How might the decline in Faun Pharma's external sales affect the overall profit margins and future revenue outlook?

Impact on Profit Margins – Faun Pharma’s external‑sales slump drags on the higher‑margin segment of Zinzino’s business. Since Faun’s products are typically sold at premium pricing and benefit from lower distribution costs, a decline translates directly into a compression of gross margin for the group. Even though the consolidated revenue still posted a 38 % YoY increase (driven by a 46 % surge in other sales markets), the margin contribution from Faun is likely to fall below its historical 60‑65 % range, pulling the consolidated gross‑margin down by an estimated 1‑2 percentage points. Operating expenses tied to the Faun unit (R&D, regulatory compliance, and sales‑force costs) are relatively fixed, so the margin hit could be amplified at the EBIT level, especially if the company does not quickly offset the shortfall with cost rationalisation.

Future Revenue Outlook & Trading Implications – The sales dip signals a potential structural head‑wind for Faun’s pipeline, whether due to competitive pressure, pricing pressures, or market saturation in its therapeutic niches. If the decline persists into Q4, analysts will likely downgrade the FY‑2025 revenue guidance for the Faun segment, which could shave 3‑5 % off the group’s total forecasted growth. From a trading perspective, the stock may experience short‑term pressure on the downside, particularly if the price is currently testing the 50‑day EMA or key support around SEK 200. However, the strong performance in the rest of Zinzino’s portfolio provides a cushion; a breakout above the recent high of SEK 260, coupled with a bullish RSI (>60) and rising volume, would suggest the market is discounting the Faun weakness and could present a buying opportunity on a pull‑back. Watch upcoming earnings calls for any revised guidance on Faun and for cost‑cutting measures that could mitigate margin erosion. If the company signals a clear turnaround plan—e.g., new product launches, geographic expansion, or partnership deals—consider a long position with a stop just below the 50‑day EMA to protect against further margin compression.