Newbury Pharmaceuticals sets financial goals for 2024 and 2028
Newbury Pharmaceuticals AB today announces its five-year goals for the business. By 2028, the company expects to achieve sales of SEK 350 million. The goal for EBITDA is an operating margin of 20% in 2028 and in 2024 to achieve a positive quarterly EBITDA. The new goals are replacing goals announced early 2022.
The updated goals are based on growing the company sales by launching the existing portfolio of in-licensed products while over time investing in supplementing the portfolio with new products.
The business model is based on an ability to commercialize several products over time – and fixed costs will therefore not increase with the same pace as sales which will give increased margins with sales growth.
“Newbury has reached a stage that together with the planned product launches, we should reach an inflection point in 2024 and achieve a positive quarterly EBITDA. The direct sales in the Nordics will be supplemented with increasing focus on international B2B sales opportunities. This blend provides a solid foundation for continued growth and a profitable growth journey towards 2028”, says Newbury´s CEO Lars Minor
Financial goals:
Three financial goals have been approved by the Board of Directors.
• Achieve quarterly positive EBITDA in 2024
Turning EBITDA positive is a key short-term goal. The increasing sales opportunities from the launch of new products during 2023 and efficient deployment of resources, will contribute to turning EBITDA positive on a quarterly basis during 2024.
• Achieve sales of 350 MSEK in 2028
Sales will grow in line with more products being launched and with increased international B2B sales opportunities. Furthermore, new projects and products will support the ambition of reaching 350 MSEK by 2028.
• Achieve 20% EBITDA in 2028
The business model is scalable and with increasing sales profits will follow. It is therefor a goal to reach 20% EBITDA in 2028 which will require a gradual increase in EBITDA over the years.
Risks and outlook
The risk of not meeting the 2024 goal is mostly related to sales uptake from products being launched in 2023 and 2024. In addition, the timing of international sales order can influence the quarterly results.
Newbury considers the largest risks of not meeting the 2028 goals are linked to market conditions relating to IP protection, price development and competition in general. Newbury considers the market size to be relatively stable and therefore the largest uncertainty is linked to how widely the products are launched and the general uptake of the products across the region.
