OPKO Health Reports $152.1 Million Loss and 17% Revenue Decline for 2024

OPKO Health, Inc. reported a consolidated loss from operations of $152.1 million for the year ended December 31, 2024, compared to a loss of $157.0 million in 2023. Total revenues decreased 17% to $713.1 million, primarily due to a 17% decrease in revenue from services ($480.7 million in 2024 vs. $515.3 million in 2023) and a 57% decrease in revenue from the transfer of intellectual property and other ($77.4 million vs. $180.7 million). The decrease in service revenue stemmed from a $42.5 million reduction in clinical test volume, largely attributed to the sale of certain BioReference assets to Labcorp in September 2024, partially offset by a $7.9 million increase in clinical test reimbursement rates. The company recorded a gain on the sale of these assets of $121.5 million.

The pharmaceutical segment also experienced a revenue decline, with revenue from products decreasing 7% to $155.1 million, primarily due to unfavorable foreign exchange fluctuations and a decrease in Rayaldee sales. However, revenue from the transfer of intellectual property and other increased to $77.4 million, reflecting payments from Pfizer, Merck, and the BARDA contract. Research and development expenses increased 17% to $105.2 million, primarily due to increased activity in immuno-oncology and infectious disease programs. The company's diagnostics segment reported a loss from operations of $24.1 million, a significant improvement from the $155.6 million loss in 2023, largely due to the sale of assets to Labcorp.

Significant developments during the year included the completion of the BioReference asset sale to Labcorp for $237.5 million in cash, resulting in a $121.5 million gain. The company also completed a private offering of $250 million in senior secured notes and a private offering of $230 million in convertible senior notes. OPKO Health also repurchased $40.2 million of its common stock under a newly authorized $100 million share repurchase program. In the pharmaceutical segment, ModeX Therapeutics, an OPKO subsidiary, received a contract amendment from BARDA increasing funding to $110 million, with potential for further increases to $205 million. ModeX also announced the dosing of the first participant in a Phase 1 study of an EBV vaccine candidate, triggering a $12.5 million milestone payment from Merck.

As of December 31, 2024, OPKO Health had 2,997 full-time employees worldwide and $445.6 million in cash, cash equivalents, and restricted cash. The company's outlook remains subject to various risks and uncertainties, including the ability to achieve profitability, secure additional funding, successfully commercialize its products, and comply with regulatory requirements. The company's financial performance is significantly impacted by the success of its key products, Rayaldee and NGENLA, as well as the performance of its diagnostics business and its strategic alliances. The company's future financial performance is also subject to various risks related to its international operations, acquisitions, and investments.