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Orion Corporation: The Finnish Pharma Pioneer That Built a Blockbuster
I. Introduction: A Century in the Making
In September 1917, as the Russian Empire crumbled and Finland stood on the precipice of independence, three pharmacists crowded into a former vegetarian butter substitute factory in Helsinki's Kruununhaka district. They called their venture Orion—and they had no way of knowing that their modest pharmaceutical outfit would one day produce Europe's first billion-euro blockbuster cancer drug originated by a Nordic company.
Orion Corporation, founded in 1917 and headquartered at Espoo, Finland, is a globally operating Finnish company which develops, manufactures and markets human and veterinary pharmaceuticals and active pharmaceutical ingredients for global markets. Today, with net sales for full-year 2024 of approximately EUR 1,542 million and operating profit of approximately EUR 417 million, the company stands as a testament to patient capital, strategic partnering, and Finland's unlikely emergence as a pharmaceutical innovation hub.
The central question that defines Orion's 107-year journey is deceptively simple: How did a small Finnish pharmacy startup founded during World War I become the originator of darolutamide, the prostate cancer drug that in September 2024, exceeded sales of one billion euros year-to-date making darolutamide the first ever Orion-originated product to gain blockbuster status?
The answer lies not in a single breakthrough, but in a series of calculated pivots, strategic partnerships, and institutional patience that would make most venture capitalists weep. From penicillin production during the winter wars to Parkinson's disease treatments developed with Novartis, to a prostate cancer blockbuster co-developed with Bayer, Orion has demonstrated a remarkable ability to punch above its weight class while keeping all manufacturing on Finnish soil.
As of August 2025 Orion Corporation has a market cap of $10.89 Billion USD. The company now employs about 3,700 professionals worldwide, dedicated to building well-being across more than 35 countries. Yet all of the company's manufacturing sites and the majority of its R&D units are in Finland—a strategic choice that has proven prescient in an era of supply chain disruptions and geopolitical uncertainty.
This is the story of how a nation of five million people built a pharmaceutical company capable of competing with global giants—and why the playbook Orion developed over a century might be the most underappreciated model for sustainable pharmaceutical innovation.
II. Founding Context: Finland's Independence & The Birth of Orion (1917-1930s)
The Revolutionary Moment
Picture Helsinki in September 1917. The Romanov dynasty had collapsed six months earlier. German troops were advancing across Eastern Europe. Finland remained a Grand Duchy within the dying Russian Empire—but not for long. In this cauldron of uncertainty, three pharmacists saw opportunity where others saw chaos.
Orion was founded on September 21, 1917 by pharmacists Onni Turpeinen, Eemil Tuurala and Wikki Valkama. Before founding Orion, they worked in a pharmaceutical-chemical factory called Medica. Their experience at Medica had shown them the potential for domestic pharmaceutical production—and the vulnerability of relying on foreign supply chains during times of conflict.
The Finnish government's interest in developing a domestic chemicals industry, as well as the growing demand for new classes of medications and pharmaceutical compounds, inspired the creation of Osakaeyhtiö Orion in Helsinki in 1917. The timing was no coincidence. When Finland gained its independence from Russia following World War I, the country's new government put in place a policy of stimulating domestic infrastructure initiatives in order to enable the country to gain a degree of self-sufficiency. The period also marked one of opportunity for a number of Finnish entrepreneurs who were eager to be domestic players in a number of industries.
The founders set up shop in premises that would strike modern pharmaceutical executives as absurdly humble: Production began in a former margarine factory that year. The company's first products reflected wartime pragmatism rather than pharmaceutical ambition: Among the first products of the apothecary were Ballistol gun oil and dulcine.
Early Products & The Struggle for Survival
Finland declared independence on December 6, 1917—less than three months after Orion's founding. The new nation faced immediate existential threats: a brutal civil war in 1918, followed by economic isolation and the challenge of building a modern state from scratch. For Orion, the early years proved nearly fatal.
Orion launched production of pharmaceuticals at the beginning of the 1920s. The company's early drug products included aspirin, eye ointments, and morphine. An early success was the group's iodine product, known as Jodlysin.
Nonetheless, the early years proved extremely difficult for the company which struggled to maintain profitability. The company's difficulties were due in part to the fact that Finland's independence had also opened the market to foreign products. Orion now found itself forced to compete against well-established foreign brands.
This paradox—that national independence created competitive vulnerability—forced Orion to develop capabilities that would define its strategy for the next century. The company responded by boosting its marketing initiatives and succeeded in establishing Orion as the country's leading pharmaceuticals brand.
Scaling Up: From Margarine Factory to National Leader
The transformation from struggling startup to market leader happened with startling speed. The very next year Orion's number of employees rises to 100, making it the largest pharmaceutical plant in Finland. By the early 1920s, Orion had made a critical choice: focus on quality manufacturing rather than trying to compete on breadth with global players.
