Swedish Orphan Biovitrum Q3 Profit Tumbles, Reaffirms FY23 Outlook

Swedish Orphan Biovitrum AB (SWTUY.PK), a Swedish drug maker focused on the treatments in the areas of haematology, immunology and specialty care, on Monday registered a decline in profit for the third-quarter of 2023, amidst higher expenses and net financial items. However, the company recorded an increase in revenue.

Guido Oelkers, CEO of Swedish Orphan, said: “Revenues increased for Haematology and Immunology 89 percent of this was driven by our launch medicines, primarily in the US and internationally. This includes a strong contribution from Vonjo, added through our recent acquisition of CTI BioPharma.”

For the three-month period, the firm posted profit of SEK 94 million or SEK 0.30 per share, compared to SEK 451 million or SEK 1.42 per share recorded for the same quarter of 2022.

Excluding items, income per share fell to SEK 0.53 per share from last year’s SEK 1.42 per share.

Pre-tax income was at SEK 116 million, compared with SEK 564 million of previous year.

Operating earnings were at SEK 547 million as against SEK 699 million a year ago.

Excluding items, EBITA margin dropped to 30 percent from last year’s 31 percent.

Cost of goods sold was SEK 1.168 billion, compared with last year’s SEK 932 million.

Selling and administrative expenses stood at SEK 2.662 billion, versus SEK 1.834 billion in 2022.

Net financial items were at SEK 431 million, higher than SEK 135 million of previous year.

Haematology segmental revenue increased by 25 percent at constant exchange rates or CER to SEK 3.484 billion from last year’s SEK 2.619 billion, mainly driven by the sales of Vonjo at SEK 347 million and SEK 1.245 billion in sales from Elocta.

Revenue from Immunology segment increased by 27 percent at CER to SEK 1.400 billion from previous year’s SEK 1.070 billion, driven by Gamifant growth of 112 percent and the first royalties on Beyfortus, nirsevimab, of SEK 263 million.

Revenue increased to SEK 5.168 billion from SEK 3.999 billion a year ago.

Looking ahead, the drug maker has reaffirmed its outlook. For full year 2023, the company still expects its revenue to grow by a high-single-digit percentage at CER.

Swedish Orphan continues to project its full year adjusted EBITA margin to be at a low 30s percentage of revenue.

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