Slightly Raising Our Sobi FVE to SEK 203 Following Solid Second Quarter

Sobi reported solid second-quarter results that were in line with our expectations, and we're slightly increasing our fair value estimate to SEK 203 from SEK 192 per share after making small tweaks to our model and adjusting for the time value of money. Sobi saw a strong currency tailwinds in the quarter, with 21% reported top-line growth and 10% constant currency growth. Immunology franchise growth was flat, as summer demand for RSV prophylactic Synagis has been low (in keeping with normal seasonal sales) and there has been lower COVID-19-related demand for immunology drug Kineret. As a result, Sobi's revenue growth was driven by 16% hematology franchise growth in the quarter. Established hemophilia drugs Elocta and Alprolix saw mid-single-digit growth based on increased demand, and the launch of rare disease drug Aspaveli and significant sales of platelet drug Doptelet to China partner Fosun further boosted growth. Doptelet sales patterns and duration of growth in China are less predictable and add uncertainty to our forecast, but we're encouraged by global demand for the drug. In addition, while the launch of Aspaveli is still in early stages, Sobi and partner Apellis are making good progress moving the drug into additional phase 3 trials to expand its reach into new indications. We think Sobi is still in the process of building an economic moat.