This is a summary or the publication of Orion’s financial report for 2020 The full report is attached to this stock exchange release and available at https: // www Orionfi / en / Orion-Gruppe / Investors / Financial reports and presentations /

“The COVID-19 pandemic made 2020 an extraordinary and challenging year for Orion and the world. The sharp rise in drug demand in March and April posed challenges for Orion’s production and logistics Enforce the dedication and hard work of our staff We have successfully endeavored – and will continue to strive – to ensure that the medicines Orion makes and sells continue to be available to patients Our current inventory is good, but we must continue to work as the risk of disruption in the global pharmaceutical supply chain due to the pandemic remains higher than usual In the current exceptional circumstances, we have made it our mission to ensure the health and safety of our employees and the continuity of production and the safety of patients in to run clinical trials, and we will continue to do so. In the midst of the pandemic, we have pushed ourselves to perform well, for which we thank our dedicated and adaptable staff at Orion and our collaborators

Our net sales in 2020 were 1078 (1051) million EUR and our operating profit of 280 (253) million EUR The COVID-19 pandemic had various effects on our sales Total annual sales of some pandemic-related products, such as dexmedetomidine products in the intensive care unit, were significantly higher than the level estimated at the beginning of 2020 On the other hand, sales of some products fell in various ways, partly due to restrictive measures Parts of Europe below expected levels The generally strong increase in demand for pharmaceuticals in March and April increased sales slightly at annual level, although demand weakened as expected as the year progressed.We do not believe that the basic need for medicines other than those used to treat COVID -19 patients We estimate that demand growth is more a reflection of customer preparation and stockpiling at the moment, it is difficult to predict how customer inventories will perform in the near future The coronavirus has had a visible impact on the operations of Orion, but at the same time it can be said that Our business operations have developed positively in many respects even without considering the effects of COVID-19

The growth in the operating result is mainly due to higher net sales than in the previous year and a decrease in operating costs due to the pandemic The gross margin was improved by the high utilization of Orion’s production facilities and the reduction in waste due to continuous operational development as well as higher sales, Although margins on product sales at the end of the year were mainly driven by the timing of partner shipments of Parkinson’s medication and animal tranquilizers, as well as a decline in Simdax® sales, expenses increased in the last few months of the year compared to the previous months of the year due to new investments in research and development projects as well as in sales and marketing We estimate that our operating profit was around 40 million due to the effects of the COVID-19 pandemic EUR higher than expected at the beginning of 2020.More than half of this was due to increased international sales of dexmedetomidine products and the rest to lower-than-expected costs and increased sales of other products

The net sales of the Dexdor® sedative, which is used in the intensive care unit and is aimed at the European market, fell slightly compared to the same period due to the generic competition, but was significantly lower than expected at the beginning of the year due to the increased demand the COVID-19 pandemic The formulation patent for Simdax®, a drug used to treat acute decompensated heart failure, expired in key markets in September Sales declined towards the end of the year due to a decline in planned hospital visits due to the pandemic and in some markets due to falling prices strong decline Sales fell slightly compared to 2019 compared to the previous year

Sales of the Easyhaler® product portfolio for asthma and chronic obstructive pulmonary disease showed strong growth through autumn, but developed weaker than expected towards the end of the year. We estimate that COVID-19 restrictions will have the number of doctor appointments in Europe in the second half of the year and customers used inventory they had stored in the first half of the year, which was reflected in sales of Easyhaler® products. Net sales of the Parkinson’s drugs Stalevo® and Comtess® / Comtan® remained at the previous year’s level as expected In the course of the year fluctuating sales were mainly due to the timing of the partner deliveries

Orion had net sales of 17 million in 2020 EUR with Nubeqa®, a drug for the treatment of non-metastatic castration-resistant prostate cancer. Orion also received milestone payments totaling 28 million EUR from first commercial sales of the product in the EU and Japan In the same period in August 2019, Orion posted a milestone payment of 45 million EUR for the first commercial sale of the product in the USA

