Headline: Sobi Reports Strong Q3 Growth, Raises 2024 Guidance
Swedish Orphan Biovitrum AB (Sobi) announced a strong performance in the third quarter of 2024, with revenue increasing by 39% to reach SEK 6.9 billion. This growth is attributed to significant advancements in the hematology and immunology sectors, primarily driven by royalties from Beyfortus. Sobi's CEO, Guido Oelkers, emphasized the successful market adoption of their products, including the newly launched Altuvoct, and highlighted the company's focus on expanding its product range and geographical presence. The 2024 growth guidance was raised to mid-teens percentages, and adjusted EBITDA growth to mid-thirties percentages, reflecting the company’s positive outlook. Sobi is listed on the Stockholm Stock Exchange under the ticker SOBI.
Key Highlights Sobi's Q3 2024 revenue increased by 39% to SEK 6.9 billion due to strong performances in hematology and immunology. The adjusted EBITDA margin rose to 43%, with Altuvoct showing significant market share increases in Germany. The company revised its 2024 growth guidance to mid-teens percentages and expects an EBITDA margin in the mid-thirties. Sobi's strategic focus includes expanding its product offerings and addressing unmet medical needs, with notable pipeline advancements reported. Financially, operating cash flow remained strong at SEK 1.2 billion, and net debt stood at SEK 16.9 billion.
Company Outlook Sobi plans to file for Aspaveli in nephrology in Europe and Japan, and a regulatory decision for Gamifant in secondary HLH is awaited in the U.S. The company is optimistic about Altuvoct's adoption in European markets, expecting a 30-40% market share for a new prophylaxis treatment. Sobi aims to expand Vonjo's market appeal and anticipates sustained growth in the coming quarters.
Downside Concerns Concerns were raised about pricing pressures on Beyfortus due to a competing product from Merck, though specific details were not provided. Doubts exist regarding the market potential for Aspaveli based on recent data, yet the company remains confident in its forecasts.
Upside Opportunities Altuvoct's rapid adoption in the hemophilia community is promising; over 50% of patients in Germany have transitioned to this treatment. Elocta and Alprolix are expanding in new markets, and Gamifant has reached a milestone with 1,000 treated patients. Sobi's R&D pipeline shows significant progress with successful Phase 3 trials and ongoing applications for various treatments.
Gaps No specific challenges or gaps were mentioned in the provided context.
Q&A Highlights Harry Gillis from Berenberg inquired about Aspaveli's market share compared to Novartis. CEO Guido Oelkers expressed confidence in gaining a larger market share. The company confirmed an expected increase in operating expenses in Q4 and noted that the next major update on ASN data concerning C3G and IC-MPGN is scheduled for Tuesday.
Sobi's Q3 2024 earnings call highlighted the company's robust financial and operational performance, with substantial growth in revenue and product market share. The company remains committed to addressing unmet medical needs and is confident in the continued success of its product pipeline and strategic market expansion.