2008-10-28 07:30:24 CET
2008-10-28 07:31:16 CET
REGULATED INFORMATION
Orion - Interim report (Q1 and Q3)
Orion Group Interim Report 1-9/2008
Orion's net sales in January-September 2008 stood at EUR 530.1
million (1-9/2007: EUR 509.6 million), up by 4.0% on the comparative
period of January-September 2007.
* Operating profit was EUR 152.2 (153.4) million.
* Profit before taxes was EUR 152.0 (154.3) million.
* Equity ratio was 65.5% (75.8%).
* Return on capital employed (ROCE) was 44.8% (48.9%).
* Earnings per share were EUR 0.79 (0.80).
Orion's key figures for the review period
Change Change
Q3/08 Q3/07 % Q1-Q3/08 Q1-Q3/07 % 2007
Net sales, EUR
million 167.8 163.8 +2.4 % 530.1 509.6 +4.0% 683.6
Operating profit,
EUR million 43.6 49.1 -11.3 % 152.2 153.4 -0.8% 192.0
% of net sales 26.0% 30.0% 28.7% 30.1% 28.1%
Profit before taxes,
EUR million 43.1 49.2 -12.5 % 152.0 154.3 -1.5% 193.4
% of net sales 25.7% 30.0% 28.7% 30.3% 28.3%
R&D expenditure, EUR
million 23.1 22.2 +4.0 % 74.0 69.7 +6.1% 98.5
% of net sales 13.8% 13.6% 14.0% 13.7% 14.4%
Capital expenditure,
EUR million 12.7 9.3 +36.8 % 44.0 23.9 +83.9% 35.3
% of net sales 7.6% 5.7% 8.3% 4.7% 5.2%
Balance Sheet total,
EUR million 606.5 529.2 +14.6% 567.6
Equity ratio, % 65.5% 75.8% 76.0%
Gearing, % 0.2% -12.4% -20.0%
Interest-bearing
liabilities, EUR
million 95.9 10.6 +805.0% 4.0
Non-interest-bearing
liabilities, EUR
million 113.5 117.7 -3.6% 132.4
Cash and cash
equivalents, EUR
million 95.1 60.1 +58.2% 90.4
ROCE (before taxes),
% 44.8% 48.9% 44.8%
ROE (after taxes), % 35.9% 36.4% 33.5%
Earnings per share,
EUR 0.23 0.26 -11.8 % 0.79 0.80 -1.2% 1.02
Equity per share,
EUR 2.82 2.84 -0.7% 3.05
Personnel at the end
of the period 3,300 3,149 +4.8% 3,176
As of 1 January 2008 the Orion Group has changed its accounting
policy regarding disability pension liability (IAS 19 'Employee
benefits'). The adjusted key figures for previous periods are
presented in the table 'Adjusted key figures', which can be found in
the end of this release.
CEO Timo Lappalainen's review"Our net sales grew by 4% compared with the same period last year,
even though the growth was substantially slowed down by the exit of
Calcimagon from the German portfolio and the weakening of the US
dollar rate. However, the Group's operating profit fell slightly,
mainly because of the planned increase in expenditure on research and
sales as well as the costs caused by the ongoing patent infringement
lawsuits in the USA.""The combined sales of the Parkinson's drugs Stalevo and Comtess,
marketed through Orion's own sales organisation, continued to grow.
Moreover, the in-market sales by our marketing partner Novartis
increased. Due to a decrease in Novartis's stock levels, however, our
total deliveries of Stalevo and Comtan were slightly lower than last
year. For the full year we expect our deliveries to achieve the level
of 2007.""Our estimate of the Group's outlook for the full year 2008 remains
unchanged compared with the previously published one in the 2007
financial statements and the preceding interim reports. At present we
do not expect the current financial crisis to substantially affect
the company's earnings in the last part of 2008. The entire outlook
estimate and the related preamble are found on pages 5-6 of this
report."
Events during the 3rd quarter of 2008
In July, Orion withdrew a loan of EUR 40 million granted by the
European Investment Bank. The loan will be repaid during the next
seven years, and its interest rate is tied to the 6-month euribor
interest rate.
In August, Orion signed a co-operation agreement with the Australian
drug delivery technology company Acrux to become a contract
manufacturer of its Testosterone MD-Lotion® hormone replacement
products.
In August, the new strengths of Stalevo, 75 and 125 mg, were granted
marketing authorisation in the United States. Novartis will launch
the new tablet strengths in October.
In September, the rights to develop and commercialise
non-intravenously administered dosage forms of dexmedetomidine, for
example in the United States market, were out-licensed to the
American Rëcro Pharma company.
In September, Orion announced that the studies currently underway
with dexmedetomidine (a sedative for patients in intensive care)
administered as a long-term infusion will take longer to complete
than projected earlier, and preliminary results are expected to be
available in the summer of 2010.
In September, Orion and Pfizer signed a contract giving Orion the
exclusive right to market an extensive portfolio of veterinary
medicines in Scandinavia.
Events after the review period
In October, Orion Corporation was informed that Sun Pharma Global,
Inc. has filed an Abbreviated New Drug Application (ANDA) with the
U.S. Food and Drug Administration (FDA) seeking authorisation to
produce and market a generic version of entacapone (200 mg tablets)
in the United States. Entacapone is the active ingredient in Comtan®,
a product originated by Orion Corporation for Parkinson's disease and
marketed in the United States by its exclusive licensee, Novartis.
The new ANDA by Sun Pharma Global is expected to neither alter the
order of priority among existing generic applicants nor significantly
change the overall status regarding the current U.S. patent
litigations where Orion is a party. Sun Pharma Global's new ANDA
challenges two of Orion's U.S. patents listed in the FDA's Orange
Book, U.S. Patent Nos. 5,446,194 (already part of the legal
proceedings against Sun Pharmaceutical Industries Limited) and
6,599,530. Regarding the two remaining U.S. patents covering Comtan,
Sun Pharma Global did not challenge the U.S. patents No. 5,112,861
and No. 5,135,950, the latter of which expires 31 October 2010. As
such, generic competition is neither certain nor imminent.
Subsequently, Orion has been informed that contrary to what was
stated in Orion's Stock Exchange Release of 7 October 2008 Sun Pharma
Global, Inc. is a company registered in the British Virgin Islands.
Orion is, together with Novartis, currently evaluating its legal
options to protect its rights.
Teleconference in English
A conference call for analysts and the media on the interim report
will be held in English on Tuesday, 28 October 2008, starting at
14.00 EET. At the beginning of the teleconference there will be a
brief presentation in English concerning the result of the Group.
The release and the presentation material, as well as instructions on
how to participate in the conference will be available at
www.orion.fi/investors. The on-demand recording of the teleconference
will be accessible on the homepage on the following day.
The phone numbers to the conference call are:
USA +1 866 966 5335
Others +44 20 3023 4438
Orion's publication dates in 2009
Orion Corporation will publish its financial statements review for
2008 on Friday, 6 February 2009.
The Annual Report for 2008 will be published in the week of 2 March
2009.
The Annual General Meeting is planned to be held on Monday, 23 March
2009 at 14:00 EET in Helsinki.
The interim reports for 2009 will be published as follows:
Interim Report January-March 2009
Monday 27 April 2009
Interim Report January-June 2009
Friday 7 August 2009
Interim Report January-September 2009 Monday 26 October 2009.
