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Interim report 2 July - September 2018

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July – September and April - September

  • Consolidated sales for the second quarter amounted to SEK 13.3 (7.0) million, an increase of 89%. During the first six months consolidated sales amounted to SEK 23.9 (13.8) million, an increase of 74%.
  • Gross profit for the quarter amounted to SEK 8.0 (4.7) million, an increase of 70%. For April – September (first and second quarter) gross profit amounted to 13.9 (8.5) million, an increase of 63%.
  • EBITDA for the period amounted to SEK 2.1 (0.9) million. Fort the first six months EBITDA amounted to SEK 3.0 (1.0) million.
  • Earnings per share were 0:05 (0:03) SEK for the quarter.
  • Cash and cash equivalents was SEK 0.4 (15.7) million at the end of the period.

Significant events during the second quarter

  • In August, the drug Magnesium EQL Pharma was approved for sale by the Swedish Medical Products Agency (MPA). Magnesium EQL Pharma is used in diagnosed or suspected magnesium deficiency as well as prophylaxis in idiopathic recurrent renal disease. The drug is a typical niche generic where EQL Pharma becomes the only, and first, generic in the Swedish market for more than 35 years.
  • During the quarter, the company has begun a new collaboration with one of the largest banks in the Swedish market. The collaboration means that the company has agreed on a financing solution for its ongoing business with a reduction of working capital as its main objective. The solution is expected to be in full operation in October.

Significant events after the second quarter

  • On October 17th, the Board decided to carry out a rights issue with subscription during November. The background to the decision is that EQL Pharmas intends to continue to strongly expand its pipeline of niche-generics and specialty pharma. See separate press release for further details about dates and motives.

Operations
CEO’s comments

The second quarter of 2018/2019 is EQL Pharma's best quarter ever with a sales revenue of SEK 13.3 (7.0) million. Profitability also developed well during the quarter with a gross margin of 60 percent (57). For the company's long-term growth, the bank financing we have agreed on is important. It means a significantly lower bond of capital during our growth trip, capital that can be used for accelerated growth.

In parallel with expanding and launching our pipeline of niche-generics and specialty pharma, the company has a lot of activities in the field of outsourcing of our own medicines to markets outside the Nordic region. Over time, this can be a significant part of EQL Pharma's revenue.

The company aims to continue investing in the development of its product portfolio. This requires capital and the company has therefore decided to carry out a rights issue. 

For further information, please contact:
Christer Fåhraeus
CEO EQL Pharma AB (publ)
Phone: +46 (0) 705 – 60 90 00
E-mail: christer.fahraeus@eqlpharma.com
Website: www.eqlpharma.com 

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 ten (10) 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 2018 and onwards. The business is currently entirely focused on prescription pharmaceuticals in the Nordic region. EQL Pharma is based in Lund, Sweden, employs 7 (7) people and is listed on Spotlight Stock Market (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.

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