Outlook for 2006

Published on 2 November 2006

In the Pharmaceuticals business, net sales are estimated to increase, thanks to the entacapone product franchise especially. In the first half and especially in the first months of the year, the deliveries to the marketing partner Novartis were exceptionally high. The sales of pharmaceuticals in Finland will be lower than in the previous year.

The full-year operating profit of the Pharmaceuticals business is estimated to improve from the comparative year in the same proportion as in 1-9/2006. The operating expenses will remain on the same level as in 2005.

The Diagnostics business will show increased net sales and operating profit.

Due to one-off earnings items, the operating profit resulting from the Group items is anticipated to be better than in the previous year.

The Group’s R&D expenditure will be about EUR 80 million.

Capital expenditure is estimated to be about EUR 25 million.

The consolidated net sales and operating profit are estimated to grow from the previous year at the same rate as in 1-9/2006.

Published on 7 August 2006

In the Pharmaceuticals business, net sales are estimated to increase, thanks to the entacapone product franchise especially. Their net sales growth will level off in the course of the rest of the year. In the first half and especially in the first months of the year, the deliveries to the marketing partner Novartis were exceptionally high. The changes in the Finnish Pharmaceuticals Act, especially the price cut of reimbursable medicines and the ban on discounts grantable to pharmacies, led to lower domestic net sales in the first half of the year. The domestic pharmaceutical sales in the latter half of the year are anticipated to reach the levels of the corresponding period of 2005.

The operating profit of the Pharmaceuticals business is estimated to improve somewhat in consequence of the net sales growth. Selling and distribution costs as well as R&D expenses will slightly increase from the previous year.

The Diagnostics business will show increased net sales and improved operating profit from the previous year.

Due to one-off earnings items, the operating profit resulting from the Group items is anticipated to be better than in 2005.

The Group’s R&D expenditure is estimated to be about EUR 85 million, of which the Pharmaceuticals business will account for over EUR 80 million. Capital expenditure is estimated to be slightly over EUR 20 million.

The consolidated net sales and operating profit are estimated to grow somewhat from the previous year.

Outlook estimate for the new Orion Corporation

The earnings forecast below has been published in a Stock Exchange Release published by the demerged Orion on 6 June 2006 and in the Listing Particulars of the new Orion published on 21 July 2006.

In the Pharmaceuticals business, net sales are estimated to increase, thanks to the entacapone product franchise especially. The strong net sales growth in the first months of the year will slow down clearly in the further course of the year. In the first months of the year, the deliveries to the marketing partner Novartis were exceptionally high, and clearly lower levels are anticipated for the remaining part of the year. The changes in the Finnish pharmaceuticals act, especially the price cut of reimbursable medicines and the removal of discounts grantable to pharmacies, led to lower domestic net sales in the first quarter. The full-year domestic net sales are, however, anticipated to be at the previous year's level.

The operating profit of the Pharmaceuticals business is estimated to improve somewhat in consequence of the increased net sales. Selling and distribution costs as well as R&D expenses will slightly increase from the previous year.

The Diagnostics business will show increased net sales and a clearly improved operating profit from the previous year.

Due to one-off earnings items, the Group level costs are anticipated to be lower than in the corresponding carve-out figures for 2005.

The Group R&D expenditure is estimated to be about EUR 85 million, of which the Pharmaceuticals business will account for over EUR 80 million. Capital expenditure is estimated to be slightly over EUR 20 million.

The net sales of the new Orion Group are estimated to grow and the consolidated operating profit is estimated to improve somewhat from the corresponding carve-out figures based on the 2005 financial statements of the demerging Orion.