July 29, 2014 / 10:16 AM / 3 years ago

UPDATE 1-Drug maker Orion's Q2 profit rises on Bayer, Takeda payments

* Q2 EBIT 86 mln euros vs 61 mln a year ago

* Result boosted by one-off payments from Bayer and Takeda

* Shares flat, having risen 16 pct since Bayer deal (Adds share reaction, analyst comment)

HELSINKI, July 29 (Reuters) - Finnish drug maker Orion reported a 41 percent rise in second-quarter operating profit, boosted by one-off payments from Germany’s Bayer and Japan’s Takeda.

Operating profit in April through June increased to 86 million euros ($116 million) from 61 million in the same period a year earlier, including 23 million euros of payments from a prostate cancer drug development deal with Bayer.

It also included a previously unannounced payment of 6 million euros from Takeda, which was related to marketing authorisations.

The result beat Reuters poll forecast of 67 million euros but some of the one-off gains were unexpected.

“The reported results included 29 million of one-off gains, so underlying profit fell somewhat from a year ago,” Kimmo Stenvall, analyst at Pohjola, said.

Shares in the company were flat by 0950 GMT. They have risen 16 percent since Orion announced the Bayer deal last month.

“There are pretty strong expectations in the share price on this one deal with Bayer,” said Stenvall, who has a “sell” recommendation on the stock.

Orion repeated the outlook it gave in June, saying it expected this year’s sales and operating profit to be at the same level as in 2013. ($1 = 0.7442 Euros) (Reporting by Jussi Rosendahl; Editing by Sakari Suoninen and David Holmes)

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