Release Date: July 16, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Camurus AB (CAMRF, Financial) reported a 46% year-on-year revenue growth, excluding one-time revenue from the US approval of Brixadi in 2023.
- The company achieved a profit before tax of SEK104 million for the quarter and SEK201 million for the first half of the year.
- Camurus AB (CAMRF) has a strong cash position of SEK2.6 billion with no debt.
- Sales of Buvidal grew by 31% year-on-year and 10% quarter-on-quarter, with strong performances in major markets like the UK, Australia, Germany, France, and Spain.
- The adoption of Brixadi in the US continues to be strong, with royalties increasing by 73% quarter-on-quarter to SEK45 million.
Negative Points
- Total operating expenses increased by 23% year-on-year, driven by marketing, distribution, and administrative expenses.
- Administrative expenses grew by 97% year-on-year to SEK24 million.
- R&D investment increased by 8% year-on-year to SEK174 million, impacting overall profitability.
- The Swedish kroner depreciation had a mixed impact, positively affecting reported figures by 3% year-on-year but also contributing to cost increases.
- The tax rate for the quarter was higher than expected, partly due to the start of booking taxes for US operations.
Q & A Highlights
Q: Could you comment on the recent reimbursement reform in Germany and its impact on Camurus?
A: These are different processes. The reimbursement reform is not specifically related to Buvidal. The change in the remuneration system, which is a different process, is still targeted for early next year.
Q: What caused the delay in the remuneration system change in Germany, and how confident are you that it will happen in H1 '25?
A: We cannot provide a probability, but all stakeholders realize the need for change. Despite the delay, Germany has shown strong growth.
Q: The gross margin for Buvidal has been trending up. Will this continue, and how high can it get?
A: The gross margin has increased due to economies of scale and more efficient shipping. We expect the margin to stabilize around 90-91%, and it is unlikely to grow to 93-95%.
Q: Should we expect R&D costs to move lower over the year? Can you provide details on the new long-acting formulation of Buvidal?
A: Our R&D investment is expected to be around SEK600-650 million for the year. The new long-acting formulation is ongoing, but it won't affect costs this year.
Q: Can you provide more details on the upcoming Phase 1 trial for the GLP-1 program?
A: The Phase 1 trial will be a dose-escalating, repeat-dose study in a relevant patient population. We will disclose more once the CTA is approved.
Q: Can you provide an update on the number of patients treated with Brixadi in the US?
A: We haven't received an update close to the quarter's end. Last quarter, we reported 7,000 patients, and our partner is pleased with the continued uptake.
Q: The tax rate in the quarter was higher than expected. Is this an anomaly?
A: The higher tax rate is due to booking taxes for our US operations. Our effective tax rate is usually around 21.5%.
Q: When do you plan to share preclinical results for the GLP-1 program?
A: We do not plan to share preclinical results this year. The Phase 1 study will be similar to others in the segment, with dose-escalating components.
Q: Can you comment on the interim readout for the SORENTO study mentioned in the report?
A: There was no interim readout on efficacy. We have safety monitoring but no interim efficacy analysis.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
