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1. Company Snapshot

1.a. Company Description

Orion Oyj develops, manufactures, and markets human and veterinary pharmaceuticals and active pharmaceutical ingredients (APIs) in Finland, Scandinavia, other European countries, North America, and internationally.It provides prescription drugs and self-care products, including Nubeqa for the treatment of prostate cancer; dexdor and Precedex for intensive care sedative; Stalevo and Comtess/Comtan for Parkinson's disease; Simdax for acute decompensated heart failure; and Fareston for breast cancer, as well as Salmeterol/fluticasone Easyhaler, Budesonide/formoterol Easyhaler, Formoterol Easyhaler, Budesonide Easyhaler, Beclomet Easyhaler, and Buventol Easyhaler drugs for the treatment of asthma and chronic obstructive pulmonary disease.The company also offers veterinary drugs comprising Bonqat, Clevor, Domosedan, Domitor, Antisedan, Dexdomitor, Domosedan Gel, Sileo, and Tessie; and APIs for generic and proprietary drugs, as well as provides contract manufacturing services.


In addition, it markets and sells veterinary drugs manufactured by other international companies.The company serves various healthcare service providers and professionals, such as specialist and general practitioners, veterinarians, pharmacies, hospitals, healthcare centers, clinics, and laboratories, as well as consumers with pets.Orion Oyj has partnership with Propeller Health to connect the Easyhaler(R) product portfolio for the treatment of asthma and COPD; and a research collaboration and license agreement with Alligator Bioscience AB (publ) to discover and develop new bispecific antibody cancer therapeutics.


Orion Oyj was founded in 1917 and is headquartered in Espoo, Finland.

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1.b. Last Insights on ORNAV

Orion Oyj's recent performance was negatively impacted by a decline in net profit margins, which dipped to 19.2% from 23.2% the previous year. The company's Q3 2025 earnings report revealed a decrease in net sales to EUR 423.2 million from EUR 471.3 million in the same period last year. Operating profit also declined to EUR 121.0 million from EUR 202.0 million. Furthermore, the discontinuation of its insomnia drug program, ODM-105, may have raised concerns about the company's pipeline momentum. Additionally, a recent share conversion of 49,164 A shares to B shares may have had a dilutive effect.

1.c. Company Highlights

2. Orion's Q3 2025 Earnings: Strong Growth Momentum

Orion's Q3 2025 financials show a base business growth of 24% to EUR 423 million, with an operating profit growth of 68% to EUR 121 million. The earnings per share (EPS) came in at EUR 0.68, slightly below estimates of EUR 0.686. The cash flow grew 15% and was solid. The net sales bridge reveals a net effect of EUR 59 million due to milestones in Innovative Medicines, while underlying net sales increased by EUR 71 million.

Publication Date: Oct -31

📋 Highlights
  • Revenue and Profit Growth:: Base business grew 24% to EUR 423 million, operating profit surged 68% to EUR 121 million, and cash flow increased 15% in Q3 2025.
  • Nubeqa Milestone and Royalties:: Nubeqa achieved EUR 59 million in milestone payments and hit an all-time high in royalties/product deliveries to Bayer during Q3.
  • Segment Performance:: Generics/Consumer Health grew 5.4%, Branded Products grew 3% (YTD 9%), and Innovative Medicines saw 71% Q3 growth (YTD 75%).
  • Top Product Growth:: Nubeqa led with 83–84% growth, followed by HRT product Divina (23%) and Easyhaler portfolio (8%).
  • Guidance Update:: Operating profit outlook narrowed to EUR 410–490 million; net sales guidance adjusted to EUR 1.640–1.720 billion for 2025.

Innovative Medicines Drive Growth

Innovative Medicines growth was 71% during Q3, driven primarily by Nubeqa, which reached an all-time high in royalties and product deliveries to Bayer. As Liisa Hurme stated, "Nubeqa received approval from the European Commission for use of darolutamide and ADT in patients with metastatic hormone-sensitive prostate cancer." The growth in this segment is a significant contributor to the overall performance.

Branded Products and Generics Performance

Branded Products grew by 3% during Q3, mainly due to the timing of deliveries to partners, while the growth for the first 9 months is a healthy 9%. Generics and Consumer Health had a very strong quarter, with 5.4% growth. The top 10 product list is led by Nubeqa, with 83% or 84% growth, followed by Easyhaler product portfolio growth of close to 8%.

Valuation Metrics

With a P/E Ratio of 22.69 and an ROE of 38.61%, Orion's valuation appears to be reasonable, considering its strong growth momentum. The EV/EBITDA ratio of 17.84 also indicates a relatively stable valuation. The dividend yield of 2.67% provides a stable return for investors.

Outlook and Guidance

Orion has narrowed its operating profit outlook to EUR 410 million to EUR 490 million and maintained its net sales outlook of EUR 1.640 billion to EUR 1.720 billion. Liisa Hurme mentioned that the uncertainties for the rest of the year are still there, but they have a clearer view on how the year will pan out.

Future Prospects

The company's focus on reducing greenhouse gas emissions and its commitment to sustainability are positive steps. With a strong growth momentum and a reasonable valuation, Orion is well-positioned for future growth. Analysts estimate next year's revenue growth at 3.7%, indicating a stable outlook.

