Finnish pharmaceutical company Orion has received a substantial milestone payment of 180 million euros from its German partner Bayer. The payment relates to the jointly developed prostate cancer drug Nubeqa and will be recorded in the company's accounts in the final quarter of the year. Orion simultaneously issued a positive profit warning, revising its financial guidance upward based on the strengthened outlook.
The company now estimates its annual revenue will reach between 1,820 and 1,900 million euros. Its operating profit is projected to fall between 590 and 670 million euros. These figures represent a notable increase from previous guidance issued in late October, which forecast revenue of 1,640 to 1,720 million euros and operating profit of 410 to 490 million euros. Orion's B-share price reacted positively to the news, trading up 1.1 percent at 61.95 euros in morning trading on the Helsinki Stock Exchange.
Nubeqa is a prescription medicine developed for treating non-metastatic castration-resistant prostate cancer in patients at high risk of the disease spreading. The drug represents a strategic collaboration between the Finnish firm and the global pharmaceutical giant. Under the partnership agreement, Bayer holds worldwide commercialization rights for the product. Orion receives compensation through sales royalties and structured milestone payments like this one, which are triggered by specific development, regulatory, or sales achievements.
This payment underscores the financial and strategic importance of international partnerships for Finland's life sciences sector. Orion, headquartered in Espoo, is one of Finland's largest publicly traded companies and a cornerstone of the national bioeconomy. Its research and development operations employ thousands of specialists across the country. Successes like the Nubeqa collaboration demonstrate the global competitiveness of Finnish pharmaceutical research, which operates within the stringent regulatory framework of the European Medicines Agency.
The deal provides Orion with significant non-dilutive capital to reinvest in its pipeline. The company has several other oncology and neurological drug candidates in development. For Bayer, the partnership leverages Orion's research expertise while expanding its own oncology portfolio. The revised financial guidance suggests Orion's management has growing confidence in both the near-term performance of existing products and the long-term potential of its development pipeline. This news will likely be welcomed by policymakers in Helsinki who view the life sciences industry as a key growth sector for the Finnish economy, especially as the country continues to navigate broader European economic challenges. The inflow of capital strengthens Orion's balance sheet and provides a buffer against potential market volatility.