Profits remained on a good level
Orion's net sales for the financial year 2007 were EUR 683.6 (641.1)
million, up by 6.6% from the previous year.
* Operating profit was EUR 194.0 (196.7) million.
* Profit before taxes was EUR 195.5 (197.3) million.
* Equity ratio was 75.9% (75.4%).
* Return on capital employed (ROCE) was 43.8% (46.5%).
* Earnings per share were EUR 1.03 (1.03) EUR.
* The proposed dividend is EUR 1.00 per share
Orion's key figures for the review period*
Financial
Q4/07 Q4/06 Change 2007 2006 Change period
EUR million % Proforma % Q3-Q4/06
Net sales 174.0 162.2 +7.3% 683.6 641.1 +6.6% 311.2
Operating profit
(EBIT) 39.1 36.6 +6.9% 194.0 196.7 -1.4% 90.9
% of net sales 22.5% 22.6% 28.4% 30.7% 29.2%
Profit before taxes 39.7 37.1 +7.0% 195.5 197.3 -0.9% 91.4
% of net sales 22.8% 22.9% 28.6% 30.8% 29.4%
R&D expenses 28.5 24.2 +17.9% 97.6 84.1 +16.0% 43.1
% of net sales 16.4% 14.9% 14.3% 13.1% 13.8%
Capital expenditure 11.3 7.5 +50.3% 35.3 25.5 +38.1% 13.4
% of net sales 6.5% 4.6% 5.2% 4.0% 4.3%
Balance Sheet total 589.5 588.1 +0.2%
Equity ratio, % 75.9% 75.4%
Gearing, % -19.3% -22.6%
Interest-bearing
liabilities 4.0 9.8 -58.9%
Non-interest-bearing
liabilities 138.1 134.8 +2.5%
Cash and cash
equivalents 90.4 110.0 -17.8%
ROCE (before taxes),
% 43.8% 46.5%
ROE (after taxes), % 32.7% 34.5%
Earnings per share,
EUR 0.22 0.18 +18.4% 1.03 1.03 -0.2% 0.47
Equity per share,
EUR 3.17 3.14 +0.9%
Personnel at the end
of the period 3 176 3 061 +3.8%
*The proforma figures for periods before the demerger on 1 July 2006
are based on comparable ones carved out from the financial statements
of the demerged Orion.
Review by President and CEO Timo Lappalainen"The net sales of the Orion Group have shown steady growth. In the
light of the key figures for 2007 the performance was successful and
at least as good as the previous year in relation to the comparable
figures. All the five business divisions are performing well
financially, and their achievements are starting to reflect the
chosen strategy.
In the past year we have entered into a number of in-licensing
agreements having thereby added about 50 new products mainly into the
portfolios of the Specialty Products and Animal Health businesses to
accelerate their growth. In the Proprietary Products business, the
strong growth is continuing in the sales of Stalevo® and Comtess®
/Comtan® for Parkinson's Disease.
All our major clinical research programmes are progressing forward in
2008. The most comprehensive one, STRIDE-PD with Stalevo, is also
advancing steadily. FIRST-STEP, a Phase III study conducted by out
marketing partner Novartis mainly in North America, has been
completed with a statistically significant positive outcome of the
primary endpoint. The study was made to determine whether treatment
with Stalevo provides better symptomatic benefit than conventional
treatment in early Parkinson's Disease.
Orion continued showing successful sales performance in Finland where
our sales grew more rapidly than the total market. The growth of our
operations in 2007 in the Central and Eastern European markets gives
us reason to continue our efforts to grow."
Events in the last annual quarter of 2007
In October, an explosion occurred at the Ekokem Oy Ab solvent gas
treatment facility in Hanko, in the factory area of the Fermion API
plant. One Ekokem employee died in the explosion, which occurred
during a test running stage. The facility was restarted at the
beginning of February 2008. Ekokem bears an independent
responsibility for the investment, operation and operating costs of
the treatment plant.
In December, the license for Calcimagon, an osteoporosis drug
marketed in Germany, was terminated about one year before the
intended expiry of the agreement. In relation to this, Orion received
an EUR 5.8 million one-time payment in the last quarter of 2007. The
net sales for 2007 of the product amounted to EUR 11.7 million.
In December, Orion established a liaison office in Mumbai, India. The
role of the office is to promote co-operation with Indian partners,
to assist in assuring the quality of procured products and services
and to identify new business opportunities for Orion in India.
The ANDAs concerning entacapone products filed with the US FDA by
companies in the generics business, are dealt with separately in the
section "Litigations and claims for damages."
New generic products were in-licensed and launched throughout the
year. Most of the product launches took place in Eastern Europe and
Russia.
Events after the Balance Sheet date
At the end of January 2008, Orion Corporation was informed by its
marketing partner Novartis that a statistically significant positive
result for the primary endpoint was obtained in the Phase 3 clinical
FIRST- STEP study carried out by Novartis. The purpose of the study
was to determine whether treatment with Stalevo provides better
symptomatic benefit than conventional levodopa/carbidopa treatment in
patients requiring to start levodopa treatment. The study in 423
patients with early Parkinson's Disease was conducted in the United
States, Canada and six other countries.
Contact persons:
Timo Lappalainen, President and CEO, phone +358 10 426 3692
Jari Karlson, CFO, phone +358 10 426 2883
www.orion.fi/english
www.orion.fi/investors
Press conference in Finnish and on-line webcast
A press conference on the full-year 2007 results will be held today,
Thursday, 7 February 2008, starting at 10.00 EET, at the Diana
Auditorium in Helsinki, address Erottajankatu 5. The presentation
will be held by Timo Lappalainen, President and CEO. The language of
the conference is Finnish.
The presentation can be followed on-line through the Group's Finnish
homepage at www.orion.fi/sijoittajille, as well as via the
Kauppalehti Live web service at www.kauppalehti.fi/live.
The on-demand webcast recordings of the presentations will be
available at www.orion.fi/investors (in English) and at
www.orion.fi/sijoittajille (in Finnish) later in the evening of 7
February 2008. The English webcast can also be accessed via
www.earnings.com or Thomson/CCBN's password-protected event
management site, StreetEvents at www.streetevents.com.
Conference call in English
A teleconference for questions and answers in English will be
arranged today 7 February 2008, starting at 17.00 EET (16.00 GMT).
Advice to participate the conference is provided on the front page of
www.orion.fi/investors.
In Orion's calendar for 2008
Annual Report 2007 published week 10/2008
Record date for AGM 15 March 2008
Registration to the AGM at the latest 17 March 2008 at 12.00
AGM 25 March 2008 at 14.00
Record date for dividend payment 28 March 2008
Dividend payment 4 April 2008
Interim Report 1-3/2008 25 April 2008
Interim Report 1-6/2008 5 August 2008
Interim Report 1-9/2008 October 2008
The annual General meeting of the shareholders will be held on
Tuesday, 25 March 2008 at 14.00 at the Helsinki Fair Centre,
Helsinki. The matters to be handled at the AGM are announced in a
separate stock exchange release published today.
