ANI achieved all-time highs in net revenue, adjusted non-GAAP EBITDA, and EPS in Q2 2025, driven by strong growth across Rare Disease and Generics units.
The company highlighted broad momentum, with Rare Disease demand accelerating, especially for Cortrophin Gel, and positive results in their retina franchise.
Management emphasized that the quarter's performance was driven by underlying demand rather than seasonality or one-time benefits, with new patient starts more than doubling year-over-year.
Adjusted EBITDA was $15.4 million, nearly doubling from $7.8 million in Q2 2024, and adjusted loss per share improved to $0.02 from $0.17.
AtriCure reported total revenue of $136.1 million in Q2 2025, a 17.1% year-over-year increase on a reported basis and 16.5% on a constant currency basis.
Cash and investments ended at $117.8 million, with $17.9 million generated in cash during the quarter including the milestone payment.
Gross margin was 74.5%, a 15 basis point decrease from Q2 2024, primarily due to less favorable geographic and product mix internationally.
International revenue grew 23.3% reported and 19.9% constant currency to $25.6 million, driven broadly across franchises and major markets.
Operating expenses increased 14.5% to $107.7 million, including a $5 million milestone payment under the PFA co-development agreement.
U.S. revenue was $110.6 million, up 15.7% from Q2 2024, with open ablation sales up 18.6%, appendage management up 18.9%, and Pain Management up 41.1%.
Cash and cash equivalents ended at $370 million, with an additional $275 million received upfront from the Aspaveli capped royalty purchase agreement with Sobi.
EMPAVELI revenue was $21 million in Q2, up 5% quarter-over-quarter, with patient compliance at 97%.
Free goods usage impacted SYFOVRE revenue by approximately $13 million in Q2, with similar impacts expected for the rest of 2025.
Operating expenses were $212 million in Q2, down from $229 million in Q2 2024; 2025 OpEx expected to be in line with 2024.
SYFOVRE injections grew 6% quarter-over-quarter, with over 95,000 doses delivered (82,000 commercial and 13,000 free goods).
The royalty purchase agreement provides $275 million upfront plus $25 million in milestones, with defined caps allowing Apellis to participate in long-term upside.
Total revenue for Q2 2025 was $178 million, including SYFOVRE net product revenue of $151 million.
Discontinuation of M6 Artificial Disc Product Lines and Its Impact
Orthofix announced the discontinuation of the M6 artificial cervical and lumbar disc product lines in February 2025.
Pro forma results exclude M6 impact, with a focus on margin improvements driven by this discontinuation.
The discontinuation has contributed to approximately 50% of the margin expansion in Q2 2025, indicating a significant shift in product portfolio and profitability strategy.
Revised Financial Outlook and Impact of Portfolio Actions
The company now expects a $6.5 billion increase in 2025 medical costs versus initial estimates, with specific impacts in Medicare ($3.6 billion), commercial ($2.3 billion), and Medicaid.
Approximately $1 billion of previously planned portfolio actions are no longer being pursued, affecting the outlook.
Recognition of $850 million in unfavorable prior period items and one-time settlements, indicating a more challenging financial environment than initially projected.
Dafinchi
