Search Follow us


1 - 12 of 39
Sort by: popularity | newest
Page  2 3 4  of 4 | Next
Tetragon Financial Group

Positive returns from all asset classes in Q316

Update | Investment Companies | 28 Nov 2016

Tetragon Financial Group (TFG) reported fair value earnings of US$49.7m for the third quarter of 2016, with positive contributions made by all asset classes. NAV total return was 1.3% for the quarter and 7.8% for the nine months to 30 September 2016. Having completed a US$100m tender offer in June 2016, TFG commenced a US$50m tender offer on 9 November 2016, which should be meaningfully accretive to NAV per share given the current wide share price discount to NAV. Consistent with previous years, the third interim dividend was held in line with the second interim, confirming TFG’s 5.9% yield.


Worst-case scenario averted

Update | Pharmaceuticals & healthcare | 28 Nov 2016

The court ruling upholding the validity of the Orexo ’996 Zubsolv patent precludes Actavis from launching a generic before September 2019. Orexo has 30 days to decide whether to appeal the court decision that a second patent (’330 with 2032 expiry) is invalid. A worst-case scenario allowing imminent launch of Actavis generic(s) has been averted. Zubsolv’s IP portfolio includes two additional patents (’900 and ’421) that extend to 2032, which coupled with the prospect of an appeal on ’330, means that significant hurdles remain ahead of Actavis generic launch.


Mundipharma to take Zubsolv global

Flash note | Pharmaceuticals & healthcare | 04 Jul 2016

Mundipharma has licensed exclusive global ex-US rights to Zubsolv. Deal terms include a €7m upfront payment, in addition to further undisclosed regulatory and commercial milestones and up to low double-digit net sales royalties. Ahead of Orexo's Q216 results on 12 July pending further disclosures, we make no changes to our current forecast and valuation. Nevertheless, this is an important deal for Orexo, which will significantly expand the Zubsolv market opportunity ex-US, where c 20 million people are estimated to be afflicted by opioid dependence. Access to the global opioid dependence market is a key growth driver for Orexo, in addition to the anticipated expansion in US prescribing rights and the currently undisclosed development pipeline.


Highlighting the opioid dependency market size

Update | Pharmaceuticals & healthcare | 17 Dec 2018

Orexo’s capital markets day (CMD) emphasised the scale of the US opioid crisis. We have forecast 8.2% market growth pa for US opioid dependency in FY19 and FY20, although external speakers at the CMD suggested this may be higher. Orexo’s marketed product Zubsolv, sales of which grew 37% y-o-y in Q318 in SEK, and its other products in development, form a treatment franchise in the growing markets of opioid dependency and related disorders. The recent return of EU Zubsolv rights defers the royalties but this effect is largely absorbed by the CoGS reduction.


Blue Skies

Update | Pharmaceuticals & healthcare | 29 Oct 2018

The growing US Zubsolv franchise continues to drive Orexo’s quarterly performance. Total Q3 revenue growth of c 30% puts Orexo in an attractive position with potential business development partners. Orexo’s Q318 results were the first since Zubsolv’s exclusivity was strengthened for another 13 years in the US, so with Zubsolv sales growing by 1.2% q-o-q in Q3, against the backdrop of a 0.3% decline in the buprenorphine/naloxone market volumes, and continued material CoGS improvements, Orexo is moving from strength to strength.


Orexo wins patent litigation appeal

Outlook | Pharmaceuticals & healthcare | 13 Sep 2018

Orexo’s appeal of the US District Court’s invalidation of the ‘330 patent, which had been anticipated for some months, has been successful. Zubsolv is Orexo’s largest and fastest-growing product – we anticipate sales of c SEK620m and over 25% growth in FY18. The initial invalidity of the ‘330 patent had weighed on the shares since 2014 and this overhang has now been removed. The exclusivity of the Zubsolv patents runs until 2019 and 2032. We have updated our valuation ahead of the Q318 results.