The Annual Summary of the stock exchange releases and announcements
published by Orion Corporation in 2007 is given in a separate stock
exchange release today.
Orion's financial reports and related presentation material are
available on the Group's homepage at www.orion.fi/investors promptly
after the publishing. The homepage also provides a possibility to
register on Orion's mailing lists for publications and releases.
Financial review of the Orion Group in 2007
Net sales
The Orion Group's net sales for the financial year 2007 were EUR
683.6 million (EUR 641.1 million in 2006 and EUR 311.2 million in the
period July-December 2006), an increase of 6.6% on the previous year.
The net impact of foreign exchange rates, mainly the US dollar, was
EUR 9.3 million negative.
The Pharmaceuticals business had net sales of EUR 643.3 million
(2006: 601.4; July-Dec. 2006: 292.0), up 7.0% on the figure of the
comparative year. Products from in-house R&D accounted for EUR 292.3
million of net sales (2006: 275.2), or 45% (2006: 46%). Net sales
from the Parkinson's medicines Stalevo and Comtess/Comtan totalled
EUR 200.1 million (2006: 186.0), or about 31% of the net sales by the
Pharmaceuticals business (2006: 31%).
Orion Diagnostica's net sales were EUR 42.0 million (2006: 41.5;
July-Dec. 2006: 19.9), or at the level of the previous year.
QuikRead® tests for diagnosing infections were again growth products,
but the declined sales of the older product portfolio slowed down
overall growth.
Financial performance
The Pharmaceuticals business's operating profit was EUR 199.0 million
(2006: 189.9; July-Dec. 2006: 84.6), an increase of 4.8% on the
figure of the comparative year. Investments in sales, marketing and
research rose as planned. The operating profit includes an EUR 5.8
million item recorded in Other operating income related to the
termination of the Calcimagon licensing agreement.
The Diagnostics business's operating profit was EUR 6.5 million
(2006: 6.6; July-Dec. 2006: 2.1).
Operating expenses were EUR 279.7 (2006: 253.0; July-Dec. 2006:
126.7), an increase of 10.6% on the previous year. The largest
individual item - Selling and marketing expenses - was EUR 143.1
million (2006: 128.9; July-Dec. 2006: 63.2), an increase of 11.0% on
the previous year.
The Group's research and development expenditure amounted to EUR 97.6
million (2006: 84.1; July-Dec. 2006: 43.1), rising by 16.0% on the
figure of the comparative year and accounting for 14.3% of the
consolidated net sales (2006: 13.1%; July-Dec. 2006: 13.8%).
Pharmaceutical research accounted for EUR 93.4 million (2006: 79.7)
of the total.
Group profit before taxes was EUR 195.5 million (2006: 197.3;
July-Dec. 2006: 91.4). Earnings per share were EUR 1.03 (2006: 1.03;
July-Dec. 2006: 0.47). Equity per share was EUR 3.17 (2006: 3.14).
The return on capital employed before taxes was 43.8% (2006: 46.5%)
and the return on equity after taxes was 32.7% (2006: 34.5%). The
Group's operating profit in 2006 included EUR 9.8 million in capital
gains on the sale of real estate.
Balance Sheet and financial position
The Group's gearing was 19.3% negative (2006: -22.6%) and the equity
ratio was 75.9% (2006: 75.4%).
Liabilities in the Balance Sheet at 31 December 2007 totalled EUR
142.1 million (2006: 144.6), of which EUR 4.0 million were
interest-bearing liabilities (2006: 9.8). The Group's cash and cash
equivalents amounted to EUR 90.4 million (2006: 110.0) and they were
invested in short-term fixed-income instruments of financially sound
banks and companies.
Cash flows
Cash flows from operating activities totalled EUR 154.7 million
(2006: 141.4; July-Dec. 2006: 81.6), improving on the previous year.
The operating profit declined somewhat, but it included more non-cash
expense items than in the comparative year. Working capital increased
by EUR 14.7 (2006: 18.6) million, which was slightly less than in
2006. Cash flows from investing activities were EUR 25.3 million
negative (2006: EUR 10.9 million negative). Capital expenditure in
2007 was higher than in 2006, in addition to which the previous
year's cash flows were improved by the sale of apartment houses. Cash
flows from financing activities were EUR 148.5 million negative
(2006: EUR 144.9 negative), nearly on a par with the figure of the
comparative year, despite paying out higher dividends than a year
earlier, and the repayment of long-term loans to the Orion Pension
Fund. Cash flows in 2006 were affected by two significant
non-recurring items. They were burdened by the repayment of
short-term loans to the companies that were transferred to Oriola-KD
in the demerger and, on the other hand, they were improved by the
share capital increase and share issue due to the exercised stock
options.
Capital expenditure
The Group's capital expenditure totalled EUR 35.3 million (2006:
25.5), of which EUR 22.4 million was used for machinery and equipment
(2006: 16.6). No major investments are under way in the Group.
Outlook for 2008
Net sales will grow slightly from 2007. Pharmaceutical sales via
Orion's own sales network are expected to continue growing moderately
in Finland and to continue showing growth outside Finland, where
growth will nevertheless be slowed down by the expiry at the end of
2007 of the licence agreement for the Calcimagon osteoporosis drug
that was marketed in Germany. In-market sales of Parkinson's drugs
will show further growth, but at a slower rate than previously. The
volume of Parkinson's drugs to be delivered to Novartis is forecast
to grow slightly.
Marketing and research expenditure will increase moderately.
Marketing expenses will be added in particular by the product
launches by Orion's own units outside Finland. Research expenses will
grow mainly due to the clinical studies that were started in the
previous year. The patent litigations having started in United States
will increase administrative expenses in 2008.
Operating profit excluding non-recurring items is estimated to grow
slightly from 2007. Such non-recurring items include the one-off
compensation for the termination of the Calcimagon licence agreement
in 2007 and the patent litigation expenses in 2008.
R&D expenses will be slightly over EUR 100 million. Capital
expenditure will be about EUR 40 million.
Preamble
No major regulatory changes affecting the market structure are
expected to take place in Finland during 2008, which points to
continued moderate market growth. Launches of new products will
support Orion's growth in Finland. On the other hand, growth will be
retarded by heavy price competition affecting substitutable
prescription drugs in particular, which are important for Orion.
The growth in in-market sales of the Parkinson's drugs Stalevo and
Comtess/Comtan in 2007 was under 15%, which is lower than in previous
years. Growth is expected to slow further down slightly during 2008.
Both Orion's own sales and deliveries to its marketing partner
Novartis are anticipated to be in line with the overall market
development for Parkinson's drugs. On the basis of current
information, Novartis's stock levels are expected to remain unchanged
in 2008.
Because the registrations and launches of new products are projects
taking more than a year, the resources and other material inputs
required for them for 2008 have been mostly planned in the previous
year.
The majority of the expenses of pharmaceutical research are caused by
the clinical phases. They are typically performed in clinics located
in several countries. All the main clinical studies that were under
way in 2007 will continue in 2008, and their cost level can thus be
forecast fairly well.
