Newbury Pharmaceuticals interim report September 2023 – May 2024

Quarter 3, March 2024 – May 2024
· Net revenue was 1 386 (5 680) tkr.
· EBITDA was -7 861 (-3 872) tkr.
· Operating cash flow was -10 182 (-8 532) tkr.

Interim period, September 2023 – May 2024
· Net revenue was 15 706 (7 439) tkr.
· EBITDA was -14 742 (-13 864) tkr.
· Operating cash flow was -23 837 (-19 596) tkr.
· Cash position in the end of period was 15 431 (12 927) tkr.
· Licensed products at the end of period were 31 (33).
· Products with distribution rights at the end of the period were 12 (2).
· Products with marketing authorization in the end of the period were 21 (12).
· Products launched in Nordics at end of the period 8 (2).

Significant events during the quarter
· Newbury carried out a directed share issue of approximately 19 mkr at a subscription price on 4 kr per share. After the Share Issue, the number of outstanding shares in Newbury increases by 4 737 500 shares, from 19 521 154 to 24 258 654 shares.

Significant events after the end of the quarter
· Newbury Pharmaceuticals is strengthening its portfolio with Dalbavancin Powder, replacing a previously signed product, Daptomycin, from the same partner. The commercial attractiveness is judged to be better for Dalbavancin and no additional in-licensing fees will be paid.
· Newbury Pharmaceuticals Secures Generic Approval for Liraglutide Pre-Filled Pen in Denmark.
· Initiated commercialisation of various Amarox products in Sweden.

A word from the CEO
A slow quarter due to delayed invoicing of an international sales order, but optimistic future ahead of us.

Sales uptake in Scandinavia and a delayed international sales order
Sales during this quarter were lower than anticipated, but for a good reason. The announced international sales order (8 800 tkr) planned for shipment in May was postponed to June which is the next reporting period.

The direct sales in Scandinavia reached +146% growth over the same period last year attributed to the launch of more products. This growth continues with record sales in June which is the next reporting period. As of today, we have launched 11 products in Scandinavia, and we see the fruits of having a diverse portfolio with more options to win tenders where June will be a strong month.

We have also started sell the first products from the partnership with Amarox Ltd. In June we made the first launches and won the monthly tender for two products. This collaboration is an excellent supplement to our own portfolio. Furthermore, it has financial advantages with limited risk and investments on our side.

Portfolio development
We have recently obtained registration of Liraglutide Newbury which will be launched to compete with Victoza from Novo Nordisk and thereby help diabetic patients access this product which has been faced with supply challenges over the past couple of months. As a result of the supply challenges, many patients have been upgraded to Ozempic. However, we believe that we can offer an alternative to these patients and thereby also reduce the supply risk for patients. We are currently evaluating the expected sales uptake in this volatile treatment segment – e.g. reimbursement in Denmark has been removed recently.

We have also been able to switch Daptomycin to the more interesting product Dalbavancin. We see much more potential for this product, and we are pleased to enrich our portfolio with this specialty product.

We have a good foundation for continued growth and will pursue to broaden the business during the coming months with more launches, more product approvals and potentially new partnerships.

Financial development
Sales was impacted by the delayed order while the operating result is impacted by one-off items hitting this quarter. We have ahead of the Q4 report and based on sound accounting policies made reservations for delayed payment from an international sales order totalling (2 796 tkr) and at the same time made reservation for a product with low shelf life left for sales amounting to 366 tkr.

The cash position was improved with the directed share issue and we expect further payments of outstanding international sales. However, as any company we closely monitor our cash position to be equipped for new investment opportunities as well as safeguarding financials by strict monitoring of account receivables.
 
Looking ahead
Strong sales in June will help fuel growth in the next quarter and we have some interesting sales opportunities for a couple of products ahead of us – both short-term and long-term opportunities.

The Amarox partnership will continue to fuel new launches in the next months which will help expand the number of launched products.

We work very hard to achieve sales and thereby reach a positive EBITDA during one of the coming quarters, but one challenge is the volatility in tender sales as we rely on only a few products.

We are pleased with our achievements which will secure the continued focus on executing our growth plans by launching additional products and building a stronger company for the future.

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