Orion's financial reports and related presentation material are
available on the Group's homepage at www.orion.fi/investors promptly
after the publishing. The homepage also provides a possibility to
register on Orion's mailing lists for publications and releases.
For further information, please contact:
Timo Lappalainen, CEO, tel. +358 10 426 3692
Jari Karlson, CFO, tel. +358 10 426 2883 or mobile +358 50 966 2883
www.orion.fi/english
www.orion.fi/investors
Financial review 1-9/2008
Net sales
Orion Group's net sales in January-September 2008 stood at EUR 530.1
million (1-9/2007: EUR 509.6 million), up by 4.0% on the comparative
period of January-September in 2007. The net effect of currency
exchange rates, mainly the US dollar, was EUR 11.7 million negative.
The Pharmaceuticals business had net sales of EUR 497.2 (479.4)
million, up by 3.7% on the comparative period. The products based on
in-house R&D accounted for EUR 230.0 (220.2) million, or 46% (46%) of
the Pharmaceuticals business segment's net sales. The net sales from
the Parkinson's drugs, Stalevo® (carbidopa, levodopa and entacapone)
and Comtess®/Comtan® (entacapone), totalled EUR 155.7 (152.6)
million, or about 31% (32%) of the business segment's net sales
The Diagnostics business had net sales of EUR 34.3 (31.5) million, up
by 8.9% on the comparative period. The growth was mainly attributable
to the favourable sales development of the QuikRead® infection tests.
Operating profit
Orion Group's operating profit (EBIT) in January-September 2008 was
EUR 152.2 (153.4) million, down by 0.8% on the comparative period.
The Pharmaceuticals business generated operating profit of EUR 153.1
(155.4) million, down by 1.5%. The decrease was mainly due to the
anticipated slight increase in expenditure on sales and research, as
well as the costs relating to the ongoing patent infringement
lawsuits in the USA.
The Diagnostics business's operating profit was EUR 5.9 (6.2)
million, down by 4.9% on the comparative period. Despite the good
sales performance, profitability slightly fell as a consequence of
clearly higher expenditure on sales and product development.
Operating expenses
Operating expenses were EUR 211.5 (198.0) million, up by 6.8%.
Selling and marketing expenses amounted to EUR 104.6 (101.5) million,
up by 3.1%. The Group's R&D expenditure totalled EUR 74.0 (69.7)
million, up by 6.1%, and accounted for 14.0% (13.7%) of consolidated
net sales. Pharmaceutical R&D expenses were EUR 70.8 (67.0) million.
The R&D activities are reported in the business review of the
Pharmaceuticals business segment. Administrative expenses for the
period included EUR 4.4 million in costs of the on-going patent
infringement lawsuits in the USA.
Profit before taxes
Group profit before taxes was EUR 152.0 (154.3) million. Earnings per
share were EUR 0.79 (0.80). Equity per share was EUR 2.82 (2.84). The
return on capital employed before taxes (ROCE) was 44.8% (48.9%) and
the return on equity after taxes (ROE) was 35.9% (36.4%).
Balance Sheet and financial position
The Group's gearing was 0.2% (-12.4%) and the equity ratio was 65.5%
(75.8%). Total liabilities in the Balance Sheet at 30 September 2008
totalled EUR 209.4 (128.3) million. Interest-bearing liabilities at
30 September 2008 were EUR 95.9 (10.6) million, of which EUR 40
million were long-term loans. The increase was a result of increased
working capital and higher capital expenditure compared with the
preceding years.
The Group's cash and cash equivalents amounted to EUR 95.1 (60.1)
million and they were invested in short-term interest-bearing
instruments issued by financially solid financial institutions and
corporations.
Cash flows
Cash flows from operating activities in January-September 2008
totalled EUR 101.8 (115.0) million. Operating profit was nearly at
the level with the comparative period, but the cash flow decreased as
additional EUR 18.5 million were tied to the working capital compared
with the period of January-September 2007. The level of inventories
has increased by EUR 13.8 million from the end of 2007 and by EUR
23.6 million from September 2007. The level of inventories has been
increased primarily in order to secure a good continuity of supply.
Trade payables and other current liabilities included in working
capital have decreased by EUR 21.1 million from the end of 2007.
Cash flows from investing activities were EUR 41.9 (23.1) million
negative. The increase was mainly a result of purchases of immaterial
property rights.
Cash flows from financing activities were EUR 54.9 (141.8) million
negative. Dividend payments were EUR 140.9 (141.3) million. Current
liabilities increased by EUR 51.2 (-0.1) million and non-current
liabilities by EUR 39.6 (-0.4) million. EUR 4.8 million were spent on
the repurchase of treasury shares in March 2008.
Capital expenditure
The Group's capital expenditure totalled EUR 44.0 (23.9) million. The
increase was mainly due to the purchases of intangible assets
amounting to EUR 18.6 (4.7) million. The main items were the
purchases of marketing rights for Vantas® (histrelin), Kentera®
(oxybutynin) and Paclical Vet® (paclitaxel) and product rights for
the Favora® self-care product line.
Outlook for 2008
The outlook estimate has remained the same, with the exception of an
updated estimate of annual investment level. Net sales will grow
slightly from 2007. Pharmaceutical sales via Orion's own sales
network are expected to continue growing moderately in Finland and to
continue showing growth outside Finland. There the growth will
nevertheless be slowed down by the expiry at the end of 2007 of the
licence agreement for the Calcimagon osteoporosis drug that was
marketed in Germany. In-market sales of Parkinson's drugs will show
further growth, but at a slower rate than previously. The deliveries
of Parkinson's drugs to Orion's marketing partner Novartis are
estimated to remain unchanged compared with 2007.
Marketing and research expenditure will increase moderately.
Marketing expenses will be rise particularly because of the product
launches by Orion's own units outside Finland. Research expenses will
increase mainly due to the clinical studies that were started in the
previous year. The on-going patent litigations in the United States
will increase administrative expenses in 2008.
Operating profit excluding non-recurring items is estimated to grow
slightly from 2007. Such non-recurring items include the one-off
compensation of EUR 6 million for the termination of the Calcimagon
licence agreement in 2007, and the patent litigation expenses in 2008
that have accounted for EUR 4.4 million in January-September 2008.
R&D expenditure will be slightly over EUR 100 million. Capital
expenditure will be about EUR 55 million, not including new
substantial product or company acquisitions.
Preamble
No major regulatory changes affecting the market structure are
expected to take place in Finland during 2008, as the planned
reference price system is anticipated to come into effect in 2009.
Therefore the market growth is expected to continue. Launches of new
products will support Orion's growth in Finland. On the other hand,
the growth will be slowed down by heavy price competition affecting
mainly substitutable prescription drugs, which is an important sector
for Orion.
The growth in in-market sales of the Parkinson's drugs, Stalevo and
Comtess/Comtan, in 2007 was less than 15%, which is lower than in
previous years. The growth is expected to slightly slow down further
during 2008 Orion's own sales are anticipated to develop in line with
the overall market for Parkinson's drugs and the deliveries to
Novartis are estimated to remain unchanged compared with 2007. The
growth in the euro-denominated value of the deliveries has been
hampered by the deterioration of the US dollar exchange rate. On the
basis of current information, Novartis's stock levels are expected to
slightly decrease in 2008.
Because the registrations and launches of new products are projects
that take more than a year, the resources and other material inputs
required for them in 2008 have been planned mostly in the previous
year.