The estimated costs of the patent litigations having started in the
United States are based on the planned timetables and work. The costs
resulting from the litigation will depend on a number of factors,
which at the present stage are difficult to estimate precisely.
Near-term risks and factors of uncertainty relating to the outlook
estimates
The company is not aware of any significant single risk factors
relating to the earnings outlook for 2008.
The sales of individual products and, on the other hand, Orion's
sales in individual markets may vary slightly according to the extent
to which the ever-tougher price and other competition that has
prevailed in the pharmaceutical markets in recent years specifically
affects Orion's products. Deliveries to Novartis are based on
timetables that are jointly agreed in advance. These can nevertheless
change, for example, as a consequence of decisions by Novartis
concerning adjustments of stock levels during the year. The
litigations having started are not assumed to affect the sales of
Comtan or Stalevo in the United States in 2008.
The mostpart of the exchange rate risk is related to the US dollar.
Typically, less than 15% of Orion's sales come from North America.
Only a small part of other sales is based on the US dollar.
Research projects always involve factors of uncertainty that may
either increase or decrease estimated costs. The projects may
progress more slowly or faster than assumed or they may be
discontinued. Changes that may occur in ongoing clinical studies are
nonetheless reflected in costs relatively slowly, and they are not
estimated to have a material impact on the earnings in the current
year. Owing to the nature of the research process, the timetables and
costs of new studies that are being started are known well in
advance, and therefore they typically do not lead to unexpected
changes in the forecast cost structure.
Group financial objectives and dividend distribution policy
The moderate organic growth of the net sales within the next few
years is accelerated via product, product portfolio and company
acquisitions. Operating profit will be increased and equity ratio is
maintained at the level of at least 50%.
In the dividend distribution Orion takes into account the
distributable funds as well as the medium-long and long-term needs of
capital expenditure and other financial needs required for the
achievement of the financial objectives.
Proposed dividend EUR 1.00 per share
The distributable equity of the parent company amounts to EUR
187,390,536.33, of which the profit for the financial year accounts
for EUR 145,338,612.40.
The Board of Directors proposes to the AGM that a dividend of EUR
1.00 be paid on the 141.3 million shares, total EUR 141.3 million.
The dividend payout ratio for the financial year would thus be 97.3%
(97.1%). The dividend payment date is 4 April 2008, and the dividend
is payable to shareholders who are entered in the company's
Shareholder Register on 28 March 2008.
The Board of Directors also proposes that EUR 120,000.00 be donated
to medical research and other non-profit purposes according to a
separate decision by the Board, and that EUR 46,012,703.33 be
retained on the profit and loss account.
Changes in the company's management
At the end of January 2007, the Board of Directors of Orion
Corporation decided to change the management organisation of the
Orion Diagnostica business division to enhance the role of the Board
of Directors of Orion Diagnostica Oy in the management and
decision-making of the diagnostics business. In the arrangement,
Jaakko Rissanen, President of Orion Diagnostica Oy, stepped out from
the Executive Management Board of the Orion Group. The President and
CEO of Orion Corporation is representing the diagnostics business in
the Executive Management Board as the Chairman of the Board of Orion
Diagnostica Oy.
Jukka Viinanen, President and CEO of Orion Corporation until the end
of 2007, will retire on 29 February 2008, serving as an advisor to
the company's Board of Directors as of 1 January 2008 until his
retirement. Timo Lappalainen, who previously was Senior Vice
President in charge of the Proprietary Products and Animal Health
business divisions, was appointed new President and CEO of Orion
Corporation and Chairman of the Executive Management Board as of 1
January 2008.
Liisa Hurme, Senior Vice President of the Proprietary Products
business division, and Satu Ahomäki, Senior Vice President of the
Animal Health business division, were appointed to take over Timo
Lappalainen's former duties respectively as of 1 January 2008. Both
Liisa Hurme and Satu Ahomäki are members of the Executive Management
Board as of the beginning of the year.
Personnel
The average number of employees in the Group in 2007 was 3,160
(3,063). At the end of 2007, the Group had a total of 3,176 employees
(3,061), of whom 2,675 worked in Finland (2,586) and 501 outside
Finland (475).
Personnel in the Pharmaceuticals business grew by 122 employees from
that of the end of December 2006. Personnel in the Diagnostics
business decreased by six persons.
Salaries and remuneration paid during the financial year totalled EUR
131.6 million (2006: 123.7; July-Dec. 2006: 62.4).
Shares and shareholders
Orion Corporation has two classes of shares, A and B, which are in
the book-entry system maintained by Finnish Central Securities
Depository Ltd (APK). APK is the Group's official keeper of the
Shareholder Register. Both of Orion's share classes, A and B, are
quoted on the OMX Nordic Exchange in Helsinki in the Large Cap group
under the Healthcare sector heading. Trading in both of the company's
share classes commenced on 3 July 2006 under the trading codes ORNAV
and ORNBV. Information on trading in the company's shares has been
available since this date.
Each Class A share entitles its holder to twenty (20) votes at
General Meetings, whereas each Class B carries one (1) vote. At a
General Meeting, a shareholder can nevertheless not vote more than
1/20 of the aggregate number of votes for the shares belonging to
different classes and represented at the General Meeting. In
addition, the Orion Pension Fund does not have the right to vote at
meetings of Orion's shareholders.
Both share classes entitle the shareholder to the same rights to the
company's assets and to dividends distributed.
Share capital
According to the Articles of Association, the minimum amount of all
shares in the company is one (1) and the maximum amount is
1,000,000,000. The shares do not have any nominal value. The book
counter value of the share is EUR 0.65.
Orion's share capital is EUR 92.2 million and the total number of
shares is 141,257,828, of which 52,558,688 belonged to Class A and
88,699,140 to Class B at 31 December 2007. The aggregate number of
votes conferred by both share classes was 1,139,872,900 at the end of
the year.
Conversion of Class A shares to Class B shares
On the basis of the Articles of Association, a shareholder can demand
the conversion of his or her Class A shares to Class B shares. During
2007, 2,995,552 Class A shares were converted to Class B shares, of
which 431,347 were converted in the fourth quarter. In the first part
of 2008, a total of 98,020 shares have so far been converted.
Authorisations of the Board of Directors
Orion Corporation's Board of Directors has an authorisation granted
by the Annual General Meeting on 2 April 2007, to buy back and
transfer the company's own shares (treasury shares). On 6 August
2007, Orion's Board of Directors decided to exercise this
authorisation to buy back a total of 350,000 Class B shares, but for
the time being shares have not been bought back. The Board of
Directors' authorisation to buy back and transfer shares is in force
up to the close of the 2008 Annual General Meeting.
The Board of Directors does not have an authorisation to increase the
share capital or to issue bonds with warrants or convertible bonds or
stock options.
Shareholder structure
At the end of 2007, Orion had a total of 36,558 registered
shareholders, of whom 94.5% were private individuals. They held 46.0%
of the entire shares outstanding and had 57.8% of the total votes.
There were 39.3 million nominee-registered shares, representing 27.8%
of the shares and 5.7% of the votes. The company does not have
treasury shares in its possession.
