Drugmaker Sobi books profit fall on restructuring, Russia

div classBodysc17zpet90 cdBBJodivpSTOCKHOLM Reuters – Swedish Orphan Biovitrum Sobi on Thursday reported a smallerthanexpected firstquarter operating profit and said sales grew in emerging markets for its drug Kineret for the treatment of COVID19. p

pThe rare disease drugmakers operating profit fell to 776 million crowns 78.6 million from 1.03 billion and missed the 1.16 billion expected by analysts polled by Refinitiv.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe group, which sells drugs targeted at haemophilia, autoimmune diseases, metabolic diseases and cancer supportive care, booked restructuring costs of 507 million and a 157 million provision for expected credit losses in Russia. p

pSobi said it had 46 employees in Russia and was supplying a few medicines in the country including Kineret. p

pRegulators in several regions have approved Sobis arthritis drug Kineret, with the active substance anakinra, for the treatment of COVID19. p

p“While Kineret continued to perform well, driven by new uses and patient growth, most of the sales growth came from supplies in emerging markets related to COVID19. This was partly offset by lower spontaneous use for COVID19 in the U.S.,” it said.p

pSobi said it still expected fullyear sales growth, measured in local currencies, in the mid to high singledigit percentages. p

pIt repeated a forecast for an operating profit margin before amortisation “at a low 30s percentage of revenue” but added that the forecast was now based on an adjusted margin. p

p1 9.8786 Swedish crownsp

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pp Reporting by Anna Ringstrom editing by Niklas Pollard and Jason Neelyp

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