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, especially Spain.

• Pepaxti launched in Spain in May, with national reimbursement secured, first sales, and strong early physician interest; market access progressing in France.

• Germany remains the main growth driver, with increasing patient cycles and expanding KOL support; all Q2 sales derived from Europe.

• First SPIKE platform drug candidate selected; partnership for South Africa signed; preclinical work ongoing.

• Rights issue completed in May 2024, 94% subscribed, raising SEK 270 million net and SEK 314 million gross, strengthening liquidity.

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 margin above 95%.

• R&D expenses decreased to SEK 28 million from SEK 38 million year-over-year; marketing and sales costs increased to SEK 36 million.

• Operating loss for Q2 2024 was SEK -73.3 million; net loss was SEK -73.2 million; EBIT was -SEK 72.3 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; annual revenue target of SEK 400 million.

• Sales growth expected to continue, with Spain and Germany as primary contributors in the near term; additional European markets to contribute from 2025.

• Expansion planned into Middle East and North Africa, with first sales in new regions anticipated in late 2024 and early 2025.

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