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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 ORNBV

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 results revealed a decrease in net sales to EUR 423.2 million and operating profit to EUR 121.0 million. A discontinuation of an insomnia drug program and a focused shift toward oncology research also characterized the period. Additionally, a recent Phase 2 trial setback for its candidate ODM-105, which failed to meet the primary endpoint in the UNITAS study for insomnia, presented a challenge.

1.c. Company Highlights

2. Orion's Q3 2025 Earnings: A Mixed Bag

Orion's Q3 2025 financial performance was marked by a 24% base business growth to EUR 423 million, with operating profit growth of 68% to EUR 121 million. However, the EPS came out at 0.68, significantly lower than the estimated 1.79. The revenue growth was driven by the Generics and Consumer Health business, which had a strong quarter, supported by good availability of products in major markets and successful new launches. The cash flow grew 15%.

Publication Date: Oct -29

📋 Highlights
  • Q3 Financial Growth:: Base business grew 24% to EUR 423 million; operating profit surged 68% to EUR 121 million.
  • Nubeqa Milestone:: Reached all-time high in royalties and product deliveries to Bayer, with 83-84% growth in top-product list.
  • Generics & Consumer Health:: Achieved 5.4% growth, driven by Nordic market availability and successful product launches.
  • Decarbonization Target:: Aiming to cut Scope 1 and 2 emissions by 70% by 2030; operating profit outlook narrowed to EUR 490 million.
  • R&D Pipeline Shift:: Discontinued ODM-105; focused on oncology trials (DASL-HiCap, OMAHA) and 3 Phase II studies for women’s hormonal cancers.

Nubeqa's Growth and Royalties

Nubeqa, a key product for Orion, continued its strong growth trend, with royalties and product deliveries to Bayer reaching an all-time high. The product grew 83-84% and is a significant contributor to Orion's revenue. As Liisa Hurme, CEO and President, mentioned, "volumes are increasing, but it's a linear growth, not a step change." This indicates a steady growth trajectory for Nubeqa.

Segment-wise Performance

The Generics and Consumer Health business had a strong quarter, with 5.4% growth, driven by good availability of products in Nordic countries. Animal Health continued its good growth trend, despite some slowdown. Branded Products growth was slow, mainly due to the timing of deliveries to Stalevo partners, but is expected to improve in Q4.

Valuation and Outlook

Analysts estimate next year's revenue growth at 3.7%. The current valuation metrics are: 'P/E Ratio': 22.57, 'P/B Ratio': 9.28, 'P/S Ratio': 5.11, 'EV/EBITDA': 17.74, 'Dividend Yield (%)': 2.69, 'Free Cash Flow Yield (%)': 2.54, 'ROIC (%)': 29.6, 'ROE (%)': 38.61, 'Net Debt / EBITDA': 0.27. These metrics indicate that the stock is trading at a premium, with a high P/E ratio and P/B ratio. The dividend yield is relatively low, but the free cash flow yield is decent.

R&D Pipeline and Future Prospects

Orion's key clinical development pipeline is now focused on oncology, with several ongoing studies. The company has set ambitious decarbonization targets and is working on reducing its greenhouse gas emissions. The R&D expenses for this year are expected to be neutral, with some tail costs for next year being taken in this year. The visibility on the milestone is expected to shift slightly from last quarter, and it's possible that Orion receives the milestone next year, but it's still not certain.

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 (7.85%)

6. Segments

Generics and Consumer Health

Expected Growth: 7.5%

Orion Oyj's Generics and Consumer Health segment growth of 7.5% 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 biosimilars market, further contributing to its growth momentum.

Branded Products

Expected Growth: 8.5%

Orion Oyj's branded products growth is driven by increasing demand for specialty pharmaceuticals, particularly in the oncology and respiratory therapy segments. Strong R&D investments, strategic partnerships, and expansion into emerging markets also contribute to the 8.5% growth. Additionally, the company's focus on digitalization and customer-centric approach enhance its competitiveness and market share.

Innovative Medicines

Expected Growth: 9.0%

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 9.0% 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: 6.0%

Orion Oyj's Animal Health segment growth of 6.0% is driven by increasing demand for veterinary care, rising pet ownership, and growing awareness of animal health issues. Additionally, the company's strong product portfolio, including vaccines and pharmaceuticals, and its expanding presence in emerging markets contribute to its growth momentum.

Fermion

Expected Growth: 7.0%

Fermion from Orion Oyj's 7.0% 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: 5.0%

Orion Oyj's 5.0% growth in Translation Differences and Other Operations is driven by favorable currency fluctuations, strategic M&A activities, and efficient working capital management. Additionally, the company's diversified revenue streams, strong brand portfolio, and cost-saving initiatives contribute to its growth momentum.

7. Detailed Products

Orion Pharma

Develops, manufactures and markets human pharmaceuticals and active pharmaceutical ingredients (APIs)

Orion Diagnostica

Develops, manufactures and markets diagnostic tests for healthcare professionals

Fermion

Manufactures and markets active pharmaceutical ingredients (APIs) for the global pharmaceutical industry

Contract Manufacturing

Offers contract manufacturing services for pharmaceuticals and APIs

Orion Animal Health

Develops, manufactures and markets veterinary pharmaceuticals and feed additives

8. Orion Oyj's Porter Forces

Forces Ranking

Threat Of Substitutes

Orion Oyj operates in the pharmaceutical industry, where substitutes are available, but they are not easily accessible to customers. The company's products are prescription-based, and customers rely on doctors' recommendations, making it difficult for substitutes to penetrate the market.

Bargaining Power Of Customers

Orion Oyj's customers are mainly pharmacies and hospitals, which have limited bargaining power due to the company's strong brand presence and patented products. Additionally, the company's products are often reimbursed by healthcare systems, reducing customers' negotiating power.

Bargaining Power Of Suppliers

Orion Oyj relies on a few key suppliers for raw materials and active pharmaceutical ingredients. While the company has some bargaining power due to its size and reputation, suppliers still have some leverage, particularly for rare or specialized ingredients.

Threat Of New Entrants

The pharmaceutical industry has high barriers to entry, including significant research and development costs, regulatory hurdles, and patent protections. New entrants would need substantial resources and expertise to compete with established players like Orion Oyj.

Intensity Of Rivalry

The pharmaceutical industry is highly competitive, with many established players vying for market share. Orion Oyj faces intense competition from other European and global pharmaceutical companies, which drives innovation and pricing pressures.

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 4.24%
Equity Weight 81.65%
Equity Cost 5.50%
WACC 5.27%
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

1-Year Total Return ->

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Stock-Card
Orion

A-Score: 6.1/10

Value: 1.6

Growth: 5.3

Quality: 8.2

Yield: 5.6

Momentum: 9.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Recordati

A-Score: 5.8/10

Value: 2.5

Growth: 6.2

Quality: 8.6

Yield: 5.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
GSK

A-Score: 5.7/10

Value: 3.9

Growth: 2.2

Quality: 6.5

Yield: 6.9

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Rovi

A-Score: 4.5/10

Value: 1.8

Growth: 7.7

Quality: 8.0

Yield: 2.5

Momentum: 1.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
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

60.85$

Current Price

60.85$

Potential

-0.00%

Expected Cash-Flows