Flagging notifications
At the end of November, Capital Research and Management Company
notified Orion Corporation, in accordance with Chapter 2, Section 9
of the Security Markets Act, that it had acquired for the mutual
funds under its management an amount of Orion Corporation shares
whereby the proportion of shares under its management had increased
to more than one twentieth pursuant to Chapter 2, Section 9 of the
Security Markets Act. Capital Research and Management Company stated
that, following the purchases, it has under management 7,281,692
Orion Corporation Class B shares and that said shares represent
5.1549% of Orion Corporation's shares outstanding and 0.63161% of the
total votes. According to the notification, Capital Research and
Management Company is Orion's largest shareholder.
Management's shareholdings
At the end of 2007, the members of the Board of Directors, the
President and CEO and the members of the Executive Management Board
owned a total of 2,460,742 Orion Corporation shares, or about 1.74%
of the entire shares outstanding. The total number of votes conferred
by these shares was 40,754,862, or about 3.58% of the total votes.
The figures also include the holdings of minor-aged children and
controlled entities. The company does not have stock option
programmes that are in effect.
Legal proceedings
Legal proceedings against Wockhardt USA, Inc. and Wockhardt Limited
Orion Corporation has on 13 September 2007 filed a patent
infringement lawsuit in the United States to enforce U.S. Patent No.
5,446,194 and U.S. Patent No. 5,135,950 against generic drug
companies Wockhardt USA, Inc. and Wockhardt Limited, who seek to
market generic entacapone (200 mg tablets) in the United States.
Entacapone is the active ingredient in Comtan®, a product originated
by Orion Corporation and marketed in the United States for the
treatment of Parkinson's Disease by its exclusive licensee, Novartis.
Orion Corporation and Novartis will vigorously defend the
intellectual property rights covering Comtan. By virtue of the legal
proceedings, the realisation of generic competition regarding Comtan
is neither certain nor imminent.
Legal proceedings against Sun Pharmaceutical Industries Inc. and Sun
Pharmaceutical Industries Limited
Orion Corporation has on 13 November 2007 filed a patent infringement
lawsuit in the United States to enforce its formulation patent, U.S.
Patent No. 6,500,867, against Sun Pharmaceutical Industries Inc. and
Sun Pharmaceutical Industries Limited, who seek to market generic
versions of Stalevo® tablets (25/100/200 and 37.5/150/200 mg
strengths of carbidopa/levodopa/entacapone) in the United States.
Stalevo is an enhanced levodopa treatment originated by Orion
Corporation and marketed in the United States by its exclusive
licensee, Novartis, for the treatment of Parkinson's disease.
Orion Corporation and Novartis will vigorously defend the
intellectual property rights covering Stalevo. By virtue of the legal
proceedings, the realisation of generic competition regarding Stalevo
is neither certain nor imminent.
Orion Corporation has been informed that Sun Pharmaceutical
Industries Limited (Sun) has amended its Abbreviated New Drug
Application (ANDA). Sun's amendment to its ANDA involves a Paragraph
IV challenge to Orion's U.S. Patent No. 5,446,194. The ANDA review
process has recently just begun and the realisation of generic
competition is neither certain nor imminent. Orion is, together with
Novartis, currently evaluating its legal options to protect its
rights.
Review of the Business Segments
Market review
Finland is Orion's most important single market area for
pharmaceuticals. According to statistics collected by Finnish
Pharmaceutical Data Ltd, Finnish wholesales of human pharmaceuticals
rose by 5.8% to EUR 1,827 (1,727) million in 2007. The sales of
self-care products increased by 8.9%, and hospital sales were up 8.4%
on the previous year.
Orion's position as the leading marketer of pharmaceuticals in
Finland was strengthened further. In 2007, wholesales of Orion's
products for human use totalled EUR 163.8 million, up 7.4% on the
previous year. This represents faster growth than that of the Finnish
pharmaceutical market as a whole (5.8%) and Orion retained its status
as market leader with a share of 9.0% (8.8%). Orion bolstered its
market-leading position also in terms of the number of packages sold,
with a market share of 28.3% (27.3%).
According to IMS Health pharmaceutical sales statistics for the
12-month period ending in September 2007, US wholesales of drugs for
Parkinson's Disease - a core therapy area for Orion - totalled USD
1,188 (948) million, up about 25% on the comparative 12-month period.
The exceptionally high growth rate is explained by the broadened
indication of one dopamine agonist to the restless legs syndrome.
The five largest European markets for Parkinson's Disease drugs were
Germany, Great Britain, France, Spain and Italy. Total sales of
Parkinson's Disease drugs in these countries in the same 12-month
period totalled EUR 788 (727) million, with an average market growth
at about 8%.
The value of the global diagnostics market is estimated at about USD
33 billion. Several large players dominate the market for the
equipment and test reagents used in centralised laboratories. The
industry as a whole is very fragmented. Orion Diagnostica is a medium
sized player, and holds a solid position in certain product areas.
Pharmaceuticals business
The net sales of the Pharmaceuticals business totalled EUR 643.3
(601.4) million in 2007. The approximately 7% rise on the previous
year was a result of strategic measures to increase sales through
Orion's own sales network. Operating profit amounted to EUR 199.0
(189.9) million, up 4.8% on the previous year. The Pharmaceuticals
business' EBIT margin was 30.9% (31.6%).
Proprietary Products
In 2007, net sales of the Proprietary Products business division
totalled EUR 270.8 (256.6) million, an increase of 5.5% on the
previous year. The sales of the products in focus - Stalevo, Simdax
and the intensive care sedative Precedex® (dexmedetomidine) showed
strong growth.
In 2007, the combined net sales of the Parkinson's Disease drugs
Stalevo and Comtess/Comtan totalled EUR 200.1 (186.0) million. This
represents a rise of 7.6% on the previous year and, as in 2006,
accounts for almost one-third of the total net sales of the
Pharmaceuticals business. The net sales from deliveries of Stalevo
and Comtan to Novartis totalled EUR 116.2 (112.1) million, up 3.7% on
the previous year. The net sales from Stalevo and Comtess generated
by Orion's own sales organisation amounted to EUR 83.9 (73.9)
million, up 13.6%.
The UK and Germany continued to exhibit especially buoyant growth in
the sales of Parkinson's Disease drugs. Orion has achieved a solid
market position in these countries. The net sales growth in
Scandinavia was withheld by extensive parallel imports of Stalevo
from other EU markets. Sales of Stalevo grew rapidly in Lithuania and
Latvia once the drug was approved for reimbursement. In the US, a
marketing territory of Novartis, the growth rate of the sales of
Stalevo has continued stable. The marketing area of Comtan expanded
in the summer of 2007 as the product was launched by Novartis in
Japan.
In 2007, Upsher-Smith Laboratories, Inc. in the United States and
Pola Chemical Industries, Inc. in Japan brought to market Divigel®, a
hormone replacement product. Sales of Enanton®, which has been
particularly successful in the Nordic countries, are boosted by the
introduction of a six-month depot formulation.
