Navamedic ASA: Q3 2018 results
Oslo, 9 November 2018 – Navamedic ASA (OSE: NAVA) reported revenues of NOK 44.3 million in the third quarter of 2018, compared to NOK 44.9 million in the same period in 2017. The company significantly strengthened the gross margin to 34.9%, up from 27.8% in the same quarter last year, reflecting growth in higher margin products. The Pharma and Healthcare business area had a strong performance in the third quarter, with an EBITDA of NOK 3.5 million, and product launches are proceeding as planned.
“As the results for the third quarter reflect, we are seeing positive effects from our continued transition from dependence on a single partner to building a strong base portfolio of license and distribution agreements with longer contractional periods. This includes significantly better gross margins and strong growth potential with a number of upcoming product launches. We are progressing well on our journey to get back on an accelerated growth path,” says Tom Rönnlund, Chief Executive Officer of Navamedic.
Revenues in the third quarter of 2018 were NOK 44.3 million, a slight decrease from NOK 44.9 million in the corresponding quarter last year. The gross margin improved to 34.9%, up from 27.8% in Q3 2017, reflecting growth in higher margin products. The Navamedic group’s EBITDA for the third quarter was NOK 1.5 million. Adjusted for costs related to evaluation of strategic initiatives, the EBITDA was at NOK 3.0 million, an improvement of underlying performance of NOK 2.4 million.
“After the closing of the quarter, we released our highly anticipated Sippi wireless connectivity solution, Sipplink, for one of the leading electronic patient journal systems in Europe. We are working systematically in the Nordics and Europe with installing the first systems with wireless data transfer, and with Sippi’s strong international IP position in major markets, including the US, we believe the product family holds significant future revenue potential, growth and profitability,” says Rönnlund.
Sipplink represents the market’s first wirelessly Patient Data Monitoring System (PDMS)-connected digital urinometer. The release during the third quarter follows successful validation at the University of Uppsala in Sweden, and the product has a solid backlog of clinics across Europe now awaiting testing or implementation. Navamedic is continuously evaluating strategic alternatives for the global Sippi® launch.
“Looking ahead, Navamedic will continue to work to leverage its growth platform. The third quarter shows the success we have in long-term partnerships with products such as Mysimba, which create a foundation for our future growth. We are actively pursuing new product opportunities and considering various strategic alternatives for the portfolio and the group. In combination with our unique patented Sippi technology, targeting a global market opportunity in intensive care and beyond, we see imminent opportunities for accelerated growth,” says Tom Rönnlund.
The company is hosting a presentation of the third quarter 2018 figures at Felix Konferansesenter, Aker Brygge, Oslo, Friday 9 November. The presentation will start at 08.00 and will be webcasted live on www.navamedic.com.
For further information, please contact:
Tom Rönnlund, CEO, Navamedic
Telephone: +46 727 320 321
Navamedic ASA is a Norwegian company within pharmaceuticals and medical technology, delivering products to patients, hospitals and pharmacies in the Nordic and selected European markets. Navamedic's business unit for pharmaceutical and healthcare products is a distributor of products supplied by a number of pharmaceutical manufacturers. Navamedic’s business within medical technology has developed and is currently introducing Sippi®, a new system for digital urine measurement. Navamedic is listed on the Oslo Stock Exchange (ticker: NAVA).
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.