Swedish Orphan Biovitrum (SOBI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached SEK 6,894 M, up 39% year-over-year at constant exchange rates, with adjusted EBITA/EBITDA margin at 43% and strong performance across hematology and immunology portfolios, led by Altuviiio and Beyfortus.

• Strategic portfolio revenue surged 113% at CER, now representing 56% of total business, with key contributions from Altuviiio and Beyfortus.

• Profit for the period was SEK 1,464 M, reflecting robust demand and new product launches.

• Key late-stage pipeline milestones achieved, including positive Phase 3 VALIANT data for Aspaveli in C3G/IC-MPGN and rapid Altuvoct uptake in Germany.

• Upgraded 2024 guidance to mid-teens revenue growth at CER and maintained mid-30s% adjusted EBITA/EBITDA margin.

Financial highlights

• Q3 revenue: SEK 6,894 M (up 39% at CER); adjusted EBITA: SEK 2,965 M (up 92%); adjusted EBITA margin: 43%.

• Adjusted gross margin improved to 81% (from 78% in Q3 2023).

• Profit for the period: SEK 1,464 M (from SEK 94 M); adjusted EPS before dilution: SEK 4.36 (from SEK 0.54).

• Operating cash flow: SEK 1,201 M; net debt at quarter-end: SEK 16,880 M; net debt/EBITDA ratio reduced to 1.8x.

• Operating expenses grew 12% year-over-year at CER, with SG&A up 11% and R&D up 16%.

Outlook and guidance

• Upgraded full-year 2024 revenue growth guidance to mid-teens at CER, with adjusted EBITA/EBITDA margin reiterated in the mid-30s%.

• Q4 growth expected to slow due to tough comps in RSV and hemophilia, and absence of manufacturing revenue.

• Continued elevated R&D and SG&A spend anticipated in Q4, especially for multiple filings and launches.