Interim report January - March 2015

- Net sales were SEK 70.8 (44.5) million.
- EBITDA for the period, adjusted for currency effects, was SEK 2.8 (-10.0) million.
- Basic earnings per share amounted to SEK -0.06 (-0.24)

SIGNIFICANT EVENTS
Increase in net sales and gross profit
- Net sales increased 59% to SEK 70.8 million
- Gross profit increased 144% to SEK 32.9 million

Growth potential in the product portfolio
- First registration application for internal development project submitted
- Three products licensed during the first quarter

Outlook for 2015
- Continued growth in net sales and improved gross margin
- Positive EBITDA

OPERATIONS
For the first quarter of 2015, net sales were significantly higher than the same period last year and growth also continued beyond the fourth quarter of 2014. Growth in net sales during the first quarter is, for the most part, due to the launch of existing products in new markets, primarily Spain, along with higher market share in established markets such as Sweden. Revenue in the first quarter is also associated with a higher-than-average gross margin. Furthermore, gross profit in the first quarter was higher than the level for fourth quarter 2014, which has resulted in positive EBITDA of SEK 3.7 million for the period.

Continued success in Spain
In January 2014, Servicio Andaluz de Salud (SAS), the state health authority in Spanish Andalusia, became one of Bluefish's most important customers. The first contract with SAS runs from January 2014 and the second from November 2014. Both are valid for a two-year period. These contracts make Bluefish an exclusive and semi-exclusive supplier of a number of products to Andalusia, which is the largest of Spain's 17 independent regions. During the first quarter of 2015, Bluefish was again selected as supplier for another two products in a contract with two-year duration. The first deliveries are planned for the second quarter of 2015. The agreements with SAS add major growth potential for the company's operations in Spain, where the value of net sales for the three contracts amount to a total of SEK 110 million.

Growth potential in the product portfolio
During the quarter, the product portfolio grew with the addition of three licensed products that are expected to be launched in 2016. Several of the company's own development projects are now in the final phase of development. At the end of March, the company submitted the registration dossier for one of its development products. This decentralised procedure will include several of Bluefish's most important markets, with launches expected during 2016. The registration applications for another development project is planned for the third quarter of 2015. The development project is expected to contribute to growth in net sales starting in 2016. For competitive reasons, the company has decided not to release the names of the new products prior to their launch. However, several of the newly licensed products and in-house development projects are focused on regional or country-specific opportunities, typically in niche areas where lower competition and higher gross margins prevail.  

To increase competitiveness and improve gross margins, the company continually strives to optimise the product portfolio by, for example, introducing additional commodity manufacturers and consolidating manufacturing for existing products. As part of that effort, and to both better utilise and improve the level of company expertise, Bluefish has set up a formulation and analysis lab that also has equipment for conducting stability studies for internal tests and requirements from new markets. It is located at the company's technology and development centre in Bangalore. The new development centre also makes it possible for the company to, each year, pursue a limited number of own development projects. It is also possible to increase the size of the centre in line with future expansion. 

OUTLOOK
Over the year, net sales will fluctuate from quarter to quarter. However, the company expects net sales for the full year 2015 to increase compared to 2014. Growth originates from prior contracts, planned product launches and an overall increase in market share. Additionally, gross margin is expected to surpass last year's level.

For more information, contact

Karl Karlsson, President & CEO Bluefish Pharmaceuticals
Tel. 46 8 519 116 00
Email: karl.karlsson@bluefishpharma.com

Susanna Urdmark, CFO Bluefish Pharmaceuticals
Tel. 46 8 519 116 00
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 a large number of European markets and is expanding into territories outside Europe. The product portfolio consists of a total of approximately 80 products and is growing.

www.bluefishpharma.com