One of the best ever quarters

Update | Pharmaceuticals & healthcare | 13 Jul 2018

In a well-received set of quarterly results, Orexo continued to execute on Zubsolv in the US, which, for the second quarter running, continued to be the only branded product in the category that increased its market share in the face of multiple generics. Zubsolv US revenues of SEK158.4m grew by 27.6% y-o-y, driving total revenues to SEK200m. EBITDA of SEK50.6m, cash flow from operations of SEK39m and a gross cash balance of SEK494.8m made Q218 one of Orexo’s best ever quarters.


EU launch milestone achieved

Update | Pharmaceuticals & healthcare | 19 Jun 2018

Yesterday Orexo announced the launch of Zubsolv in the EU by its partner Mundipharma, triggering a EUR 3m (c SEK30.6m) milestone payment. Zubsolv is Orexo’s biggest product, which the company markets itself in the US. The EU launch of Zubsolv by Mundipharma may be underappreciated by investors for reasons we explain below. We have adjusted our model to include net cash including the milestone payment and exchange rate changes which amend our valuation to SEK67.8 per share from SEK63.0 per share.


Profitability continues

Update | Pharmaceuticals & healthcare | 15 May 2018

Orexo reported an operational quarter in line with guidance. Total revenues of SEK139.7m in Q118 represented an increase of about 10% vs Q117. Orexo’s key product, Zubsolv, saw revenues in the US increase by 15% vs Q117 to SEK131.1m. Improved working capital management and cost of goods sold (CoGS) efficiencies promise to deliver another full year of profitability in FY18 and beyond. We have rebuilt our model and our new valuation is SEK2.2bn or SEK63 per share.


Revolving around US Zubsolv 2018 positioning

Update | Pharmaceuticals & healthcare | 13 Dec 2017

Orexo’s Q3 highlighted a strong financial quarter. Zubsolv US revenue declines of 15% vs Q316 (Q316 benefited from significant one-time wholesaler stocking of Zubsolv) were offset by tight cost control, which resulted in positive EBITDA and operating cash flow generation for an eighth consecutive quarter. For 2018, US commercial and public formulary coverage has improved, which will have a positive impact on US Zubsolv sales from 1 January vs 2017 sales. However, a continued skew towards the public market segment in the US opioid dependency market class in general has led to downward revisions to our US Zubsolv peak sales forecasts. Also, the EMA has approved Zubsolv for Europe and partner Mundipharma should launch in H118. Our revised valuation is SEK2.7bn.


Zubsolv growing in a challenging environment

Update | Pharmaceuticals & healthcare | 08 Aug 2017

US net sales of Zubsolv (for the treatment of opioid dependence) grew 10% y-o-y to SEK124.1m in a market where volume growth was driven by the larger (46% of all subscriptions), less profitable and more competitive public segment (Zubsolv has 27% market access). Despite a testing quarter we believe the market’s view of Zubsolv’s prospects is too pessimistic; Q3/Q417 should gain from the addition of Zubsolv to the state of Wisconsin’s preferred formulary for it Medicaid programme. Additionally, Zubsolv recently gained a preferred (now reimbursable) position on the CVS Caremark 2018 formulary, taking its access to the commercial sector to over 90%. Abstral royalties, which are loaded to H217, should aid in achieving FY17 forecasts.


More signs of pipeline promise

Update | Pharmaceuticals & healthcare | 09 Jun 2017

Orexo has received a $2.5m (c SEK22m) milestone from AstraZeneca on the start of Phase I trials for respiratory programme, OX-CLI (also known as AZD9898). Orexo now has two clinical assets (the other being Phase III-ready acute pain programme OX-51) and three preclinical projects (OX-MPI [inflammation] plus two novel formulation technologies). This milestone does not impact FY17 guidance but indicates growing momentum in the early-stage development pipeline. We expect further news on new product opportunities this year; both pipeline project(s) and commercial product(s) for US promotion, in addition to potential EMA approval of Zubsolv (Q417).