The majority of the expenses of pharmaceutical research are caused by
the clinical trials. They are typically performed in clinics located
in several countries. Research work is long-term, so the cost level
of the clinical studies that are under way or that have been planned
for 2008 can be estimated fairly well.
The estimated costs of the on-going patent litigations in the United
States are based on the planned timetables and work estimates. The
costs resulting from the litigations will depend on a number of
factors, which at the present stage are difficult to estimate
accurately.
Near-term risks and factors of uncertainty relating to the outlook
estimates
The company is not aware of any significant risk factors relating to
the earnings outlook for 2008. The current financial crisis is not
expected to substantially affect the company's outlook for the rest
of the year.
The sales of individual products and, on the other hand, Orion's
sales in individual markets may vary slightly depending on the extent
to which the ever-tougher price and other competition that has
prevailed in the pharmaceutical markets in recent years specifically
affects Orion's products. Deliveries to Novartis are based on
timetables that are jointly agreed in advance. Nevertheless, these
can change, for example, as a consequence of decisions by Novartis
concerning the adjustments of stock levels during the year. It is not
assumed that the on-going litigations will affect the sales of Comtan
or Stalevo in the United States in 2008.
Most of the exchange rate risk is related to the US dollar.
Typically, less than 15% of Orion's sales come from North America.
Only a small part of sales outside the USA is based on the US dollar.
Research projects always involve factors of uncertainty that may
either increase or decrease estimated costs. The projects may
progress more slowly or faster than assumed or they may be
discontinued. Nonetheless changes that may occur in ongoing clinical
studies are reflected in costs relatively slowly, and they are not
estimated to have a material impact on the earnings in the current
year. Owing to the nature of the research process, the timetables and
costs of new studies that are being started are known well in
advance. Therefore they typically do not lead to unexpected essential
changes in the estimated cost structure.
The risks identified by the company are described more
comprehensively in the Financial Statements 2007 as well as on
www.orion.fi/investors, under the Corporate Governance section.
Financial objectives and dividend policy
The financial objectives of the Group remained the same:
* The moderate organic growth of the net sales within the next few
years is accelerated via product, product portfolio and company
acquisitions.
* Operating profit will be increased
* Equity ratio is maintained at the level of 50% at least.
In dividend distribution, Orion takes into account the distributable
funds as well as the medium-long- and long-term needs of capital
expenditure and other financial needs required for the achievement of
the financial objectives.
Shares and shareholders
Orion Corporation has A shares (ORNAV) and B shares (ORNBV). Both are
quoted on the NASDAQ OMX Helsinki in the Large Cap group under the
Healthcare sector heading.
At 30 September 2008, Orion's share capital was EUR 92,238,541.46.
The total number of shares was 141,257,828, of which 51,440,668 were
A shares and 89,817,160 B shares. Altogether 324,836 B shares were in
the possession of Orion Corporation. In the end of September 2008,
the aggregate number of votes conferred by both share classes was
1,118,305,684 excluding the treasury shares. Information on trading
in the company's shares is provided in the table section of the
review.
Each A share entitles its holder to twenty (20) votes at General
Meetings, whereas each B share carries one (1) vote. However, Orion
Corporation and Orion Pension Fund do not have the right to vote at
General Meetings of Orion's shareholders. Both shares entitle the
shareholder to the same rights to the company's assets and to
dividends distributed.
On the basis of the Articles of Association, a shareholder can demand
the conversion of his or her A shares to B shares. In
January-September 2008, a total of 1,118,020 A shares were converted
to B shares, of which 500,000 were converted during the third
quarter.
Authorisations of the Board of Directors
Orion Corporation's Board of Directors has an authorisation granted
by the Annual General Meeting on 25 March 2008 to repurchase and
transfer the company's own shares (treasury shares). So far, the
Board has not exercised this right. The Board of Directors does not
have an authorisation to increase the share capital or to issue bonds
with warrants or convertible bonds or stock options.
In March 2008, the Board of Directors of Orion Corporation exercised
the authorisation granted by the AGM on 2 April 2007 to repurchase a
total of 350,000 B shares. The shares were acquired in public trade
from NASDAQ OMX Helsinki during 17-20 March 2008. By the decision of
the Board of Directors, altogether 25,164 B shares held by the
company were conveyed on 20 March 2008 as a share bonus for 2007 to
persons employed by the company and included in the Share-based
Incentive Plan of the Orion Group. The transfer price of the shares
conveyed was EUR 14.09 per share, which is the weighted average price
of the B share on 20 March 2008. The total transfer price of the B
shares conveyed was EUR 354,482.75.
Shareholder structure
At the end of September 2008, Orion had a total of 41,601 registered
shareholders, of whom 94.2% were private individuals in Finland.
These households possess 47.9% of the company's total share stock and
59.0% of total votes. Of the total share stock 34.2 million were
nominee-registered shares, representing 24.2% of the shares and 6.2%
of the votes.
On 30 September 2008, the number of treasury shares held by Orion
Corporation was altogether 324,836 B shares. The proportion of the
treasury shares was 0.2% of the company's total share stock and 0.03%
of the total votes.
No transactions exceeding the flagging limits set in the Finnish
Securities Markets Act have been brought to the attention of the
company in the review period or by the publication date of this
report.
Personnel
The average number of employees in the Group during January-September
2008 was 3,255 (3,156). At the end of September 2008, the Group had a
total of 3,300 (3,149) employees, of whom 2,719 worked in Finland and
581 outside Finland.
Personnel in the Pharmaceuticals business segment grew by 150
employees from the end of September 2007. The increase has mainly
taken place in the organisations of Global Sales and Supply Chain.
The number of employees in the Diagnostics business segment increased
by three persons compared with the figures for September 2007.
Legal proceedings
Legal proceedings against Wockhardt USA, Inc. and Wockhardt Limited
Orion Corporation filed on 13 September 2007 a patent infringement
lawsuit in the United States to enforce U.S. Patent No. 5,446,194 and
U.S. Patent No. 5,135,950 against generic drug companies Wockhardt
USA, Inc. and Wockhardt Limited, who seek to market generic
entacapone (200 mg tablets) in the United States. Entacapone is the
active ingredient in Comtan®, a product originated by Orion
Corporation and marketed in the United States for the treatment of
Parkinson's disease by its exclusive licensee, Novartis. The trial
has been set to begin on 16 November 2009.
Orion Corporation and Novartis will vigorously defend the
intellectual property rights covering Comtan. By virtue of the legal
proceedings, the realisation of generic competition regarding Comtan
is neither certain nor imminent.
Legal proceedings against Sun Pharmaceutical Industries Limited
Orion Corporation filed on 13 November 2007 and 7 February 2008
patent infringement lawsuits in the United States to enforce U.S.
Patent No. 6,500,867 and U.S. Patent No. 5,446,194 against Sun
Pharmaceutical Industries Limited, who seeks to market generic
versions of Stalevo® tablets (25/100/200 and 37.5/150/200 mg
strengths of carbidopa/levodopa/entacapone) in the United States.
Stalevo is an enhanced levodopa treatment originated by Orion
Corporation and marketed in the United States by its exclusive
licensee, Novartis, for the treatment of Parkinson's disease.
Orion Corporation and Novartis will vigorously defend the
intellectual property rights covering Stalevo. By virtue of the legal
proceedings, the realisation of generic competition regarding Stalevo
is neither certain nor imminent.
