharmaceuticals arm, revenues from products declined 8.7% year over year to $34.8 million, reflecting unfavorable foreign currency exchange fluctuations and a decrease in Rayaldee sales. This compares to our projection of $40.2 million from product revenues in the first quarter.
Revenues from sales of Rayaldee in the first quarter of 2025 were $6.3 million, down 8.7% from the prior-year period.
Revenues from the transfer of intellectual property totaled $12.3 million, up 41.4% from the prior-year period. This increase was driven by revenues from the BARDA contract of $7 million in 2025 compared with $2.2 million in 2024. This increase was partially offset by a decrease in gross profit share payments for NGENLA, which totaled $4.5 million in the first quarter of 2025 compared with $5.6 million in the year-ago period. This compares to our projection of $20.2 million in revenues from the transfer of intellectual property in the first quarter.
OPKO Health, Inc. Price, Consensus and EPS Surprise
OPKO Health, Inc. Price, Consensus and EPS Surprise
OPKO Health, Inc. price-consensus-eps-surprise-chart | OPKO Health, Inc. Quote
OPK’s Margin Analysis
In the quarter under review, OPKO Health’s gross profit increased 1.4% year over year to $42.6 million. The gross margin expanded 424 basis points to 28.4%.
Selling, general and administrative expenses declined 15.8% year over year to $59.1 million. Research and development expenses increased 40.6% year over year to $30.8 million. Adjusted operating expenses of $89.9 million decreased 2.4% year over year.
Adjusted operating loss totaled $47.3 million compared with the prior-year quarter’s adjusted operating loss of $50.1 million.
OPKO Health’s Financial Position
OPKO Health exited first-quarter 2025 with cash and cash equivalents of $436 million compared with $431.9 million at 2024-end.
OPK’s Guidance
OPKO Health has revised its financial outlook for 2025.
For the full year, it now expects total revenues between $675 million and $685 million, narrowed from the prior outlook of $675 million and $700 million. The Zacks Consensus Estimate currently stands at $671.9 million.
Revenues from product sales are continued to be expected in the range of $165 million-$175 million.
Other revenues are now expected to be between $75 million and $85 million, lowered from the prior outlook of $80 million and $95 million. This includes the Pfizer gross profit share estimates between $30 million and $40 million (lowered from $35 million and $45 million) and BARDA revenues of $38 million to $44 million (lowered from $40 million to $48 million).
Our Take
OPKO Health exited the first quarter of 2025 with a wider-than-expected loss per share and lower-than-expected revenues. Its dismal top-and-bottom-line performances and lower revenues from products and services were disappointing. The decline in Rayaldee sales was also concerning. The persistent operating loss also does not bode well for the company.
On a positive note, robust revenues from the transfer of intellectual property were registered during the quarter. The expansion of the gross margin bodes well for the company.
During the quarter, OPKO Health signed a definitive agreement with Labcorp to sell oncology and related clinical testing assets of BioReference, which includes the sale of BioReference’s laboratory testing businesses focused on oncology and oncology-related clinical testing services. The company also entered into a collaboration agreement with Entera Bio to advance an oral GLP-1/glucagon tablet candidate into the clinic to treat obesity and metabolic disorders. Also, OPKO Health’s company, ModeX Therapeutics Inc., continued to advance its immuno-oncology and immunology portfolio with four potential clinical candidates progressing in the pipeline. These developments look promising for the stock.
OPKO Health’s Zacks Rank and Key Picks
OPK currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Encompass Health Corporation EHC, Integer Holdings Corporation ITGR and Boston Scientific Corporation BSX.
Encompass Health, carrying a Zacks Rank #2 (Buy), reported first-quarter 2025 adjusted EPS of $1.37, beating the Zacks Consensus Estimate by 15.1%. Revenues of $1.46 billion outpaced the consensus mark by 1.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Encompass Health has a long-term estimated growth rate of 9.8%. EHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.3%.
Integer Holdings reported first-quarter 2025 adjusted EPS of $1.31, beating the Zacks Consensus Estimate by 3.2%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%. It currently sports a Zacks Rank #1.
Integer Holdings has a long-term estimated growth rate of 18.4%. ITGR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.
Boston Scientific reported first-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion surpassed the Zacks Consensus Estimate by 2.3%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 13.3%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.8%.
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