Year-end report 2010

JANUARY – DECEMBER 2010

• Net sales amounted to SEK 92.7 million (37.3)
• EBITDA was SEK -6.8 million (-21.0)
• Earnings per share totaled SEK -0.60 (-0.99) before dilution

OCTOBER – DECEMBER 2010

• Net sales amounted to SEK 27.8 million (12.0)
• EBITDA was SEK -2.2 million (-3.6)
• Earnings per share totaled SEK -0.16 (-0.21) before dilution

HIGHLIGHTS

Strong top-line growth
- Net sales growth of 149 % compared to 2009
- Increased market shares, new product launches and new market entries during 2010

Significant improvement in profitability
- Underlying gross margin of 33.8% for the year
- Adjusted EBITDA of SEK -4.3 million for 2010

Outlook for 2011
- Significant increase in sales from new markets
- Continued strong growth in net sales balanced with EBITDA profitability

BUSINESS UPDATE

Bluefish was founded with the objective to become a pan-European generic pharmaceutical company, leveraging the business model in multiple European markets and building a global supply chain for large volumes. During the past year, Bluefish has reached the initial goal of creating a pan-European business. During 2010, the company launched products in Italy, Poland, Hungary, Czech Republic, Slovakia, Portugal, Greece, Spain and Romania. With new launches planned for France and Ireland in 2011, the company will be present in 19 European markets. Also, during the year, Bluefish has launched seven new products and a total of 21 products have now reached the market. As a result, the company reached net sales of SEK 92.7 million in 2010, corresponding to an annual increase of 149% compared to 2009. Net sales did not reach the target of SEK 100 million that was communicated in February 2010 for two main reasons. The summer months were slower than expected, and the planned launch of anastrozole in August 2010 was delayed due to pediatric extension of the market exclusivity for the original product to February 2011.

Growing in new markets
In new markets, launch volumes are typically limited. However, as the marketing organization gains further market knowledge, sales contribution from new markets is expected to grow. We have now created the necessary platforms and infrastructure for the local markets and our most important challenge is now to increase market share. We intend to achieve this through continuing to deliver premium generic pharmaceuticals at affordable prices together with hard work and dedication by our co-workers and local partners. Today, Bluefish is the fastest growing and one of the seven largest generic companies in Sweden. Our goal is to extend this achievement to other markets and to become a natural choice among distributors and pharmacies.

One of Bluefish key strengths is the company’s flexibility and ability to address new market opportunities. In a dynamic marketplace, choosing the right marketing model is crucial to build a successful business. The tender business is becoming increasingly more common in Europe and the company is actively seeking to participate in these new market opportunities where applicable. However, in countries with more traditional selling channels, Bluefish has established partnerships with existing marketing organizations to market the products. Similarly, with its broad presence in Europe, Bluefish has become an interesting partner for companies that do not have their own marketing organization. During 2010, Bluefish has entered a number of distribution agreements where the company will market products on a profit-split basis.

Extending the product portfolio
Our product portfolio is the foundation for future growth and profitability. During 2010, we have continued to invest in another three product licenses, all within large therapeutic areas. In addition, an important milestone has been reached as the company has initiated three in-house development projects of generic products within niche segments, which include areas with interesting regional opportunities where competition is limited and margins are healthy. To run these projects, Bluefish has created an internal development function and hired people with the necessary skills and experience who together with selected contract development partners are responsible for developing these products. The aim is to have these products ready for filing in 2012.

Growth balanced with EBITDA profitability
The company’s ambition is to balance growth opportunities with a consistency of EBITDA profitability. Despite considerably higher operating expenses in 2010 compared to 2009, profitability has improved substantially. As the company’s gross profit has increased by 148%, reported EBITDA for 2010 amounted to SEK -6.8 million compared to SEK -21.0 million in 2009. During the year, profitability has been negatively affected by a onetime stock adjustment of SEK 2.5 million due to a correction of the stock count at year end 2009. Adjusted for this item, the underlying gross margin was 33.8% and EBITDA was SEK -4.3 million. Currencies of SEK 3.9 million have benefited the results during 2010.

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: suanna.urdmark@bluefishpharma.com

www.bluefishpharma.com