Sobi Earnings: Maintaining Our SEK 252 Fair Value Estimate After In-Line Second Quarter

Sobi’s 16% constant-currency top-line growth and steady operating profit margin drove an in-line second quarter, and we’re not making any changes to our SEK 252 fair value estimate. With the recent close of the $1.7 billion acquisition of CTI BioPharma and the expected start of royalties on newly approved respiratory syncytial virus antibody Beyfortus in the United States, management boosted revenue growth expectations for 2023 to high single digits from low to mid-single digits but maintained EBITA margin guidance in the low 30s. The firm is seeing some encouraging signs of growth with newer franchises, although we still think it is in the process of establishing an economic moat.