Oncopeptides (ONCO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 60% sequentially to SEK 8.2 million, with June marking a record month and strong sales growth in Europe.

• Pepaxti launched in Spain in May, with first sales, national subsidy secured, and strong early interest from physicians; European market access progressing, dossier submitted in France.

• Germany remains the main growth driver, with increasing patient cycles and expanding KOL support; commercialization also expanded in Austria and Greece.

• Real-world studies initiated in Germany (HARBOUR) and planned for Spain (LAGOON) to support clinical adoption.

• First SPIKE platform drug candidate (OPSP1) selected, signaling pipeline progress beyond Pepaxti; partnership for South Africa signed.

Financial highlights

• Q2 2024 sales reached SEK 8.2 million, up from SEK 1.9 million in Q2 2023 (excluding prior year reserve reversal); gross profit was SEK 7.2 million with gross margin above 95%.

• R&D expenses decreased to SEK 28 million from SEK 38 million year-over-year; S&M costs increased to SEK 36 million, G&A fell to SEK 16 million.

• Operating loss for Q2 2024 was SEK -73.3 million, with net loss at SEK -73.2 million.

• Cash position at Q2 end was SEK 383 million, including a SEK 105 million positive VAT timing effect; adjusted cash is SEK 278 million.

• SEK 270 million net proceeds from a rights issue in May bolstered liquidity.

Outlook and guidance

• Profitability targeted by end of 2026, with current liquidity expected to last until then; targeting SEK 400 million in annual revenue.

• Sales growth expected to continue, with Spain and Germany as primary contributors in the near term; additional European markets (Italy, Ireland, Norway, Netherlands) expected to contribute more from 2025.

• Expects first sales from the Middle East and North Africa in H2 2024 and from South Africa in early 2025.

• R&D and administrative costs projected to remain stable; moderate increase in sales and marketing spend anticipated.