Review of the business segments
Pharmaceuticals
Market review
Finland is the most important market area for Orion. According to
statistics collected by Finnish Pharmaceutical Data Ltd, Finnish
wholesales of human pharmaceuticals in January-September 2008
totalled EUR 1,423.7 million, up by 6.4% on the comparative period
last year. Total pharmacy sales grew by 6.8% and hospital sales by
5.3% on the comparative period. The wholesales of prescription drugs
rose by 6.8%, whereas the wholesales of self-care products grew by
only 2.9%.
Orion is still strongly positioned as the leading marketer of
pharmaceuticals in Finland. According to statistics collected by
Finnish Pharmaceutical Data Ltd, Orion's wholesales of
pharmaceuticals in Finland in January-September 2008 totalled EUR
133.3 million, up by 9.7% on the comparative period last year. The
development of Orion's sales was clearly more vigorous than the
overall market growth in the segments of pharmacy sales, self-care
products and prescription drugs. The main reason for Orion's strong
performance is the continuously renewed product portfolio. Orion's
market share was 9.4% (9.0%), and nearly two percentage units higher
than that of the second largest marketer.
According to IMS Health pharmaceutical sales statistics, in the
12-month period ending in June 2008 the sales of Parkinson's disease
drugs in the USA totalled USD 1,330 (1,126) million, up by 18.1% on
the comparative 12-month period. These products are very important
for Orion. The five largest European markets for Parkinson's disease
drugs were Germany, the UK, France, Spain and Italy. Total sales of
Parkinson's drugs in these countries in the same 12-month period
totalled EUR 876 (805) million, with an average market growth of
about 8.8% on the comparative period.
Net sales and operating profit of the Pharmaceuticals business
The net sales of the Pharmaceuticals business for January-September
2008 totalled EUR 497.2 (479.4) million, up by 3.7% on the
comparative period. Operating profit (EBIT) amounted to EUR 153.1
(155.4) million, down by 1.5% on the comparative period. The EBIT
margin of the Pharmaceuticals business was 30.8% (32.4%) of the
segment's net sales.
Proprietary Products
The net sales of the Proprietary Products business division in
January-September 2008 totalled EUR 213.8 (203.5) million, up by 5.1%
on the comparative period.
The combined net sales of the Parkinson's disease drugs, Stalevo and
Comtess/Comtan, totalled EUR 155.7 (152.6) million. The net sales
were up by 2.0% on the comparative period and accounted for 31% (32%)
of the Pharmaceuticals business segment's net sales. Net sales from
Stalevo and Comtan deliveries to Novartis totalled EUR 88.3 (91.9)
million, down by 3.9%. Net sales generated by Stalevo and Comtess in
Orion's own sales organisation amounted to EUR 67.4 (60.7) million,
up by 11.0%. Stalevo sales through Orion's own sales network grew by
about 25%.The in-market sales of Stalevo and Comtan developed as
anticipated, although the weak US dollar rate is reflected in the
euro-denominated value of sales to Novartis. Deliveries to Novartis
decreased, because Novartis reduced its stock levels.
The strategic focus of the Proprietary Products business division is
in the procurement of new products and molecules. Especially the
product portfolio in the Urology and Oncology core therapy area has
been strengthened with new licensing agreements.
In august, the new strengths of Stalevo, 75 and 125 mg, were granted
marketing authorisation in the United States. Orion's marketing
partner Novartis will launch the new tablet strengths in October.
In spring, Orion in-licensed Kentera, a product for the treatment of
urge incontinence and overactive bladder. Kentera was launched in
Scandinavia in summer and will be launched in Switzerland by the end
of the year.
In September, Orion received marketing authorisation in Spain for
Vantas for the treatment of advanced prostate cancer. The product
will be launched in Germany, Ireland, England, Denmark and Spain in
2009.
In September, the rights to develop and commercialise
non-intravenously administered dosage forms of dexmedetomidine in the
United States market, for example, were out-licensed to the American
Rëcro Pharma company. In Europe, Orion has the rights to all dosage
forms and indications of dexmedetomidine. Hospira Inc., which markets
Precedex® (dexmedetomidine) in the United States and Japan, has the
rights to intravenously administered dexmetedomidine in the United
States, for example.
GTx, Inc. is developing a medicine from toremifene citrate that is
based on Orion's original compound toremifene. Based on the positive
clinical data GTx plans to file a New Drug Application (NDA) in the
USA by the end of 2008. The medicine will be used in the treatment of
side effects like osteoporosis caused by prostate cancer treatments.
Specialty Products
The net sales of the Specialty Products business division in
January-September 2008 totalled EUR 187.4 (178.4) million, up by 5.1%
on the comparative period. The product range comprises generic
prescription medicines and self-care products. The total development
was hampered by the termination of the license agreement for the
Calcimagon osteoporosis drug in late 2007. As a consequence of the
termination, the annual net sales of the German sales organisation
will be reduced by approximately EUR 12 million.
In the segments of Orion's self-care products and generic medicines,
the sales in Finland have grown much more rapidly than the market as
a whole. The positive trend has been supported by the continuously
renewed product portfolio. The launching of larger packages of the
painkiller Burana® (ibuprofen) in spring has further boosted the
sales of the product.
Orion's vigorous growth in the eastern European markets continued.
The growth is based on the substantially higher number of new product
launches in 2008 compared with the preceding years. Among the new
products, particularly the anti-psychotic drug Ketipinor®
(quetiapine) and the entire psychiatric product portfolio have been
successful as a result of several new launches. In addition, Orion's
older product portfolio is becoming increasingly successful in the
eastern European markets.
The net sales of Easyhaler® medicines that are used in the treatment
of asthma and chronic obstructive pulmonary disease (COPD) totalled
EUR 16.3 (12.1) million in the period, up by 34.2% on the comparative
period. The exceptionally rapid growth is a result of successful
product launches in new markets, such as Turkey and Poland.
A marketing approval process regarding Orion's Salbutamole Easyhaler®
medicine (salbutamol inhalation powder 100 and 200 µg/dose) in
ongoing with the European Medicines Agency (EMEA).
Animal Health
The net sales of the Animal Health business division for
January-September 2008 totalled EUR 50.7 (51.4) million, down by 1.5%
on the comparative period. About 38% (43%) of the division's net
sales derived from the animal sedatives Dexdomitor®
(dexmedetomidine), Domitor® (medetomidine), Domosedan® (detomidine)
and Antisedan® (atipamezole), whose sales were down by 12.8% on the
comparative period. The sales of animal sedatives have been slackened
by the competing generic versions in Europe and by the weak US dollar
rate.
The Finnish animal health market grew by nearly 9% in
January-September 2008. During the same period, the growth rate of
Orion's net sales was slightly higher than the overall growth rate of
the market.
In September, Orion and Pfizer signed a contract giving Orion the
exclusive right to market an extensive range of veterinary medicines
in Scandinavia. The product portfolio covers various vaccines, a
parasite drug for cattle, an anti-inflammatory medicine for dogs and
an insulin product for the treatment of diabetes in dogs and cats.
With the same contract, Pfizer gave Orion back the marketing rights
for the Comforion® ketoprofen product, used as an anti-inflammatory
analgetic in pigs and cattle. Orion will launch this product in
Hungary, the Czech Republic, Slovakia and Poland early in 2009. In
return, Orion gave Pfizer back the Scandinavian selling rights for
the Helosan product.
