Positive third quarter for Navamedic

Navamedic ASA (OSE: NAVA), the Norwegian pharmaceutical products company, today announced its third quarter results. The Company saw significant result improvements in its traditional business, while overall results were affected by the build-up of the Company's new Generics Business Area.

Navamedic's sales in the third quarter were NOK 13.7 million, which is at par with the same quarter last year. The Company's sales in the first nine months of 2010 were NOK 39.4 million, a slight increase over last year. Navamedic's traditional operations provided an EBITDA of NOK 1.0 million in the third quarter, up from NOK 0.4 million in the same quarter last year. Also the accumulated results for the first nine months underpinned Navamedic's positive development. Accumulated EBITDA for the company's traditional business was NOK 1.9 million compared to NOK -2.2 million in the first nine months of  last year.

Costs related to the build-up of Navamedic's new generic pharmaceutical products business landed the Company's overall EBITDA at NOK -1.7 million for the quarter (NOK 0.4 million last year) and at NOK -4.5 million for the first nine months (last year: NOK -2.2 million). Navamedic has invested NOK 6.4 million in its new business area so far in 2010.

"We are pleased to see that our traditional business is performing better and that the turnaround process has been successful. We have reduced operating costs in this business area by more than 20 per cent since last year," said Navamedic CEO Olof Milveden.

Navamedic now aims for a strong position in the growing market for generic pharmaceutical products. Earlier this year, the Company entered into a partnership with Aspen of South Africa, one of the world's largest manufacturers of generic pharmaceuticals. Navamedic currently has a broad pipeline of high volume generic drug candidates.

"We will launch our first generic product in the Nordic market towards the end of 2011. Our aim is to have more than 15 generic products in the market by 2014 and be one of the top five Nordic generic pharmaceuticals players in 2015," said CEO Olof Milveden.

For further information, please call Olof Milveden, CEO, telephone +46 733 463 736.

Navamedic ASA is a Norwegian pharmaceutical products company. Through its subsidiary Vitaflo Scandinavia the Company is a distributor of a broad range of nutrition and pharmaceutical products in the Nordic markets. Navamedic is currently building up a generic pharmaceutical business for the Nordic, Dutch and Belgian markets based on its partnership with Aspen Healthcare of South Africa. Navamedic is listed on the Oslo Stock Exchange (ticker: NAVA).