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Orion Group Interim Report 1–9/2022


This is a summary or Orion’s Interim Report 1–9/2022. The complete report is attached to this stock exchange release and is available at

  • Net sales totalled EUR 1,046 million (EUR 765 million in 2021).
  • Operating profit was EUR 399 (203) million.
  • Profit before taxes was EUR 400 (202) million.
  • Equity ratio was 62% (71%).
  • Return on capital employed before taxes (ROCE) was 53% (32%).
  • Return on equity after taxes (ROE) was 49% (29%).
  • Basic earnings per share were EUR 2.26 (1.15).
  • Cash flow from operating activities per share was EUR 3.05 (0.99).
  • The outlook for 2022 remains unchanged. Orion estimates that net sales in 2022 will be clearly higher than in 2021 (net sales in 2021 were EUR 1,041 million). Operating profit is estimated to be clearly higher than in 2021 (operating profit in 2021 was EUR 243 million).


  7-9/227-9/21Change %1-9/221-9/21Change %1-12/21
Net sales, EUR million491.8240.9+104.1%1,046.1764.5+36.8%1,041.0
EBITDA, EUR million257.468.4+276.2%433.9236.5+83.5%289.1
 % of net sales52.3%28.4% 41.5%30.9% 27.8%
Operating profit, EUR million245.457.3+328.1%398.9203.4+96.1%243.3
 % of net sales49.9%23.8% 38.1%26.6% 23.4%
Profit before taxes, EUR million244.657.3+327.0%399.8202.5+97.5%242.3
 % of net sales49.7%23.8% 38.2%26.5% 23.3%
Profit for the period, EUR million194.545.4+327.9%317.9161.0+97.5%193.8
 % of net sales39.5%18.9% 30.4%21.1% 18.6%
Research and development expenses, EUR million36.322.7+59.5%97.076.7+26.5%117.7
 % of net sales7.4%9.4% 9.3%10.0% 11.3%
Capital expenditure, excluding acquired in business combinations, EUR million18.839.5-52.4%49.365.9-25.2%85.4
 % of net sales3.8%16.4% 4.7%8.6% 8.2%
Acquired in business combination, net of cash, EUR million1.3  82.4   
Interest-bearing net liabilities, EUR million   -152.2-48.2+215.5%-108.3
Basic earnings per share, EUR million1.380.32+327.9%2.261.15+97.4%1.38
Cash flow from operating activities per share, EUR2.460.28+781.7%3.050.99+207.6%1.53
Equity ratio, %   62.5%71.5% 68.1%
Gearing, %   -15.7%-6.5% -14.5%
Return on capital employed (before taxes), %   52.7%32.2% 28.8%
Return on equity (after taxes), %   49.3%29.1% 26.2%
Average personnel during the period   3,4513,368+2.5% 3,364

President and CEO Timo Lappalainen:
Sales developed well – milestone having material impact on net sales and operating profit

“Orion's net sales and operating profit for January-September 2022 increased clearly compared to the comparative period. Both figures were boosted by the global development and commercialisation agreement for the ODM-208 molecule announced in July and the related upfront payment of USD 290 million, of which we recognised EUR 228 million in net sales and operating profit in the third quarter. Even without this milestone payment, net sales were slightly higher than in the comparative period due to positive development of sales and because the acquired animal health company VMD’s (Inovet) net sales is now included in Orion’s net sales.

Operating profit without the ODM-208 agreement related milestone payment and costs was slightly lower than in the comparative period, mainly due to clearly higher operating costs. The ODM-208 agreement related costs were approximately EUR 20 million. These expenses include, among others, non-recurring advisory fees and provisions for certain variable incentive systems. But even without the ODM-208 related costs, the operating costs were clearly higher than in the comparative period. Sales and marketing costs increased because of a clear increase in promotional activities since COVID-19. Research & development costs increased clearly mainly due to the timing of research and clinical development projects and their costs. However, excluding the ODM-208 agreement related milestone and costs, the year 2022 is proceeding as we anticipated in the beginning of the year.