Fermion
The Fermion business division, which manufactures active
pharmaceutical ingredients, generated EUR 26.3 (26.7) million in net
sales in January-September 2008, down by 1.8% on the comparative
period. The US dollar rate has influenced Fermion more negatively
than the other business divisions in the Group. The impact of
intra-Group transactions, that is, deliveries of active ingredients
for Orion's own use, has been eliminated from the net sales.
The ten best-selling pharmaceutical products
The net sales of Orion's ten (10) best-selling drugs totalled EUR
253.9 (241.8) million, up by 5.0% on the comparative period. They
accounted for about 51% (50%) of the Pharmaceuticals business
segment's total net sales. The net sales of Stalevo increased by
12.1% on the comparative period, and its proportion of the
Pharmaceuticals business segment's net sales was slightly more than
21%. Deliveries of Stalevo to Novartis increased by 3.1%, while
deliveries of Comtan were down by 14.5% on the comparative period.
The fastest growth rates were achieved with the Easyhaler franchise
for asthma, the heart failure drug Simdax®, (levosimendan), the
breast cancer drug Fareston® (toremifene), Burana and the
anticoagulant Marevan® (warfarin).
Products from in-house research
The net sales of products from in-house research totalled EUR 230.0
(220.2) million in January-September 2008, up by 4.5% on the
comparative period. These products accounted for about 46% (46%) of
the total net sales of the Pharmaceuticals business. The Easyhaler
franchise for asthma, Precedex, Simdax, Stalevo and Fareston were the
products showing the best proportional growth.
Research and development
The Group's R&D expenses totalled EUR 74.0 (69.7) million, of which
the Pharmaceuticals business accounted for EUR 70.8 (67.0) million.
The Group's R&D expenses were 14.0% (13.7%) of the Group net sales.
The focus of the Group's R&D operations continues to be on early
research, and partnerships are established for the clinical phase III
at the latest, especially when the aim is to obtain marketing
authorisations in countries outside Europe. Orion's pharmaceutical
R&D focuses on three core therapy areas: the central nervous system,
cardiology and critical care, as well as urology and oncology. In
addition to in-house activities, Orion is engaged in several research
collaboration partnerships with other pharmaceutical companies and
numerous academic communities. The licensing agreements with these
partners provide Orion with rights for further development and
marketing of the candidate compounds possibly resulting from the
research efforts.
Orion has applied for an expanded indication for Stalevo in the USA
and Europe with the aim to extend the indication to treatment of
early-stage Parkinson's disease. The process is based on the
encouraging results obtained in the FIRST STEP study. The study was
conducted in eight countries in North America and Europe by Orion's
marketing partner Novartis.
The FIRST STEP study is complemented by the STRIDE-PD study, which
Orion is conducting together with Novartis. This study is to
determine whether Stalevo can delay the onset of involuntary
movements, that is, dyskinesias, in Parkinson's patients. The trial
has been ongoing in 14 countries, involving 747 patients. Results are
expected to be available at the turn of 2008-2009.
Phase III clinical studies are under way with dexmedetomidine in
patients in intensive care as an infusion administered for over 24
hours. The programme aims to have the product registered in the EU.
The efficacy and safety of dexmedetomidine is compared with midazolam
in the MIDEX study and with propofol in the PRODEX-study. Both
studies are planned to involve 500 patients. The programme was
launched in the summer of 2007 and it was estimated to last two
years. The recruitment of patients to the studies has been slower
than originally estimated. Therefore, preliminary results from the
trial are expected to be available in the summer of 2010.
Accordingly, the marketing authorisation application could be
submitted by the end of 2010. Dexmedetomidine (Precedex®) is already
available, for example, in the USA and Japan as a sedative for
patients in intensive care, administrable as an infusion for a
maximum of 24 hours.
The LEVET programme is studying the efficacy of oral levosimendan in
the treatment of heart diseases in dogs, with the aim of obtaining
marketing authorisations in the USA and the EU.
For the Easyhaler product family, a new formulation is being
developed combining budesonide as an anti-inflammatory agent and
formoterol as a long-acting bronchodilator.
An alpha 2c receptor antagonist is being studied in clinical phase I.
The preclinical profile of this compound fits for the treatment of
the symptoms of schizophrenia, for example. Other possible
indications are Alzheimer's disease and depression.
The potential use of oral levosimendan for the treatment of stroke is
being investigated by Orion in preliminary phase I clinical studies.
Orion has several projects in early research phase investigating
selective androgen receptor modulators (SARM), prostate cancer,
neuropathic pain, Parkinson's disease and other possible indications
within intensive care, among others.
Diagnostics
The net sales of the Diagnostics business totalled EUR 34.3 (31.5)
million in January-September 2008, up by 8.9% on the comparative
period. Operating profit amounted to EUR 5.9 (6.2) million, down by
4.9% on the comparative period. The operating profit of the
Diagnostics business was 17.3% (19.8%) of the segment's net sales.
Despite the good development in sales, the operating profit declined
because of planned investments in marketing and research.
A substantial increase was seen in sales through Orion's own sales
network that covers Scandinavia, as well as in exports to the Czech
Republic and China. The QuikRead® tests have maintained their
position as the main products. Their reagent and equipment sales
continued to grow vigorously. The tests are used, for example, in
detecting infection from the CRP concentration of the blood sample.
The launching of QuikRead® Strep A in Scandinavia continued. The test
is used to detect streptococcus A bacteria, the causative agent of
bacterial tonsillitis, from the pharyngeal sample. The sales of dip
slide tests remained unchanged compared with 2007.
Espoo, 27 October 2008
Board of Directors of Orion Corporation
Orion Corporation
Timo Lappalainen Jari Karlson
President and CEO CFO
Tables
CONSOLIDATED INCOME STATEMENT
Change
EUR million Q3/08 Q3/07 Change % Q1-Q3/08 Q1-Q3/07 % 2007
Net sales 167.8 163.8 +2.4% 530.1 509.6 +4.0% 683.6
Cost of goods
sold -58.7 -53.1 +10.5% -168.3 -160.4 +4.9% -219.3
Gross profit 109.1 110.7 -1.4% 361.8 349.2 +3.6% 464.3
Other operating
income 0.8 1.0 -18.6% 1.9 2.3 -18.0% 9.0
Selling and
marketing
expenses -32.3 -32.3 +0.1% -104.6 -101.5 +3.1% -143.4
R&D expenses -23.1 -22.2 +4.0% -74.0 -69.7 +6.1% -98.5
Administrative
expenses -10.9 -8.0 +36.2% -32.9 -26.8 +22.6% -39.4
Operating
profit 43.6 49.1 -11.3% 152.2 153.4 -0.8% 192.0
Finance income 1.5 0.6 +152.4% 3.9 2.5 +53.9% 3.9
Finance
expenses -2.0 -0.5 +301.8% -4.1 -1.7 +147.1% -2.5
Profit before
taxes 43.1 49.2 -12.5% 152.0 154.3 -1.5% 193.4
Income tax
expense -11.3 -13.1 -13.7% -40.4 -41.1 -1.8% -49.5
Profit for the
period 31.7 36.1 -12.0% 111.6 113.2 -1.4% 143.9
Attributable
to:
Parent company
shareholders 31.7 36.1 -12.0% 111.6 113.2 -1.4% 143.9
Minority 0.0 0.0 0.0 0.0 0.0
Earnings per
share, EUR* 0.23 0.26 -11.8% 0.79 0.80 -1.2% 1.02
Depreciation
and
amortisation 8.0 7.6 +4.4% 23.2 23.8 -2.4% 31.6
Personnel
expenses 36.2 33.7 +7.3% 120.1 110.8 +8.4% 156.3
* The figure has been calculated from the profit attributable to the
parent company shareholders. The company has no items that could
dilute the earnings per share.
