Navamedic: Q2 2016 Results
Oslo, 18 August 2016 - Navamedic ASA (OSE: NAVA), reported revenues of NOK 66.7 million (59.6) in the second quarter of 2016, and a negative EBITDA of NOK 1.6 million (3.4). In addition to the announcement of the long-term strategic partnership with TopRidge Pharma, the development and commercialisation of Sippi® continued, in parallel with the expansion of new partnerships and products.
"As the second quarter shows, Navamedic's underlying business is growing while the company is investing in further commercialisation and development of Sippi, the advanced urine metering system. Navamedic is also expanding its portfolio of new partnerships and products, like the strategically important distribution agreement with TopRidge Pharma Limited," says Tom Rönnlund, Chief Executive Officer of Navamedic.
Revenues in the second quarter 2016 ended at NOK 66.7 million (59.6), with a negative EBITDA of NOK 1.6 million (3.4). The Q2 2016 financial performance reflects the high activity within business development and future growth initiatives, as well as restructuring costs and continued commercialisation of Sippi®.
During the quarter, Navamedic entered into an eight-year strategic distribution agreement with TopRidge Pharma Ltd (TopRidge Pharma), for distribution of the angina prevention medicine, Imdur®, in European markets. The agreement is expected to contribute with annual, future revenues of NOK 70-100 million, and the first revenues are expected during the second half of 2016.
"The partnership and distribution agreement is expected to represent significant opportunities for Navamedic going forward, as future products planned for launch in Europe by TopRidge Pharma and its parent company, will be offered to Navamedic on a first right basis. This fall, Navamedic will also work jointly with TopRidge Pharma on the introduction of Sippi in China," says Rönnlund.
The development and commercialisation of Sippi® progressed during the quarter, including successful testing of the system's wireless communication capabilities, SippLink®, in clinical settings. In addition, Navamedic was granted a patent for Sippcoat® for use in any bodily drainage device, significantly increasing the scope of the technology.
"Both events represent important milestones in the ongoing development and positioning of Sippi. Navamedic experiences great interest and positive feedback from potential customers and key opinion leaders in Nordic and other European countries, and is looking forward to taking new important steps during the second half of 2016," says Rönnlund.
Navamedic has strengthened its financial flexibility and robustness through the Q2 rights share issue of 1.4 million shares towards TopRidge Pharma, which amounts to NOK 11.3 million in new capital.
For further information, please contact:
Tom Rönnlund, CEO, Navamedic. Telephone +46 727 320 321.
Navamedic ASA is a Norwegian medtech and pharmaceutical products company, delivering products to patients, hospitals and pharmacies in the Nordic and Benelux markets. The Group's Medtech business has developed and is currently introducing the next generation of digital urine meter Sippi®. Navamedic's Pharma and Healthcare business is a distributor of products supplied by a number of pharmaceutical manufacturers. Navamedic is listed on the Oslo Stock Exchange (ticker: NAVA).