Orexo AB (ORX) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

be earmarked to treat opioid addiction. And maybe this is the time when you can actually start digging into that pile of money. But I will also notice that Medicaid is very important for us and for the market. But the rebates that we're paying in Medicaid, that's high. It's something you see on the sales numbers for this quarter that we see some negative impact on price because we have some good development in some of the large Medicaid payers. But we're paying a higher average price on Medicaid. That means that some of these patients who might lose their Medicaid insurance move over to commercial insurance. We actually only need a percentage of these patients to move before we will have a neutral impact on our EBIT level. Then on foreign exchange, it's something that, of course, is hitting us quite dramatically with a change. I think we started the year with an exchange rate to the dollar with 11 Swedish kronor per dollar, and we ended the quarter here with 9.5%. So that is a dramatic decline in the value of the dollar. The positive part is that if you actually look at the financials and on our operational expenses, then we have nearly a full natural hedge. Of course, we will lose some money as a lot of our EBIT is coming from US dollars, but about 80% of this effect is basically neutralized by having most of our expenses in dollars also. So and that's just looking, for example, at the U.S. U.S. results is nearly on a decimal the same result as it was last year. And that is then you say this year we actually in that number include the. one-time rebate payment, which is going straight down to that bottom line. Last year, we had some depreciation of about the same amount, which is not there anymore. So we have actually mitigated a lot of the decline on EBIT from our U...