Orion Pharma benefits from Bayer's Nubeka sales success
Finnish pharmaceutical company Orion recorded €280 million in revenue from Nubeka in the third quarter, driven by strong sales of Bayer's cancer drug. The stock has gained 55% this year as the company diversifies its portfolio.
Orion, a Finnish pharmaceutical company, is a major beneficiary of Bayer's successful cancer drug Nubeka. The drug generated nearly €1 billion in revenue last quarter, representing 60% growth. Orion discovered the active ingredient and has partnered with Bayer since 2014, manufacturing the tablets and receiving license fees. In the third quarter, Orion recorded €280 million in revenue from Nubeka, which accounted for over half of its total revenue. The company has reached the highest tier of license fees and projects that Nubeka could eventually exceed €1 billion in annual revenue for Orion.
Orion's stock has gained 55% this year, valuing the company at €15 billion, or 18 times expected earnings. To mitigate risk, Orion is developing a second prostate cancer drug with Merck/MSD, with potential milestone payments up to $1.5 billion. However, the company faced a setback when a study for a pulmonary hypertension drug with partner Tenex missed its target in the summer. Nubeka's patent is expected to expire in 2033, prompting Orion to continue diversifying its portfolio.