Reported Q2 revenues of $720 million and adjusted EBITDA of $184 million, with confidence in raising 2025 guidance.
Emphasized diversified portfolio and multiple growth drivers including new product launches, complex medicines, biosimilars, and strategic partnerships.
Projected continued growth with a focus on innovative and affordable medicines, aiming to be America's #1 affordable medicines company.
Sephience received EU approval in late June and FDA approval in the US for broad labeling for patients aged 1 month and above.
The company expects Sephience to become the standard of care for PKU, with a revenue opportunity exceeding $1 billion in the US.
European launch began in Germany in mid-July, leveraging early access mechanisms in other countries while pricing and reimbursement are being finalized.
Initial US launch is planned within two weeks, targeting 104 PKU centers that treat over 80% of US PKU patients.
The company is engaging payers with positive feedback, minimal restrictions, and plans to expand access in Japan and Brazil before year-end.
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.
Pipeline Progress and Market Potential for Eye Care Assets
Viatris reported positive Phase III results for two ophthalmology programs targeting presbyopia and visual disturbances, with data presentation planned for 2026.
The Eye Care division is expected to become a more significant contributor to the company's future growth based on recent positive trial outcomes.
Management highlighted the potential of the presbyopia treatment, MR-141, as a noninvasive alternative with a different mechanism of action from existing therapies.
The company plans to file for FDA approval of MR-141 in the second half of 2025, aiming to address a large market of approximately 128 million presbyopia patients in the U.S.
The pipeline advancements reinforce Viatris' strategic focus on high unmet medical needs in ophthalmology, positioning it for future market share expansion.
The company is preparing to present detailed ophthalmology data at major medical congresses in 2025 and 2026.
Major Capitated Contract with National Healthcare System
AdaptHealth signed a 5-year definitive agreement to become the exclusive provider for a major national healthcare system covering over 10 million members across multiple states.
The contract is projected to generate over $1 billion in revenue during its term, with adjusted EBITDA margins aligned with the company's enterprise margins.
Once fully ramped, this partnership will elevate capitated revenue to at least 10% of total revenue, significantly increasing recurring revenue.
The contract is expected to start generating revenue 2-3 months after infrastructure setup, with full ramp-up by 2027.
Management emphasized this as a historic, transformative deal that supports long-term growth and market consolidation.
Capital Allocation and Shareholder Return Strategy
The company is committed to returning capital to shareholders through share repurchases and debt reduction, leveraging improved EBITDA and free cash flow.
Management announced a plan to reduce stock-based compensation as a percentage of revenue to mid- to high-single digits in 2026.
The company has no near-term plans for acquisitions, focusing instead on profitability and organic growth.
Leadership emphasizes that profitability improvements will help close the gap between intrinsic and market value, benefiting shareholders.
Dafinchi