Orion is not aware of Abbott's possible decisions or actions for
receiving new marketing authorisations for Simdax in Europe. Orion is
not aware of that there would have been progress in applying for such
marketing authorisations so far.
Specialty Products
The net sales of the Specialty Products division totalled EUR 241.5
(218.7) million in 2007, up 10.4% on the previous year.
Finland is clearly still the division's largest single market area.
Sales in Finland increased, and especially favourable performance was
seen in self-care products. The painkiller Burana® (ibuprofen) was
once again the top-selling self-care product and retained its
position as market leader in its therapy group.
The net sales of Easyhaler® asthma medicines totalled EUR 17.3 (15.9)
million, up 9.1% on the previous year. The sales picked up during the
second half of 2007 as the product was gradually launched in new
markets, such as Poland. The product is primarily sold through
partners.
Expansion of the Speciality Products business to areas in Eastern
Europe and Russia has progressed well, and the net sales have grown
notably faster than the market on average. Of the major countries,
the best sales growth was seen in Ukraine, Russia, the Czech Republic
and Poland. The good development stemmed from both the success of
existing products and launches of new generic ones. The emphasis of
Orion's new launches has been in this region overall.
The licensing agreement concerning the osteoporosis drug Calcimagon
in Germany ceased at the end of 2007. The net sales of the product
totalled EUR 11.7 million in 2007. In the fourth quarter of 2007,
Orion received EUR 5.8 million in compensation for the termination of
the license. Orion continues in this therapy area by marketing
Calcicare® for the same indication.
Orion signed more in-licensing agreements in 2007 than ever before.
New products were added to the range of the Speciality Products and
Animal Health divisions in particular.
Animal Health
The net sales of the Animal Health division totalled EUR 66.8 (63.3)
million, up 5.5% on the previous year. Sales rose both through
partners and Orion's own Nordic sales organisation. The establishment
of sales and marketing organisations in Eastern Europe continued.
The net sales of animal sedatives - Dexdomitor® (dexmedetomide),
Domitor® (medetomide), Domosedan® (detomidine) and Antisedan®
(atipamezole) - continued to grow in 2007 and they were up 4.6%. The
animal sedatives accounted for about 41% (42%) of the total net sales
of drugs for veterinary use. The marketing of animal sedatives
expanded into new areas in 2007. In February, Nippon Zenyaku Kogyo
Co., Ltd. started selling Domitor and Antisedan in Japan. A new
sedative, Dexdomitor, was also brought to market. Orion is
responsible for selling Dexdomitor in the Nordic countries, and
Pfizer elsewhere in Europe and in the United States.
Fermion
Fermion, which manufactures active pharmaceutical ingredients,
generated EUR 38.1 (38.5) million in net sales in 2007. The net sales
were at approximately the same level as in the previous year. The
impact of intra-Group transactions, that is, deliveries of active
ingredients for Orion's own use, has been eliminated from the net
sales. A significant proportion of the division's net sales are
generated in the United States, due to which they have suffered from
the weakened US dollar. Fermion's deliveries for Orion's internal use
have, however, increased significantly from those of 2006.
The ten best-selling pharmaceutical products
The net sales of Orion's ten best-selling drugs increased by 7.6% on
the previous year and accounted for about 50% (50%) of the total net
sales of the Pharmaceuticals business. The purchases by pharmacies of
Burana® (ibuprofen) have returned to long-term average levels since
the downswing experienced after the amendment of the Finnish
Pharmaceuticals Act in 2006. Other growth products include Stalevo
(14%), the heart failure drug Simdax (14.5%), the anticoagulant
Marevan® (warfarin, 19.6%), and Easyhaler (9.1%).
Products from in-house research
In 2007, the net sales of the products from in-house research
totalled EUR 292.3 (275.2) million and accounted for 45% (46%) of the
total net sales of the Pharmaceuticals business. Sales of almost all
of Orion's proprietary products increased on the previous year, with
6.2% total growth for all products. Stalevo, Simdax and Precedex were
the major growth products.
Research and development activity
The Group's R&D expenses totalled EUR 97.6 million (2006: 84.1,
July-Dec/2006: 43.1), of which the Pharmaceuticals business accounted
for EUR 93.4 million (2006: 79.7, Jul-Dec/2006: 40.6). R&D expenses
were 14.3% (2006: 13.1%; July-Dec/2006: 13.8%) of the Group net
sales.
In accordance with its strategy, Orion aims to allocate its R&D
resources in such a way that the best possible support is given to
both the Proprietary Products and the Specialty Products divisions.
R&D for Orion's proprietary drugs focuses on three core therapy
areas: central nervous system, cardiology and critical care, and
urology and oncology.
The emphasis of the Group's R&D being on early-phase research, Orion
seeks partnerships for phase three clinical trials, and in particular
in areas beyond the scope of European marketing authorisations. Orion
expands its research portfolio through networking. Product life-cycle
management is also a vital task of R&D.
The ongoing STRIDE-PD study is comparing Stalevo treatment with
conventional levodopa/carbidopa treatment to determine whether
Stalevo can delay the onset of involuntary movements, that is,
dyskinesias, in Parkinson's patients. The trial - launched at the end
of 2004 in cooperation with Novartis - is being conducted in 14
countries and involves 747 Parkinson's patients for a treatment
period of almost three years. Its results are currently expected at
the turn of 2008-2009.
FIRST-STEP, a Phase III clinical study conducted by Novartis, has
given a statistically significant positive result for the primary
endpoint. The aim of the study was to determine whether Stalevo
treatment provides better symptomatic benefit than conventional
levodopa/carbidopa treatment in patients with symptoms requiring to
start taking levodopa. A total of 423 patients with early-stage
Parkinson's disease participated in the study in the United States,
Canada and six other countries.
In May 2007, Phase III clinical studies began with dexmedetomidine
(Precedex®) in patients in intensive care as an infusion administered
for over 24 hours. The programme aims to have the product registered
in Europe. The product is already available in, for example, the
United States and Japan as a sedative for patients in intensive care
and is administrable as an infusion for a maximum of 24 hours. Two
parallel studies are comparing dexmedetomidine with midazolam and
propofol. Both are planned to involve 500 patients and are estimated
to last two years.
Easyhaler® is a multi-dose dry-powder inhaler for administering
medicines for asthma and chronic obstructive pulmonary disease.
Easyhaler products are already available in over 20 countries. Orion
is expanding this product family with the development of a new
formulation combining budesonide as an anti-inflammatory agent and
formoterol as a long-acting bronchodilator.
A research programme is under way in clinical Phase I for the
development of a new COMT enzyme inhibitor that is even more
efficient than entacapone, for Parkinson's disease.
The LEVET programme, which is studying the efficacy of levosimendan
in the treatment of heart diseases in dogs, has progressed to the
final research phase with an aim to receive marketing authorisations.
Recruitment began in August 2007 for both the European and US arms of
the programme.
In early research phase, Orion is investigating molecules affecting
alpha2 receptors in the central nervous system, and selective
androgen receptor modulators (SARM), among others.
