Newbury Pharmaceuticals interim report September 2022 – May 2023

“This quarter´s lift in sales is very encouraging. Furthermore, we are planning for additional product launches during 2nd half of 2023”.
Lars Minor, CEO

Quarter 3, March 2023 – May 2023
· Net revenue was 5 680 (644) tkr.
· EBITDA was -3 872 (-3 100) tkr.
· Operating cash flow was -8 532 (-4 531) tkr.

Interim period, September 2022 – May 2023
· Net revenue was 7 439 (946) tkr.
· EBITDA was -13 864 (-10 035) tkr.
· Operating cash flow was -19 596 (-10 014) tkr.
· Cash position at the end of period was 12 927 (38 715) tkr.
· No of products in the portfolio at end of period were 33 (29).
· Products with marketing authorization at the end of the period were 12 (4).

Significant events during the quarter
· Dimethyl Fumarate Newbury approved by the Swedish Health Authorities.
· Lapatinib Newbury approved by the Swedish Health Authorities.
· Solifenacin/Tamsulosin Newbury approved by the Norwegian Health Authorities.
· Pirfenidone Newbury approved by the Norwegian Health Authorities.

Significant events after the end of the quarter
· No significant events have incurred after the end of the quarter.

A word from the CEO
Newbury is well positioned to continue the execution of the growth plans and this quarter´s lift in sales is very encouraging. Furthermore, we are in advanced stage regarding product launches during the 2nd half of 2023.

Sales and Operations
Sales during 3rd quarter reached a new record and showed an increase compared to previous quarter and compared to last year. The two drivers were shipments of international orders to B2B customers and direct sales in Scandinavia.

Furthermore, we continued to obtain new marketing authorisations with four new products approved during the quarter. We now have more than 10 products registered and we expect to launch several products in Scandinavia during 2023 and thereby achieve our goal of 7-8 products launched by end of 2023. Additional products are expected to be launched during 2024.

The launch of new products in Scandinavia and continued international B2B sales activities will support the sales growth during 2023 and 2024.

Financials
The strong sales growth is contributing to further solidifying the foundation for continued launch of new products in Scandinavia and furthermore driving international sales activities. However, in the short term is naturally has an impact on financing the build-up of inventory and accounts receivables. This will support future sales growth and the cash position will be improved when payments are due from our customers, but in the short term the operating cash flow is impacted by inventory and invoicing of large orders during the end of the quarter.

Outlook
The latest months have been very promising in relation to having several products approved by the authorities and it paves the way for the launch of several products in Scandinavia. New partnerships have been forged and we expect to continue enlarging the portfolio with additional products for future launches.

The value of near-term launch opportunities will help Newbury increase its profitability and soon reach an inflection point to turn EBITDA profitable in line with increased sales activities.

The report is publised on Newbury Pharmaceuticals website:
https://www.newburypharma.com/investors/financial-information/