Pharming Group Reports Interim Financial Results for the First Quarter of 2019
Pharming Group Reports Interim Financial Results for the First Quarter of 2019 |
[16-May-2019] |
LEIDEN, Netherlands, May 16, 2019 /PRNewswire/ -- Main results compared to Q1 2018
Pharming Group N.V. ("Pharming" or "the Company") (Euronext Amsterdam: PHARM) presents its (unaudited) interim financial report for the first quarter ended 31 March 2019. Financial highlights
Operational highlights since the reporting date
Sijmen de Vries, Chief Executive Officer, commented: "We are pleased to report strong results today in a period of intense competition.Pharming's revenue and profit performance confirm the success of our in-market strategy for RUCONEST® as we see continued growth in underlying demand for the product. Looking forward to the remainder of 2019, we therefore expect continued sales growth, driven by increasing patient numbersand despite competitive pressure. In addition, we continue to make good progress in our pipeline. Following ongoing interaction with ethics committees in the Netherlands and Australia, we anticipate receiving approval shortly to begin our clinical study in pre-eclampsia. We also expect to initiate a clinical trial with RUCONEST® in the second half of the year to treat acute kidney injury in patients undergoing percutaneous coronary interventions accompanied by contrast-enhanced examinations."
Financial summary Amounts in EURm except per share 2019 2018 % data 1st Quarter 1st Quarter Change Income Statement Revenues 35.2 29.5 19.5% Gross profit 29.8 24.5 22% Operating result 12.2 8.2 49% Net result 6.7 5.5* 23% Balance Sheet Cash & marketable securities 66.5 59.8 11% Share Information Earnings per share (EUR): - Undiluted 0.011 0.009* 20% - Fully diluted 0.010 0.008* 25% * After restatement on the basis set out above and in Note 4 to the Financial Statements in the Annual Report 2018. Outlook For the remainder of 2019, the Company expects:
About Pharming Group N.V. Pharming is a specialty pharmaceutical company developing innovative products for the safe, effective treatment of rare diseases and unmet medical needs. Pharming's lead product, RUCONEST® (conestat alfa) is a recombinant human C1 esterase inhibitor approved for the treatment of acute Hereditary Angioedema ("HAE") attacks in patients in Europe, the US, Israel and South Korea. The product is available on a named-patient basis in other territories where it has not yet obtained marketing authorization. RUCONEST® is distributed by Pharming in Austria, France, Germany, Luxembourg, the Netherlands, the United Kingdom and the United States of America. Pharming holds commercialisation rights in Algeria, Andorra, Bahrain, Belgium, Ireland, Jordan, Kuwait, Lebanon, Morocco, Oman, Portugal, Qatar, Syria, Spain, Switzerland, Tunisia, United Arab Emirates and Yemen. In some of these countries distribution is made in association with the HAEi Global Access Program (GAP). RUCONEST® is distributed by Swedish Orphan Biovitrum AB (publ) (SS: SOBI) in the other EU countries, and in Azerbaijan, Belarus, Georgia, Iceland, Kazakhstan, Liechtenstein, Norway, Russia, Serbia and Ukraine. RUCONEST® is distributed in Argentina, Colombia, Costa Rica, the Dominican Republic, Panama, and Venezuela by Cytobioteck, in South Korea by HyupJin Corporation and in Israel by Kamada. RUCONEST® is also being examined for approval for the treatment of HAE in young children (2-13 years of age) and evaluated for various additional follow-on indications. Pharming's technology platform includes a unique, GMP-compliant, validated process for the production of pure recombinant human proteins that has proven capable of producing industrial quantities of high quality recombinant human proteins in a more economical and less immunogenetic way compared with current cell-line based methods. Leads for enzyme replacement therapy ("ERT") for Pompe and Fabry's diseases are being optimized at present, with additional programs not involving ERT also being explored at an early stage at present. Pharming has a long-term partnership with the China State Institute of Pharmaceutical Industry ("CSIPI"), a Sinopharm company, for joint global development of new products, starting with recombinant human Factor VIII for the treatment of Haemophilia A. Pre-clinical development will take place to global standards at CSIPI and are funded by CSIPI. Manufacturing for the Chinese market and to provide additional supply for Pharming will take place at CSIPI's affiliate, the Chengdu Institute of Biological Products Co. Ltd. Clinical development will be shared between the partners with each partner taking the costs for their territories under the partnership. Additional information is available on the Pharming website: http://www.pharming.com Forward-looking Statements This press release of Pharming Group N.V. and its subsidiaries ("Pharming", the "Company" or the"Group") may contain forward-looking statements including without limitation those regarding Pharming's financial projections, market expectations, developments, partnerships, plans, strategies and capital expenditures. The Company cautions that such forward-looking statements may involve certain risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive, political and economic factors, legal claims, the Company's ability to protect intellectual property, fluctuations in exchange and interest rates, changes in taxation laws or rates, changes in legislation or accountancy practices and the Company's ability to identify, develop and successfully commercialise new products, markets or technologies. As a result, the Company's actual performance, position and financial results and statements may differ materially from the plans, goals and expectations set forth in such forward-looking statements. The Company assumes no obligation to update any forward-looking statements or information, which should be taken as of their respective dates of issue, unless required by laws or regulations.