CONSOLIDATED BALANCE SHEET
Assets
EUR million Sep/08 Sep/07 Change % Dec/07
Property, plant and equipment 192.4 186.5 +3.2% 186.6
Goodwill 13.5 13.5 13.5
Other intangible assets 36.9 21.7 +69.8% 23.0
Investments in associates 0.1 0.1 0.1
Available-for-sale investments 0.9 1.0 -4.9% 0.9
Pension asset 25.2 34.7 -27.4% 26.8
Deferred tax assets 3.2 1.6 +105.5% 3.9
Other non-current assets 4.2 2.3 +82.2% 4.0
Non-current assets total 276.4 261.4 +5.8% 258.7
Inventories 134.9 111.3 +21.3% 121.1
Trade receivables 85.1 83.4 +2.0% 82.9
Other receivables 14.9 13.0 +15.2% 14.4
Cash and cash equivalents 95.1 60.1 +58.2% 90.4
Current assets total 330.1 267.8 +23.3% 308.9
Assets total 606.5 529.2 +14.6% 567.6
Equity and liabilities
EUR million Sep/08 Sep/07 Change % Dec/07
Share capital 92.2 92.2 92.2
Share premium 17.8 17.8 17.8
Expendable fund 23.0 23.0 23.0
Other reserves 0.4 0.4 -6.3% 0.5
Retained earnings 263.6 267.3 -1.4% 297.6
Equity of the parent company
shareholders 397.1 400.9 -0.9% 431.1
Minority interest 0.0 0.0 +10.5% 0.0
Equity total 397.1 400.9 -0.9% 431.2
Deferred tax liabilities 41.4 45.1 -8.2% 41.9
Pension liability 0.9 1.0 -8.1% 1.0
Provisions 0.4 0.2 +81.2% 0.2
Interest-bearing non-current
liabilities 41.5 7.5 +451.1% 1.2
Other non-current liabilities 2.1 0.2 2.1
Non-current liabilities total 86.3 54.0 +59.6% 46.4
Trade payables 24.2 28.2 -14.2% 34.3
Income tax liabilities 2.6 3.0 -12.6% 3.4
Other current liabilities 41.8 39.8 +5.1% 49.5
Provisions 0.0 0.1 -97.6% 0.0
Interest-bearing current liabilities 54.4 3.1 2.9
Current liabilities total 123.1 74.2 +65.9% 90.1
Equity and liabilities total 606.5 529.2 +14.6% 567.6
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Sha- Sha- Ex- Other Trans- Re- Mino-
re re pend- re- lation tained rity
ca- pre- able ser- differ- ear- in- Equity
EUR million pital mium fund ves rences nings Total terest total
Equity
at 31 Dec 2006 92.2 17.8 23.0 0.5 -3.4 313.3 443.5 0.0 443.5
Change in
accounting policy -14.6 -14.6 -14.6
Equity
at 31 Dec 2006 92.2 17.8 23.0 0.5 -3.4 298.7 428.8 0.0 428.8
Available-for-sale
investments and
cash flow hedges 0.0 0.0 0.0
Translation
differences -0.7 -0.7 -0.7
Net unrealised
gains
recognised
directly
in equity 0.0 -0.7 -0.7 -0.7
Change in
accounting policy -1.5 -1.5 -1.5
Profit for the
period 145.4 145.4 145.4
Recognised income
and expenses
total 0.0 -0.7 143.9 143.2 143.2
Dividend -141.3 -141.3 -141.3
Share-based
incentive plan 0.4 0.4 0.4
Other changes -0.0 -0.1 -0.1 0.0 -0.1
Equity
at 31 Dec 2007
before change in
accounting policy 92.2 17.8 23.0 0.5 -4.1 317.9 447.3 0.0 447.3
Change in
accounting policy -16.2 -16.2 -16.2
Equity
at 31 Dec 2007 92.2 17.8 23.0 0.5 -4.1 301.7 431.1 0.0 431.2
Available-for-sale
investments and
cash flow
hedges 0.3 0.3 0.3
Translation
differences -0.6 -0.6 -0.6
Net unrealised
gains
recognised
directly
in equity 0.3 -0.6 -0.3 -0.3
Profit for the
period 111.6 111.6 0.0 111.6
Recognised income
and expenses
total 0.3 -0.6 111.6 111.3 0.0 111.3
Dividend -140.9 -140.9 -140.9
Repurchase of
own shares -4.8 -4.8 -4.8
Share-based
incentive plan 0.5 0.5 0.5
Other changes -0.3 0.2 -0.1 0.0 -0.1
Equity
at 30 Sep 2008 92.2 17.8 23.0 0.4 -4.7 268.3 397.1 0.0 397.1
CONSOLIDATED CASH FLOW STATEMENT
EUR million Q1-Q3/08 Q1-Q3/07 2007
Operating profit 152.2 153.4 192.0
Adjustments 26.6 20.8 31.2
Change in working capital -37.3 -18.8 -14.7
Interest paid -2.3 -1.3 -2.1
Interest received 4.0 2.5 3.8
Income taxes paid -41.3 -41.6 -55.5
Total net cash generated from operating
activities 101.8 115.0 154.7
Purchases of property, plant, equipment and
intangible assets -42.9 -24.0 -34.6
Proceeds from sale of property, plant,
equipment, intangible assets and
available-for-sale investments 1.0 0.9 9.3
Total net cash used in investing activities -41.9 -23.1 -25.3
Net change in short-term loans 51.2 -0.1 -0.8
Net change in long-term loans 39.6 -0.4 -6.4
Repurchase of own shares -4.8 - -
Dividends paid and other distribution of
profits -140.9 -141.3 -141.3
Total net cash used in financing activities -54.9 -141.8 -148.5
Net change in cash and cash equivalents 5.1 -49.8 -19.1
Cash and cash equivalents at the beginning
of the period 90.4 110.0 110.0
Foreign exchange differences -0.4 -0.1 -0.5
Net change in cash and cash equivalents 5.1 -49.8 -19.1
Cash and cash equivalents at the end of the
period 95.1 60.1 90.4
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR million Q1-Q3/08 Q1-Q3/07 2007
Carrying amount at the beginning of the
period 186.6 187.1 187.1
Additions 25.4 19.2 27.7
Disposals -1.1 -1.1 -3.2
Depreciation -18.5 -18.7 -25.0
Carrying amount at the end of the period 192.4 186.5 186.6
CHANGES IN OTHER INTANGIBLE ASSETS
EUR million Q1-Q3/08 Q1-Q3/07 2007
Carrying amount at the beginning of the
period 23.0 21.9 21.9
Additions 18.6 4.7 7.6
Disposals -0.0 -0.0
Depreciation -4.7 -5.1 -6.6
Carrying amount at the end of the period 36.9 21.7 23.0
COMMITMENTS AND CONTINGENCIES
EUR million Sep/08 Sep/07 Dec/07
Contingent for own liabilities
Mortgages on land and buildings 19.0 25.5 25.5
of which those to Orion Pension Fund 9.0 9.0 9.0
Guarantees 1.2 1.4 1.4
Other liabilities
Leasing liabilities (excl. finance lease
contracts) 3.9 4.4 4.5
Other liabilities 0.3 0.3 0.3
DERIVATIVES