Diagnostics business
The net sales of Orion Diagnostica totalled EUR 42.0 (41.5) million
in 2007. QuikRead® tests continued to exhibit strong sales growth.
These tests are used for the detection of infections on the basis of
the CRP content in a blood sample. Sales of dipslides, the Uricult®
test for detecting urinary tract infections, and the industrial
hygiene tests Hygicult® and Easicult® also progressed favourably
during the year.
Sales continued to increase in Orion's Finnish and Scandinavian sales
networks, as did exports to the Czech Republic and Slovakia in
particular. Outside the Nordic countries, sales growth was hampered
by both the weakened US dollar and the international trade
restrictions placed on Iran.
The operating profit amounted to EUR 6.5 (6.6) million, representing
an EBIT margin of 15.4% (15.9%).
Espoo, 6 February 2008
Board of Directors of Orion Corporation
Orion Corporation
Timo Lappalainen Jari Karlson
President and CEO CFO
Tables
GROUP INCOME STATEMENT
Financial
Q4/07 Q4/06 Change 2007 2006 Change period
EUR million % Proforma % Q3-Q4/06
Net sales 174.0 162.2 +7.3% 683.6 641.1 +6.6% 311.2
Cost of goods
sold -58.8 -54.5 +7.8% -218.8 -205.2 +6.6% -105.2
Gross profit 115.2 107.7 +7.0% 464.8 435.8 +6.6% 205.9
Other operating
income 6.7 1.0 +540.0% 9.0 13.8 -35.0% 11.6
Selling and
marketing
expenses -41.8 -35.7 +17.3% -143.1 -128.9 +11.0% -63.2
R&D expenses -28.5 -24.2 +17.9% -97.6 -84.1 +16.0% -43.1
Administrative
expenses -12.5 -12.3 +1.3% -39.0 -39.9 -2.2% -20.4
Operating profit 39.1 36.6 +6.9% 194.0 196.7 -1.4% 90.9
Financial income 1.4 1.1 +29.4% 3.9 3.5 +10.9% 1.8
Financial
expenses -0.8 -0.6 +43.2% -2.5 -3.0 -16.7% -1.2
Profit before
taxes 39.7 37.1 +7.0% 195.5 197.3 -0.9% 91.4
Income tax
expense -8.5 -10.8 -20.8% -50.0 -52.2 -4.1% -24.8
Profit for the
period 31.1 26.3 +18.4% 145.4 145.1 +0.3% 66.6
of which
attributable to:
Parent company
shareholders 31.1 26.3 +18.4% 145.4 145.1 +0.3% 66.6
Minority
interest 0.0 0.0 0.0 0.0 0.0
Earnings per
share, EUR* 0.22 0.18 +18.4% 1.03 1.03 -0.2% 0.47
Depreciation and
amortisation 7.8 8.6 -9.1% 31.6 34.7 -8.9% 17.2
Personnel
expenses 45.0 42.1 +6.7% 154.2 145.8 +5.8% 73.3
* The figure has been calculated from the profit attributable to the
parent company shareholders.
BALANCE SHEET
Assets:
2007 2006 Change
EUR million %
Non-current assets:
Property, plant and equipment 186.6 187.1 -0.3%
Goodwill 13.5 13.5
Other intangible assets 23.0 21.9 +5.0%
Investments in associates 0.1 0.1
Available-for-sale investments 0.9 1.0 -7.7%
Pension asset 48.6 52.7 -7.7%
Deferred tax assets 3.9 1.4 +180.7%
Other non-current assets 4.0 3.8 +6.3%
Non-current assets total 280.6 281.4 -0.3%
Current assets:
Inventories 121.1 107.2 +13.0%
Trade receivables 82.9 75.0 +10.5%
Other receivables 14.4 14.4 +0.1%
Cash and cash equivalents 90.4 110.0 -17.8%
Current assets total 308.9 306.6 +0.7%
ASSETS TOTAL 589.5 588.1 +0.2%
Equity and liabilities:
2007 2006 Change
EUR million %
Equity:
Share capital 92.2 92.2
Share premium 17.8 17.8
Expendable fund 23.0 23.0
Other reserves 0.5 0.5 +2.3%
Retained earnings 313.8 309.9 +1.2%
Equity of the parent company shareholders 447.3 443.5 +0.9%
Minority interest 0.0 0.0 +16.7%
Equity total 447.3 443.5 +0.9%
Non-current liabilities:
Deferred tax liabilities 47.6 51.5 -7.6%
Pension liability 1.0 0.9 +13.3%
Provisions 0.2 0.6 -67.2%
Interest-bearing non-current liabilities 1.2 7.5 -84.5%
Other non-current liabilities 2.1 1.8 +17.2%
Non-current liabilities total 52.0 62.3 -16.5%
Current liabilities:
Trade payables 34.3 29.2 +17.3%
Income tax liabilities 3.4 2.8 +24.1%
Other current liabilities 49.5 47.1 +5.1%
Provisions 0.0 0.9 -99.7%
Interest-bearing current liabilities 2.9 2.3 +26.4%
Current liabilities total 90.1 82.3 +9.5%
EQUITY AND LIABILITIES TOTAL 589.5 588.1 +0.2%
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity
of
the
Trans- Re- parent Mino-
Share Share Expen- Other lation tained company rity
EUR capi- pre- dable reser- diffe- ear- share- inte- In
million tal mium fund ves rences nings holders rest total
Equity on
1 Jul 06 92.2 17.8 23.0 0.5 -3.5 246.8 376.8 0.0 376.8
Translation
differences 0.1 0.1 0.1
Profit for the
period 66.6 66.6 -0.0 66.6
Recognised income
and expenses
in total 0.1 66.6 66.7 -0.0 66.7
Other changes -0.0 -0.0 -0.0
Equity on
31 Dec 06 92.2 17.8 23.0 0.5 -3.4 313.3 443.5 0.0 443.5
Available-for-sale
investments and
cash
flow hedges 0.0 0.0 0.0
Translation
differences -0.7 -0.7 -0.7
Net unrealised
gains recognised
directly in
equity 0.0 -0.7 -0.7 -0.7
Profit for the
period 145.4 145.4 145.4
Recognised income
and expenses in
total 0.0 -0.7 145.4 144.8 144.7
Dividend -141.3 -141.3 -141.3
Share-based
incentive
plan 0.4 0.4 0.4
Other changes -0.0 -0.1 -0.1 0.0 -0.1
Equity on
31 Dec 07 92.2 17.8 23.0 0.5 -4.1 317.9 447.3 0.0 447.3
CASH FLOW STATEMENT
Financial
2007 2006 period
EUR million Proforma Q3-Q4/06
Cash flow from operating activities:
Operating profit 194.0 196.7 90.9
Adjustments 29.2 16.0 4.3
Change in working capital -14.7 -18.6 22.5
Interest paid -2.1 -3.8 -1.5
Interest received 3.8 3.5 1.7
Income taxes paid -55.5 -52.5 -36.3
Net cash from operating activities 154.7 141.4 81.6
Cash flow from investing activities:
Purchases of property, plant, equipment and
intangible assets -34.6 -22.8 -12.3
Acquisition of subsidiary, net of cash - -1.2 -
