Opko Health Inc

OPKO Health expanded its financing relationship with HealthCare Royalty, a business of KKR, issuing an additional $125 million in senior secured notes secured by the royalty stream tied to mazdutide, the GLP-1 drug OPKO licensed to Eli Lilly and now collects royalties on in China. The notes mature in 2044, matching the maturity of OPKO's original HCRx notes, and give the company fresh capital without selling a single new share. Total payments under the expanded deal are capped at 1.5 times the amount OPKO actually receives, after which OPKO keeps the future royalty economics on that stream for itself. Mazdutide is commercialized in China by Innovent Biologics, and OPKO recorded its first mazdutide royalty revenue in 2025 after the drug's China launch. On July 27, OPKO reported second-quarter revenue of $163.5 million, up from $156.8 million a year earlier, and a net loss of $8.4 million, or a penny a share, a sharp improvement from the $148.4 million loss in the same 2025 quarter, while diagnostics revenue fell to $74.5 million from $101.1 million after the sale of its oncology assets to Labcorp in September 2025.

Cocrystal Pharma, a clinical-stage biotech developing broad-spectrum antivirals, is undergoing a strategic reset that investors may be overlooking, highlighted by the appointment of veteran biotech executive James Sapirstein as CEO and a $5 million investment from OPKO Health. Sapirstein, who has led or participated in 23 product launches and previously served as CEO of Tobira Therapeutics, replaced the co-CEO structure on June 3, 2026, with Sam Lee becoming President and Chief Scientific Officer. The company's chairman, Nobel laureate Roger Kornberg, emphasized that the board had known Sapirstein for years, suggesting a deliberate recruitment. OPKO's investment, led by billionaire Phillip Frost, who is also a Cocrystal co-founder and director, came through a private placement of 5,474,053 shares at $0.9134 per share, with no warrants or derivatives attached. Cocrystal's lead candidate, CDI-988, an oral antiviral for norovirus, has received FDA Fast Track designation and is in a Phase 1b challenge study, with topline data expected late in the fourth quarter of 2026. The company had $2.1 million in cash at the end of Q2, and with the new infusion, has about seven months of runway. Despite a market cap of $21 million and an accumulated deficit of over $347 million, the strategic moves, including a board with deep pharma experience, position the company for potential value creation, though the thesis partly relies on speculation about future acquisitions.

OPKO Health shares have fallen 9.7% since its second-quarter earnings report, underperforming the S&P 500. The company reported a loss of 1 cent per share, beating the Zacks Consensus Estimate of an 8-cent loss, while revenues rose 4.3% year over year to $163.6 million, surpassing estimates by 24.7%. The beat was driven by a 59.8% jump in pharmaceutical revenues to $89 million, partially offset by a 26.3% decline in diagnostics service revenues to $74.5 million following the sale of oncology assets to Labcorp. Management raised its full-year 2026 revenue guidance to $560-$585 million from $530-$560 million and lowered its cost outlook to $710-$740 million. The company repurchased $13.2 million in stock during the quarter, leaving $94.7 million available for future buybacks.

OPKO Health secured $125 million of additional financing against mazdutide royalties, adding non-dilutive capital while keeping long-term participation in royalty growth in China. The company expanded its financing relationship with HealthCare Royalty, a KKR business, by issuing $125 million of additional senior secured notes backed by royalty interests from its mazdutide license agreement with Eli Lilly and Company, with the notes maturing in 2044. Total payments on the new financing are capped at 1.5 times the funded amount, giving OPKO defined economics while avoiding a full sale of its mazdutide royalty interest. The financing arrives as OPKO continues to fund multiple clinical programs, with research and development expenses of $33.2 million in the second quarter of 2026, up 9.3% year over year, and full-year R&D spending expected to remain between $125 million and $135 million. OPKO ended the second quarter with $314.4 million in cash, cash equivalents, marketable securities and restricted cash, and currently carries a Zacks Rank #3 (Hold).

