Interim Report April - June 2022

Strong start to the year with an improved EBIT margin

• Consolidated sales during the first quarter, April to June amounted to SEK 46.1 (37.3) million. Adjusted for non-recurring sales the revenue amounted to 43.0 (32.3) MSEK, an increase of 33%.
• Gross profit amounted to SEK 23.7 (16.0) million for the quarter, an increase of 48%.
• EBIT amounted to SEK 7.9 (3.0) million, an increase of 163%. The operating margin was 17% (8%).
• Earnings per share were SEK 0:25 (0:09) for the quarter.
• Cash flow from operating activities amounted to SEK 5.4 (-15.4) million for the quarter.
• Cash and cash equivalents were SEK 46.6 (11.2) million at the end of the quarter.

CEO’s comments

First quarter sales in 2022/23 amounted to SEK 46.1 (37.3) million. Adjusted for non-recurring sales, sales amounted to SEK 43.0 (32.3) million, an increase of  33%. Operating profit (EBIT) amounted to SEK 7.9 (3.0) million, an increase of 163%. The operating margin was 17% (8%), an important and large improvement.

During the quarter, the injectable product Glycopyrronium EQL Pharma has been approved by Nordic regulatory authorities. The drug will primarily be sold in tenders. The market is growing at around SEK 30 million annually with three active competitors. The launch will take place at the end of this financial year at the earliest.

Further, EQL Pharma has entered into another exclusive out-licensing agreement for Mellozan (melatonin), this time with the French company H.A.C. Pharma, one of France's leading companies in ADHD medicines for children. The deal is worth about SEK 2 million in upfront payments and in connection with regulatory milestones. The true potential lies in future royalties where the French market includes just under 70 million people. The royalty on sales is well over ten percent. The launch in France will take place as soon as possible, mainly determined by processing times with the French authorities. We continue to negotiate with additional licensees in Europe and outside of Europe and hope to close some more license deals during the year.

EQL Pharma continues to grow and develop as a company and organization. Importantly, the increased costs of running fast-growing company have been successfully absorbed during the quarter without affecting profitability. During the quarter, we also successfully negotiated with subcontractors to maintain or improve our gross margins despite inflationary pressure and more expensive purchases due to challenging currency exchange rates. The next few years will be exciting with many launches both in the Nordic region, mainly tender products, and in Europe, not least the Mellozan launches (our melatonin products).

Finally, I must thank all of you for all the wonderful years as CEO of EQL Pharma. It has been incredibly stimulating to lead such a driven and knowledgeable growing team of employees. My successor, Axel Schörling, will undoubtedly continue to build the company for long-term growth while maintaining profitable and I look forward to follow this closely as Chairman of the Board for the company.

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 niche pharmaceuticals. The company currently has more than 20 niche generics (ie generics with limited competition apart from the reference pharmaceutical) approved in the Nordic markets and a couple of originals. In addition to these, there is a significant pipeline of mainly niche generics for launch in 2022 and beyond. The business is currently entirely focused on prescription pharmaceuticals, including hospital products, in the Nordic region and in selected European markets. EQL Pharma AB conducts its operations in Lund and is listed on the Spotlight Stock Market. EQL Pharma AB conducts extensive development work in collaboration with leading contract manufacturers and pharmaceutical companies in the EU and Asia, among others.