Gubra (GUBRA) Q3 2024 earnings summary

Executive summary

• Achieved strong growth in both CRO and Discovery & Partnership (D&P) segments for the first nine months of 2024, with obesity and kidney research as main growth drivers.

• Amylin (GUBamy) program completed Phase 1 SAD cohorts with topline results expected in November 2024; MAD phase initiated.

• UCN2 weight loss program progressing toward clinical entry in late 2025 or early 2026.

• Boehringer Ingelheim discontinued the NPY2R agonist program, but the triple agonist peptide program continues with a new Phase 1 trial launched.

• Expanded client base to 16 of the top 20 global pharma companies and acquired MiniGut minipig facility.

Financial highlights

• CRO segment revenue grew 31% year-over-year for the first nine months, reaching DKK 162.1m, with adjusted EBIT up 55% to DKK 53.6m and margin improving to 33%.

• Group Q3 2024 revenue was DKK 82.1m, up 54% year-over-year; 9M 2024 revenue reached DKK 202.7m, up 31%.

• D&P segment revenue increased to DKK 40.6m for 9M 2024, partly due to milestone payments, but adjusted EBIT loss widened to DKK -69.5m.

• CRO segment Q3 2024 adjusted EBIT margin was 35%.

• Total adjusted costs for 9M 2024 were DKK 160-170m.

Outlook and guidance

• CRO business organic revenue growth guidance for 2024 raised to 26-28%, with adjusted EBIT margin expected at 30-32%.

• D&P segment expects 1-2 new partnerships per year; total adjusted costs guided at DKK 160-170m for 2024.

• Mid-term guidance for CRO: 10% annual organic growth, 35-40% adjusted EBIT margin.