EQL Pharma: Year end report 2016
Fourth quarter and full year 2016
- Consolidated sales for the fourth quarter amounted to SEK 7.6 (6.2) million, an increase of 16%. Consolidated sales for the full year amounted to SEK 28.2 (26.9) million, an increase of 5%.
- Gross profit for the quarter amounted to SEK 4.2 (4.4) million and for the full year SEK 19.7 (18.5) million, a decrease of 3% and an increase of 6% respectively.
- EBITDA for the quarter amounted to SEK 0.2 (1.2) million, a decrease of 83%. For the full year EBITDA amounted to SEK 5.1 (5.5) million, a decrease of 7%.
- Earnings per share were -0:01 (0:04) SEK for the full year.
- Cash and cash equivalents was SEK 27.4 (27.1) million at the end of the period.
Significant events during the fourth quarter of 2016
- Cadila Pharmaceuticals subscribed 973,000 for warrants (TO 3) during the quarter, giving SEK 6.3 million in proceeds to EQL. Cadila owns 29.9 percent of capital and votes in EQL Pharma after the transaction
- During the quarter Alexander Brising joined the company as head of business development. Before joining, Alexander Brising has had a series of managerial positions in marketing and business development in the pharmaceutical industry. He joins EQL form a management position at Sandoz Nordic headquarters in Copenhagen. He has an MBA from the Gothenburg School of Economics.
- During the quarter Catarina Hjelm joined EQL with a focus on project management and regulatory affairs, with an emphasis on our development projects in India. Catarina joins from the Department of Clinical Genetics and previously worked at AstraZeneca. She has a Master's degree in Chemistry and Mathematics from the University of Lund.
- EQL Pharma received the its MA for the pharmaceutical Zonisamide EQL Pharma in the fourth quarter. Zonisamide EQL Pharma is an anti-epileptic for the treatment of Epilepsy.
EQL has had a quarter with slightly better sales but somewhat lower margin than Q4 2015. During the quarter, provisions have been made of approximately KSEK 300 for products where the dissolution profile is on the margin of out of specification. During the quarter, EQL also made a write-off of unprofitable parallel import products, a one-time effect of approximately KSEK 200.
Development projects have progressed well during the quarter and we expect a good number of MAA:s during the year. During 2017 EQL will issue press releases when the submission of an MAA has been made to the authorities. The pipeline of products, which is presented below, is moving materia and we are in an intensive phase with many ongoing negotiations.
During the quarter two new employees started, Alexander Brising as Head of Business Development and Catarina Hjelm responsible for project management and regulatory affairs with particular focus on development projects in India.
EQL intends to present our pipeline of products throughout 2017. The presentation is at a high level and does not include the names of individual products nor the products' current or expected market size. Our intention is to provide better guidance to shareholders without divulging information to competitors and without implying that the pipeline is interpreted as a financial outlook. Our intention is to update the information regularly, mainly in the quarterly reports.
Phone: +46 46 12 01 70
About EQL Pharma
EQL Pharma is specialized in developing and selling generics, i.e. drugs that are medically equivalent to the original medicines. The company currently markets five niche generics in the Swedish, Danish and Finnish markets. In addition to these, there is a significant pipeline of additional niche generics for launch in 2017 and onwards. The business is currently entirely focused on prescription pharmaceuticals in the Nordic region. EQL Pharma is based in Lund, Sweden, employs 8 (6) people and is listed on AktieTorget. EQL Pharma also conducts extensive development in cooperation with leading contract manufacturers developers and major pharmaceutical companies in, amongst other countries, India and China.