Interim Report April - June

Exceptionally high sales, mainly due to Covid-19

• The Group's sales during the first quarter amounted to SEK 99.5 (14.5) million. Adjusted for non-recurring sales, sales amounted to SEK 22.4 (14.5) million, an increase of 55%.
• Gross profit amounted to SEK 22.4 (7.4) million for the quarter, an increase of 203%.
• Operating profit for the quarter amounted to SEK 11.6 (0.08) million.
• Earnings per share were SEK 0:39 (0:00) for the quarter.
• Cash flow from operating activities amounted to SEK 55.9 (-2.5) million for the quarter.
• Cash and cash equivalents were SEK 64.8 (15.3) million at the end of the quarter.

CEO’s comments

The first quarter of 2020/21 was a quarter with very good growth for EQL Pharma. Even if we adjust the sales down with consumables for healthcare that are judged to be of a non-recurring nature, sales for the quarter amounted to SEK 22.4 million. This corresponds to an increase of 55 percent compared with the first quarter of the previous financial year. Including sales of protective personal equipment to the hospital regions, sales landed at SEK 99.5 million for the quarter.

It should be pointed out that the total sales of protective personal equipment were greater than our press release indicated partly because all sales were concentrated to the current quarter instead of being spread out over several quarters and partly because all sales were direct sales from EQL Pharma to end the customer instead of being sold indirect through a distributor. Because of this, the entire sales revenue ended up in EQL Pharma books instead of only a part of the revenue.

The background to our extensive sales of protective personal equipment is that EQL Pharma has for many years worked closely with leading Chinese life science companies and has an employee who are Chinese citizen. This enabled the acquisition of rights to protective protective equipment.

It is still too early to say how the expansion of our product line to include medical devices and healthcare consumables will affect our growth, but these products will probably play a more modest role than our pharmaceutical products. The products are also expected to have a lower average margin.

During the quarter, an order for healthcare consumables totalling SEK 8 million was received from a hospital region that will be invoiced during the second and third quarters.

During the financial year 2020/21, we will continue to invest in a European expansion of our product portfolio and pipeline. From a practical perspective, this means that we have recruited our first key person in the UK and that we are employing a specialist company to prepare for our launch in Germany. Our investments will have a clear impact on the income statement in about two years and onwards.

Axel Schörling, the company's COO, was appointed executive vice president during the quarter with increased responsibility for the entire workflow from the start of development of a new drug to launch and sales.

Our long-term goal is to become a leading company in niche generics in the Nordic region and in the next phase in Europe. There will be challenges along the way, but we are convinced that we can overcome them and reach our goal. We have talented employees, a strong pipeline and solid plans.

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 18 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 2020 and beyond. The business is currently entirely focused on prescription drugs. EQL Pharma AB conducts its operations in Lund, employs 9 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.