Orexo Ab Stock Earnings Reports

Orexo continues a post-Zubsolv transformation with active cost rationalization, staff reductions and supplier contract exits. Cash at end Q2 was SEK 233m (Orexo-only), after SEK 112m total negative cash flow in the quarter driven by rebate payments and transition costs; operating expenses were SEK 107m but would be ~SEK 60m excluding non-recurring items. Key near-term value inflection points: filing of Izipry (OX124) targeted for September 2026 with an expected FDA 6-month review (potential U.S. approval by end of Q1 2027), start of the OX640 nasal allergy challenge study planned for Q4 2026 and expected pivotal program / manufacturing scale-up leading to filings in 2027/first half 2028, and an in vivo GLP-1 study (oral and nasal exploration) in Q3 2026 supported by an early-stage scientific collaboration. OX390 (atipamezole for alpha-2 agonist intoxication) completed an encouraging in vivo study; development largely funded by BARDA. Business development has been strengthened with a new Head of BD to pursue AmorphOX platform partnerships (vaccines, GLP-1, others). The DOJ investigation remains an unresolved risk: management reports constructive negotiations toward a multi-year settlement, expects some insurance coverage, and is engaging with DOJ while incurring legal costs. Capital strategy: management is exploring financing alternatives and notes they likely need clarity on DOJ terms before major equity raises; partnering is expected to fund a significant portion of late-stage OX640 costs. Other points: Abstral and Edluar royalties declined due to expiries and generics; Zubsolv ex-U.S. royalties showed a positive true-up; transition services with Dexcel continue through 9 months post-sale.