EUR million Sep/08 Sep/07 Dec/07
Currency forward contracts
- fair value -1.2 0.8 0.3
- nominal value 63.9 68.4 66.7
Electricity forward contracts
- fair value 0.3 0.0
- nominal value 4.9 0.6
RELATED PARTY TRANSACTIONS
EUR million Q1-Q3/08 Q1-Q3/07 2007
Management's employee benefits 2.5 2.2 3.1
EUR million Sep/08 Sep/07 Dec/07
Non-current liabilities to Orion Pension
Fund 6.0
Review of the business segments
KEY FIGURES FOR PHARMACEUTICALS BUSINESS
Change Change
Q3/08 Q3/07 % Q1-Q3/08 Q1-Q3/07 % 2007
Net sales, EUR
million 158.7 154.7 +2.6% 497.2 479.4 +3.7% 643.3
Operating
profit, EUR
million 44.3 50.1 -11.6% 153.1 155.4 -1.5% 197.1
% of net sales 27.9% 32.4% 30.8% 32.4% 30.6%
R&D expenses,
EUR million 22.1 21.4 +3.6% 70.8 67.0 +5.6% 94.2
% of net sales 13.9% 13.8% 14.2% 14.0% 14.6%
Capital
expenditure, EUR
million 12.0 8.5 +41.5% 41.5 22.0 +88.6% 32.5
% of net sales 7.6% 5.5% 8.4% 4.6% 5.1%
Net sales from
proprietary
products, EUR
million 73.6 73.0 +0.8% 230.0 220.2 +4.5% 292.3
Personnel at the
end of the
period 2,985 2,835 +5.3% 2,864
NET SALES OF ORION'S TOP 10
PHARMACEUTICAL PRODUCTS
Change Change
EUR million Q3/08 Q3/07 % Q1-Q3/08 Q1-Q3/07 % 2007
Stalevo
(Parkinson's
disease) 33.4 32.9 +1.5% 106.0 94.6 +12.1% 126.9
Comtess / Comtan
(Parkinson's
disease) 17.1 17.7 -3.2% 49.7 58.0 -14.3% 73.3
Domitor,
Dexdomitor,
Domosedan and
Antisedan (animal
sedatives) 5.2 5.9 -12.2% 19.2 22.0 -12.8% 27.5
Easyhaler
(asthma) 5.6 4.5 +23.7% 16.3 12.1 +34.2% 17.3
Burana
(inflammatory
pain) 4.8 3.8 +25.6% 14.1 11.6 +21.8% 15.6
Simdax (heart
failure) 3.5 3.6 -1.7% 13.0 10.2 +27.2% 15.1
Divina series
(menopausal
symptoms) 3.7 4.3 -13.0% 11.2 11.6 -2.8% 15.9
Enanton (prostate
cancer) 3.2 3.1 +1.8% 9.7 9.7 +0.2% 12.9
Fareston (breast
cancer) 2.2 2.2 -2.6% 7.5 6.2 +22.3% 8.2
Marevan
(anticoagulant) 2.7 1.7 +56.5% 7.2 5.9 +21.2% 8.3
Total 81.4 79.8 +2.0% 253.9 241.8 +5.0% 320.9
Share of
pharmaceutical
net sales 51% 52% 51% 50% 50%
KEY FIGURES FOR DIAGNOSTICS BUSINESS
Change Change
Q3/08 Q3/07 % Q1-Q3/08 Q1-Q3/07 % 2007
Net sales, EUR
million 9.5 9.4 +1.6% 34.3 31.5 +8.9% 42.0
Operating profit,
EUR million 1.0 1.2 -16.9% 5.9 6.2 -4.9% 6.3
% of net sales 10.8% 13.2% 17.3% 19.8% 15.0%
Capital
expenditure, EUR
million 0.3 0.2 +102.6% 1.8 0.6 +211.6% 1.6
% of net sales 3.6% 1.8% 5.1% 1.8% 3.7%
Personnel at the
end of the period 288 285 +1.2% 283
Performance by segment
NET SALES BY BUSINESS SEGMENT
Change Change
EUR million Q3/08 Q3/07 % Q1-Q3/08 Q1-Q3/07 % 2007
Pharmaceuticals 158.7 154.7 +2.6% 497.2 479.4 +3.7% 643.3
Proprietary
Products 69.5 68.5 +1.4% 213.8 203.5 +5.1% 270.8
Specialty
Products 61.4 57.7 +6.4% 187.4 178.4 +5.1% 241.5
Animal Health 16.3 15.3 +6.6% 50.7 51.4 -1.5% 66.8
Fermion 6.8 6.0 +14.2% 26.3 26.7 -1.8% 38.1
Other 4.6 7.2 -35.7% 19.1 19.4 -1.4% 26.1
Diagnostics 9.5 9.4 +1.6% 34.3 31.5 +8.9% 42.0
Group items -0.4 -0.3 +28.5% -1.4 -1.3 +8.0% -1.7
Group total 167.8 163.8 +2.4% 530.1 509.6 +4.0% 683.6
OPERATING PROFIT BY BUSINESS SEGMENT
Change Change
EUR million Q3/08 Q3/07 % Q1-Q3/08 Q1-Q3/07 % 2007
Pharmaceuticals 44.3 50.1 -11.6 % 153.1 155.4 -1.5 % 197.1
Diagnostics 1.0 1.2 -16.9 % 5.9 6.2 -4.9 % 6.3
Group items -1.8 -2.2 -21.7 % -6.9 -8.3 -17.0 % -11.4
Group total 43.6 49.1 -11.3 % 152.2 153.4 -0.8 % 192.0
NET SALES BY ANNUAL QUARTERS
EUR million Q3/08 Q2/08 Q1/08 Q4/07 Q3/07 Q2/07 Q1/07 Q4/06
Pharmaceuticals 158.7 168.0 170.5 163.9 154.7 156.8 167.9 152.1
Diagnostics 9.5 12.6 12.2 10.5 9.4 10.3 11.8 10.4
Group items -0.4 -0.5 -0.5 -0.4 -0.3 -0.5 -0.5 -0.4
Group total 167.8 180.0 182.2 174.0 163.8 166.6 179.2 162.2
OPERATING PROFIT BY ANNUAL QUARTERS
EUR million Q3/08 Q2/08 Q1/08 Q4/07 Q3/07 Q2/07 Q1/07 Q4/06
Pharmaceuticals 44.3 45.7 63.1 41.7 50.1 45.1 60.2 38.8
Diagnostics 1.0 2.5 2.3 0.1 1.2 1.8 3.2 0.6
Group items -1.8 -3.1 -2.1 -3.1 -2.2 -3.2 -2.9 -3.5
Group total 43.6 45.2 63.4 38.6 49.1 43.7 60.6 35.8
GEOGRAPHICAL BREAKDOWN OF NET SALES BY ANNUAL QUARTERS
EUR million Q3/08 Q2/08 Q1/08 Q4/07 Q3/07 Q2/07 Q1/07 Q4/06
Finland 52.8 53.5 55.7 53.7 48.6 48.6 50.1 49.0
Scandinavia 23.3 26.1 28.1 24.3 23.8 25.3 24.1 23.4
Other Europe 56.2 61.4 64.4 57.5 56.0 57.5 63.7 58.4
North America 19.4 18.0 16.4 16.6 20.4 20.1 24.1 22.0
Other markets 16.1 21.1 17.6 21.9 15.0 15.1 17.1 9.4
Group total 167.8 180.0 182.2 174.0 163.8 166.6 179.2 162.2
Information on Orion Corporation's shares
Basic information ON SHARES on 30 SEP 2008
A share B share Total
ISIN code FI0009014369 FI0009014377 -
Trading code on NASDAQ OMX
Helsinki ORNAV ORNBV -
Reuters code ORNAV.HE ORNBV.HE -
Bloomberg code ORNAV.FH ORNBV.FH -
Share capital, EUR million 33.6 58.6 92.2
Counter book value of the
share, EUR 0.65 0.65 -
Total number of shares 51,440,668 89,817,160 141,257,828
% of total share stock 36% 64% 100%
Number of treasury shares - 324,836 324,836
Total number of shares
excluding treasury shares 51,440,668 89,492,324 140,932,992
Minimum number of shares - - 1
Maximum number of shares 500 000 000 1 000 000 000 1 000 000 000
Votes per share 20 1 -
Total number of votes
excluding treasury shares 1,028,813,360 89,492,324 1,118,305,684
% of total votes 92% 8% 100%
Total number of
shareholders 13,953 33,667 41,602
TRADING DURING 1 JAN-30 SEP 2008
A share B share Total
Total number of shares traded, excl.
