Interim report January-March 2012

  • Net sales amounted to SEK 42.2 million (27.5)
  • EBITDA was SEK -6.8 million (-3.6)
  • Earnings per share totaled SEK -0.29 (-0.17) before dilution

HIGHLIGHTS

Continued top-line growth

  • Net sales increased by 54% compared to Q1 2011
  • A larger portfolio together with growing market shares behind growth in net sales

Gross margin affecting EBITDA profitability

  • Seeking to improve the gross margin by realizing greater efficiencies
  • Operating costs in line with expectations

Operations well funded

  • New credit facility of SEK 85 million from SEB implemented in March
  • New share issue to provide SEK 75 million

BUSINESS UPDATE

During the first quarter 2012, Bluefish has continued to strengthen its position by building market share in local markets. The development in the Nordic markets and Germany has been particularly strong. This has resulted in a continued solid year-over-year growth in net sales. Net sales during the first quarter  amounted to SEK 42.2 million, an increase by 54% compared to the same period last year. This is equivalent to a rolling-12-months net sales of SEK 160 million. Gross profit amounted to SEK 11.5 million (8.7) in the first quarter, corresponding to a gross margin of 27.2% (31.5). Gross profit has been been negatively impacted by temporarily lower than expected margins in some of the markets, in particular Denmark and the Netherlands. The company is actively seeking to improve the gross margin by realizing greater efficiencies within logistics and distribution but also through an improved product and market mix. As a result of launching many new products in several new markets, during 2011, the company’s inventory increased significantly, which had a significant impact on the company’s cash flow. During the first quarter 2012, the rate in increase in inventory has been reduced and the change in working capital amounted to SEK 2.1 million.

Continued investments in development projects
The company’s strategy is to complement the existing portfolio of blockbuster products by extending the range of niche products within more narrow disease areas and for regional treatment principles in market segments that offer higher margins. During the last two years, Bluefish has built an in-house formulation development team which currently consists of seven people with extensive experience. In addition, contribution from other in-house competences increase as the projects advance through the different development phases. Regulatory expertise is being consulted to provide the optimal filing strategy, while the technology transfer team is engaged in the evaluation of potential manufacturing partners and also carry out the tech transfer of each project. For each project, Bluefish selects a development partner with experience and expertise that is relevant to each project. Holding the full rights to the new formulations gives the company global access, full control of the supply chains as well as new business opportunities.

Outlook
As market shares increase and the product offering grows, Bluefish expects a gradual increase in net sales throughout the year. As a result, the company expects continued strong growth in net sales in 2012. Meanwhile, the company is seeking to improve the gross margin through greater efficiencies within supply and logistics. The existing organizational structure is well prepared for the expected increase in volumes during 2012. Thus, the operating costs are expected to increase at a considerably lower rate than during 2011 and also compared to the expected growth in net sales for 2012.

For more information contact,

Karl Karlsson, President & CEO Bluefish Pharmaceuticals
Tel. 46 8 519 116 20
Email: karl.karlsson@bluefishpharma.com

Susanna Urdmark, CFO Bluefish Pharmaceuticals
Tel. 46 8 519 116 21
Email: susanna.urdmark@bluefishpharma.com

About Bluefish Pharmaceuticals
Bluefish has undergone significant international expansion since the company was founded in 2005. Bluefish focuses on the development, manufacture and sale of generic pharmaceuticals. The company conducts marketing operations in 19 European markets and has a technology center in Bangalore, India. The product portfolio consists of a total of 80 products and is growing.

www.bluefishpharma.com

About Us

Bluefish has undergone significant international expansion since the company was founded in 2005. Bluefish focuses on the development, manufacture and sale of generic pharmaceuticals. The company conducts marketing operations in a large number of European markets and is expanding into territories outside Europe. The product portfolio consists of a total of 80 products and is growing. The company is owned by its founder Karl Karlsson, together with a number of investment funds and private investors.

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