By the early 1930s, Orion's production facilities, originally contained in the 180-meter-square margarine plant, had grown too small. The company built a new plant for itself, in Vallila, Helsinki, launching production there in 1934.
The pediatrician Arvo Ylppö, who would become one of Finland's most celebrated medical figures, played a significant advisory role starting in the 1920s—lending scientific credibility to what had begun as an entrepreneurial venture. This pattern of recruiting serious scientific talent would become a hallmark of Orion's approach.
For investors, the early Orion story illustrates a principle that remains relevant: in small, peripheral markets, first-mover advantage in domestic manufacturing can create durable competitive positions. By the time global competitors turned their attention to Finland, Orion had already locked up distribution networks, physician relationships, and brand recognition that proved remarkably sticky.
III. The Penicillin Era & Building R&D Capabilities (1940s-1960s)
War-Time Innovation Under Fire
The 1940s arrived with existential threats to Finland's independence—and to Orion's survival. The Winter War with the Soviet Union (1939-1940) and the Continuation War (1941-1944) created desperate need for pharmaceutical supplies while severing access to foreign products.
In 1944, Orion's plant produces first batches of a new miracle drug: penicillin. The experiment was discontinued because of the war, but Orion will experience the resurgence of penicillin in the next decade. The 1944 experiment demonstrated something crucial: Orion possessed the technical capability to produce complex biotechnology products, even under wartime conditions.
During 1960s, Orion becomes the undisputed market leader in penicillin products in Finland. This two-decade journey from wartime experiment to market leadership exemplifies a pattern that would repeat with entacapone and later darolutamide: Orion developed critical capabilities during crisis periods, then patiently commercialized them when conditions improved.
The Alberty Revolution: Modern Research Arrives in Finland
The single most important hire in Orion's history may have been a German scientist named Joachim Alberty. In 1952, Orion decides to invest more heavily in the development of new drugs. Joachim Alberty from Germany is hired to supervise the work. As Alberty arrives, the winds of change start sweeping over Orion, and its pharmacological department experiences a total transformation within a year: Orion is now able to conduct modern research.
This transformation was not merely organizational—it represented a fundamental shift in Orion's identity. Before Alberty, Orion was a capable manufacturer of existing pharmaceuticals. After Alberty, it became a research company capable of originating new molecules.
Building the Infrastructure for Innovation
The 1940s through 1960s saw Orion systematically build the institutional infrastructure that would support proprietary drug development:
In 1948, Oriola Oy was founded, initially named Apteekkitavarakauppa Oriola Oy—creating a dedicated wholesale and distribution business that would eventually become a separate publicly traded company.
In 1962, Orion's new pharmaceutical plant is completed in Mankkaa, Espoo. This facility, located in what would become Orion's permanent headquarters region, represented a significant capital commitment to modern manufacturing.
Most critically, Fermion was established in 1970 in Espoo by Orion and Kemira. This joint venture for active pharmaceutical ingredient (API) production would later become wholly owned by Orion and emerge as a strategic asset providing vertical integration and supply chain security.
The 1952-1970 period established the three pillars that continue to define Orion: proprietary research capability, modern manufacturing facilities, and integrated API production. Each pillar required patient capital investment with payoffs measured in decades rather than quarters.
IV. The Pivot to Proprietary Drugs: Domosedan & Veterinary Success (1980s)
The Alpha-2 Agonist Breakthrough
By the early 1980s, Orion faced a strategic inflection point. The company had successfully established itself as Finland's leading pharmaceutical manufacturer, but generics and licensed products offered limited growth potential. The research infrastructure built over the previous three decades was producing promising molecules—but commercializing them required global partnerships that Orion had not yet developed.
The veterinary market offered an unexpected proving ground. Domosedan® had marketing authorisation in 1983 with the active pharmaceutical ingredient Detomidine. This alpha-2 adrenergic agonist for veterinary sedation represented Orion's first genuinely proprietary pharmaceutical molecule to achieve significant commercial success.
The veterinary pharmaceutical business served multiple strategic purposes beyond direct revenue generation. It provided a lower-risk environment to develop proprietary drug development capabilities, build regulatory expertise, and establish international distribution partnerships. Dogs and horses don't sue for medical malpractice—which makes veterinary markets considerably easier to enter than human pharmaceuticals.
Building the Alpha-2 Franchise
Following Domosedan's success, Orion systematically expanded its alpha-2 agonist portfolio: Domitor® with active pharmaceutical ingredient Medetomidine received marketing authorisation in 1987, and Dexdomitor® with Dexmedetomidine received marketing authorisation in 2002.
