• Q4 Revenue: SEK9.9 million.
• Full Year 2024 Revenue: SEK31.6 million.
• Cash Position: SEK179 million at year-end.
• Total Operating Expenses (2024): SEK390 million.
• Marketing and Sales Costs (Q4): SEK43 million.
• Administrative Costs (Q4): SEK8 million.
• Research and Development Costs (Q4): SEK43 million.
• European Sales Growth: 35% increase in Q4 versus Q3.
• Germany Prescriber Increase: 30% increase in Q4 versus Q3.

• Warning! GuruFocus has detected 4 Warning Signs with FRA:OND.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Oncopeptides AB (FRA:OND) reported a 35% increase in European sales in Q4 compared to Q3, indicating positive sales momentum.
• The company has secured regional access in Spain and reached an agreement with the Italian medicine's agency for pricing and reimbursement, paving the way for sales growth in these markets.
• Oncopeptides AB (FRA:OND) is advancing in Japan with regulatory alignment and is in advanced negotiations for a licensing deal, which could have significant financial impact.
• The company has a strong cash position of SEK179 million, aligning with plans to achieve cash flow positivity by the end of 2026.
• Positive real-world experience data from the US market supports the efficacy and safety of their product, enhancing market confidence.

Negative Points

• Despite growth, Oncopeptides AB (FRA:OND) is not yet at the desired level of sales, indicating room for improvement.
• The company faces challenges in market access in France, where reimbursement for their product was advised against.
• R&D expenses increased in Q4 due to one-off costs, impacting overall financial performance.
• The company relies on concluding additional business development partnerships to achieve cash flow positivity, adding uncertainty to financial projections.
• Market access negotiations in Norway are ongoing and challenging, potentially delaying sales in that region.

Q & A Highlights

Q: Could you describe the relative sales contributions from Spain and Japan in Q4 and how you see them developing in 2025? A: Germany had the greatest contribution in Q4, with Spain showing an encouraging start. Spain's sales volume is less than Germany's, but the progress is promising. Japan is a large market comparable to Germany in terms of patient numbers, but with a lower incidence of multiple myeloma. We are in advanced negotiations for a licensing deal in Japan, which could have a significant financial impact.

Q: How long do you estimate your cash position will last, and do you expect to use the loan arrangement with the EIB? A: Our cash position is estimated to take us to cash flow positivity by 2026, contingent on continued sales growth and additional business development opportunities. The EIB loan is a backup plan, but the core plan is for our business to achieve cash flow positivity.

Q: Can you provide details on the R&D spend in Q4 and expectations for 2025? A: The R&D spending in Q3 is a good model for 2025. The difference between Q3 and Q4 was due to one-off costs related to regulatory inspections and pre-clinical investments.

Q: Are the current markets sufficient to reach cash flow positivity, and how does this relate to the importance of a deal in Japan? A: The markets we are currently in, such as Spain, Germany, Italy, Austria, and Switzerland, are sufficient to reach profitability by the end of 2026. However, additional partnerships, like the one in Japan, are important for achieving cash flow positivity.

Q: What is the status of negotiations in Norway, and how does it impact your strategy? A: We are still negotiating with the Norwegian payer. The reimbursement process in Norway is challenging, but we are actively engaged and will update the market upon any conclusion.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.