Interim report April - June 2018

CEO’s comments

The first quarter's sales corresponds to our expected growth as communicated in the year-end report. The gross margin continues to exceed 50%. As we previously announced, the company will start applying a much more restrictive accounting policy for development costs, starting this quarter. The effect of this on the bottom line is in the order of -10 MSEK for the full year.  

We continue to receive new MAAs and expand our portfolio. In the first quarter, Prednisolone EQL Pharma and Acetazolamide EQL Pharma were approved for sale by the Swedish Medical Products Agency (MPA).  During the quarter, we have also launched the drug Eletriptan EQL Pharma on the Danish market. Our focus on product development continues and in 2018/2019 we are planning to launch a more products. We continue to build our pipeline of niche generics, and are preparing to launch our portfolio in more Nordic countries for the coming fiscal years. 

April - June

• Consolidated sales for the first quarter amounted to SEK 10.7 (6.7) million, an increase of 58%.
• Gross profit for the quarter amounted to SEK 5.9 (3.9) million, an increase of 54%.
• EBITDA for the period amounted to SEK 0.9 (0.1) million.
• Earnings per share were 0:00 (-0:01) SEK for the quarter.
• Cash and cash equivalents was SEK 3.5 (21.2) million at the end of the period.

Significant events during the first quarter of

• During the first quarter, the drug Prednisolon EQL Pharma has been approved for sale by the Swedish Medicines Agency. Prednisolone EQL Pharma is used in conditions requiring attenuation of the body's inflammatory reactions such as rheumatoid arthritis, asthma and other allergic diseases, ulcerative colitis and in cancer treatment. In the Nordic region, the Swedish market is the largest with about 25 MSEK in annual sales. There are only a few competitors in the Nordic region.
• On May 1st, Eletriptan was launched on the Danish market. Eletriptan EQL Pharma belongs to a group of drugs called selective serotonin (5HT1) receptor agonists. Eletriptan is used in adults to treat migraine headache, with or without aura. The total turnover in Sweden and Denmark is approximately SEK 15 million annually. Currently, only the original Relpax (Pfizer) is available on the market in Sweden. In the Danish market there are two generic competitors in addition to the original.
• In end of June Acetazolamide EQL Pharma was approved for sale by the Swedish Medicines Agency. The product is expected to be launched around the turn of the year 2018/2019.  Acetazolamide EQL Pharma is used as a short-term treatment for eye surgery when there is a risk of increased pressure in the eye. Acetazolamide EQL Pharma is also used as an add-on therapy for the treatment of green starr (glaucoma) and before surgery of acute narrow-angle glaucoma. The drug is a niche generic, where EQL Pharma becomes the only and first generic on the Swedish market for more than 60 years. The product is small with about SEK 2.5 million in total annual sales on the Swedish market.

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 nine (9) 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.