Interim report January - September 2012


  • Net sales amounted to SEK 125.5 million (103.7)
  • EBITDA was SEK -27.3 million (-13.5)
  • Earnings per share totaled SEK -0.94 (-0.75) before dilution


  • Net sales amounted to SEK 44.7 million (38.7)
  • EBITDA was SEK -7.1 million (-4.3)
  • Earnings per share totaled SEK -0.24 (-0.27) before dilution


Continued net sales growth
- Net sales growth in Q3 amounted to 15 %
- New important tenders awarded in the German market

Key initiatives to strenghten efficiency in supply and distribution to improve inventory levels
- Inventory writedowns of SEK 2.8 million included in period’s result
- New agreement signed with PostNord (former Green Cargo) regarding central warehousing

Reduction in operating costs
- Operating costs declined by 15 % in Q3 compared to prior quarter
- Well positioned organisation for continued growth


The company’s rapid expansion has resulted in significant growth since the intial launch in April 2008. The compounded annual growth rate as of the third quarter between 2009 and 2012 was 75%. This has been achieved by growing the product portfolio and entering more markets.

Net sales during the first nine months amounted to SEK 125.5 million, corresponding to an increase of 21% compared to the first nine months in 2011. Net sales during the third quarter amounted to SEK 44.7 million, an increase by 15% compared to the same period last year. This is equivalent to a rolling-12-months net sales of SEK 167 million.

The rapid expansion has required a significant build-up in inventory to meet local demand, where physical inventory has been handled through third parties in local markets. As of 30 June 2012, total inventory amounted to SEK 130.7 million. As the company has matured, we have seen a greater need to streamline the logistics functions. Consequently, since the beginning of 2012, we have had a strong focus on improving the efficiency in product supply and distribution with the aim to lower the inventory/sales ratio. This includes switching to manufacturers with shorter leadtimes, and optimizing the storage, transportation and distribution of goods. These initiatives are time consuming to implement, but we are beginning to see the initial results. With a decrease during the period of SEK 5.9 million the inventory level is coming down to SEK 124.8 million as of 30 September, 2012.

In June, the company signed a new agreement with PostNord (former Green Cargo Logistics) for storage, handling and transportation of products to Bluefish customers in the Nordic region and to the rest of Europe. The new setup will be gradually implemented during the autumn and is expected to be fully operational in early 2013. This will result in a central warehouse and lower levels of inventory kept at local distribution sites.

In connection with the integration of the company’s business system with PostNord’s, Bluefish carried out a physical inventory at all local sites during the third quarter, which resulted in total writedowns of SEK 2.8 million. This is equivalent to approximately 2% of the total inventory value. The writedown primarily reflects expired goods, and goods with too short shelf life remaining to be able to sell.  

The adjustments in inventory has had a negative impact on profitability in the period. Gross margin in the third quarter was 18%. However, excluding the effects of the inventory adjustments, the underlying gross margin amounted to 24%.

As expected, the increase in operating costs have continued to slow down during the third quarter. Total operating costs, excluding amortization and depreciation, amounted to SEK 15.2 million (14.3) during the third quarter, which is a decline of 15% compared to the second quarter 2012. This is partly a seasonal effect, resulting from lower activities during the summer months, but well in line with the company’s ambition to constrain operating cost in order to improve profitability. Total operating costs, excluding amortization and depreciation for the first nine months amounted to SEK 51.4 million (42.2), equivalent to an increase of 22 % compared to the same period last year.

As market shares increase and the product offering grows, Bluefish expects a gradual increase in net sales throughout the year. The company is actively seeking to improve the gross margin by realizing greater efficiencies within logistics and distribution but also through an improved product mix. The existing organizational structure is well prepared for the expected increase in volumes during the rest of 2012 and next year.


New tenders awarded in the German market
During the period, Bluefish won the Barmer, GWQ, SpectrumK and IKK classic tenders in Germany for Alendronate, Bicalutamide, Donepezil, Ibandronate, Letrozol, Risedronate, Sumatriptan and Valaciclovir. The contracts are valid for 24 months and intital supply begins in November 2012. The tenders are mainly semi-exclusive with three winners, with the exception for GWQ for Valaciclovir where Bluefish won exclusivly. Barmer has a market share of 12.3%, GWQ 10.6%, SpectrumK 10.4% and IKK classic 5.1%.

Approval on reimbursement list in Poland
After a considerably amount of effort and time, Bluefish has finally got the full portfolio of 13 products approved on the reimbursement list in Poland, which is expected to result in increased sales volumes and an improved gross margin.

For more information contact,

Karl Karlsson, President & CEO Bluefish Pharmaceuticals
Tel. 46 8 519 116 20

About Us

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 80 products and is growing. The company is owned by its founder Karl Karlsson, together with a number of investment funds and private investors.


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