Quarterly Report January – March 2017
January – March 2017
· Consolidated sales for the first quarter amounted to SEK 5.3 (12.9) million, a decrease of 58%.
· Gross profit for the quarter amounted to SEK 4.1 (8.0) million, a decrease of 49%.
· Gross profit for the quarter amounted to SEK 0.3 (4.0) million, a decrease of 92%.
· Earnings per share were 0:00 (0:15) SEK for the quarter.
· Cash and cash equivalents was SEK 25.6 (26.6) million at the end of the period.
Significant events during the first quarter of 2017
The European Medicines Agency EMA recommended a temporary withdrawal of several drugs for which bioequivalence studies were conducted at Micro Therapeutic Research Labs, India, due to potential issues with data handling. Among the drugs involved are EQL Pharma’s hydroxyzine products in Sweden and Denmark. The temporary withdrawal is in force until new study data has been presented and approved. This is estimated to take approximately one year. The loss of income for 2017 is expected to be 3-4 MSEK, which is expected to impair earnings by around 2 MSEK.
Significant events after the first quarter of 2017
The drug Potassium chloride EQL Pharma has been approved by the Danish Medicines Agency in a DCP. National marketing authorisations for Sweden, Denmark, Norway and Finland are expected within a month. The total turnover in the four markets is around 140 MSEK annually. Currently there is one generic competitor in addition to the original Kaleorid® (LEO Pharma). EQL Pharma’s goal is to start selling the product by Q1 2018.
EQL has had a quarter that compared to the record quarter 2016 is significantly weaker, in line with the financial goal for 2017 from the year-end report. During the quarter, our top seller EQL Hydorxyzine, has been recommended for temporary withdrawal by EMA. This will affect our turnover for the full year by SEK 3-4 million and impair earnings by approximately SEK 2 million.
The quarter has been characterized by high degree of activity in business development. Several products are in the final stages of negotiation booth for in-licensing and for new development. EQL expects to close most of these negotiations in the next few quarters. After the quarter EQL signed one new products, bringing the total pipe-line to 31.
The existing development projects have also developed well in the quarter and we expect that several of these will be submitted to the authorities in the Nordic during the year.
After the end of the first quarter, the important potassium chloride product, EQL Potassium chloride, has been blant approved in a DCP covering Sweden, Denmark, Finland and Norway. Turnover in the Nordic region is around 140 MSEK, with sales start for EQL in 2018.
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.
For further information, please contact Christer Fåhraeus, tel . +46 755 55 12 95
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 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.