Proceeds from sale of property, plant,
equipment,
intangible assets and available-for-sale
investments 9.3 13.0 12.3
Net cash used in investing activities -25.3 -10.9 0.0
Cash flow from financing activities:
Share issue and share capital increase
based on the use of stock options 0.0 21.4 -
Net change in short-term loans -0.8 -47.5 -1.0
Repayment of non-current liabilities -6.4 -0.6 -0.4
Dividends paid and other distribution of
profits -141.3 -118.2 0.0
Net cash used in financing activities -148.5 -144.9 -1.4
Net change in cash and cash equivalents -19.1 -14.4 80.2
Cash and cash equivalents at the beginning
of the period 110.0 124.5 29.8
Foreign exchange adjustments -0.5 -0.1 0.0
Net change in cash and cash equivalents -19.1 -14.4 80.2
Cash and cash equivalents at the end of the
period 90.4 110.0 110.0
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
Financial
2007 2006 period
EUR million Proforma Q3-Q4/06
Carrying amount at the beginning of the
period 187.1 196.4 191.2
Additions 27.7 19.0 10.5
Disposals -3.2 -2.7 -1.9
Depreciation -25.0 -25.6 -12.7
Carrying amount at the end of the period 186.6 187.1 187.1
COMMITMENTS AND CONTINGENCIES
EUR million 12/07 12/06
Contingent for own liabilities:
Mortgages on land and buildings 25.5 25.5
of which those to Orion Pension Fund 9.0 9.0
Guarantees 1.4 1.8
Other liabilities:
Leasing liabilities (excl. finance lease contracts) 4.5 5.2
Other liabilities 0.3 0.3
DERIVATES
EUR million 12/07 12/06
Currency forward contracts:
- fair value 0.3 0.3
- nominal value 66.7 58.5
Electricity forward contracts
- fair value 0.0 -
- nominal value 0.6 -
RELATED PARTY TRANSACTIONS
Financial
2007 2006 period
EUR million Proforma Q3-Q4/06
Management benefits 3.1 2.1 1.2
Non-current liabilities to Orion Pension Fund
at the end of the period - 6.0 6.0
Performance by segment
NET SALES BY BUSINESS SEGMENT
Financial
Q4/07 Q4/06 Change 2007 2006 Change period
EUR million % Proforma % Q3-Q4/06
Pharmaceuticals 163.9 152.1 +7.7% 643.3 601.4 +7.0% 292.0
Proprietary
Products 67.3 65.6 +2.5% 270.8 256.6 +5.5% 123.9
Specialty Products 63.2 55.3 +14.3% 241.5 218.7 +10.4% 107.9
Animal Health 15.3 15.4 -0.2% 66.8 63.3 +5.5% 31.2
Fermion 11.4 9.9 +15.4% 38.1 38.5 -1.0% 16.4
Other 6.8 6.0 +11.6% 26.1 24.2 +7.9% 12.6
Diagnostics 10.5 10.4 +0.8% 42.0 41.5 +1.2% 19.9
Group items -0.4 -0.4 +13.7% -1.7 -1.8 -4.6% -0.7
Group total 174.0 162.2 +7.3% 683.6 641.1 +6.6% 311.2
OPERATING PROFIT BY BUSINESS SEGMENT
Financial
Q4/07 Q4/06 Change 2007 2006 Change period
EUR million % Proforma % Q3-Q4/06
Pharmaceuticals 42.1 39.5 +6.7% 199.0 189.9 +4.8% 84.6
Diagnostics 0.1 0.6 -84.4% 6.5 6.6 -1.9% 2.1
Group items -3.1 -3.5 -11.5% -11.4 0.2 4.2
Group total 39.1 36.6 +6.9% 194.0 196.7 -1.4% 90.9
NET SALES BY ANNUAL QUARTERS
Q4/07 Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 Q2/06 Q1/06
EUR million Proforma Proforma
Pharmaceuticals 163.9 154.7 156.8 167.9 152.1 139.9 146.4 162.9
Diagnostics 10.5 9.4 10.3 11.8 10.4 9.5 10.4 11.2
Group items -0.4 -0.3 -0.5 -0.5 -0.4 -0.4 -0.5 -0.5
Group total 174.0 163.8 166.6 179.2 162.2 149.0 156.3 173.5
OPERATING PROFIT BY ANNUAL QUARTERS
Q4/07 Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 Q2/06 Q1/06
EUR million Proforma Proforma
Pharmaceuticals 42.1 50.6 45.6 60.7 39.5 45.1 43.3 62.0
Diagnostics 0.1 1.3 1.8 3.2 0.6 1.5 1.7 2.8
Group items -3.1 -2.2 -3.2 -2.9 -3.5 7.7 -2.1 -1.9
Group total 39.1 49.6 44.3 61.1 36.6 54.3 42.9 62.9
GEOGRAPHICAL BREAKDOWN OF NET SALES BY ANNUAL QUARTERS
Q4/07 Q3/07 Q2/07 Q1/07 Q4/06 Q3/06 Q2/06 Q1/06
EUR million Proforma Proforma
Finland 53.7 48.6 48.6 50.1 49.0 45.2 45.4 44.8
Scandinavia 24.3 23.8 25.3 24.1 23.4 21.2 24.2 22.5
Other Europe 57.5 56.0 57.5 63.7 58.4 52.8 52.7 69.6
North America 16.6 20.4 20.1 24.1 22.0 20.1 20.5 20.4
Other markets 21.9 15.0 15.1 17.1 9.4 9.7 13.4 16.2
Group total 174.0 163.8 166.6 179.2 162.2 149.0 156.3 173.5
Review of the segments
Pharmaceuticals business
KEY FIGURES
Financial
Q4/07 Q4/06 Change 2007 2006 Change period
EUR million % Proforma % Q3-Q4/06
Net sales 163.9 152.1 +7.7% 643.3 601.4 +7.0% 292.0
Operating profit 42.1 39.5 +6.7% 199.0 189.9 +4.8% 84.6
% of net sales 25.7% 26.0% 30.9% 31.6% 29.0%
Capital
expenditure 10.5 6.7 +56.9% 32.5 23.1 +40.7% 11.8
Net sales
from proprietary
products 72.1 68.4 +5.4% 292.3 275.2 +6.2% 131.3
R&D expenses 27.0 22.8 +18.3% 93.4 79.7 +17.1% 40.6
Personnel
at the end of the
period 2 864 2 742 +4.4% 2 742
NET SALES OF ORION'S 10 BEST-SELLING MEDICINALS
Q4/07 Q4/06 Change 2007 2006 Change
milj. EUR % Proforma %
Parkinson's
Stalevo Disease 32.3 31.1 +3.8% 126.9 111.3 +14.0%
Parkinson's
Comtess/Comtan Disease 15.2 17.7 -13.9% 73.3 74.7 -1.9%
Dexdomitor*,
Domitor,
Domosedan and animal
Antisedan sedatives 5.5 5.9 -7.4% 27.5 26.3 +4.6%
Easyhaler asthma 5.2 3.6 +44.5% 17.3 15.9 +9.1%
menopausal
Divina-series symptoms 4.3 3.8 +14.6% 15.9 16.2 -1.8%
inflammatory
Burana pain 4.0 3.6 +9.6% 15.6 12.0 +29.2%
Simdax heart failure 4.9 2.8 +71.5% 15.1 13.2 +14.5%
prostate
Enanton cancer 3.2 3.3 -1.2% 12.9 13.3 -2.9%
Calcimagon osteoporosis 1.5 1.8 -13.9% 11.7 11.7 -0.4%
Marevan anticoagulant 2.4 1.5 +59.2% 8.3 7.0 +19.6%
In total 78.5 75.1 +4.5% 324.3 301.4 +7.6%
Share of total
pharmaceutical net sales 48% 49% 50% 50%
* Dexdomitor is included as a new product in the animal sedatives
franchise. The comparative figures have been adjusted accordingly.
