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Opko Health Inc (OPK)
NASDAQ:OPK
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Opko Health (OPK) AI Stock Analysis

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OPK

Opko Health

(NASDAQ:OPK)

Rating:56Neutral
Price Target:
$1.50
▲(4.90%Upside)
Opko Health's overall stock score is primarily impacted by financial challenges and valuation concerns. While there are some positive technical indicators and corporate events, these are overshadowed by the company's ongoing profitability issues and negative earnings outlook.
Positive Factors
Cost-Saving Measures
OPKO has identified additional cost-saving measures, targeting $10 million in annualized cost reductions.
Diagnostics Segment Improvement
OPKO Health's diagnostics segment showed a significant improvement, with a reduction in operating losses compared to the previous year.
Partnership and Expansion
OPKO entered an agreement with Labcorp for Labcorp to acquire laboratory testing businesses focused on oncology and oncology-related clinical testing services across the U.S. from BioReference Health, a wholly owned subsidiary of OPKO.
Negative Factors
Earnings Shortfall
OPKO Health delivered a somewhat weaker-than-expected Q1 result, with revenue and EPS falling short of estimates.
Financial Guidance Reduction
Management slightly reduced certain elements of its financial guidance for the fiscal year, including total revenue and NGENLA gross profit share.
Revenue Decline
Total revenue was $149.9M, representing a 13.7% YoY decline and missing the projection of $162.5M.

Opko Health (OPK) vs. SPDR S&P 500 ETF (SPY)

Opko Health Business Overview & Revenue Model

Company DescriptionOPKO Health, Inc. is a diversified healthcare company engaged in the pharmaceutical and diagnostics sectors. The company develops and commercializes a variety of products, including diagnostic tests, pharmaceutical products, and biologics. OPKO Health operates through its subsidiaries to provide innovative solutions in healthcare, focusing on endocrinology, oncology, infectious diseases, and other medical niches.
How the Company Makes MoneyOPKO Health generates revenue through several streams. One significant source is its diagnostics business, which includes clinical laboratories and diagnostic testing services. The company also earns income from its pharmaceuticals segment by developing, manufacturing, and selling prescription medications and biologics. Additionally, OPKO Health engages in licensing agreements and strategic partnerships to further monetize its intellectual property and expand its market reach. Key partnerships and collaborations with other healthcare and pharmaceutical companies also contribute to its revenue, providing opportunities for shared research, development, and commercialization of healthcare solutions.

Opko Health Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: 3.62%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call for OPKO Health highlighted strategic moves such as the sale of BioReference's oncology business to Labcorp and promising developments in their GLP-1/glucagon agonist and ModeX's clinical trials. However, these positives were offset by declines in revenue in the Diagnostics segment, increased operating loss in the Pharmaceutical segment, and a net loss for the quarter. The sentiment is mixed due to significant achievements and ongoing financial challenges.
Q1-2025 Updates
Positive Updates
BioReference Oncology Business Sale
OPKO Health announced the sale of BioReference's oncology and related clinical testing business to Labcorp for up to $225 million, including $192.5 million payable at closing and up to $32.5 million in earn-outs.
Positive Progress in GLP-1/Glucagon Agonist Development
OPKO's dual-GLP-1 glucagon agonist, OPKO-88006, showed promising results in animal models for obesity and NASH. A collaboration with Entera Bio aims to develop an oral tablet form using Entera's N-Tab technology.
ModeX Phase 1 Clinical Trials
ModeX, OPKO's subsidiary, continues its Phase 1 clinical trials for its Epstein-Barr virus vaccine in collaboration with Merck, and MDX2001, a tetraspecific antibody for solid tumor cancers.
Cost Reductions and Workforce Optimization
BioReference eliminated 136 positions, representing a 7% workforce reduction, leading to estimated annualized cost savings of $19 million.
Strong Cash Position
OPKO ended Q1 2025 with approximately $450 million in cash, cash equivalents, and restricted cash.
Negative Updates
Diagnostics Segment Revenue Decline
Diagnostics segment revenue decreased from $126.9 million in Q1 2024 to $102.8 million in Q1 2025, primarily due to the first Labcorp transaction.
Pharmaceutical Segment Operating Loss
The Pharmaceutical segment reported an operating loss of $34.8 million for Q1 2025, compared to a loss of $27.7 million in Q1 2024.
NGENLA Profit Share Decline
Gross profit share from Pfizer's NGENLA decreased to $4.5 million in Q1 2025 from $5.6 million in Q1 2024, with uncertainty regarding underlying dynamics.
Net Loss for Q1 2025
OPKO reported a net loss of $67.6 million or $0.10 per share for Q1 2025, compared with a net loss of $81.8 million or $0.12 per share for Q1 2024.
Company Guidance
During the OPKO Health First Quarter 2025 Financial Results Conference Call, several key metrics and guidance points were highlighted. The company reported a net loss of $67.6 million, or $0.10 per share, compared with a net loss of $81.8 million or $0.12 per share for the same period last year. Revenue from the Diagnostics segment was $102.8 million, reflecting a decrease from $126.9 million in the prior year, partly due to the sale of certain assets to Labcorp. The Pharmaceuticals segment revenue was $47.1 million, with product revenue including Rayaldee at $6.3 million. R&D expenses increased to $30.2 million, driven by ModeX development activities. OPKO expects total annual revenues between $675 million and $685 million, with contributions from various segments and strategic transactions. The company also anticipates a gain of approximately $100 million from the Labcorp transaction and continues to target improved profitability across its business segments.