Today, Orion's own proprietary medicines include Bonqat® (pregabalin), Clevor® (ropinirole), Domosedan® (detomidine), Domitor® (medetomidine), Antisedan® (atipamezole), Dexdomitor® (dexmedetomidine), Domosedan Gel® (detomidine), Sileo® (dexmedetomidine) and Tessie® (tasipimidine).
The veterinary business continues to contribute meaningfully to Orion's results. Orion Pharma Animal Health is a member of the Orion Group and provides 9% of its net sales.
More importantly for the company's strategic development, the veterinary success demonstrated that Orion could discover, develop, and commercialize proprietary molecules. This proof-of-concept made subsequent human pharmaceutical partnerships more credible—and more lucrative.
V. Inflection Point #1: The Farmos Merger & IPO (1988-1995)
Two Finnish Giants Become One
The late 1980s and early 1990s brought a transformation that would shape Orion's competitive position for the next three decades. Orion merges with its former competitor Farmos in 1993. Two Finnish giants joining forces is a stroke of luck in terms of research: the work both have done in the past complements each other. Farmos has developed, for example, heart and cancer drugs and animal health sedatives, while Orion has been working on a drug for Parkinson's disease, among others.
The Farmos merger was transformative precisely because the two companies had developed complementary rather than competing research programs. Farmos brought cardiovascular and oncology expertise; Orion contributed CNS capabilities. Combined, the new entity possessed research programs across multiple therapeutic areas—a diversified portfolio that would provide multiple shots on goal for blockbuster development.
Going Public: Capital for Global Ambitions
In 1995, Orion goes public when it is listed on the Helsinki stock exchange, and also becomes the only Finnish company still manufacturing drugs in Finland.
The 1995 IPO represented a watershed moment. Public capital markets provided the funding necessary to compete in global pharmaceutical development—where a single late-stage clinical trial can cost hundreds of millions of euros. Just as importantly, the public listing created liquidity for early shareholders and employees, enabling Orion to attract and retain scientific talent with competitive equity compensation.
The IPO prospectus implicitly made a bet: that a mid-sized Nordic pharmaceutical company could generate sufficient returns by partnering with global pharmaceutical giants rather than building its own worldwide commercial infrastructure. This "discover and partner" model would eventually produce both Stalevo (with Novartis) and Nubeqa (with Bayer).
The fact that Orion remained "the only Finnish company still manufacturing drugs in Finland" at the time of its IPO speaks to the fierce competitive pressures that had eliminated other domestic players. Orion's survival owed much to its early investments in proprietary research and integrated manufacturing—capabilities that commodity generics manufacturers could not match.
VI. Inflection Point #2: Entacapone, Stalevo & Becoming a Parkinson's Disease Leader (1998-2010)
The Entacapone Breakthrough: Orion Discovers a New Drug Class
The entacapone program represented Orion's first world-class contribution to human pharmaceutical science—and established the partnership model that would later yield Nubeqa.
Entacapone (Comtess/Comtan) is Orion Pharma's original proprietary catechol-O-methyl transferase (COMT) inhibitor. Entacapone is able to slow down degradation of levodopa and improve the availability and efficacy of each levodopa dose, hence its use as a complement to levodopa/carbidopa in patients.
Orion is the originator and manufacturer of entacapone, the leading COMT-inhibitor and used as an important adjunct to levodopa in the treatment of PD. Entacapone was launched in 1998-1999 world-wide as Comtess and Comtan, and it soon became the best-selling product of Orion.
The scientific insight behind entacapone was elegant: levodopa, the gold-standard treatment for Parkinson's disease for nearly four decades, breaks down too quickly in the body. By inhibiting the enzyme that degrades levodopa, entacapone extends each dose's effectiveness—reducing the "wearing off" episodes that torment Parkinson's patients.
The Novartis Partnership: Template for Future Deals
Recognizing that it lacked the commercial infrastructure to launch entacapone globally, Orion partnered with Novartis—establishing a template that would later guide the Bayer relationship for darolutamide.
In September 2000, Orion signed a marketing and distribution agreement with Novartis for the combination tablet.
The result was Stalevo, an optimized levodopa medication containing levodopa, carbidopa and entacapone—a single pill combining the gold-standard Parkinson's treatment with Orion's proprietary COMT inhibitor.
Stalevo, a drug developed and patented by Orion for the treatment of Parkinson's disease, is authorised for marketing in 2003. A milestone payment of around EUR 22 million from Novartis to Orion Pharma was triggered by the US marketing approval and the recently amended marketing agreement. Stalevo is a significant new product introduction from the R&D pipeline of Orion Pharma.
Repatriating the Franchise
Nearly two decades after the original partnership, Orion moved to consolidate control of its Parkinson's franchise. Orion Corporation and Novartis Pharma AG have agreed that Novartis will return the sales and distribution rights in certain European countries for Parkinson's disease drug Stalevo® to Orion.
