Interim report January – June 2017
EQL Pharma has had a weak quarter, which is in line with the outlook presented in the year-end report. The temporary recall of our top seller Hydroxyzin EQL Pharma has, as previously communicated, affected our sales and our results.
The quarter has been characterized by a high level of activity in business development. An agreement for in-licensing have been signed and final stage negotiations are ongoing for a handful of products in new development and in-licensing.
The pharmaceutical product Kaliumklorid EQL Pharma (potassium chloride tablets) has been approved by the Danish Medicines Agency. This is good news since the total turnover in the four Nordic markets is approximately 140 MSEK annually. Currently there is one generic competitor on the market in addition to the original Kaleorid® (LEO Pharma).
After the quarter, the drug Zonisamid EQL Pharma has been launched on the Danish market. An annual total turnover of approximately SEK 10 million in Denmark.
The drug Eletriptan EQL Pharma, after the end of the quarter, has also been approved within the framework of a so-called decentralized procedure. National approvals for Sweden and Denmark are expected in August / September.
April – June and January – June 2017
- Consolidated sales for the second quarter amounted to SEK 6.7 (4.6) million, an increase of 45%. For the period January – June the consolidated sales amounted to SEK 12.1 (17.5) million, a decrease of 31%.
- Gross profit for the quarter amounted to SEK 3.9 (4.0) million, a decrease of 4%. For the first six (6) months gross profit amounted to SEK 7.9 (12.0) million, a decrease of 34%.
- EBITDA for the quarter amounted to SEK 0.1 (0.5) million, a decrease of 87%. EBITDA for January – June amounted to SEK 0.4 (4.5) million, a decrease of 91%.
- Earnings per share were -0:01 (0:00) SEK for the quarter.
- Cash and cash equivalents was SEK 21.2 (31.0) million at the end of the period.
Significant events during the second quarter of 2017
- The pharmaceutical product Kaliumklorid EQL Pharma (potassium chloride tablets) has been approved by the Danish Medicines Agency within the framework of a so-called decentralized procedure (a common approval procedure used when more than one country is involved). The total turnover in the four Nordic markets is approximately 140 MSEK annually. Currently there is one generic competitor on the market in addition to the original Kaleorid® (LEO Pharma). EQL Pharma aims to start selling the product by Q1 2018 at the latest.
- EQL Pharma has received approval from Skatteverket during the quarter to extend the current financial year until 2018-03-31, in accordance with the decision of the Annual General Meeting.
Significant events after the second quarter of 2017
- The drug Zonisamid EQL Pharma has been launched on the Danish market. Zonisamid EQL Pharma is an anti-epileptic, and is used in the treatment of epilepsy. The original is called Zonegran (Eisai Limited). The total turnover of Zonisamid in Denmark is approximately SEK 10 million annually. Currently the original and 3 competitors are on the market.
- The drug Eletriptan EQL Pharma has been approved within the framework of a decentralized procedure (a common approval procedure used when more than one country is involved). Eletriptan is used in adults to treat migraine, with or without aura. The total turnover in Sweden and Denmark is approximately SEK 15 million annually. Currently, only the original Relpax (Pfizer) is available on the market in Sweden. In the Danish market, there are two generic competitors in addition to the original. EQL Pharmas goal is to start selling the product by Q1 2018.
EQL presentation of the pipeline 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.
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 nine 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 2017 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.