Strategic Expansion in Sleep Diagnostics with VirtuOx Acquisition
ResMed acquired VirtuOx for $140 million, with an annual revenue run rate of approximately $45 million.
VirtuOx enhances the company's home sleep apnea testing capabilities, aiming to reduce diagnostic delays and scale testing capacity.
The company plans to invest in marketing and capabilities to expand VirtuOx's role in the sleep diagnostics ecosystem, targeting backlog reduction and increased patient throughput.
Acquisition of VirtuOx completed for $140 million, with an annual revenue run rate of approximately $45 million, neutral to non-GAAP EPS in Q4.
Capital returned to shareholders totaled over $610 million through dividends and share repurchases.
Cash balance at quarter end was $1.2 billion with $668 million gross debt and $541 million net cash.
Cash flow from operations in Q4 was $539 million; capital expenditure was $31 million; depreciation and amortization totaled $64 million.
Free cash flow for fiscal year 2025 was $1.7 billion, supporting investments and shareholder returns.
Gross margin expanded by 230 basis points year-over-year to 61.4%, driven by procurement, manufacturing, logistics efficiencies, and favorable currency movements.
Net income increased by 22%, and non-GAAP diluted EPS rose by 23%, positively impacted by foreign exchange rates.
Operating profit increased by 19%, with operating margin improving to 35% from 33% the prior year.
ResMed reported 10% year-over-year revenue growth in Q4 FY 2025, reaching $1.35 billion, with 9% growth in constant currency terms.
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.
Approximately 94.2 million shares of common stock were outstanding as of July 29, 2025, with 111.9 million fully diluted shares.
Crinetics Pharmaceuticals reported $1 million in revenue for Q2 2025 from licensing and supply agreements with its Japanese partner SKK.
Net cash used was $77.8 million during the quarter, with a cash balance of $1.2 billion at quarter-end.
Research and development expenses increased to $80.3 million in Q2 from $76.2 million in Q1, reflecting investments in multiple clinical programs.
Selling, general and administrative expenses rose to $49.8 million from $35.5 million, driven by commercial capability building and launch preparations.
Strategic Merger of Pelthos and Channel Therapeutics
The merger involved a reverse merger process, creating a new public entity, Pelthos Therapeutics, which launched Zelsuvmi, a treatment for Molluscum contagiosum.
Pelthos's market forecast suggests capturing fewer than 100,000 patients in a 16.7 million patient market, with potential royalties of around $23 million annually in the U.S.
Ligand's strategic ownership of the nitric oxide platform and pipeline of late-stage programs offers multiple future royalty streams, emphasizing its focus on high-value assets.
Sanofi Partnership Milestone and Future Collaboration Opportunities
Novavax received a $175 million milestone payment from Sanofi following FDA approval of Nuvaxovid in the U.S. in Q2 2025.
The partnership with Sanofi now positions Sanofi to lead commercialization of Nuvaxovid in select global markets for the 2025-2026 season.
Novavax expects to receive additional milestones related to marketing authorization transfers in the U.S. and EU later in 2025 and in late 2026.
The collaboration includes potential royalties from new combination vaccines that include Novavax's COVID vaccine, expanding long-term revenue streams.
Management highlighted the strategic value of the multifaceted Sanofi agreement, including milestones and royalties, as a key growth driver.
Sanofi's comments on the potential of COVID-flu combo vaccines are seen as encouraging for future collaboration prospects.
Cash and receivables totaled over $850 million, including the $175 million milestone payment.
Combined R&D and SG&A expenses were $123 million, a 41% reduction from the prior year, with SG&A down 57% due to the transfer of commercial activities to Sanofi and infrastructure reductions.
Licensing, royalties, and other revenue totaled $229 million, primarily from Sanofi ($199 million) and Takeda ($27 million) agreements.
Net income was $107 million or $0.62 per diluted share for Q2 2025.
Novavax reported total revenue of $239 million in Q2 2025, down from $415 million in Q2 2024, including a $175 million milestone payment from Sanofi for FDA BLA approval of Nuvaxovid in the U.S.
Product sales were $11 million, with $13 million from supply sales and negative $2 million from Nuvaxovid product sales due to U.S. market closeout and return reserves.
Cash, cash equivalents, and investments totaled approximately $892 million at quarter-end, providing runway into mid-2027.
Net cash consumed in Q2 2025 was approximately $127.7 million, including $50.5 million in milestone payments related to ECLIPSE 1 first patient dosed; excluding milestones, net cash consumed was about $77.2 million.
Net loss for Q2 2025 was $111 million, improved from a net loss of $138.4 million in Q2 2024.
R&D expenses for Q2 2025 were $97.5 million, down from $105.1 million in Q2 2024, driven by restructuring cost savings partially offset by clinical and oncology program expenses.
SG&A expenses for Q2 2025 were $22.3 million, down from $30.3 million in Q2 2024, due to headcount reductions and restructuring.
Total operating expenses for Q2 2025 were $119.6 million, a $42.1 million decrease from Q2 2024, reflecting lower R&D, SG&A, and absence of prior restructuring charges.
Validation of NEXLETOL and NEXLIZET by Leading Cardiovascular Societies
Esperion anticipates inclusion in upcoming European Society of Cardiology lipid management guidelines, which would serve as a significant validation of their science and support further clinical adoption.
Dafinchi
