OPKO Health Reports $149.95 Million Revenue in Q1 2025, 14% Decline Year-Over-Year

OPKO Health, Inc. reported a total revenue of $149.95 million for the first quarter of 2025, a decline of 14% compared to $173.69 million in the same period of 2024. The decrease was primarily driven by a 19% drop in revenue from services, which fell to $102.84 million from $126.89 million, largely due to the absence of revenue following the sale of certain BioReference lab operations to Labcorp in September 2024. However, revenue from the transfer of intellectual property and other sources increased by 40% to $12.27 million, up from $8.75 million, reflecting a significant contribution from the BARDA contract.

The company's operating loss for the quarter was $67.17 million, a slight improvement from a loss of $71.47 million in the prior year. Total costs and expenses decreased by 11% to $217.12 million, down from $245.16 million, with notable reductions in selling, general, and administrative expenses, which fell by 16% to $59.09 million. Research and development expenses, however, increased by 41% to $30.84 million, reflecting ongoing investments in product development.

In terms of strategic developments, OPKO Health has made significant moves, including the acquisition of ModeX Therapeutics, which is focused on developing immune therapies for cancer and infectious diseases. The company also entered into a collaboration agreement with Entera Bio Ltd. to develop an oral dual agonist for obesity and metabolic disorders. Additionally, OPKO is in the process of selling its oncology testing services assets to Labcorp for up to $225 million, with the transaction expected to close in the second half of 2025.

As of March 31, 2025, OPKO reported cash, cash equivalents, and restricted cash totaling approximately $449.68 million. The company has been actively managing its debt, with a total debt of $439.24 million, which includes various convertible notes and lines of credit. The company’s outlook remains cautious, as it continues to navigate market conditions and the impacts of recent strategic decisions, including the ongoing integration of acquired businesses and the development of new products. OPKO Health anticipates that its cash reserves will be sufficient to meet operational needs and debt service obligations for the foreseeable future, although it acknowledges the potential need for additional funding to support growth initiatives.