Camurus AB (CAMRF) Q3 2024 Earnings Call Highlights: Record Profit and Revenue Growth Amid ...

GuruFocus News
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In This Article:

  • Revenue: SEK 480 million, a 38% increase year-on-year, excluding a one-time revenue in 2023.

  • Profit Before Tax: SEK 165 million, a 125% increase compared to the same period last year.

  • Cash Position: SEK 2.75 billion at the end of the quarter, with no debt.

  • Buvidal Sales: SEK 421 million, a 22% increase year-on-year.

  • US Net Sales: Increased by 39% quarter-on-quarter, contributing SEK 58 million in royalties.

  • Gross Margin: 93% for the quarter, an improvement of 222 basis points year-on-year.

  • Total Operating Expenses (OpEx): SEK 304 million, a 21% increase year-on-year.

  • Administrative Expenses: SEK 27 million, a 155% increase year-on-year.

  • Investment: SEK 163 million, a 10% increase year-on-year.

  • Updated Revenue Outlook for 2024: SEK 1,810 to SEK 1,880 million.

  • Updated Profit Before Tax Outlook for 2024: SEK 450 to SEK 510 million.

Release Date: November 07, 2024

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

Positive Points

  • Camurus AB (CAMRF) reported a strong third quarter with a 38% revenue growth year-on-year, reaching SEK 480 million.

  • Profit before tax increased by 125% to SEK 165 million, marking the company's best results so far.

  • The company raised its full-year 2024 outlook, particularly regarding profit performance.

  • Camurus AB (CAMRF) has a strong cash position of SEK 2.75 billion with no debt.

  • Positive phase three results were reported from the ACROINNOVA2 study, advancing the R&D pipeline.

Negative Points

  • The company received a Complete Response Letter (CRL) from the FDA regarding cGMP inspection issues at a third-party manufacturer.

  • There was a noted impact of currency fluctuations, negatively affecting reported figures by two points year-on-year.

  • Marketing and distribution expenses saw a sequential drop, raising questions about future spending plans.

  • The regulatory review process for some products is delayed, with expected outcomes pushed to late 2025 or early 2026.

  • Challenges in addressing reimbursement hurdles in new markets could impact future growth.

Q & A Highlights

Q: Can you provide insights into the US market dynamics during Q3, particularly regarding long-acting injectables versus sublingual treatments? A: Richard Jameson, Chief Commercial Officer, noted that the third quarter showed a slight slowdown in growth, attributed partly to seasonality. However, there was a pickup in September, and they expect a stronger Q4. The majority of new patients are switching from sublingual treatments rather than from other long-acting injectables.

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