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Opko Health (OPK)
:OPK
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Opko Health
(NASDAQ:OPK)57Neutral
Positive Factors
Financial Flexibility
The balance sheet strengthened and financial flexibility increased due to significant transactions and agreements.
Financial Performance
OPKO Health reported a top- and bottom-line beat in its 4Q24 financial results, with total revenue exceeding projections.
Vaccine Development
ModeX Therapeutics, a subsidiary of OPKO Health, is conducting a Phase 1 trial of an Epstein-Barr virus vaccine, which could become the first FDA-approved vaccine for EBV.
Negative Factors
Diagnostics Services
Diagnostics services revenue declined by 17% year-over-year due to lower clinical test volume, primarily from the sale of BioReference assets.
Revenue Performance
Consolidated total revenues were $173.6M, representing 3% YoY decline and missing our projection of $181M.
Opko Health (OPK) vs. S&P 500 (SPY)
Market Cap
$1.29B
Dividend YieldN/A
Average Volume (3M)5.77M
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth-17.42%
EPS Growth70.55%
CountryUS
Employees3,930
SectorHealthcare
Sector Strength74
IndustryMedical Diagnostics & Screening
Share Statistics
EPS (TTM)-0.09
Shares Outstanding671,550,300
10 Day Avg. Volume11,746,766
30 Day Avg. Volume5,770,476
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.68
Price to Cash Flow (P/CF)2.10
P/FCF Ratio2.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.63Price Target Upside36.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Opko Health Business Overview & Revenue Model
Company DescriptionOPKO Health, Inc. is a diversified healthcare company that operates in the pharmaceutical, diagnostics, and biologics sectors. The company is engaged in the discovery, development, and commercialization of novel and proprietary technologies and products that aim to improve patient outcomes. OPKO's core offerings include diagnostic solutions, pharmaceuticals, and biologics, with a focus on addressing unmet medical needs in the areas of diagnostics and treatment.
How the Company Makes MoneyOPKO Health generates revenue through several channels, primarily from its diagnostics and pharmaceutical segments. The diagnostics division earns income by providing laboratory testing services, with a significant portion derived from BioReference Laboratories, one of the largest full-service clinical laboratories in the United States. In the pharmaceutical segment, OPKO earns revenue through the sale and licensing of pharmaceuticals, including proprietary drugs and formulations developed in-house or acquired through strategic partnerships. Additionally, the company's biologics segment contributes to the revenue stream through the development and commercialization of biologic products. OPKO's revenue model is supported by collaborations and partnerships with other pharmaceutical and biotechnology companies, which provide opportunities for co-development and distribution of products, thereby expanding its market reach and potential earnings.
Opko Health Financial Statement Overview
Summary
Opko Health is facing significant financial challenges, with declining revenues, consistent net losses, and negative cash flows. Despite maintaining a strong equity position, the company's increasing debt levels and inability to generate positive free cash flows are major concerns.Income Statement
Opko Health has experienced a decline in total revenue over the years, with a significant decrease from 2020 to 2024. The company has faced consistent net losses, impacting the net profit margin negatively. The gross profit margin has also decreased, indicating challenges in maintaining cost efficiency. However, the gross profit margin remains positive, suggesting some level of operational control despite declining revenues.45
Neutral
Balance Sheet
The company's debt-to-equity ratio has increased over time, reflecting a higher reliance on debt financing. However, Opko Health maintains a strong equity position, with stockholders' equity consistently exceeding total liabilities. Return on equity is negative due to net losses. The equity ratio remains robust, indicating a solid financial structure despite ongoing losses.55
Neutral
Cash Flow
Opko Health's cash flow situation is concerning, with negative operating cash flows and free cash flows in recent years. The free cash flow growth rate has been negative, reflecting challenges in generating cash from operations. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to accounting losses.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 711.40M | 713.14M | 863.50M | 1.00B | 1.77B | 1.44B | Gross Profit |
| 115.19M | 311.03M | 318.13M | 288.20M | 581.50M | 541.00M | EBIT |
| -188.03M | -152.06M | -157.02M | -246.20M | -47.70M | 57.70M | EBITDA |
| 18.95M | -152.06M | -65.52M | -270.81M | 83.57M | 139.09M | Net Income Common Stockholders |
| -133.76M | -53.22M | -188.86M | -328.00M | -29.50M | 30.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 431.94M | 431.94M | 95.88M | 153.20M | 134.70M | 72.20M | Total Assets |
| 2.20B | 2.20B | 2.01B | 2.17B | 2.40B | 2.47B | Total Debt |
| 528.54M | 528.54M | 326.56M | 213.50M | 187.90M | 222.00M | Net Debt |
| 96.60M | 96.60M | 230.68M | 60.30M | 53.20M | 149.79M | Total Liabilities |
| 641.67M | 641.67M | 622.48M | 605.70M | 714.60M | 801.50M | Stockholders Equity |
| 1.37B | 1.37B | 1.39B | 1.56B | 1.69B | 1.67B |
| Cash Flow | Free Cash Flow | ||||
| -199.99M | -208.50M | -44.47M | -119.77M | 6.18M | 5.79M | Operating Cash Flow |
| -177.37M | -183.49M | -28.20M | -95.19M | 38.34M | 39.48M | Investing Cash Flow |
| 234.81M | 352.21M | -18.20M | 91.04M | 35.95M | -18.33M | Financing Cash Flow |
| 220.89M | 184.17M | -11.30M | 22.97M | -10.35M | -35.08M |
Opko Health Technical Analysis
Positive
1.92
Price Trends
1.57
Positive
1.55
Positive
1.49
Positive
Market Momentum
0.06
Negative
73.72
Negative
68.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPK, the sentiment is Positive. The current price of 1.92 is above the 20-day moving average (MA) of 1.67, above the 50-day MA of 1.57, and above the 200-day MA of 1.49, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 73.72 is Negative, neither overbought nor oversold. The STOCH value of 68.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPK.