The sales and distribution rights in certain European countries for the proprietary product Stalevo®, which has been patented and developed by Orion for the treatment of Parkinson's disease, transfer from Novartis to Orion as of 3 December 2018. Central nervous system (CNS) disorders are one of Orion's three core therapy areas, and, measured by net sales, Parkinson's disease drugs are Orion's largest family of pharmaceutical preparations.
In conjunction with the signing of the agreement, Orion will pay 24.5 Million US Dollars for the transfer by the sales rights for Stalevo.
The entacapone/Stalevo story teaches several lessons relevant to Orion's current Nubeqa trajectory. First, partnerships with global pharmaceutical companies can successfully commercialize Nordic-originated molecules. Second, these partnerships can eventually be restructured to give the originator greater control and economics. Third, therapeutic area expertise compounds over decades—Orion's CNS capabilities in the 1990s positioned it to develop oncology capabilities in the 2010s.
VII. Inflection Point #3: The 2006 Demerger—Focus on Pharma
The Strategic Logic: Separate to Concentrate
By 2005, Orion had grown into a conglomerate spanning pharmaceuticals, diagnostics, wholesale distribution, and healthcare equipment. While diversification provided stability, it created strategic complexity and valuation challenges.
The Extraordinary General Meeting of Orion held on 19 December 2005 in Helsinki decided to demerge Orion Corporation into two parts so that all its assets and liabilities are transferred, without a winding-up procedure, to two companies to be established and listed on the Helsinki Stock Exchange as on 7 July 2006. The new "Orion Group" to be formed in the Demerger will comprise the Orion Pharma and Orion Diagnostica divisions and the other, "Oriola-KD Group" will be formed from the present Orion Group's Wholesale and Distribution Division.
With the current corporate structure, the determination of the value of the Orion Corporation shares is challenged by the lack of comparable peers. The value of the shares in the new Orion Corporation, which would mainly concentrate on the R&D, manufacture and marketing of pharmaceuticals, would be easier to assess, and the strategy of the company as a more focused and research-oriented pharmaceuticals company would be enhanced.
Execution: Clean Break, Clear Focus
Orion-yhtymä Oyj has later changed its name to Orion Corporation and on 1 July 2006 demerged into two companies, the current Orion Corporation and Oriola-KD Corporation. In the demerger, the shareholders of the old Orion Corporation received as demerger consideration one share in each of the current Orion and Oriola per each share in the old Orion Corporation.
The current Oriola Corporation was established in 2006 after Orion Group demerged to two new stock listed companies: Orion Corporation and Oriola-KD Corporation. However, the roots of the company go back more than 100 years: in Sweden to the establishment of the medicine wholesaler Kronans Droghandel in 1907, and in Finland to the foundation of Oriola Oy in 1948.
Post-Demerger Strategy: Pure-Play Pharmaceutical Company
The demerger transformed Orion from a diversified healthcare conglomerate into a focused pharmaceutical company. Orion is a European, R&D-based, business-driven pharmaceuticals and diagnostics company with a special emphasis on developing innovative medicinal treatments and diagnostic tests for global markets. The focus is on profitable growth that increases shareholder value while keeping risks under control.
For investors, the 2006 demerger illustrates a principle increasingly relevant in today's conglomerate discount environment: sometimes the most valuable thing a diversified company can do is separate its businesses. The post-demerger Orion could tell a cleaner story to pharmaceutical-focused investors, while Oriola-KD could pursue its own strategy without being subordinate to pharmaceutical R&D priorities.
The demerger also created management focus. Running a wholesale distribution business requires entirely different capabilities than developing proprietary pharmaceuticals. By separating the businesses, Orion's leadership could concentrate entirely on drug development and manufacturing—the activities that create durable competitive advantage in pharmaceuticals.
VIII. Portfolio Optimization & The Diagnostics Sale (2010s)
Sharpening the Focus Further
Having separated from wholesale distribution in 2006, Orion spent the 2010s further refining its portfolio toward high-value proprietary pharmaceuticals.
During the 2010s, Orion pursued portfolio optimization by acquiring generics assets to strengthen its market presence in the Nordic region and beyond, complementing its proprietary offerings with value-added generic products. A key divestiture occurred in April 2018, when Orion sold its diagnostics division, Orion Diagnostica, to an investment fund managed by Axcel Management for a fixed price of approximately €163 million, plus up to €60 million in potential additional payments based on future performance, allowing the company to refocus resources on pharmaceuticals. The acquired entity was rebranded as Aidian Oy in November 2019.
The diagnostics sale completed a transformation that began with the 2006 demerger. Orion entered the 2020s as a focused pharmaceutical company with clear therapeutic priorities: oncology and pain for proprietary research, plus established positions in CNS (Parkinson's), respiratory (Easyhaler), and veterinary medicines.
