OPK Opko Health Inc

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ModeX Therapeutics Inc. (ModeX) was awarded a contract from the Biomedical Advanced Research and Development Authority (BARDA) to develop novel multispecific antibodies against viral infectious disease threats. BARDA awarded a contract to ModeX to advance a platform and specific therapeutic candidates designed to address a range of public health threats in viral infectious diseases. The BARDA contract includes an initial $59 million award for the development, manufacturing and execution of a Phase 1 clinical trial for a next-generation MSTAR multispecific antibody with broad neutralizing activity against known variants of SARS-CoV-2. ModeX may be eligible to receive up to an additional $109 million from BARDA upon achieving milestones to develop multispecific antibodies targeting other viral pathogens, such as influenza.

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ModeX advanced its antiviral and immune-oncology product pipeline. ModeX advanced its pipeline of antiviral and immune-oncology programs utilizing its next-generation multispecific antibodies. ModeX’s oncology programs are in the preclinical stage and at least one program is expected to enter the clinic in 2024. ModeX’s collaboration with Merck to develop MDX-2201, its vaccine for Epstein-Barr virus, is advancing. ModeX’s antiviral program is focused on developing multiple indications, including HIV, as well as other potential viral pathogens funded by BARDA.

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NGENLA has now been approved in 48 markets including the U.S., Japan, EU Member States, Canada and Australia; sales are underway by Pfizer in over 23 countries including all priority global markets. NGENLA is the first once-weekly product approved for the treatment of pediatric growth hormone deficiency in Japan, Canada, Australia, the United Kingdom, Taiwan, United Arab Emirates and Brazil. OPKO is entitled to gross profit sharing in all global markets based on regional, tiered gross profit for both NGENLA and Genotropin. The U.S. region commenced gross profit sharing in August 2023.

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New clinical data on RAYALDEE® presented at Kidney Week 2023. OPKO Health presented late-breaking clinical data on RAYALDEE extended-release calcifediol in a poster presentation at the American Society of Nephrology Kidney Week. The data indicate that early, sustained and effective treatment of secondary hyperparathyroidism (SHPT) with RAYALDEE is associated with significantly slower progression of chronic kidney disease (CKD) in pre-dialysis patients. Data presented in an additional poster demonstrated that effective control of SHPT was achieved with RAYALDEE in both randomized clinical trials and in a real-world clinical experience trial. 

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OPKO Biologics entered into a research collaboration agreement with Entera Bio Ltd. to develop oral peptide tablet formulations for obesity and intestinal malabsorption syndromes. Under the agreement, OPKO will supply its long-acting GLP-2 peptide and certain oxyntomodulin (OXM) analogs for the development of oral tablet formulations using Entera’s proprietary oral delivery technology. Treatment with glucagon-like peptide-2 (GLP-2) analogs has been shown to improve the absorption of nutrients in patients with short bowel syndrome and to reduce parenteral support requirements. OXM is a naturally occurring peptide hormone found in the colon, with glucagon-like peptide-1 (GLP-1) and glucagon dual agonist activity that suppresses appetite and induces weight loss. OPKO has developed several proprietary, modified OXM analogs as potential candidates for treating obesity, including an injectable pegylated peptide that demonstrated significant reductions in weight loss and decreased plasma triglyceride levels in a 420-patient Phase 2b study.

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BioReference Health continued executing its plan to improve operational efficiencies and enhance productivity, and is on track to return to profitability. BioReference continued to implement initiatives to reduce costs and rationalize its business in line with current testing volumes. Additionally, BioReference is focused on improving productivity and enhancing innovation of its higher-value specialty testing segments. Other efforts to return this business to profitability include expanding into new market segments, such as providing information for the pharmaceutical market.

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Pharmaceuticals: Revenue from products in the third quarter of 2023 increased to $40.7 million from $32.4 million in the third quarter of 2022, driven by higher sales in OPKO’s international operating companies positively impacted by foreign currency exchange fluctuations of $2.9 million, and by an increase in sales of RAYALDEE to $7.3 million from $6.9 million in the prior-year period. Revenue from the transfer of intellectual property was $6.2 million in the third quarter of 2023 compared with $4.5 million in the 2022 period, which included revenue of $4.9 million and $1.4 million, respectively, of gross profit share for NGENLA in Europe and Japan and does not include an estimate from gross profit in the U.S. as our partner has not yet provided details post their launch in August 2023. Total costs and expenses were $72.3 million in the third quarter of 2023, up from $65.2 million in the prior-year period. The increase was mainly from the cost of revenue due to higher sales in OPKO’s international operating companies, higher inventory costs compared with the 2022 third quarter and unfavorable foreign currency exchange fluctuations of $2.2 million. Operating loss was $25.4 million in the third quarter of 2023 compared with $28.3 million in the third quarter of 2022.

