RE:RE:Unimpressive Q3 - Still Waiting
I'm with you. Although an uneventful quarter in terms of business development, it was a solid quarter in terms of results, and aligns with the financial guidance given earlier.
We knew there would be an increase in operating expenses which, as I understand, are all building for future sales, and they were also included in previous financial guidance. The new launches are only slowly getting started in their first year -- Imvexxy, for instance, is only at $1.3M in the first three quarters of the year (although half of that was in Q3 which gives you an idea of the growth rate), so it takes a while for these new products to grow and the first year does not make a big impact.
And the costs also include preparations for products still unreleased (nine products are expected to be launched in 2025 in at least one country!).
Even the financial assets were not big disappointments this time… I mean, we actually got some positive news there with Synergy.
Lenvima is, of course, negative news. In the earnings call, Samira said “immaterial this year” and “not significant next year” about the impact of Lenvima if I remember correctly. By that time, we’ll have other products making up for it. It looked worse in the report.
The only positive about the market reaction is the company will be able to continue share buybacks at cheaper levels. But, agreed, I'm a little bit surprised by the reaction as well. Is there something that changed the market’s view of the future of the company?
The other negative news, but also something that we were quite aware of before the report, was currency, which will continue to fluctuate.
Then again, with such low trading volumes and a small market cap, it doesn’t take much / many people to change their minds for there to be a negative reaction.
By the way, Samira said 18 products in the pipeline if I remember correctly, although I’ll check this later. If I’m counting the pipeline right, I see 16 products, out of which one is Rembre, so it’s more like 15 products. Did she get it wrong or what was she referring to?