This portfolio concentration strategy reflected a broader trend in pharmaceutical M&A: divesting non-core assets to fund proprietary drug development. For Orion, the €163-223 million from the diagnostics sale could be reinvested in clinical trials and research—the activities most likely to generate blockbuster returns.
IX. Inflection Point #4: Nubeqa & The Bayer Partnership—Creating a Blockbuster (2010s-2025)
The Darolutamide Discovery: Different by Design
The molecule that would become Orion's first blockbuster emerged from the company's oncology research program—a program that built on decades of CNS and hormonal therapy expertise. Darolutamide is a nonsteroidal antiandrogen (NSAA), and acts as a selective antagonist of the androgen receptor (AR). It has been referred to as a second- or third-generation NSAA.
What distinguished darolutamide from existing androgen receptor inhibitors was its chemical structure and pharmacological profile. Preclinical studies demonstrated lower blood-brain barrier penetration of darolutamide compared to other currently available androgen receptor inhibitors. A high concentration of these compounds in the central nervous system may lead to undesired side effects.
This design philosophy—creating an effective drug with fewer CNS side effects—reflected Orion's deep expertise in neurological compounds. The company understood the blood-brain barrier intimately from decades of Parkinson's disease research, and applied that knowledge to designing a prostate cancer drug that stayed where it was needed while avoiding the brain.
The Bayer Partnership: Finnish Innovation, German Commercialization
Nubeqa is developed jointly by Bayer and Orion Corporation, a globally operating Finnish pharmaceutical company. Bayer's global commercial infrastructure, combined with Orion's discovery and manufacturing capabilities, created a partnership structure similar to the earlier Novartis relationship.
FDA Approved: Yes (First approved July 30, 2019). The compound, which is developed jointly by Orion Corporation and Bayer was approved under the FDA Priority Review designation, which is reserved for medicines that may provide significant improvements in the safety or effectiveness of the treatment for serious conditions.
The initial approval was based on the ARAMIS trial, a randomized, double-blind, placebo-controlled, multi-center Phase III study, which evaluated the safety and efficacy of oral Nubeqa in patients with nmCRPC who were receiving a concomitant gonadotropin-releasing hormone (GnRH) analog or had a bilateral orchiectomy. In the clinical study, 1,509 patients were randomized in a 2:1 ratio to receive 600 mg of Nubeqa orally twice daily or placebo plus ADT.
Expanding the Franchise: ARASENS and ARANOTE
Following initial approval, Bayer and Orion systematically expanded Nubeqa's indication profile through additional Phase III trials. Orion's collaboration partner Bayer announced that the U.S. Food and Drug Administration (FDA) has approved the oral androgen receptor inhibitor darolutamide in combination with androgen deprivation therapy (ADT) for use in patients with metastatic castration-sensitive prostate cancer (mCSPC). The approval is based on positive results from the pivotal Phase III ARANOTE trial, which showed that darolutamide plus ADT significantly reduced the risk of radiological progression or death by 46% compared to placebo plus ADT.
Results from the Phase III ARANOTE trial presented at ESMO 2024 and published in The Journal of Clinical Oncology showed that darolutamide plus ADT significantly reduced the risk of radiological progression or death by 46% compared to placebo plus ADT (HR 0.54; 95% CI 0.41–0.71; P<0.0001), in patients with mHSPC. Consistent benefits in radiological progression-free survival (rPFS) were observed across prespecified subgroups, including patients with high-volume and low-volume mHSPC.
The Blockbuster Milestone: €1 Billion and Beyond
Nubeqa achieved blockbuster status in September 2024, with annual sales reaching €1.52 billion for the full year of 2024. Darolutamide is developed jointly by Bayer and Orion Corporation.
For Orion, the blockbuster achievement represented the culmination of a multi-decade strategy. Finnish drugmaker Orion wants to boost sales in the United States on the back of the success of its prostate cancer drug Nubeqa, which it is developing jointly with German partner Bayer, Orion's chief executive Liisa Hurme told Reuters. The two companies announced that sales of Nubeqa have been worth more than a billion euros this year, making it Orion's first "blockbuster" product. Nubeqa, also known as darolutamide, is Bayer's third best selling drug globally with sales growing most rapidly in the U.S. That encouraged Orion to establish a research centre in the U.S. last year, with an eye on growth opportunities in a country that accounts for roughly half of the world's drug market.
Future Growth Trajectory
Analysts forecast Bayer's revenue from Nubeqa to jump from €1.5 billion in 2024 to €2 billion in 2025, and eventually peak at €3.2 billion by 2029—by then, accounting for nearly a fifth of the pharma group's pharmaceutical revenue. Orion's upside is equally significant: the drug is expected to contribute nearly 30% of its total revenue by 2025, with sales approaching €500 million, up from €368 million in 2024.