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Diagnostics: Revenue from services in the third quarter of 2023 was $131.7 million compared with $142.9 million in the prior-year period. Revenue decreased $10.0 million due to lower COVID-19 testing volume and reimbursement. Furthermore, clinical test reimbursement decreased by $6.6 million due to the mix of testing ordered, partially offset by a $5.4 million increase in clinical test volume. Total costs and expenses were $160.8 million in the third quarter of 2023 compared with $192.3 million in the third quarter of 2022, resulting in an operating loss of $29.1 million compared with an operating loss of $49.5 million in the 2022 period, an improvement of 41%. Operating loss improved primarily due to continued cost-reduction initiatives at BioReference as we strive to return to profitability.

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Consolidated: Consolidated total revenues for the third quarter of 2023 were $178.6 million compared with $179.7 million for the comparable 2022 period. Operating loss for the third quarter of 2023 was $64.4 million compared with an operating loss of $87.8 million for the 2022 quarter. Net loss for the third quarter of 2023 included a mark-to-market adjustment of $8.3 million compared with $30.6 million in the 2022 period related to the decrease in the share price of GeneDx, resulting in a net loss of $84.5 million, or $0.11 per share, compared with a net loss of $86.1 million, or $0.11 per share, for the 2022 quarter.

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Cash and cash equivalents: Cash and cash equivalents were $138.6 million as of September 30, 2023.

As of

September 30,

2023

December 31,

2022

Assets:

Cash and cash equivalents

$

138.6

$

153.2

Other current assets

218.6

241.3

Total current assets

357.2

394.5

In-process research and development and goodwill

789.5

790.9

Other assets

910.0

981.9

Total Assets

$

2,056.7

$

2,167.3

Liabilities and Equity:

Accounts payable

$

66.8

$

67.0

Accrued expenses

92.4

98.3

Current portion of convertible notes

0.0

3.1

Other current liabilities

41.4

45.1

Total current liabilities

200.6

213.5

Long-term portion of convertible notes

213.3

210.4

Deferred tax liabilities, net

138.0

126.4

Other long-term liabilities, principally contract liabilities,

leases, contingent consideration and lines of credit

60.2

55.4

Total Liabilities

612.1

605.7

Equity

1,444.6

1,561.6

Total Liabilities and Equity

$

2,056.7

$

2,167.3

For the three months ended

September 30,

For the nine months ended

September 30,

2023

2022

2023

2022

Revenues

Revenue from services

$

131.7

$

142.8

$

391.1

$

616.3

Revenue from products

40.7

32.4

124.6

104.9

Revenue from transfer of intellectual property and other

6.2

4.5

165.9

97.7

Total revenues

178.6

179.7

681.6

818.9

Costs and expenses

Cost of service revenues

106.4

128.2

333.5

521.3

Cost of product revenues

24.5

20.2

74.7

65.4

Selling, general and administrative

72.3

79.7

227.7

298.7

Research and development

19.4

18.8

70.2

54.4

Contingent consideration

(1.1

)

(0.8

)

(1.0

)

(0.7

)

Amortization of intangible assets

21.5

21.4

64.5

66.2

Gain on sale of assets

0.0

0.0

0.0

(15.4

)

Total costs and expenses

243.0

267.5

769.6

989.9

Operating loss

(64.4

)

(87.8

)

(88.0

)

(171.0

)

Other expense, net

(14.0

)

     (38.6

)

(23.8

)

(118.3

)

Loss before income taxes and investment losses

(78.4

)

(126.4

)

(111.8

)

(289.3

)

Income tax benefit (provision)

(6.1

)

40.3

(10.5

)

46.5

Loss before investment losses

(84.5

)

(86.1

)

(122.3

)

(242.8

)

Loss from investments in investees

(0.0

)

(0.0

)

(0.1

)

(0.4

)

Net loss

$

(84.5

)

$

(86.1

)

$

(122.4

)

$

(243.2

)

Loss per share,

basic and diluted

$

(0.11

)

$

(0.11

)

$

(0.16

)

$

(0.34

)

Weighted average common shares outstanding, basic and diluted

751,525,007

750,396,263

 751,716,692

708,121,980