The specialty products business unit’s net sales increased slightly, but development was mixed over the year, especially for self-care products, as demand increased due to the COVID-19 pandemic in the spring and the subsequent balancing of demand for the full year Coronavirus demand increased somewhat, but business developed well even without the pandemic effect. We can be satisfied with the growth in a situation in which the net sales of our biosimilar products rose by more than 20 million EUR has decreased and the prices of prescription generic drugs have continued to decrease

The animal health department also had a robust year: net sales reached the highest level ever. In June the US. The Food and Drug Administration (FDA) granted Orions Clevor® marketing authorization, which is being marketed by our partner Vetoquinol in the U.S. Orion’s long-term distribution partnership with animal health company Zoetis in Denmark, Norway and Sweden ended in 2020 when Zoetis decided to Establish their own sales organizations in these countries The change will have a negative impact on the unit’s net sales in 2021, but will not have a material impact on the Orion Group’s operating results. Demand for Fermion products was high throughout the year and production capacity was close to fully utilized

COVID-19 also impacted Orion’s research and development projects, which were delayed due to the 2020 situation, but the top priority was the safety and continued care of patients involved in clinical trials In July, we completed the phase III clinical REFALS study, which unfortunately did not meet the specified endpoints The study examined the efficacy and safety of oral levosimendan in the treatment of amyotrophic lateral sclerosis (ALS)

We are continuing the phase III clinical trial ARASENS with darolutamide with Bayer and expect results this year Together we are jointly initiating the phase III clinical trial ARANOTE with darolutamide as a new project The projects ODM-208 and ODM-209 have experienced a slight delay due to COVID-19 restrictions, but are going further and ODM-208 is in clinical Phase II trial passed Orion’s new senior vice president of research and development took up his position in June In the fall, we renewed the organization and strategy of R&D.The changes are aimed at strengthening the company’s R&D portfolio and accelerating research projects.Orion also developed a new generation dry powder inhaler, and we started the first product development project with the new device platform

Orion’s strategic growth target to achieve net sales of EUR 1.5 billion by the end of 2025 remains in place and we are working hard to achieve that goal, for example, we increased resource allocation for business development and in 2020 we have several rather significant in-licensing agreements in Specialty Products division signed Most of the potential of these agreements cannot be realized until after 2025 However, the agreements show that Orion can acquire new products in its markets and is seen as an attractive partner

Orion has systematically invested tens of millions of euros annually in the maintenance, renewal and expansion of its production facilities in Finland. We resolutely continued these investments in 2020 Our material investments totaled 37 million EUR Renewal of Orion’s corporate resource planning system will be a major investment in 2021-2023 Another major investment, the renovation of Orion’s headquarters in Espoo, will begin in autumn 2021 and be completed in 2023 ”

Orion estimates that net sales in 2021 will be slightly lower than in 2020 (net sales in 2020 were 1078 million EUR) The operating profit is estimated at a lower or significantly lower level than in 2020 (the operating profit in 2020 was 280 million EUR)

Collaboration agreements with other pharmaceutical companies are an important part of Orion’s business model. Agreements often contain payments that are recognized in net sales and operating income and vary widely from year to year. Predicting the timing and amount of these payments is difficult in some cases it depends on terms such as research results that are only known after the studies are completed, the progress of research projects or the achievement of certain sales levels. On the other hand, neither the outcome nor the schedule of the contract negotiations is generally known before the final signing of the contract

In 2020, Orion received milestone payments totaling 42 million Most of it in connection with the marketing of Nubeqa® in Europe and Japan (a total of 28 million euros EUR) and the transfer of distribution rights for Parkinson’s products to new partners around the world In 2019, Orion received milestone payments totaling 51 million EUR, thereof 45 million EUR related to the commercialization of Nubeqa® in the US Estimates for net sales and operating income for 2021 include milestone payments of less than 5 million EUR, a significantly lower value than in previous years