Opko Health Financial Statement Overview

Summary
Opko Health faces significant profitability and cash flow challenges, with declining revenue and negative net income. Despite these issues, the balance sheet shows moderate leverage and a solid equity base.
Income Statement
54
Neutral
Opko Health's TTM (Trailing-Twelve-Months) results show a decline in revenue along with negative EBIT and net income, indicating profitability challenges. The gross profit margin is 32.12%, and the net profit margin is -5.66%, reflecting difficulties in maintaining profitability. Revenue has decreased by 23.34% from 2022 to 2023, highlighting a concerning trend. However, the EBITDA margin of 17.07% shows some operational efficiency improvement.
Balance Sheet
58
Neutral
The company's debt-to-equity ratio stands at 0.37, indicating moderate leverage. The return on equity is negative, given the negative net income, suggesting inefficiencies in using equity capital. The equity ratio of 61.64% shows a solid equity base relative to total assets, which can be seen as a financial stability buffer.
Cash Flow
50
Neutral
Opko Health's cash flow performance reflects operational challenges, with a negative free cash flow of -$206.24 million in the TTM. The operating cash flow to net income ratio is negative, which indicates that cash flow from operations is not supporting net income. The free cash flow to net income ratio is also negative, suggesting strained cash generation relative to earnings.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue713.14M863.50M1.00B1.77B1.44B
Gross Profit218.51M318.13M288.20M672.55M541.00M
EBITDA135.28M-65.52M-270.81M83.57M139.09M
Net Income-53.22M-188.86M-328.40M-30.14M30.59M
Balance Sheet
Total Assets2.20B2.01B2.17B2.40B2.47B
Cash, Cash Equivalents and Short-Term Investments431.94M95.88M153.20M134.70M72.20M
Total Debt504.44M326.56M213.50M187.90M222.00M
Total Liabilities834.76M622.48M605.70M714.60M801.50M
Stockholders Equity1.37B1.39B1.56B1.69B1.67B
Cash Flow
Free Cash Flow-208.50M-44.47M-119.77M6.18M5.79M
Operating Cash Flow-183.49M-28.20M-95.19M38.34M39.48M
Investing Cash Flow352.21M-18.20M91.04M35.95M-18.33M
Financing Cash Flow184.17M-11.30M22.97M-10.35M-35.08M

Opko Health Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.43
Price Trends
50DMA
1.33
Positive
100DMA
1.46
Negative
200DMA
1.50
Negative
Market Momentum
MACD
0.02
Negative
RSI
62.67
Neutral
STOCH
72.98
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 1.43 is above the 20-day moving average (MA) of 1.35, above the 50-day MA of 1.33, and below the 200-day MA of 1.50, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 62.67 is Neutral, neither overbought nor oversold. The STOCH value of 72.98 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 56 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 (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$730.53M11.3921.57%25.92%
64
Neutral
$471.20M30.59-1.20%38.43%86.19%
56
Neutral
$1.09B-3.04%-13.79%82.82%
52
Neutral
$7.61B0.04-62.94%2.44%16.14%0.33%
51
Neutral
$826.22M-8.57%10.10%8.79%
45
Neutral
$1.10B-16.71%-2.50%-30760.27%
43
Neutral
$436.92M-13.84%7.38%60.45%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OPK
Opko Health
1.43
0.01
0.70%
MYGN
Myriad Genetics
4.74
-23.11
-82.98%
NEOG
Neogen
5.06
-11.96
-70.27%
NEO
NeoGenomics
6.61
-8.47
-56.17%
CDNA
CareDx
13.12
-5.75
-30.47%
CSTL
Castle Biosciences
16.80
-2.51
-13.00%

Opko Health Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Opko Health Grants Stock Options and Bonuses
Positive
May 29, 2025

On May 27, 2025, Opko Health‘s Compensation Committee granted stock options and approved bonuses for its executive officers and non-executive employees. This decision reflects the company’s commitment to incentivizing its leadership and workforce, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (OPK) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Opko Health stock, see the OPK Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 22, 2025