Orion is entitled to receive from its partner Bayer one more milestone payment related to the sale of Nubeqa®, amounting to EUR 180 million.
X. Today's Orion: Business Divisions & Key Products
The Five Business Divisions
Orion's business is structured into five divisions focused on innovative medicines, particularly in oncology and pain management, alongside generics, self-care products, and veterinary medicines.
Four of our five business divisions increased their net sales in 2024. The Group's growth was driven by the Innovative Medicines business division led by Nubeqa®.
Innovative Medicines: The Growth Engine
The Innovative Medicines division, anchored by Nubeqa royalties and product sales, drives Orion's growth trajectory. Nubeqa® continued to drive the growth of the Group and the Innovative Medicines business division. Both royalty income and product sales increased significantly from the comparison period. In addition, Nubeqa®'s product sales grew from the previous quarter and were at an all-time high so far.
Branded Products: Easyhaler and CNS
The strong pull of the Easyhaler® product portfolio continued throughout the year, driving the growth of the Branded Products business division. In Respiratory, the key product group is Easyhaler® product portfolio, in CNS entacapone products and in Women's Health Divina® series.
Easyhaler® products have been in use for nearly 7 million patient years. Orion has extensive experience in commercial scale manufacturing and supply as well as commercial excellence, pricing and market access especially in our key markets in Europe.
Fermion: The Vertical Integration Advantage
Together with our mother company Orion we are a fully integrated contract development and manufacturing organization (CDMO) and offer services covering both drug substances and drug products.
A wholly owned subsidiary of Orion Corporation, Fermion provides APIs for generic, speciality and branded pharmaceutical companies. It also offers fully integrated contract development and manufacturing services from Phase I to commercial-scale production. Based in Finland, the company operates a research and development (R&D) facility and two manufacturing sites in the country.
Fermion also manufactures and sells APIs to other pharmaceutical companies. Fermion is particularly well-known as a manufacturer of highly potent active pharmaceutical ingredients requiring special competence, including those applied in cancer drugs.
This vertical integration provides Orion with supply chain security increasingly valued in a post-pandemic world, quality control advantages critical for complex APIs like those in cancer drugs, and additional revenue from third-party contract manufacturing.
XI. Recent Financials & 2025 Outlook
2024: A Breakthrough Year
Year 2024 was a period of strong growth for Orion. Net sales without significant milestone payments increased by more than 20 percent from the previous year. Operating profit increased by more than 30 percent, excluding significant milestone payments as well as the positive item related to the transfer of the insurance portfolio of Orion Pension Fund's B during the comparison period. Thanks to a strong year, we reached ahead of schedule the ambitious target we set ourselves in 2019 to reach EUR 1.5 billion in net sales by the end of 2025.
Revenue: €1.54b (up 30% from FY 2023). Operating profit increasing by 51.5% to €416.6 million in 2024.
2025 Outlook: Continued Momentum
Net sales are estimated to be EUR 1,550 million to EUR 1,650 million. Operating profit is estimated to be EUR 350 million to EUR 450 million.
In January–March 2025, our net sales increased by 14.9 percent to EUR 354.6 (308.5) million and operating profit increased by 39.1 percent to EUR 77.9 (56.0) million. The year 2025 has started strongly with almost all business divisions reporting good growth.
Capital Returns
Orion Corporation's distributable funds at 31 December 2024 are EUR 601,482,478.08. The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 1.64 per share be paid on the basis of the Balance Sheet confirmed for the financial year that ended on 31 December 2024.
The company has maintained dividend payments for 18 consecutive years, currently offering a 3.12% yield.
XII. Leadership: Liisa Hurme and the Next Chapter
A Scientist-CEO for a Research Company
Orion Corporation's Board of Directors has appointed Liisa Hurme (born 1967) as President and CEO of Orion Corporation as of 1 November 2022. Liisa Hurme holds a Ph.D. in Biochemistry. Hurme has had a long career at Orion since 1999 in numerous management positions and she has been a member of the Executive Management Board since 2008. She currently serves as Senior Vice President of Global Operations and as Chairman of the Board of Fermion Oy, a subsidiary of Orion. Hurme led the Proprietary Products business in 2008-2014 and Specialty Products in 2014-2018.
"Liisa Hurme is an excellent choice for the President and CEO of Orion. She combines strong expertise in Orion's businesses with the capability to advance Orion's strategic development and possesses a solution-oriented and humane leadership style. In addition, thanks to her previous international appointments in the pharmaceutical industry and life sciences as well as her educational background in the natural sciences, Liisa has a deep understanding of the research and development environment that is important to the pharmaceutical industry."