Orion estimates that operating income in 2020 will increase by around $ 40 million due to the impact of the COVID-19 pandemic EUR higher than the company estimated at the beginning of 2020.More than half of this resulted from increased international sales of dexmedetomidine products and the rest from lower than expected expenses and increased sales of other products. The outlook for 2021 contains due to the pandemic no similar effects

The outlook is based on the assumption that Orion’s own production can continue to run normally despite the COVID-19 pandemic.This assumes, among other things, continued success in terms of employee protection so that the absence rate does not increase significantly, personal protective equipment, raw materials, intermediate products and materials are available and the logistics chains are sufficiently functional

The outlook does not include any income or expenses in connection with possible product or company acquisitions

Orion continues its ongoing efforts to generate faster growth than the market over the long term, however, in 2021 net sales will be driven by significantly lower milestone payments than in previous years, generic competition, and the expiry of a key distribution agreement in the department Animal health negatively impacted Furthermore, the COVID-19 pandemic has significantly increased the demand for some Orion products in 2020 However, similar additional sales beyond normal demand are not expected for the same products in 2021, negatively impacting net sales compared to 2020

Sales of Orions Dexdor® and Simdax® will decline due to generic competition In 2020 sales of Dexdor® remained at the previous year’s level due to increased demand caused by the COVID-19 pandemic However, a decline in sales is expected in 2021

Nubeqa®, the drug developed by Orion in collaboration with Bayer, received marketing authorization in the USA in 2019 and in the EU and Japan in 2020.Nubeqa® has since been approved in several other countries, and marketing authorization applications have been submitted in other regions is in progress or planned by Bayer The outlook assumes that the net sales booked by Orion with Nubeqa® will increase significantly in 2021 Orion’s estimate is based on forecasts of its partner Bayer Sales of the Easyhaler® product portfolio will also increase in In 2021, due to the combined formulations introduced in recent years (budesonide-formoterol and salmeterol-fluticasone), growth is likely to be slower than in previous years Sales of Orion brand Parkinson’s drugs (Comtess®, Comtan® and Stalevo®) ) is expected to remain at the previous year’s level

The Scandinavian distribution agreement between Orion’s animal health division and animal health company Zoetis, which was in place for several years, ended in late 2020. As a result, Orion’s animal health division’s net sales will decrease significantly in 2021 compared to previous year sales of Zoetis products wore 2020 around 28 million EUR on Orion’s net sales at

Generic sales make up a significant portion of Orion’s total revenue from falling generic prices and disruptions to availability due to causes other than the COVID-19 pandemic have negatively impacted Orion’s sales in recent years, with the combined negative effects of falling prices and product shortages are estimated to be significantly lower in 2021 than in previous years. Demand for some generics sold by Orion was above normal in 2020 due to the COVID-19 pandemic However, demand for these products is expected to return to more normal levels this year, which will have a negative impact on sales performance in 2021 compared to 2020

The outlook for 2021 sees milestone payments below 5 million EUR, which is significantly less than in 2020 (42 million EUR) or 2019 (51 million EUR)Operating profit

Orion expects significantly lower milestone payments for 2021 than for 2020, and the company’s net sales are expected to decline slightly from 2020. Operating profit is also influenced by declining sales of its own products Dexdor® and Simdax® due to the generic competition Growing sales of products such as the Easyhaler® product portfolio or Nubeqa® will not be able to compensate for the resulting decline in operating profit Orion therefore estimates that the operating profit will be lower or significantly lower than in 2020

Orion assumes that operating expenses will remain at the previous year’s level. The write-downs in connection with the acquisition of sales and distribution rights for the Parkinson’s drugs were posted for the last time in 2020 This reduces sales and marketing costs by around 12 million At the same time, there is increasing investment in the distribution and marketing of products that are experiencing growth Spending, which has decreased due to the COVID-19 pandemic, is expected to return to more normal levels in the second half of 2021 The R&D- Spending is expected to remain at a similar level to last year

