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Press Release

Pharming Reports on Financial Results for the First Half of 2017

Pharming
Posted on: 27 Jul 17

Record revenue from product sales up 617% on 2016 marks Pharming’s first half year of operational profitability

Investment in commercial infrastructure to drive long-term sales growth

Leiden, The Netherlands, 27 July 2017: Pharming Group N.V. (“Pharming” or “the Company”) (Euronext Amsterdam: PHARM) presents its (unaudited) financial report for the six months ended 30 June 2017.

The Company will hold a conference call at 13:00 CEDT/ 07:00 EDT today: dial-in details can be found on page 7.

Operational Highlights

 

  • Accelerated the delivery of operating profitability as a result of strategic decision to reacquire commercial rights to RUCONEST® in North America
  • Positive EMA amendment to the marketing authorization in Europe to allow self-administration of RUCONEST® for HAE attacks with a new custom-designed RUCONEST® Administration Kit
  • Integration of the Ruconest North America business acquired from Valeant Pharmaceuticals International, inc. in December 2016 into Pharming is on track, with full transition of services from Valeant completed
  • Completed investment in expanding US commercialization team
  • Successfully refinanced company debt on more favourable commercial terms in order to recover dilutive share capital and release short and medium term cash to invest in accelerating commercialization

Financial Highlights

 

  • Revenues from product sales for the half year increased by 617% to €30.1 million (HY 2016: €4.2 million), as a result of the combined effect of receiving all of the revenue from US product sales (instead of the previous 30% supply share of net sales) and increasing patient numbers and product sales
  • Total revenues increased by 477% to €30.6 million (including €0.5 million of license revenue) from €5.3 million (including €1.1 million in license revenue) in HY 2016
  • Operating results improved to a profit of €4.2 million from a loss of €6.2 million in HY 2016, despite a considerable increase in commercialization activities, especially in the US
  • The net result was a loss of €30.2 million (HY 2016: loss of €6.7 million), mainly as a result of non-cash financing expenses required to be shown under IFRS associated with the extinction of the Amortising Convertible Bonds 2017/2018 and replacement of the previous debt facility
  • The company’s cash position decreased from €32.1 million at year-end 2016 to €25.2 million at 30 June 2017 (up from €21.7 million at 30 June 2016), largely due to late payments by debtors of revenues relating to US sales.

 

Sijmen de Vries, CEO, said:

“We are delighted with a second quarter of profitable operations, even after increased costs as we finish our integration and infrastructure investments. Now that our capital position is properly secured following the refinancing in May/July 2017, we can look forward to more stable growth as the big one-off accounting costs have been taken in this quarter.”

 

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 commercialized by Pharming in Algeria, Andorra, Austria, Bahrain, Belgium, France, Germany, Ireland, Jordan, Kuwait, Lebanon, Luxembourg, Morocco, the Netherlands, Oman, Portugal, Qatar, Syria, Spain, Switzerland, Tunisia, the United Arab Emirates, the United Kingdom, the United States of America and Yemen.

 

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 Megapharm.

 

RUCONEST® is also being investigated in a Phase II clinical trial 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 and manufacturing will take place to global standards at CSIPI and are funded by CSIPI. Clinical development will be shared between the partners with each partner taking the costs for their territories under the partnership.

 

Pharming has declared that the Netherlands is its “Home Member State” pursuant to the amended article 5:25a paragraph 2 of the Dutch Financial Supervision Act.

 

Additional information is available on the Pharming website: www.pharming.com

 

Contact
Sijmen de Vries, CEO: T: +31 71 524 7400

Robin Wright, CFO: T: +31 71 524 7432

Editor's Details

Mike Wood
PharmiWeb.com
www.pharmiweb.com
editor@pharmiweb.com

Last updated on: 27/07/2017

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