Shares of OPKO Health (NASDAQ: OPK) tumbled 5.80% in pre-market trading on Thursday following the release of the company's first-quarter 2025 financial results. The biotechnology and diagnostics firm reported a wider-than-expected net loss and lowered its revenue guidance for its government-funded programs, sparking investor concerns.

OPKO Health reported a net loss of $67.6 million, or $0.10 per share, for Q1 2025, compared to a net loss of $81.8 million, or $0.12 per share, in the same period last year. While the loss narrowed year-over-year, it still fell short of analyst expectations. The company's total revenue for the quarter was $149.9 million, down from $173.7 million in Q1 2024.

Several factors contributed to the stock's decline: 1. Reduced BARDA revenue guidance: OPKO lowered its full-year 2025 revenue expectations from its Biomedical Advanced Research and Development Authority (BARDA) programs to $38-44 million, down from the previous guidance of $40-48 million. 2. NGENLA profit share decline: The company reported a lower profit share from Pfizer for its growth hormone drug NGENLA, with $4.5 million received in Q1 2025 compared to $5.6 million in Q1 2024. 3. Ongoing restructuring: OPKO continues to restructure its Diagnostics segment, including the sale of its oncology and related clinical testing assets to LabCorp. While this is expected to improve profitability in the long term, it has resulted in reduced revenue in the short term. 4. Convertible debt exchange: The company completed a convertible debt exchange that resulted in the issuance of approximately 121 million new shares, potentially diluting existing shareholders.

Despite these challenges, OPKO Health's management remains optimistic about the company's future prospects. They highlighted progress in their pharmaceutical pipeline, including advancements in their GLP-1/Glucagon agonist program for obesity and NASH, and ongoing clinical trials for their Epstein-Barr virus vaccine candidate in collaboration with Merck.