Diagnostics business
KEY FIGURES
Financial
Q4/07 Q4/06 Change 2007 2006 Change period
EUR million % Proforma % Q3-Q4/06
Net sales 10.5 10.4 +0.8% 42.0 41.5 +1.2% 19.9
Operating profit 0.1 0.6 -84.4% 6.5 6.6 -1.9% 2.1
% of net sales 0.9% 6.1% 15.4% 15.9% 10.6%
Capital
expenditure 1.0 0.4 +139.6% 1.6 1.4 +7.5% 0.8
Personnel
at the end of the
period 283 289 -2.0% 289
Information on Orion Corporation's shares on 31 December 2007
BASIC INFORMATION ON SHARE CLASSES ON 31 DEC 2007
Class A* Class B* A and B in total
ISIN code FI0009014369 FI0009014377 -
Trading code on OMX
Nordic Exchange Helsinki ORNAV ORNBV -
Reuters code ORNAV.HE ORNBV.HE -
Bloomberg code ORNAV.FH ORNBV.FH -
Share capital, EUR
million 34.3 57.9 92.2
Counter book value of
the share, EUR 0.65 0.65 -
Total number of shares 52 558 688 88 699 140 141 257 828
% of the total number of
shares 37% 63% 100%
Minimum number of shares - - 1
Maximum number of shares 500 000 000 1 000 000 000 1 000 000 000
Votes per share 20 1 -
Total number of votes 1 051 173 760 88 699 140 1 139 872 900
% of total number of
votes 92% 8% 100%
Total number of
shareholders 13 237 29 091 36 558
* Both share classes provide equal rights to the company assets and
dividends.
TRADING IN ORION'S A AND B SHARES DURING 1 JAN-31 DEC 2007
Class A Class B A and B in total
Total number of shares traded 3 886 499 96 266 224 100 152 723
% of the total number of shares 7.2% 110.5% 70.9%
Closing quotation on 2 Jan 07,
EUR 16.50 16.50
Lowest quotation, EUR 15.07 15.22
Average quotation, EUR 16.57 16.12
Highest quotation, EUR 20.49 20.53
Closing quotation on 31 Dec 07,
EUR 16.10 16.03
Market capitalisation on 31 Dec
07, EUR million 846.2 1 421.8 2 268.0
PERFORMANCE PER SHARE
Financial
Q4/07 Q4/06 Change 2007 2006 Change period % Proforma % Q3-Q4/06
Earnings
per share
(EPS), EUR 0.22 0.18 +18.4% 1.03 1.03 -0.2% 0.47
Equity per
share, EUR 3.17 3.14 +0.9% 3.14
Dividend
per share,
EUR 1.00 * 1.00
Dividend
payout
ratio, % 97.1 % * 97.1%
Total
dividends,
EUR million 141.3 * 141.3
Dividend
yield for
Class A, % 6.2 % * 6.1 %
Dividend
yield for
Class B, % 6.2 % * 6.1 %
P/E ratio
for Class A 15.63 15.94
P/E ratio
for Class B 15.56 15.97
Average
number of
shares,
1 000
shares 141 258 141 258 141 258 140 561 141 258
* Proposal by the Board of Directors
Appendices
Orion Group structure
Orion Corporation was established on 1 July 2006 as one of the two
new listed companies that resulted from the demerger of the former
Orion. The parent company of the Orion Group, Orion Corporation
consists of two businesses and five business divisions:
* Pharmaceuticals
o Proprietary Products (patented prescription products)
o Specialty Products (off-patent, generic prescription products and
self-medication products)
o Animal Health
o Fermion (active pharmaceutical ingredients)
* Diagnostics
o Orion Diagnostica (diagnostic tests).
Accounting policies
The financial statements have been prepared in accordance with the
International Financial Reporting Standards, IFRS), applying those
standards in force and passed in the EU at the Balance Sheet date, 31
December 2007.
The following standards and interpretations that came into force in
2007, or amendments to them, which are of significance to the Group
have been applied during the financial year. Application of these
standards and interpretations has not, however, had material effects
on the Consolidated Financial Statements:
* IFRS 7 Financial Instruments: Disclosures
* IAS 1 (amendment to standard) Presentation of Financial Statements:
Capital Disclosures
* IFRIC 9 Re-assessment of Embedded Derivatives
* IFRIC 10 Interim Financial Reporting and Impairment
The principles and calculation methods are available on the Group's
homepage at www.orion.fi/english/investors.
This Release has not been audited. Those in the parentheses are for
the comparative period of the previous year. The per-share ratios
have been adjusted.
The figures have been rounded. Therefore, the total sums of
individual figures may differ from the total sums shown.
Calculation of the key figures
Return on capital Profit before taxes + interest and
employed (ROCE), % = other financial expenses x 100
Total assets - non-interest-bearing
liabilities (annual average)
Return on equity (ROE), = Profit for the period x 100
% Equity total (annual average)
Equity ratio, % = Equity total x 100
Total assets - advances received
Interest-bearing liabilities - Cash
Gearing, % = and cash equivalents x 100
Equity total
Profit available for the parent
Earnings per share, EUR = company shareholders
Average number of shares
Equity of the parent company
Equity per share, EUR = shareholders
Number of shares at the end of the
period
Market capitalisation, Number of shares Closing quotation
EUR million = at the end of the x of the period
period
Distribution:
OMX Nordic Exchange Helsinki
Respective media
Publisher:
Orion Corporation
Orionintie 1A
02200 Espoo
FINLAND
www.orion.fi
Orion is a European pharmaceutical and diagnostics company which
emphasises the development of innovative medicinal treatments and
diagnostic tests for global markets. Orion develops, manufactures and
markets pharmaceuticals for humans and animals, active pharmaceutical
ingredients as well as diagnostic tests. Orion's clientele consists
mainly of healthcare service providers and professionals. The Group's
net sales in 2007 were EUR 683.6 million and in the end of 2007 there
were 3 176 employees working for the Group. Orion's stocks are listed
in OMX Nordic Exchange Helsinki.