The total investments of the group are expected to be higher in 2021 than in 2020, when investments of 49 million However, the COVID-19 pandemic may slow down the implementation of planned investments Orion has started a project to renew its ERP (Enterprise Resource Planning) system The renovation of the corporate headquarters in Espoo will also begin in 2021. Most investments in these projects will be made between 2022 and 2023

The outlook is based on the assumption that Orion’s own production can continue to run normally despite the COVID-19 pandemic.Sales of Orion products are dependent on the ability of production and the entire supply chain to operate at the planned level This harbors numerous pandemic-related risks, which can even lead to production disruptions. These risks include infection of employees, poor availability of personal protective equipment, poor availability of raw materials and intermediate products, and disruptions in the logistics chain

During 2020, when the Novartis agreement expired, Orion transferred distribution of the Parkinson’s drugs Stalevo® and Comtan® to new partners in most of the non-European markets except for Japan. Orion has started selling these products in Singapore, Malaysia and Thailand itself to sell and continue to sell them in Europe These changes, as well as the ongoing generic competition that is negatively impacting sales, have been factored into the outlook for the current year, but they are still fraught with uncertainties surrounding the accuracy of too This estimate can have a significant impact

The basic patents for Dexdor® and Simdax® have expired and the generic competition for these products has begun.In 2020, the COVID-19 pandemic has greatly increased the demand for intensive tranquilizers, and therefore sales of Dexdor® have grown back less than expected Sales are expected to decline significantly in 2021 However, due to the pandemic situation, this estimate is subject to considerable uncertainty.The generic competition for Simdax® began in the first markets in 2020.In 2021, a decline in sales of Simdax® is estimated, but it is currently difficult to make precise sales estimates.The actual sales are determined, among other things, by the timing the beginning of generic competition in the various markets and the intensity of this competition influenced

The sales of individual products and also the sales of Orion in individual markets can vary, for example depending on the extent to which the price, which has become increasingly tougher in the pharmaceutical markets in recent years, and the other competition are specifically focused on Orion’s products to key partners are based on schedules that have been mutually agreed in advance, but they may change due to, for example, decisions about adjusting inventory levels.In addition, changes in market prices and exchange rates will affect the value of deliveries.The COVID-19 pandemic has the Demand for some Orion products increased significantly in 2020, but similar increases in sales beyond normal demand are not expected for the same products in 2021. This estimate is uncertain as the course of the pandemic and its impact on Orion demand -Products difficult On the other hand, Orion does not know how much inventory they have purchased in 2020 and when customers may start using inventory in excess of normal

Structural exchange rate risk related to the US dollar has decreased in recent years as the proportion of Orion’s US dollar invoiced sales has fallen below ten percent while the value of US dollar purchases has increased The weight of the US dollar will increase due to the increasing sales of Nubeqa® The greatest exchange rate risk at the moment is in European currencies such as the Swedish and Norwegian krone and the British pound However, the overall effect of the risk due to the currencies of European countries is mitigated by the fact that Orion has its own organizations in most of these countries, which means that in addition to revenue, costs are incurred in these currencies. The development of the Japanese yen exchange rate is significant due to the increased sales of Parkinson’s medication in Japan the high volatility currency increased Russian sales, however, do not constitute a significant part of Orion’s total net sales