Opko Health Risk Analysis
Opko Health disclosed 59 risk factors in its most recent earnings report. Opko Health reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Opko Health Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $73.85B | 17.62 | 15.03% | 0.13% | 8.27% | 10.35% | |
77 Outperform | $13.55B | 32.06 | 7.54% | ― | 17.35% | 151.40% | |
75 Outperform | $142.89B | 299.97 | 2.48% | 2.65% | 6.16% | -91.54% | |
75 Outperform | $167.71B | 41.29 | 69.59% | 2.94% | 18.64% | -39.39% | |
64 Neutral | $123.21B | ― | -3.26% | ― | 11.64% | -114.72% | |
57 Neutral | $1.29B | ― | -3.90% | ― | -17.42% | 70.55% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% |
* Healthcare Sector Average
Performance Comparison
OPK
Opko Health
1.92
0.98
104.26%
AMGN
Amgen
312.19
43.78
16.31%
BMRN
BioMarin Pharmaceutical
70.51
-16.26
-18.74%
GILD
Gilead Sciences
114.74
44.96
64.43%
REGN
Regeneron
675.49
-295.36
-30.42%
VRTX
Vertex Pharmaceuticals
486.22
74.37
18.06%
Opko Health Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 17.79% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant advancements in the ModeX pipeline, successful global commercialization efforts for NGENLA, and substantial additional funding from BARDA for antiviral programs. However, these positive developments were tempered by a decline in Diagnostics segment revenue and operating losses, as well as increased R&D expenses and foreign currency challenges. Overall, the highlights slightly outweigh the lowlights.Highlights
ModeX Pipeline Progress
Two programs entered Phase 1 clinical trials, with advancements in multispecific antibody technology and nanoparticle vaccine platform.
NGENLA Commercialization
Pfizer is expanding global sales of NGENLA in 42 countries, converting patients from daily to weekly administration.
EBV Vaccine Collaboration with Merck
Achieved a milestone payment for entering the clinic, eligible for up to $860 million in future milestone payments and royalties.
BARDA Funding for Antiviral Programs
$51 million additional funding awarded for COVID multispecific antibody and broadly neutralizing influenza antibodies, with potential total funding of $205 million.
Financial Realignment and Capital Structure
Significant cash infusion allowing for capital returns to shareholders and advancement of the pharmaceutical pipeline.
Diagnostics Segment Restructuring
BioReference Health restructuring led to reduced costs and improved operating results, downsizing workforce from 3,300 to 2,000.
Overall Revenue Growth in Pharmaceutical Segment
Revenue increased to $80.5 million in Q4 2024 from $57.7 million in 2023, driven by milestones and product sales.
Lowlights
Diagnostics Segment Revenue Decline
Revenue decreased to $103.1 million in Q4 2024 from $124.2 million in 2023, primarily due to the LabCorp transaction.
Operating Loss in Diagnostics
The segment reported an operating loss of $21.7 million for Q4 2024, compared to a loss of $42.3 million in 2023.
Foreign Currency Impact
Challenging foreign currency environment affected revenue, despite improvements in profitability.
Increased R&D Expenses
R&D expenses for Pharmaceutical segment rose to $29.8 million in Q4 2024 from $18.7 million in 2023 due to ModeX development activities.
Company Guidance
During the OPKO Health Fourth Quarter 2024 Financial Results Conference Call, guidance for the upcoming year emphasized several key metrics. The company anticipates total revenues for 2025 to range between $675 million and $700 million, which includes service revenue of $405 million to $425 million, product revenue of $165 million to $175 million, and other revenue of $80 million to $95 million. This other revenue is expected to include a Pfizer gross profit share of $35 million to $45 million and BARDA revenue of $40 million to $48 million. Costs and expenses are projected to be between $825 million and $875 million, with research and development expenses estimated at $120 million to $140 million. The company plans to end 2025 with at least $300 million in cash and cash equivalents, after considering capital expenditures and potential non-dilutive financing transactions or third-party collaborations.Opko Health Corporate Events
Business Operations and Strategy
Opko Health Engages Investors at J.P. Morgan Conference
Neutral
Jan 15, 2025
On January 15, 2025, OPKO Health, Inc. participated in the 43rd Annual J.P. Morgan Healthcare Conference, where company management engaged with investors. The presentation materials from this event are available on OPKO Health’s website, though they are not considered part of the official report or subject to certain regulatory liabilities.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.