Sales of the Proprietary Products unit excluding the ODM-208 milestone payment increased slightly, mainly due to strong growth of Nubeqa® and the Easyhaler® product family. Sales of Parkinson's medicines also developed well. Nubeqa® sales recorded by Orion show expected fluctuations between quarters due to the way Orion records Nubeqa® sales and does not reflect the development of market sales of the product. Sales of Dexdor® and Simdax® continued to decline as expected due to generic competition and price erosion. The Specialty Products unit saw an increase in sales, driven by self-care products, but prescription sales also performed well. Various respiratory tract infections have occurred more abundantly than in previous years, which partly explains the increase. The acquisition of VMD's animal health business in June is reflected in the net sales of the Animal Health unit. Fermion's net sales decreased slightly from the comparative period. The decrease is mainly due to a higher share of Fermion's capacity being used for the production of Orion's proprietary active pharmaceutical ingredients.

We have started a Phase I clinical trial with the NaV 1.8 blocker that is intended for the treatment of acute and chronic pain (ODM-111), for which we acquired the rights earlier this year. The study will investigate the safety and tolerability of the drug candidate in healthy volunteers. We have completed a Phase I clinical trial with tasipimidine (ODM-105) and, based on the accumulated data, we are preparing to initiate a Phase II clinical trial to evaluate the efficacy and safety of the drug candidate in the treatment of psychiatric disorders. In addition, we have decided to discontinue the development of Easyhaler® tiotropium for COPD. This decision is based on a reassessment of the product's commercial potential. The decision will have no impact on the existing Easyhaler® portfolio, which will continue to be an important and growing product group for Orion.

The operating environment remains challenging due to the impact of the COVID-19 pandemic, the war in Ukraine and cost inflation. Orion is continuously working hard to ensure continuity of production, product availability, patient safety and to manage risks in global supply chains. The impact of cost inflation has already started to show up in the income statement and is expected to intensify in 2023. Energy availability and price risks are also increasing across the supply chain.

I have worked for Orion since 1999 and as CEO since the beginning of 2008. I would like to express my sincere thanks to all Orion employees, customers and partners for these years. I also thank Orion's shareholders and Board of Directors for their support and trust. From the beginning of November, I will take on the role of advisor and shareholder of Orion. Building of well-being continues and I have strong confidence in Orion's future.”

A note from the Board of Directors of Orion

The time under Timo Lappalainen’s leadership will remain as one of the most successful periods in Orion’s long history. Timo’s contribution for this has been significant. This period now ends at Orion history’s highest operating profit quarter. Ahead of Timo’s retirement as the CEO, the Board of Orion wants to use this opportunity to thank Timo for his great leadership and for the very supportive and collaborative way he has worked with the Board. Timo is very much respected and liked by the Board, as he is by the whole Orion family and partners alike. We wish him all the best for the future!

Outlook for 2022 (provided on 13 July 2022)

Orion estimates that net sales in 2022 will be clearly higher than in 2021
(net sales in 2021 were EUR 1,041 million).

Operating profit is estimated to be clearly higher than in 2021
(operating profit in 2021 was EUR 243 million).

News conference and conference call

A webcast and a conference call for analysts, investors and media will be held today on Thursday, 20 October 2022 at 13.30 EEST. The event will be held only online and by conference call.

A link to the live webcast will be available on Orion's website at A recording of the event will be available on the website later the same day.

To participate the conference call, please dial:

Finland: +358 9 2319 5436

Sweden: +46 8 5051 0086

UK: +44 33 0551 0211

USA: +1 646 843 4609

PIN: 8122705#

Upcoming events

Financial Statement Release for 2022Thursday 9 February 2023
Annual General Meeting 2023planned to be held on Wednesday 22 March 2023
Interim Report January-March 2023Thursday 27 April 2023
Half-Year Financial Report January-June 2023Monday 17 July 2023
Interim Report January-September 2023Thursday 26 October 2023

Espoo, 20 October 2022

Board of Directors of Orion Corporation

Orion Corporation

For additional information about the report:

Jari Karlson, CFO                 tel. +358 50 966 2883

Tuukka Hirvonen, Investor Relations        tel. +358 10 426 2721 or +358 50 966 2721

Orion Corporation

Orion is a globally operating Finnish pharmaceutical company – a builder of well-being. Orion develops, manufactures and markets human and veterinary pharmaceuticals and active pharmaceutical ingredients. The company is continuously developing new drugs and treatment methods. The core therapy areas of Orion's pharmaceutical R&D are oncology and pain. Orion's net sales in 2021 amounted to EUR 1,041 million and the company had about 3,350 employees at the end of the year. Orion's A and B shares are listed on Nasdaq Helsinki.