Navamedic Q3 2024: Business remains strong in quarter impacted by cyclical nature of the business

Oslo, 31 October 2024 – In the third quarter of 2024, Navamedic ASA (OSE: NAVA), a Nordic pharma company and reliable provider of high-quality products to hospitals and pharmacies, delivered revenues of NOK 123.1 million compared to 141.0 in the corresponding quarter last year. Adjusted EBITDA amounted to NOK 8.6 million compared to NOK 17.4 million in 2023. Gross margin ended at 37.1 per cent, slightly down from 37.6 per cent in the third quarter of 2023.

During the quarter, Navamedic has continued its steady operational progress across its three segments: Prescription Drugs (RX), Consumer Health and Hospital.

“Compared to last year’s record-high quarter, this quarter has been slower and impacted by the cyclical nature of the business. However, our underlying business remains strong with Consumer Health and Hospital delivering double digit growth in the quarter. We are confident that our growth strategy will lead us to become a profitable NOK 1 billion revenue company,” said Kathrine Gamborg Andreassen, CEO of Navamedic.

“In the third quarter, we signed a significant tender to deliver certain antibiotics to hospitals in Denmark, Iceland and Norway. Together with the previously signed LIS tender, these both represent some of the largest antibiotic tenders in the Nordics. This is a testament to the quality of our portfolio and demonstrates the growth this portfolio has had in recent years,” Andreassen added.

Key figures and category update for the third quarter of 2024

Operating results (EBIT) for the third quarter of 2024 amounted to NOK 4.7 million, compared to NOK 12.7 million in 2023. Operating costs ended at NOK 37 million, compared to NOK 35.6 million last year. Net financial items ended at negative NOK 1.8 million and profit before tax was NOK 3.0 million.

As part of the Prescription Drugs (RX) category, key products Mysimba® and Imdur® had a slower third quarter than in 2023. This is partly explained by the record-high sales last year. Forlax® has delivered another strong quarter with double-digit growth Year-Over-Year. 

Navamedic continues to work towards the commercialisation of Flexilev® and OraFID® in Europe, a unique treatment for advanced Parkinson’s patients. The company has also begun to explore opportunities to commercialise the treatment outside of Europe.

Within the Hospital category, both the medical nutrition and antibiotics portfolios have delivered good growth. As mentioned, Navamedic announced another significant tender win in October, which represents the quality of Navamedic’s antibiotic portfolio and Navamedic’s position in a highly competitive market.

This joint Nordic tender is an agreement between Denmark, Iceland and Norway, whereby Navamedic will be the main supplier of certain antibiotic substances to hospitals across all three countries. The contracts start in April 2025 and will run until 2027, with the opportunity for an extension.

The Consumer Health category has shown steady revenue growth over time and delivered double-digit growth Year-Over-Year in the third quarter of 2024. This corresponds with Navamedic's local insight into its key markets and ability to identify and acquire the right products for its portfolio.

Modifast, the range of low-calorie food products delivered double-digit growth Year-Over-Year. Additionally, key products Absolut Torr, MedMade, ThermaCare and Aftamed delivered steady and strong growth. Navamedic is currently exploring out-licensing opportunities for both Absolut Torr and MedMade, which has shown increasingly high and stable demand amongst consumers.

Outlook

Navamedic continues to see strong growth and new expansion opportunities and reiterates its mid-term ambition of building a NOK 1 billion revenue company.

“We continue to build on a solid foundation. We are exploring further opportunities for market expansion and out- licensing of our products. A key driver for everyone at Navamedic is to be a proud contributor to public health, which includes identifying treatments and products that can enhance people’s quality of life and ensuring that they are accessible, either through hospitals or pharmacies,” Andreassen concluded.

Presentation

Navamedic will present the results for the third quarter of 2024 at 08.30 today. CEO Kathrine Gamborg Andreassen and CFO Lars Hjarrand will host the presentation, which will take place at Haakon VIIs gate 2 in Oslo. It will be webcast at the following link:

https://navamedic.com/investors/financial-results/

Note: EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as a part of the APM section in the attached presentation.

For further information, please contact:

Kathrine Gamborg Andreassen, CEO, Navamedic

Mobile: +47 951 78 680

E-mail: kathrine@navamedic.com

Lars Hjarrand, CFO, Navamedic

Mobile: +47 917 62 842

E-mail: lars.hjarrand@navamedic.com

About Navamedic

Navamedic ASA is a Nordic pharmaceutical company dedicated to enhancing people’s quality of life by being a reliable supplier of high-quality prescription, consumer health, and hospital products to hospitals and pharmacies. Our growing product portfolio has been carefully selected to meet current public health concerns, such as obesity, Parkinson’s disease, and gastro-related ailments, to empower people to live healthier and more fulfilling lives.

What sets us apart is our deep-rooted commitment to understanding the needs and requirements of the countries where we are present. Our local insight and competence enable us to understand the specific needs of each country where we operate and ultimately to gain market access. This makes us a preferred partner for international companies expanding their footprint across the Nordics and Benelux regions, through either in-licensing or out-licensing. Navamedic has been listed on the Oslo Stock Exchange since 2006 (ticker: NAVA) and is headquartered in Oslo, Norway.

For more information, please visit Navamedic.com.

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.