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Interim Report April - December 2020

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Continued growth during the third quarter.


CEO’s comments

The third quarter of 2020/21 was a stable quarter for EQL Pharma with slightly lower than average growth. Sales for the quarter, after a downward adjustment for non-recurring sales, amounted to SEK 23.4 million, an increase of 12%. Our goal is to become a leading player in niche generics in the Nordic region and eventually in Europe. To succeed in this, we need an agressive plan for rapid growth. The two principal components of this growth plan are geographical expansion of existing products and an increased number of new products.

During the quarter, we continued to invest in geographic expansion of our products. We now have a good understanding of the competitive situation and the size of the different markets for our entire product portfolio. The mapping of which countries are suitable for direct sales and where an indirect sales model should be used is also beginning to become clearer. As part of this work, we have started the recruitment process for a Chief Commercial Officer, who will be the key person in the implementation of the geographic expansion.

Our second growth dimension, expansion of the product portfolio, is underway with high cadence. During the quarter, we finalized the development of four products that were submitted to the medical authorities for review. Two products have been added to our pipeline, which now includes 35 products plus the 16 products already marketed. One product, in the form of a prolonged-release tablet for metformin, Glucosparc®, has received a market authorisation after the end of the quarter. This product is interesting as it has taken significant market shares from the standard metformin tablet in other markets in Europe where it was launched. In Sweden, there is one more prolonged-release tablet registered with the same active substance.Preparations for moving the company to Nasdaq Stockholm's main list are ongoing with full speed. The goal is to implement the list change during the company's first financial quarter 2021/22. In other words, very intensive work is underway on several fronts, a consequence of our aggressive plans.

October - December

  • Consolidated sales during the third quarter amounted to SEK 29.6 (20.9) million, an increase of 41%. Adjusted for non-recurring sales the revenue amounted to 23.4 (20.9) MSEK, an increase of 12%.
  • Gross profit amounted to SEK 10.5 (9.3) million for the quarter, an increase of 13%.
  • EBIT for the quarter was SEK 2.4 (1.6) million.
  • Earnings per share were SEK 0:09 (0:05) for the quarter.
  • Cash flow from operating activities amounted to SEK 7.4 (-0.5) million for the quarter.
  • Cash and cash equivalents were SEK 14.0 (15.0) million at the end of the quarter.

April - December

  • Consolidated sales during the period April - December amounted to SEK 153.3 (53.3) million, an increase of 188%. Adjusted for non-recurring sales the revenue amounted to 70.0 (53.3) MSEK, an increase of 31%.
  • Gross profit for the same period amounted to SEK 43.3 (24.7) million, an increase of 75%.
  • EBIT for April - December amounted to SEK 17.3 (2.8) million.
  • Earnings per share were SEK 0:57 (0: 10) for the period.
  • Cash flow from operating activities amounted to SEK 23.0 (2.8) million during April - December.
  • Cash and cash equivalents were SEK 14.0 (15.0) million at the end of December.

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

EQL Pharma AB (publ) in short
EQL Pharma AB specializes in developing and selling generics, i.e. medicines that are medically equivalent to originator medicines. The company currently has 16 niche generics (i.e. generics with little or no competition apart from the originator drug) approved in the Nordic markets. In addition to these, there exist a significant pipeline of additional niche generics for launch in 2021 and beyond. The business is currently entirely focused on prescription drugs. EQL Pharma AB conducts its operations in Lund, employs 10 people and is listed on the Spotlight Stock Market. EQL Pharma AB conducts extensive development work in collaboration with leading contract manufacturers and major pharmaceutical companies in the EU, India and China, among others.

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