Pharming Group N.V. Consolidated Interim Financial Statements (Unaudited) For the first three months ended 31 March 2019 Consolidated statement of income Consolidated statement of comprehensive income Consolidated balance sheet Consolidated statement of cash flows Appendix: Main Financial Statements reported in US dollars
Consolidated statement of income in US Dollars (unaudited) Consolidated balance sheet in US Dollars (unaudited) Consolidated statement of cash flows in US Dollars (unaudited) Consolidated Statement of Income For the first three months ended 31 March YTD 2018 Amounts in EUR'000, except per share data YTD 2019 *restated Revenues 35,224 29,483 Costs of sales (5,420) (5,022) Gross profit 29,804 24,461 Other income 281 149 Research and development (5,305) (5,737) General and administrative (2,968) (2,463) Marketing and sales (9,568) (8,205) Costs (17,841) (16,405) Operating result 12,244 8,205 Fair value gain (loss) on revaluation derivatives (28) (961) Other financial income and expenses* (2,497) (957) Financial income and expenses (2,525) (1,918) Result before income tax 9,719 6,287 Income tax expense (2,980) (796) Net result for the period 6,739 5,491 Attributable to: Owners of the parent 6,739 5,491 Total net result 6,739 5,491 Basic earnings per share (EUR) 0.011 0.009 Fully-diluted earnings per share (EUR) 0.010 0.008 * After restatement of Q1 2018 to reflect changes to 2017 as set out in Note 4 to the Financial Statements in the Annual Report 2018. Consolidated Statement of Comprehensive Income For the first three months ended 31 March YTD 2018 Amounts in EUR'000 YTD 2019 *restated Net result for the period 6,739 5,491 Currency translation differences (304) (1,423) Items that may be subsequently reclassified to profit or loss (304) (1,423) Other comprehensive income/(expenses), net of tax (304) (1,423) Total comprehensive income for the period 6,435 4,068 Attributable to: Owners of the parent 6,435 4,068 * After restatement of Q1 2018 to reflect changes to 2017 as set out in Note 4 to the Financial Statements in the Annual Report 2018. Consolidated Balance Sheet As at date shown Amounts in EUR'000 31 March 31 December 2019 2018 Intangible assets 52,062 52,435 Property, plant and equipment 12,167 8,402 Long term prepayments - 2,006 Deferred tax asset 32,417 35,082 Restricted cash 1,225 1,204 Non-current assets 97,871 99,129 Inventories 13,642 17,315 Trade and other receivables 22,783 17,814 Cash and cash equivalents 65,264 80,311 Current assets 101,689 115,440 Total assets 199,560 214,569 Share capital 6,222 6,215 Share premium 387,956 387,525 Legal reserves 1,540 1,647 Accumulated deficit (326,651) (333,636) Shareholders' equity 69,067 61,751 Loans and borrowings 31,946 37,267 Deferred tax liabilities 62 87 Contract liabilities 467 667 Finance lease liabilities 4,293 164 Other financial liabilities 31,456 32,034 Non-current liabilities 68,224 70,219 Loans and borrowings 34,963 35,235 Contract liabilities 800 800 Derivative financial liabilities 147 228 Trade and other payables 26,096 28,589 Finance lease liabilities 263 263 Other financial liabilities - 17,484 Current liabilities 62,269 82,599 Total equity and liabilities 199,560 214,569
Consolidated Statement of Cash Flows For the first three months ended 31 March Amounts in EUR'000 YTD 2019 YTD 2018 Operating result 12,244 8,205 Non-cash adjustments: Depreciation, amortization 1,353 944 Accrued employee benefits 541 458 Release of contract liabilities (200) (202) Operating cash flows before changes in working capital 13,938 9,405 Changes in working capital: Inventories 3,673 (3,277) Trade and other receivables (4,969) (3,110) Payables and other current liabilities (2,833) (4,684) Total changes in working capital (4,129) (11,071) Changes in non-current assets, liabilities and equity 3 705 Cash generated from (used in) operations before interest and taxes 9,812 (961) Interest received 165 - Net cash flows generated from (used in) operating activities 9,977 (961) Capital expenditure for property, plant and equipment (229) (517) Investment in intangible assets (114) (353) Net cash flows used in investing activities (343) (870) Repayments of loans and borrowings 7,728 - Payments of contingent consideration (17,635) - Redemption of bonds - (2,238) Interest on loans (2,510) (2,592) Interest on finance lease liabilities (117) - Payment of lease liabilities (262) Proceeds of equity and warrants 228 6,556 Net cash flows generated from (used in) financing activities (28,024) 1,726 Increase (decrease) of cash (18,390) (105) Exchange rate effects 3,364 (127) Cash and cash equivalents at 1 January 81,515 59,993 Total cash and cash equivalents at 31 March 66,489 59,761
