Interim report January – December 2017
EQL Pharma has extended the current fiscal year 2017 through 31 March 2018, why the fiscal year will contain five quarters. Therefore, EQL Pharma's year-end report will be presented in conjunction with the Q5 report in May 2018.
The period January - December 2017 shows figures that are broadly consistent with our financial targets for the calendar year.
During the quarter, EQL Pharma signed a three-year cooperation agreement with a leading generic company regarding the drug Potassium chloride. The cooperation means benefits for EQL Pharma in terms of reduced working capital and higher penetration in the market. The cooperation takes place through a profit sharing where the parties get a predefined percentage.
The launch of potassium chloride in Sweden and Denmark is expected to take place during the first six (6) months of 2018, followed by Norway and Finland in 2019.
The quarter is characterized by continued development of our portfolio, and in total our pipeline has been expanded with two products. Here, both licensed products and development products are represented.
EQL Pharma has for many years been representing the Mometason Glenmark product on the Swedish market. Glenmark themselves will gradually take over the product on the Swedish market. At the end of the year one of the strengths sold out from our warehouse. The remaining strengths will be phased out during the first quarter of 2018. The phase over is in line with EQL's long-term strategy to hold our own marketing permits for our products.
October – December and January – December 2017
- Consolidated sales for the fourth quarter amounted to SEK 7.8 (7.6) million, an increase of 2%. For the period January – December the consolidated sales amounted to SEK 26.9 (28.2) million, a decrease of 5%.
- Gross profit for the quarter amounted to SEK 5.3 (4.2) million, an increase of 26%. For the period January - December gross profit amounted to SEK 17.9 (19.7) million, a decrease of 9%.
- EBITDA for the quarter amounted to SEK 0.5 (0.2) million, an increase of 171%. EBITDA for January – December amounted to SEK 1.9 (5.1) million, a decrease of 63%.
- Earnings per share were 0:01 (-0:01) SEK for the quarter.
- Cash and cash equivalents was SEK 11.5 (27.2) million at the end of the period.
Significant events during the fourth quarter of 2017
- In October, Katarina Wallentin was employed as Senior Regulatory Affairs Manager. Katarina has a B.Sc in Chemistry from Lund University and over 10 years of experience in Regulatory Affairs from various positions in addition to 14 years as an analytical chemist.
- During the fourth quarter, EQL Pharma signed a three-year cooperation agreement with a leading generic company regarding the drug Potassium chloride. The agreement means that the sales of the drug in the Norwegian, Danish and Finnish markets will be handled by the partner. EQL estimates that the profitability will be similar, whether EQL Pharma sells on its own or through the partner. However, other benefits such as reduced working capital need and a better penetration on the market, speaks in favour of the cooperation.
Significant events after the fourth quarter of 2017
- In mid-January, Axel Schörling took over the position of COO at EQL Pharma. Axel has a background as management consultant at BearingPoint and comes from a role as Director of Perstorp's Business Controlling team. Altogether, he has extensive experience from several industries and assignments within the logistics and supply chain from an operational / financial perspective. He holds a MEng in Engineering Physics from Chalmers and a MSc in Financial Economics from the Gothenburg's School of Economics. Axel will play a key role in EQL's continued development and expansion.
For further information, please contact:
CEO EQL Pharma AB (publ)
Phone: +46 (0) 705 – 60 90 00
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 eight (8) niche generics in the Swedish, Danish and Finnish markets. In addition to these, there is a significant pipeline of additional niche generics (generics with little or no competition except for the original) for launch in 2018 and onwards. The business is currently entirely focused on prescription pharmaceuticals in the Nordic region. EQL Pharma is based in Lund, Sweden, employs 7 (8) 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.