treasury shares 1,650,237 50,815,115 52,465,352
% of the total number of shares 3.2% 57.3% 37.2%
Closing quotation on 2 Jan 2008, EUR 16.00 16.08 -
Lowest quotation, EUR (A and B: 30
Sep 2008) 12.00 11.94 -
Average quotation, EUR 13.75 13.56 -
Highest quotation, EUR (A: 2 Jan
2008, B: 4 Jan 2008) 16.40 16.44 -
Closing quotation on 30 Sep 2008, EUR 12.20 11.95 -
Market capitalisation on 30 Sep 2008
excl. treasury shares, EUR million 627.6 1,069.4 1,697.0
PERFORMANCE PER SHARE
Change Change
Q3/08 Q3/07 % Q1-Q3/08 Q1-Q3/07 % 2007
Earnings per
share, EUR 0.23 0.26 -11.8% 0.79 0.80 -1.2% 1.02
Equity per
share, EUR 2.82 2.84 -0.7% 3.05
Average
number of
shares,
excluding
treasury
shares, 1,000
pcs 140,933 141,258 141,026 141,258 141,258
Appendices
Orion Group structure
Orion Corporation is the parent company of the Orion Group. The Group
consists of two business segments and five business divisions:
* Pharmaceuticals
o Proprietary Products (patented prescription products for
humans)
o Specialty Products (off-patent, generic prescription
products and self-medication products for humans)
o Animal Health (veterinary products for pets and production
animals)
o Fermion (active pharmaceutical ingredients)
* Diagnostics
o Orion Diagnostica (diagnostic tests).
Accounting policies
This Interim Report has been prepared in accordance with the
accounting policies set out in International Accounting Standard 34
on Interim Financial Reporting. The accounting policies set out in
the Financial Statement for 2007 have been changed as of 1 January
2008 as regards defined-benefit pension plans. Furthermore, the
following new interpretations have been applied as of 1 January 2008
* IFRIC 11, IFRS 2 - Group and treasury share transactions
* IFRIC 14, IAS 19 - The Limit on a Defined Benefit Asset, Minimum
Funding Requirements and their Interaction
These new interpretations do not have a substantial impact on the
Group's Interim Report or the reported figures.
The policies and calculation methods applied in this Interim Report
are available on the Group's homepage at www.orion.fi/investors.
Change in accounting policy of the defined-benefit pension obligation
For the defined-benefit pension plans arranged through the Orion
Pension Fund, the Orion Group applies, as of 1 January 2008, the
accounting policy according to IAS 19 'Employee benefits', according
to which a liability for the disability pension obligation is
recorded to cover future events.
Before the financial year 2008, the item was treated according to
Paragraph 130 of IAS 19 'Employee Benefits' so that the cost of the
disability benefit obligation was recognised when an event causing
the disability had occurred.
The change in the accounting policy has been applied retrospectively,
as provided in Paragraph 19 (b) and 22 of IAS 8 'Accounting Policies,
Changes in Accounting Estimates and Errors'. Thus, the comparative
information for each prior period has been adjusted in accordance
with the new accounting policy.
The effects of the change in the accounting policy on the profit and
equity of the comparative year are provided in the Statement of
Changes in Equity. The adjusted key figures for the earlier periods
are presented in the table below.
ADJUSTED KEY FIGURES
Q3/07 Q3/07 Q1-Q3/07 Q1-Q3/07 2007 2007
Earlier Adjusted Earlier Adjusted Earlier Adjusted
reported reported reported
Operating
profit, EUR
million 49.6 49.1 154.9 153.4 194.0 192.0
Profit before
taxes, EUR
million 49.7 49.2 155.8 154.3 195.5 193.4
Balance Sheet
total, EUR
million 550.5 529.2 589.5 567.6
Equity ratio, % 75.7% 75.8% 75.9% 76.0%
Gearing, % -11.9% -12.4% -19.3% -20.0%
ROCE (before
taxes), % 47.7% 48.9% 43.8% 44.8%
ROE (after
taxes), % 35.4% 36.4% 32.7% 33.5%
Earnings per
share, EUR 0.26 0.26 0.81 0.80 1.03 1.02
Equity per
share, EUR 2.95 2.84 3.17 3.05
Calculation of the key figures
Profit before taxes + interest and
Return on capital = other finance expenses x 100
employed (ROCE), % Total assets - non-interest-bearing
liabilities (annual average)
Return on equity (ROE), = Profit for the period x 100
% Equity (annual average)
Equity ratio, % = Equity x 100
Total assets - advances received
Interest-bearing liabilities - Cash
Gearing, % = and cash equivalents x 100
Equity
Profit available for the parent
Earnings per share, EUR = company shareholders
Average number of shares
Equity of the parent company
Equity per share, EUR = shareholders
Number of shares at the end of the
period
Number of shares
Market capitalisation, = at the end of the x Closing quotation
EUR million period of the period
The figures in this Interim Report have not been audited. Those in
the parentheses are for the comparative period of the previous year.
The per-share ratios have been adjusted.
All the figures have been rounded, which is why the total sums of
individual figures may differ from the total sums shown.
Publisher:
Orion Corporation
www.orion.fi/english
Orion is an innovative European, R&D-based, pharmaceutical and
diagnostic company with a special emphasis on developing medicinal
treatments and diagnostic tests for global markets. Orion develops,
manufactures and markets human and veterinary pharmaceuticals, active
pharmaceutical ingredients as well as diagnostic tests. The Group's
net sales in 2007 were EUR 683.6 million and in the end of 2007 the
Group had about 3,176 employees. Orion's shares are listed on the
NASDAQ OMX Helsinki.
© 2024 Nasdaq, Inc. All Rights Reserved |