OPKO Health Reports 14% Revenue Decline and $60M Operating Loss in Q2 2025

OPKO Health, Inc. reported a decline in financial performance for the second quarter of 2025, with total revenues of $156.8 million, down 14% from $182.2 million in the same period last year. The decrease was primarily driven by a 22% drop in revenue from services, which fell to $101.1 million from $129.4 million, largely due to the absence of revenue following the sale of certain BioReference lab operations to Labcorp in September 2024. Revenue from products remained relatively stable, increasing slightly to $40.7 million, while revenue from the transfer of intellectual property rose by 22% to $15.0 million, bolstered by contributions from the BARDA contract.

In terms of profitability, OPKO reported an operating loss of $60.0 million for the quarter, a slight improvement from the $61.7 million loss recorded in the prior year. The company's total costs and expenses decreased by 11% to $216.8 million, reflecting cost reductions associated with the divestiture of lab operations and ongoing cost-reduction initiatives. However, research and development expenses increased by 26% to $30.3 million, driven by higher costs at ModeX Therapeutics, particularly related to the BARDA collaboration.

Operationally, OPKO's diagnostics segment faced challenges, with revenue from services declining significantly. The company noted a decrease in clinical test volume in continuing operations, which was partially offset by higher reimbursement rates. The diagnostics segment's cost of revenue also decreased by 23% to $82.4 million, reflecting the impact of the divestiture. In contrast, the pharmaceutical segment saw a modest increase in product revenue, attributed to higher sales volumes in international markets.

Looking ahead, OPKO's management expressed cautious optimism, highlighting the potential for revenue growth from ongoing collaborations and product developments. The company has secured regulatory approvals for its long-acting human growth hormone, NGENLA, in over 50 markets, including the U.S. and EU, and anticipates further contributions from its partnerships with Pfizer and Merck. Additionally, the company is preparing for the anticipated closing of the Labcorp transaction, which is expected to provide significant cash inflow. However, OPKO acknowledged the ongoing challenges in achieving sustained positive cash flow and the need for additional financing to support its operations and research initiatives.