Orion’s wide range of products can jeopardize delivery reliability and make it difficult to maintain the high quality standards required in production.The impact of outages on the company’s net sales has increased in recent years, and the ongoing COVID-19 pandemic carries this risk significantly increased, as restrictions on travel and other operations as well as the increase in sick leave in different parts of the world can lead to delayed disruptions in the global distribution and logistics chain of pharmaceuticals. Orion estimates that the COVID-19 pandemic will reduce the availability of products from the Do not significantly influence the company in the first half of 2021, but there is a risk of poor product availability in the second half of the year. Authorities and key customers in various countries carry out regular and detailed inspections of drug development and manufacture on the product Orion’s operations through any remedial action that may be required may have an impact, at least temporarily, that may reduce delivery reliability and increase costs. Orion’s product range also includes products from other pharmaceutical companies and products that Orion manufactures itself, but for which other companies may supply active pharmaceutical ingredients or other ingredients Problems related to the delivery reliability or quality of the products of these manufacturers can jeopardize Orion’s delivery reliability The single-channel system used for pharmaceutical distribution in Finland, in which Orion’s products were delivered to customers through only one wholesaler, can also jeopardize delivery reliability

Research projects are always associated with uncertainty factors that can either increase or decrease the estimated costs The projects can progress slower or faster than assumed or be discontinued Changes that may occur in ongoing clinical studies, for example due to the COVID-19 pandemic, However, they are relatively slow to be reflected in costs and are not expected to have a significant impact on the outcome in the current year.Because of the nature of the research process, the schedules and costs of the new studies that are started are known well in advance and therefore usually lead does not lead to unexpected changes in the estimated cost structure Orion often conducts the last, ie phase III, clinical studies in collaboration with other pharmaceutical companies. The start of these collaborative relationships and their structure also have a significant effect on the schedule and cost level of research projects en from

Collaboration agreements are an important part of Orion’s business model. Potential collaboration and licensing agreements in connection with these agreements often include payments that are recognized in net sales and that can have a material impact on Orion’s financial results. The years 2014-2020 varied annual payments between 5 and 51 million EUR Payments may be subject to conditions related to the progress of research projects or sales, or the signing of new contracts, and whether these conditions or contracts occur and what their timing will always be subject to uncertainties

The parent company’s distributable funds are 477075050 EUR26 or EUR 340 per share This includes EUR 21638944249 or EUR 154 per share profit for the financial year These amounts per share are calculated without the company’s own shares. The Board of Directors proposes the payment of a dividend of EUR 150 (150) per share from the distributable funds of the parent company

No dividend will be paid on treasury shares held by the company on the dividend date. On the day on which the dividend was proposed, the number of shares eligible for a dividend was 140463196, bringing the total dividend payment to 210694The payout ratio of the Group for the 2020 financial year would be 959% (1052%) The date of the dividend payment would be 7 April 2021, and on 29 Shareholders entered in the company’s register of shareholders on March 31, 2021 would be entitled to the dividend payment

The Board of Directors also proposes 350000 EUR (250000 EUR) for medical research and other purposes of public interest according to a separate decision of the Management Board and 266030256 EUR to donate26 remain in equity

On Tuesday the 9th A webcast and a conference call for analysts, investors and the media will take place on February 2021 at 1 p.m.30 EET The event will only take place online and via conference call

A link to the live webcast will be available on the Orion website at www Orionfi / en / investoren A replay of the event will be available on the website later that same day

Finland: 358 9 817 103 10 Sweden: 46 8 566 426 51 UK: 44 333 300 0804 USA: 1 631 913 1422

The annual financial statements and the report of the Board of Directors for 2020 will be published on the company’s website no later than week 9/2021

Jari Karlson, CFO tel 358 50 966 2883 Tuukka Hirvonen, Investor Relations tel 358 10 426 2721 or 358 50 966 2721

Orion is a global Finnish pharmaceutical company – a manufacturer of wellbeing Orion develops, manufactures and markets human and veterinary medicines as well as active pharmaceutical ingredients The company is continuously developing new drugs and treatment methods The core therapeutic areas of Orion’s pharmaceutical R&D are neurological diseases, oncology and respiratory diseases, developed for Orion’s inhaled lung medicines Orion’s net sales in 2020 were 1078 million EUR At the end of the year the company had around 3 employees300 employees Orion’s A and B shares are listed on Nasdaq Helsinki

Orion Financial Report Release 2020

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World news – Publication of the financial report of FI – Orion Group for 2020