At the Nordic Listed Leaders Gala 2024, the CEO of the Year award was presented to Liisa Hurme, CEO of Orion Corporation, in recognition of her exceptional leadership and transformative impact. Over her two-year tenure, Hurme has steered the company to financial stability and international expansion, including expansion to USA and Japan. In 2024, Orion achieved a major milestone, with annual sales of its prostate cancer drug surpassing €1 billion. Employee surveys across Orion's 30+ countries highlighted psychological safety, high-quality management, and an excellent work environment under Hurme's leadership.
XIII. Playbook: Business & Strategic Lessons
1. The "Finland First" Manufacturing Strategy
Keeping all manufacturing in Finland seems counterintuitive in an era of globalization and cost optimization. Yet this strategy has provided Orion with quality control advantages, IP protection, supply chain resilience demonstrated during the pandemic, and a compelling ESG story as European healthcare systems increasingly value local production.
2. The Partnership Model: Discover and Partner
From Novartis (Stalevo) to Bayer (Nubeqa), Orion has consistently demonstrated that mid-sized pharmaceutical companies can originate blockbuster molecules without building global commercial infrastructure. The key is selecting partners carefully and structuring deals that preserve meaningful economics for the originator.
3. The Demerger Decision
Separating wholesale/distribution (Oriola) from pharma created a pure-play investment story and focused management attention. The 2006 demerger, combined with the 2018 diagnostics sale, systematically concentrated Orion on its highest-value activities.
4. Portfolio Discipline
Sequential divestitures—Noiro cosmetics, Oriola distribution, Orion Diagnostica—demonstrate management willingness to sacrifice scale for focus. This discipline freed capital and management attention for proprietary pharmaceutical development.
5. Long R&D Cycles, Patient Capital
From entacapone development in the 1980s to Stalevo approval in 2003 to Nubeqa blockbuster in 2024—Orion's history illustrates that pharmaceutical innovation requires multi-decade commitment. Finnish ownership structures and Nordic capital market expectations have enabled this patience.
XIV. Porter's Five Forces & Hamilton's Seven Powers Analysis
Porter's Five Forces
| Force | Assessment | Analysis |
|---|---|---|
| Threat of New Entrants | LOW-MEDIUM | Drug development costs ~$1-2B per molecule, 10-15 year timelines, and complex regulatory hurdles create massive barriers. Patent protection on key drugs provides temporary moats. However, biotech startups with novel mechanisms can emerge as competitive threats. |
| Bargaining Power of Suppliers | LOW | Orion's ownership of Fermion for API manufacturing provides vertical integration. All manufacturing sites and majority of R&D are in Finland, reducing dependency on external suppliers. |
| Bargaining Power of Buyers | MEDIUM-HIGH | Healthcare systems and payers have significant negotiating power, particularly in Europe. Price pressure in generics is intense. However, for innovative drugs like Nubeqa with proven efficacy, pricing power is stronger. |
| Threat of Substitutes | MEDIUM | In prostate cancer, competing androgen receptor inhibitors from Johnson & Johnson (Erleada) and Pfizer/Astellas (Xtandi) offer alternatives. Nubeqa's differentiated side effect profile provides some protection. |
| Competitive Rivalry | HIGH | Darolutamide is facing some entrenched, heavyweight rivals in the market for anti-androgen prostate cancer therapies, which is currently led by Johnson & Johnson with Zytiga and Erleada and Pfizer/Astellas' Xtandi. |
Hamilton's Seven Powers Analysis
| Power | Assessment | Application to Orion |
|---|---|---|
| Scale Economies | Moderate | Fermion's API manufacturing provides some scale benefits, but Orion lacks the scale of Big Pharma competitors. |
| Network Effects | Weak | Pharmaceutical markets generally lack network effects. |
| Counter-Positioning | Strong | Orion's "discover and partner" model positions it differently from both Big Pharma (which must commercialize everything) and pure biotech (which lacks manufacturing). |
| Switching Costs | Moderate | Physicians who prescribe Nubeqa may continue due to familiarity, but patients can switch at any time. |
| Branding | Moderate | Orion has strong brand recognition in Nordic markets and among neurologists (Parkinson's) and oncologists (prostate cancer). |
| Cornered Resource | Strong | Orion's deep expertise in CNS pharmacology and alpha-2 agonist chemistry represents accumulated knowledge that cannot be easily replicated. |
| Process Power | Strong | Fermion's HPAPI manufacturing capabilities and Orion's integrated drug development process provide sustainable cost and quality advantages. |
Competitive Landscape in Prostate Cancer
Darolutamide is facing entrenched, heavyweight rivals in the market for anti-androgen prostate cancer therapies, which is currently led by Johnson & Johnson with Zytiga (abiraterone acetate) and next-generation drug Erleada (apalutamide) and Pfizer/Astellas' Xtandi (enzalutamide). Astellas said that Xtandi made around $2.2bn in the first nine months of fiscal 2018/19, while J&J banked around $3.5bn from Zytiga in calendar 2018.