Cocrystal Pharma has secured a $5 million investment from longtime investor OPKO Health through a private placement. Cocrystal sold 5,474,053 shares of its common stock to OPKO at $0.9134 per share, with no warrants or other derivative securities included. The company expects to report topline data from its Phase 1b norovirus trial by the end of the fourth quarter of 2026. OPKO Health Chairman and CEO Dr. Phillip Frost said the additional investment reflects continued conviction in Cocrystal's science and its path forward.

Opko Health shares surged more than 33% on Tuesday after the company reported second-quarter results that beat analyst estimates and raised its full-year revenue guidance. Revenue rose 4% year over year to $163.5 million, well above the consensus estimate of just over $131 million, while the net loss narrowed to $8.4 million, or $0.01 per share, compared with a loss of over $148 million a year earlier and analyst expectations of a $0.08 per-share loss. The pharmaceuticals business saw revenue jump to $89 million from under $56 million, helped by higher sales volumes and a $29.4 million licensing gain, while diagnostics revenue fell to $74.5 million from $101.1 million after the divestiture of oncology assets. Opko raised its 2026 revenue guidance to a range of $560 million to $585 million, up from the prior forecast of $530 million to $560 million and above the analyst consensus of just under $537 million.

Applied Digital, Celestica, and OPKO Health were among Tuesday's biggest stock gainers after each reported quarterly results that beat expectations and raised their forward guidance. Applied Digital shares rose 4% as the AI infrastructure company posted a 407% year-over-year revenue surge to $258.7 million and adjusted earnings of $0.04 per share, driven by the on-time deployment of 175 megawatts of AI capacity at its Polaris Forge campus. Celestica gained 4% after revenue jumped 62% to $4.7 billion and adjusted EPS of $2.54 topped estimates, prompting the electronics manufacturer to lift its full-year 2026 revenue forecast to $20.5 billion and adjusted EPS outlook to $11.30, with management citing strong AI infrastructure demand and expecting 2027 revenue growth to accelerate further. OPKO Health climbed 9% as the company beat second-quarter revenue and earnings estimates, raised its full-year 2026 revenue guidance to a range of $560 million to $585 million, and narrowed its net loss to $0.01 per share, supported by a roughly 60% increase in pharmaceutical revenue that included $33.6 million in royalties and milestone payments. On the losing side, Aehr Test Systems fell 5% after filing a mixed shelf registration that investors viewed as a potential source of future dilution, while Universal Health Services slipped 4% after cutting its full-year 2026 non-GAAP EPS guidance to a range of $22.28 to $23.65 and reporting second-quarter earnings below expectations amid a 9% rise in operating expenses to $4.1 billion.

Entera Bio announced a securities purchase agreement for an oversubscribed private placement expected to generate approximately $275 million in gross proceeds. The company will issue 122.96 million ordinary shares and pre-funded warrants to purchase up to 11.84 million ordinary shares at $2.04 per share, with closing expected on or about July 28. Proceeds will fully fund the Phase 3 registrational program of EB613, an oral PTH 1-34 tablet for osteoporosis, through a planned New Drug Application submission, and support Phase 1 development of EB612 for hypoparathyroidism in collaboration with OPKO Health. The financing is led by existing investor BVF Partners and includes new investors such as Longitude Capital, Vivo Capital, TCGX, and others. Entera shares surged 73.66% to $3.56 following the announcement.

Zacks Investment Research recommends retaining OPKO Health shares, citing Rayaldee's steady performance and advancing pipeline programs. Rayaldee generated $6.3 million in first-quarter 2026 revenues, while the company's ModeX platform is progressing multiple early-stage candidates including MDX2001, MDX2003, MDX2004, and the BARDA-funded MDX2301. OPKO also expanded its partnership with Nicoya Therapeutics, gaining a 15% equity stake and preserving up to $115 million in milestones for Rayaldee commercialization in Greater China. However, the firm notes risks from continued operating losses, clinical and regulatory uncertainty, and overdependence on Rayaldee. The Zacks Consensus Estimate for 2026 loss per share remains stable at 29 cents, with second-quarter 2026 revenue estimated at $131.1 million.