Navamedic Q2 and H1 2024: Stable growth continues and is supported by a new licensing and supply agreement

OSLO, Norway, Aug. 16, 2024 /PRNewswire/ -- In first half 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 277.2 million, up 12.8 per cent from the corresponding period last year. Adjusted EBITA amounted to NOK 41.1 million compared to NOK 26.3 million in 2023. The milestone payment of NOK 22.7 million following the agreement with Orion Corporation to market and sell Flexilev^® and OraFID^® in Europe is included.

During the first six months of 2024, Navamedic has delivered on its strategy across the business. Following the launch of Eroxon^® at the start of the year, the company renewed its contract with the Norwegian Hospital Procurement Trust, whereby Navamedic will continue to supply Norwegian hospitals with antibiotics until 2027. This agreement is expected to contribute more than 20 per cent revenue growth to the overall antibiotics' portfolio. 

In June, Navamedic signed a license and supply agreement with Orion Corporation (Orion) to market and sell Flexilev^® and OraFID^® in Europe. This agreement represents a major milestone in Navamedic's commercialisation strategy for Flexilev^®. Orion has paved the way for Parkinson's disease treatment in Europe, making it a strong commercial partner for Navamedic.

"Halfway into 2024, Navamedic can look back at an exciting first six months. There has been a lot of activity across the business, which has broadened Navamedic's geographical reach and product portfolio. Having been early to identify treatment areas with significant medical need and consumer demand, such as supplying antibiotics to hospitals and obesity, we have seen good growth across our key business areas: RX, Consumer and Hospital," said Kathrine Gamborg Andreassen, CEO of Navamedic ASA.

Operating results (EBIT) for the first six months of 2024 amounted to NOK 33.8 million, compared to NOK 9.9 million in 2023. Operating costs ended at NOK 77.8 million, compared to NOK 74 million last year. Net financial items ended at negative NOK 9.7 million and profit before tax was NOK 24 million.

Key figures and category update for the second quarter of 2024

Revenues for the second quarter amounted to NOK 156.3 million, up 26.2 per cent from last year. Adjusted EBITDA amounted to NOK 32.7 million, up from NOK 10.5 million in the second quarter of 2023. Gross margin for the quarter was 46.1 per cent, compared to 40.4 per cent in 2023. During the quarter, the company experienced steady growth across its three segments: Prescription Drugs (RX), Hospital and Consumer Health.

As part of the Prescription Drugs (RX) category, sales of Mysimba^® have remained stable in an increasingly competitive market. Imdur^® and Forlax^® have seen double digit growth year-over-year.

Within the Hospital category, the antibiotics portfolio has delivered solid growth. The medical nutrition portfolio continues to deliver steady growth, delivering treatments for patients with Inborn Errors of Metabolism, which is considered a lifelong genetic disorder.

In the Consumer Health category, Eroxon^® was launched in Sweden in May, making it the first and only non-prescription treatment for erectile dysfunction in the country. It has also been a strong quarter for several hero products, including Absolut Torr and GeloRevoice, which are up 38 per cent and 35 per cent year-over-year, respectively. ThermaCare and Modifast continue to deliver stable sales. Navamedic plans to explore opportunities to expand both Absolut Torr and MedMade outside the Nordics

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 and are exploring further opportunities for market expansion with our own 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 second quarter and first half 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 full-service provider of high-quality healthcare products to hospitals and pharmacies. Navamedic meets the specific medical needs of patients and consumers by leveraging its highly scalable market access platform, leading category competence and local knowledge. Navamedic is present in all the Nordic countries, the Baltics and Benelux, with sales representation in the UK and Greece. Navamedic is headquartered in Oslo, Norway, and listed on the Oslo Stock Exchange (ticker: NAVA). 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.

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