Nubeqa's differentiation—lower blood-brain barrier penetration and favorable side effect profile—provides competitive positioning, but the market remains intensely contested.
XV. Investment Considerations: Bull vs. Bear Case
Bull Case
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Nubeqa Growth Runway: With peak sales projected at €3.2 billion by 2029 and additional indication expansions (ARASTEP, DASL-HiCAP) in progress, Nubeqa could drive significant revenue growth for the next 5+ years.
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Pipeline Optionality: The Merck partnership for opevesostat (ODM-208) provides potential future upside. Under the terms of the new agreement, Merck is giving Orion the chance to make up to $30 million in development milestone payments and up to $625 million in regulatory milestones payouts. The Big Pharma is also offering sales-based milestone payments up to $975 million, plus yearly tiered royalty payments.
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Vertical Integration Advantages: Fermion's API manufacturing capabilities provide supply chain security and cost advantages increasingly valued post-pandemic.
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Defensive Portfolio: Easyhaler respiratory products and Parkinson's disease drugs provide stable cash flows while Nubeqa drives growth.
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Dividend Reliability: 18 consecutive years of dividend payments demonstrate shareholder-friendly capital allocation.
Bear Case
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Nubeqa Concentration Risk: With Nubeqa projected to contribute ~30% of revenue by 2025, Orion is increasingly dependent on a single product's success.
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Competitive Pressure: Entrenched rivals include Johnson & Johnson with Zytiga and Erleada and Pfizer/Astellas' Xtandi—all from larger, better-resourced competitors.
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Patent Expiration: Nubeqa is set to start losing patent protection in the 2030 to 2034 window.
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Partner Dependency: Orion's business model depends heavily on relationships with Bayer (Nubeqa) and Merck (opevesostat). Partner strategic shifts could affect Orion's economics.
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U.S. Tariff Risk: US import tariffs continue to be a hot topic worldwide, and there is a lot of uncertainty around the topic right now. The United States is an important market for Orion.
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Entacapone Pressure: The sales volume of entacapone products is recovering after challenging year 2023—indicating ongoing competitive pressure in the legacy Parkinson's franchise.
XVI. Key Performance Indicators to Monitor
For investors tracking Orion's ongoing performance, three KPIs matter most:
1. Nubeqa Royalty Income Growth Rate
As Orion's primary growth driver, the rate of Nubeqa royalty income growth directly indicates the drug's commercial trajectory and Orion's share of the blockbuster's economics. Watch for quarterly disclosure of Innovative Medicines division performance and Bayer's reported Nubeqa sales.
2. R&D Pipeline Milestones
Orion's future beyond Nubeqa depends on pipeline progression. Key programs to track include: - ARASTEP (darolutamide in biochemical recurrence prostate cancer) - Opevesostat/ODM-208 (Phase III trials with Merck) - ODM-212 (TEAD inhibitor in Phase I)
Clinical trial readouts, regulatory submissions, and partnership announcements signal pipeline health.
3. Operating Margin Expansion
As Nubeqa royalties scale with relatively fixed costs, operating margins should expand. The 2024 operating margin of ~27% (€416.6 million on €1,542 million revenue) provides a baseline. Continued margin expansion would validate the partnership model's operating leverage.
XVII. Conclusion: A Century of Patient Building
Orion Corporation's journey from a former margarine factory in 1917 to a €10+ billion market cap pharmaceutical company in 2025 defies conventional wisdom about the requirements for pharmaceutical success. The company built a blockbuster without massive scale, without U.S. headquarters, and without abandoning its Nordic roots.
The strategic playbook Orion developed—deep research expertise, vertical integration through Fermion, selective partnerships with global pharmaceutical companies, and patient capital for multi-decade development cycles—represents an alternative model to the Silicon Valley-style biotech approach of rapid scaling and early exits.
Partnering with large pharmaceutical companies in late-stage clinical development and commercialisation is a key business model for Orion. This model has now produced two major successes: Stalevo with Novartis and Nubeqa with Bayer.
Whether Orion can replicate this success with future molecules—including opevesostat with Merck and internal pipeline candidates like ODM-212—will determine whether the company remains a one-blockbuster story or establishes itself as a sustainable innovation engine.
For investors, Orion presents an unusual profile: a mid-cap pharmaceutical company with blockbuster exposure, defensive portfolio elements, meaningful dividend yield, and optionality on pipeline development. The Finnish manufacturing concentration that might concern some investors has proven to be a strategic asset, providing quality control, supply security, and an increasingly valued European production footprint.
One hundred and seven years after three pharmacists bet on Finnish pharmaceutical self-sufficiency, Orion stands as vindication of their vision—and a reminder that in pharmaceutical development, the most valuable asset is often simply time.
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