Investing.com -- Finnish drugmaker Orion beat third-quarter operating profit forecasts on Wednesday, as royalties from Bayer's prostate cancer drug Nubeqa nearly doubled, and confirmed the raised full-year outlook it issued last week.
Orion posted operating profit of €209.9 million for July-September, versus €121 million a year earlier and an average analyst forecast of €198.9 million, according to Vara Research.
Royalty income rose to €223.1 million from €119.3 million, partly because the highest royalty tier applied throughout the quarter, while last year it was reached only during the quarter.
Net sales rose 28.1% to €542.2 million, against a forecast of €542.9 million. Earnings per share were €1.19 versus €0.68 a year earlier and a forecast of €1.12.
Operating expenses rose by €22.3 million, due to research and development progress and royalties paid to Endo from Nubeqa income.
Net sales at the generics and consumer health division fell 3.4% to €131.3 million from €135.9 million, driven by numerous small decreases across several products and markets.
Orion raised its 2026 outlook on 20 October. It now expects net sales of €2.07 billion to €2.14 billion, up from €2 billion to €2.10 billion, and operating profit of €730 million to €790 million, up from €650 million to €750 million.
The outlook includes some U.S. tariff impact but no material milestone payments. Analysts' average full-year operating profit forecast was €724.6 million, below the bottom of the new range.
CEO Liisa Hurme said: "Due to the strong growth of Nubeqa royalties, we have upgraded our financial outlook for 2026."
A July water damage incident at Fermion's Hanko plant will hurt the unit's external sales in the fourth quarter, though supply of key products is not expected to be disrupted.
For January-September, operating profit was €501.2 million versus €303.5 million a year earlier, and net sales were €1.48 billion versus €1.19 billion. Interest-bearing net liabilities were -€18.8 million versus €87.1 million a year earlier, after Orion repaid €161.0 million of loans.
Original Article
Orion Q3 operating profit beats forecasts as Nubeqa royalties jump
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