Oncopeptides (ONCO) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached SEK 8.5 million, up from SEK 2.8 million in Q3 2023, with strong sales momentum in Spain but weaker growth in Germany and Greece.

• Focus is on Germany, Spain, and Italy to drive growth and reach profitability by 2026, with cost reductions in other regions.

• Exclusive license and supply agreement signed with SCBIO for South Korea, resulting in a first milestone payment.

• First patient enrolled in a real-world Pepaxti study in Germany.

Financial highlights

• Net sales for Q3 2024 were SEK 8.5 million, up from SEK 2.8 million in Q3 2023; nine-month sales were SEK 21.7 million.

• Operating expenses for the nine months decreased 12% year-over-year to SEK 225 million, but Q3 2024 operating loss widened to SEK -61.3 million.

• R&D expenses in Q3 2024 dropped to SEK 22 million from SEK 49 million in Q3 2023, with no ongoing clinical studies.

• Marketing and sales costs were SEK 30 million in Q3 2024, up slightly from SEK 29 million last year.

• Cash and cash equivalents at quarter-end were SEK 250 million, supported by a rights issue in May 2024.

Outlook and guidance

• Profitability targeted for end of 2026, driven by growth in Germany, Spain, and Italy, with cost-effective operations.

• Spain expected to contribute significantly to sales in H2 2024 and early 2025 due to expanded access.

• Italy progressing through price negotiation phase, with launch timing dependent on payer negotiations.

• National guideline updates in Germany and Spain expected to support future growth.

• Signs of recovery in the German market observed in early Q4 2024.