3. NewsRoom

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Inside information: Orion to receive EUR 180 million milestone and updates full-year outlook for 2025

Dec -03

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71,498 Orion Corporation A shares converted into B shares

Nov -27

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Orion receives award for international growth from the President of the Republic of Finland

Nov -14

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Will Orion Oyj’s Oncology Focus (HLSE:ORNBV) Redefine Its Innovation Edge After Recent Pipeline Changes?

Oct -30

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Orion Oyj (HLSE:ORNBV) Margin Decline Challenges High-Quality Earnings Narrative

Oct -29

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Orion Group Interim Report January–September 2025

Oct -28

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49,164 Orion Corporation A shares converted into B shares

Oct -24

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Orion and Abzena announce exclusive commercial license for Abzena’s antibody

Oct -23

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.51%)

6. Segments

Generics and Consumer Health

Expected Growth: 8.5%

Orion Oyj's Generics and Consumer Health segment growth of 8.5% is driven by increasing demand for affordable medicines, strategic product launches, and expansion into emerging markets. Additionally, the company's focus on R&D and partnerships has enabled it to capitalize on opportunities in the growing self-care market, further boosting segment growth.

Branded Products

Expected Growth: 8.0%

Orion Oyj's branded products growth is driven by increasing demand for specialty pharmaceuticals, particularly in the oncology and respiratory therapy segments. Strong product pipeline, strategic partnerships, and expansion into emerging markets also contribute to the 8.0% growth. Additionally, investments in digitalization and operational efficiency enable the company to maintain a competitive edge.

Innovative Medicines

Expected Growth: 9.5%

Orion Oyj's Innovative Medicines segment growth is driven by strong demand for its Easyhaler product portfolio, particularly in Europe and Japan. The company's strategic investments in R&D, successful product launches, and expanding presence in emerging markets also contribute to its 9.5% growth. Additionally, Orion's focus on specialty care and rare diseases, as well as its partnerships and collaborations, further support its growth momentum.

Animal Health

Expected Growth: 7.5%

Orion Oyj's Animal Health segment growth of 7.5% is driven by increasing pet ownership, rising demand for veterinary care, and growing awareness of animal health. Additionally, the company's strong product portfolio, including veterinary pharmaceuticals and diagnostics, contributes to its growth. Expanding distribution channels and strategic partnerships also support the segment's growth.

Fermion

Expected Growth: 8.8%

Fermion from Orion Oyj's 8.8% growth is driven by increasing demand for pharmaceuticals, strategic partnerships, and expansion into emerging markets. Additionally, investments in R&D, process optimization, and cost savings initiatives contribute to the company's growth momentum.

Translation Differences and Other Operations

Expected Growth: 6.0%

Orion Oyj's 6.0% growth in Translation Differences and Other Operations is driven by favorable currency fluctuations, strategic acquisitions, and improved operational efficiency. Additionally, the company's diversified product portfolio and expansion into emerging markets have contributed to the growth. Furthermore, effective cost management and investments in digital transformation have also supported the segment's growth.

7. Detailed Products

Orion Pharma

Develops and manufactures pharmaceuticals, including prescription and self-care products

Orion Diagnostica

Develops and manufactures diagnostic tests and instruments for healthcare professionals

Orion Animal Health

Develops and manufactures veterinary pharmaceuticals and feed additives for animal health

Contract Manufacturing

Provides contract manufacturing services for pharmaceutical and biotechnology companies

Active Pharmaceutical Ingredients (APIs)

Develops and manufactures active pharmaceutical ingredients for pharmaceutical companies

8. Orion Oyj's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Orion Oyj is medium, as there are some alternatives available in the market, but they are not very attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for Orion Oyj is low, as customers have limited options and the company has a strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Orion Oyj is medium, as the company relies on a few key suppliers, but has some flexibility in its supply chain.

Threat Of New Entrants

The threat of new entrants for Orion Oyj is high, as the industry has low barriers to entry and new companies can easily enter the market.

Intensity Of Rivalry

The intensity of rivalry for Orion Oyj is high, as the company operates in a highly competitive industry with many established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.35%
Debt Cost 3.95%
Equity Weight 81.65%
Equity Cost 5.64%
WACC 5.33%
Leverage 22.47%

11. Quality Control: Orion Oyj passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Orion

A-Score: 6.1/10

Value: 1.6

Growth: 5.3

Quality: 8.2

Yield: 6.2

Momentum: 9.5

Volatility: 5.7

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Recordati

A-Score: 5.8/10

Value: 2.5

Growth: 6.2

Quality: 8.6

Yield: 5.0

Momentum: 4.0

Volatility: 8.7

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Sanofi

A-Score: 5.7/10

Value: 5.7

Growth: 4.0

Quality: 8.0

Yield: 7.5

Momentum: 1.5

Volatility: 7.3

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Qiagen

A-Score: 5.1/10

Value: 2.5

Growth: 4.4

Quality: 7.2

Yield: 3.8

Momentum: 3.5

Volatility: 9.3

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Rovi

A-Score: 4.5/10

Value: 1.8

Growth: 7.7

Quality: 8.0

Yield: 2.5

Momentum: 1.0

Volatility: 6.3

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Virbac

A-Score: 4.0/10

Value: 3.1

Growth: 6.3

Quality: 6.5

Yield: 0.0

Momentum: 2.0

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

60.4$

Current Price

60.4$

Potential

-0.00%

Expected Cash-Flows