OPKO Health, Inc. OPK delivered earnings per share (EPS) of a penny in the fourth quarter of 2024 against the year-ago period’s loss of 9 cents per share and the Zacks Consensus Estimate of a loss of 11 cents per share.

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Full-year 2024 loss per share was 8 cents, narrower than the comparable 2023 period and the Zacks Consensus Estimate of loss per share of 25 cents.

OPK’s Revenues in Detail

OPKO Health registered revenues of $183.6 million in the fourth quarter, up 0.9% year over year. The figure topped the Zacks Consensus Estimate by 18.4%.

Strength in revenues from the transfer of intellectual property and other boosted the overall top line.

Full-year 2024 revenues were $713.1 million, reflecting a 17.4% decrease from the comparable 2023 figure. However, the metric beat the Zacks Consensus Estimate by 4.2%.

Shares of this company gained nearly 3.1% in yesterday’s after-hours trading.

OPKO Health’s Segmental Revenues

OPKO Health manages its operations through two reportable segments – Diagnostics and Pharmaceuticals.

Within the Diagnostics arm, revenues from services amounted to $103.1 million in the reported quarter, down 16.9% year over year. This was primarily due to lower clinical test volume, principally resulting from the sale of certain BioReference assets. This compares to our projection of $98 million from services revenues in the fourth quarter.

Within the Pharmaceuticals arm, revenues from products declined 13% year over year to $37.4 million, reflecting unfavorable foreign currency exchange fluctuations. This compares to our projection of $42.7 million from product revenues in the fourth quarter.

Revenues from sales of RAYALDEE in the fourth quarter of 2024 were $9.1 million, down 2.2% from the prior-year period.

Revenues from the transfer of intellectual property and other totaled $43.1 million, up 193.2% from the prior-year period. This includes a $12.5 million milestone payment earned for the initiation of OPK’s Epstein-Barr virus (EBV) clinical trial and $10.2 million of commercial milestones for the EirGen business. This compares to our projection of $15.5 million in revenues from the transfer of intellectual property and other in the fourth quarter.

OPK’s Margin Analysis

In the quarter under review, OPKO Health’s gross profit jumped 89.3% year over year to $84.6 million. The gross margin expanded a huge 2150 basis points to 46.1%. We had projected a gross margin of 34.1% in the fourth quarter of 2024.

Selling, general and administrative expenses declined 8.1% year over year to $67 million. Research and development expenses increased 56.7% year over year to $30.4 million. Adjusted operating expenses of $97.4 million increased 5.5% year over year.

Adjusted operating loss totaled $12.8 million compared with the prior-year quarter’s adjusted operating loss of $47.6 million.

OPKO Health’s Financial Position

OPKO Health exited 2024 with cash and cash equivalents of $431.9 million compared with $95.9 million at 2023-end.

OPK’s Guidance

OPKO Health has initiated its financial outlook for 2025.

For the full year, it expects total revenues between $675 million and $700 million. The Zacks Consensus Estimate currently stands at $675.2 million.

OPKO Health expects its revenues from services to be between $405 million and $425 million. Revenues from product sales are expected to be in the range of $165 million-$175 million. Other revenues are expected to be between $80 million and $95 million, including the Pfizer gross profit share estimates between $35 million and $45 million and BARDA revenues of $40 million to $48 million.

Our Take

OPKO Health exited the fourth quarter of 2024 with better-than-expected results and encouraging top-line and bottom-line results. Robust revenues from the transfer of intellectual property and other were registered during the quarter. The expansion of the gross margin bodes well for the company.

Management’s confirmation that enrollment and dosing are underway by Merck in the Phase 1 EBV vaccine trial and enrollment is underway in the MDX2001 Phase 1 trial for the treatment of solid tumor cancers raises our optimism about OPK. The company has also been awarded $51 million of additional funding under an existing BARDA contract to develop COVID multispecific antibodies and to initiate an influenza program, which is also encouraging. During the quarter, BioReference Health made significant strides toward near-term profitability, which looks promising.

However, lower revenues from products and services were disappointing. The decline in RAYALDEE sales was also concerning. The persistent operating loss for OPKO Health also does not bode well for the company.

OPKO Health’s Zacks Rank and Key Picks

OPK currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space that have announced quarterly results are Cardinal Health, Inc. CAH, ResMed Inc. RMD and Boston Scientific Corporation BSX.

Cardinal Health, carrying a Zacks Rank #2 (Buy), reported second-quarter fiscal 2025 adjusted EPS of $1.93, beating the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion outpaced the consensus mark by 0.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cardinal Health has a long-term estimated growth rate of 10.7%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.

ResMed reported second-quarter fiscal 2025 adjusted EPS of $2.43, beating the Zacks Consensus Estimate by 5.7%. Revenues of $1.28 billion surpassed the Zacks Consensus Estimate by 1.6%. It currently carries a Zacks Rank #2.

ResMed has a long-term estimated growth rate of 16%. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.

Boston Scientific reported fourth-quarter 2024 adjusted EPS of 70 cents, beating the Zacks Consensus Estimate by 7.7%. Revenues of $4.56 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2.

Boston Scientific has a long-term estimated growth rate of 13.3%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.3%.

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