The original Financial Statements are reported in Euros. In case of differences of interpretation between the Financial Statements in US Dollars and the Financial Statements in Euros, the Financial Statements in Euros will prevail. Principal exchange rate used for the income statement: €1 = $1.1404 Principal period end exchange rate used for the balance sheet €1 = $1.1214 Consolidated Statement of Income in US Dollars For the first three months ended 31 March Amounts in US$'000, except per share data YTD 2019 YTD 2018 Revenues 40,159 36,182 Costs of sales (6,179) (6,163) Gross profit 33,980 30,019 Other income 320 183 Research and development (6,048) (7,040) General and administrative (3,384) (3,023) Marketing and sales (10,908) (10,069) Costs (20,341) (20,132) Operating result 13,959 10,069 Fair value gain (loss) on revaluation derivatives (32) (1,179) Other financial income and expenses (2,721) (1,174) Financial income and expenses (2,753) (2,354) Result before income tax 11,206 7,715 Income tax expense (3,397) (977) Net result for the period 7,809 6,739 Attributable to: Owners of the parent 7,809 6,739 Total net result 7,809 6,739 Basic earnings per share ($) 0.012 0.011 Fully-diluted earnings per share ($) 0.011 0.010 * After restatement of Q1 2018 to reflect changes to 2017 as set out in Note 4 to the Financial Statements in the Annual Report 2018. Consolidated Balance Sheet in US Dollars As at date shown Amounts in US$'000 31 March 31 December 2019 2018 Intangible assets 58,353 59,980 Property, plant and equipment 13,644 9,611 Long term prepayments - 2,295 Deferred tax asset 36,352 40,130 Restricted cash 1,374 1,377 Non-current assets 109,753 113,394 Inventories 15,298 19,807 Trade and other receivables 25,549 20,377 Cash and cash equivalents 73,187 91,868 Current assets 114,034 132,052 Total assets 223,787 245,445 Share capital 6,977 7,109 Share premium 435,054 443,290 Legal reserves 1,727 1,884 Accumulated deficit (366,306) (381,646) Shareholders' equity 77,452 70,637 Loans and borrowings 35,824 42,630 Deferred tax liabilities 70 100 Contract liabilities 524 763 Finance lease liabilities 4,814 188 Other financial liabilities 35,275 36,644 Non-current liabilities 76,507 80,324 Loans and borrowings 39,208 40,305 Contract liabilities 897 915 Derivative financial liabilities 165 261 Trade and other payables 29,263 32,703 Finance lease liabilities 295 301 Other financial liabilities - 20,000 Current liabilities 69,828 94,485 Total equity and liabilities 223,787 245,445 Consolidated Statement of Cash Flows in US Dollars For the first three months ended 31 March Amounts in US$'000 YTD 2019 YTD 2018 Operating result 13,959 10,069 Non-cash adjustments: Depreciation, amortization 1,543 1,158 Accrued employee benefits 617 562 Release of contract liabilities (228) (248) Operating cash flows before changes in working capital 15,891 11,542 Changes in working capital: Inventories 4,188 (4,022) Trade and other receivables (5,665) (3,817) Payables and other current liabilities (3,230) (5,748) Total changes in working capital (4,707) (13,586) Changes in non-current assets, liabilities and equity 3 865 Cash generated from (used in) operations before interest and taxes 11,187 (1,179) Interest received 188 - Net cash flows generated from (used in) operating activities 11,375 (1,179) Capital expenditure for property, plant and equipment (261) (634) Investment in intangible assets (130) (433) Net cash flows used in investing activities (391) (1,068) Repayments of loans and borrowings (8,811) - Payments of contingent consideration (20,106) - Redemption of bonds - (2,746) Interest on loans (2,862) (3,181) Interest on finance lease liabilities (133) - Payment of lease liabilities (299) Proceeds of equity and warrants 260 8,046 Net cash flows generated from (used in) financing activities (31,950) 2,118 Increase (decrease) of cash (20,966) (129) Exchange rate effects 2,282 1,935 Cash and cash equivalents at 1 January 93,245 71,854 Total cash and cash equivalents at 31 March 74,561 73,660
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Company Codes: EuronextAmsterdam:PHARM, Bloomberg:PHARM@NA, RICS:PHAR, ISIN:NL0010391025 |
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