Sales record for Navamedics Vitaflo business

Navamedic ASA (OSE: NAVA), the Norwegian pharmaceutical products company, today announced its fourth quarter and full year 2010 results. The Company's sales in the Vitaflo business area were record high last year while financial results were affected by the development of Navamedic's new Generics Business Area and non-recurring restructuring costs. 

Navamedic's sales for the fourth quarter amounted to NOK 15.7 million in the fourth quarter, a 14 per cent increase over the same quarter in 2009. Full year sales were NOK 55.1 million, up 5 per cent from the previous year. Adjusted for divestment of a single product group, sales growth in the current product portfolio was more than 20 per cent in 2010. 

Navamedic's EBITDA for the fourth quarter ended at NOK -2.0 million compared to NOK -0.3 million in the last quarter of 2009. For the full year 2010 EBITDA came in at NOK -6.5 million, compared to NOK -2.5 the previous year. The 2010 financial results include non-recurring restructuring costs of NOK 1.0 million and NOK 9.3 million of costs related to developing the new Generics Business Area. Also in this area, additional NOK 1.6 million was invested in developing the business. 

"2010 represented a turning point for our Vitaflo business. The turnaround of the business area was completed and the product base significantly expanded. We move into 2011 with an optimal cost base, enabling us to increase our profit margin as we continue to expand the business," said CEO Olof Milveden. 

Navamedic aims for the first product release in its new Generic Business Area towards the end of 2011, based on the Company's cooperation with Aspen Healthcare, one of the world's largest manufacturers of generic drugs. Navamedic will continue to invest in the development of this business area, targeting a position among the top five generic drug companies in the Nordic region. 

For further information, please call Olof Milveden, CEO, telephone +46 733 463 736 or Bjørn Lindholt, CFO, telephone +47 9300 6601. 

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).