Release Date: May 15, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Camurus AB (CAMRF) reported a strong financial performance with total revenue of 558 million SEK, a 43% increase compared to the same period last year. Product sales grew by 33% year-over-year, with significant contributions from markets in Europe and Australia. The company achieved a gross margin of 93% for the quarter, an improvement of 88 basis points from the previous year. Camurus AB (CAMRF) initiated dosing in a phase 1 study of their once-monthly semaglutide formulation, indicating progress in their R&D pipeline. The company received a positive CHMP recommendation for the approval of CAM 2029 in Acromegaly in the EU, under the trade name Oxy ISA.

Negative Points

The US buprenorphine OUD market experienced a 13% decline, impacting Camurus AB (CAMRF)'s royalty income from the US. Swedish currency volatility negatively impacted reported figures, with a 3-point negative impact on product sales and a 12-point negative impact on royalty figures. R&D investment decreased by 27% compared to the same period last year, which may affect future innovation and product development. The unwinding of Medicaid continuous enrollment and budget restrictions in federal prisons in the US posed challenges to market growth. The company faces potential delays in the US registration process for CAM 2029 due to third-party manufacturer issues, requiring an independent audit.

Q & A Highlights

Warning! GuruFocus has detected 3 Warning Sign with MKGAF.

Q: Can you explain the significant growth in Australian sales, given that it's a mature market? A: Unidentified_2 (CFO): The growth is partly due to the Australian government's Pharmaceutical Benefit Scheme, which caused fluctuations last year. We are confident in our execution and expect continued growth in Australia, maintaining a successful market share of about 80%.

Q: How has the unwinding of Medicaid continuous enrollment impacted your US market growth? A: Unidentified_1 (CEO): The unwinding likely impacted the industry, but the growth rate of Brixadi was high, so it wasn't a major factor initially. We believe the effect peaked in Q1 and will diminish, with renewed growth expected in coming quarters.

Q: How do foreign exchange movements affect your full-year guidance? A: Unidentified_2 (CFO): We simulated different scenarios when providing our guidance in February. We are currently operating within those scenarios, and our guidance remains unchanged despite FX movements.

Story Continues

Q: What is the commercial outlook for CAM 2029 in polycystic liver disease? A: Unidentified_1 (CEO): We estimate the peak market potential for CAM 2029 in polycystic liver disease to be between $300 and $400 million. We plan to start a registration phase 3 trial after reading out the data.

Q: What gives you confidence in renewed growth for Brixadi in the US? A: Unidentified_1 (CEO): Despite challenges, the medical need remains high with over 2 million people needing treatment. The market share for long-acting injectables has increased, and we expect growth as transient issues are addressed.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

View Comments