Redeye Update: Orexo: Zubsolv sales are taking off

In the second quarter, net sales beat our somewhat conservative expectations, and Zubsolv sales, in particular, developed better than we had expected. There are strong reasons to believe in continued good growth for Zubsolv, since Orexo has won new contracts and previous patient limits on being able to prescribe buprenorphine in the treatment of opiate addiction in the US are being raised. The Company is in the final phase of a legal dispute with Actavis to stop the launch of Zubsolv generics, with a ruling being expected no later than November this year. The costs of this process were the main reason for the quarter's profitability ending up below our expectations.

Uncertainty about the outcome of the process is holding back the shares. Following the second quarter report, we have revised up our forecasts, but our base-case valuation is unchanged at SEK 85 (85). Note: This is a translation of the original report, written in Swedish, released the 1 of August.