Navamedic Q4 and full year 2023: A year marked by new records and transformative growth initiatives

Operating results (EBIT) amounted to NOK 23.6 million, compared to NOK 44.4 million in 2022. Operating costs were higher than in 2022, mostly due to continued investments in growth initiatives. Also included in the EBITDA is a negative contribution of 4.8 MNOK from the Sensidose business.

“We are looking back at an eventful and transformative year. With the Sensidose acquisition, we gained a promising position in the market for treatment of Parkinson’s Disease, and we renewed and secured new marketing and distribution agreements for several other high selling products, including Eroxon®, a clinically proven treatment of erectile dysfunction. Eroxon® was launched in Norway this week and will soon also be available in Sweden,” said Kathrine Gamborg Andreassen, CEO of Navamedic.

“Furthermore, in the fourth quarter 2023, we signed a term sheet with the Finnish pharmaceutical corporation Orion Pharma, which we are currently finalising into an agreement for a licensing and supply of Flexilev® and OraFID® in Europe, products that were acquired through Sensidose. In Sweden, Norway and Denmark, we will market and sell these products from our own proven platform,” Andreassen added.

Revenues in the fourth quarter of 2023 was NOK 125 million, up 8.1 percent from the same period last year. Gross margin was 36.5 per cent, down from 42.9 per cent, and Adjusted EBITDA was NOK 7.9 million, compared with NOK 15.7 million in the fourth quarter of 2022.

Category update

In the Consumer Health category, Modifast cemented its position with continued strong sales in Sweden, and Absolute Torr gained traction with a 54 per cent growth year-over-year in the fourth quarter.  Further growth to be achieved through combination of consumer and pharmacy engagement, sale of unique and profitable products in home markets and out-licensing of own products elsewhere.

The Hospital category saw double-digit growth year-over-year across the portfolio of antibiotics and medical nutrition products. It also renewed exclusive rights to Vitaflo’s medical nutrition products across the Nordic for five more years. Winning new antibiotic tenders is core in the growth strategy, along with initiatives to expand and secure new marketing authorisations.

The Prescription Drugs category had strong growth across various therapeutic areas, with continued high demand for Mysimba for obesity treatment, and strong sales of Imdur, Nitrolingual and Forlax. In this category, Navamedic is now preparing rollout of Flexilev with MyFID® and OraFID® in the Nordic countries and out-licensing in the rest of Europe.

Outlook

Navamedic sees continued strong growth and new expansion opportunities and reiterates its mid-term ambition of building a NOK 1 billion revenue company with a 15 per cent EBITDA margin.

“We are building on a solid foundation. We will continue to strengthen our existing business by leveraging our highly scalable market access platform. We will explore opportunities for market expansion with own products and increase company value by acquiring and strengthening own products and brands while increasing gross margins through careful management of our product portfolio,” Andreassen concluded.

Navamedic will present the results for the fourth quarter and full year 2023 at 08.30 today. The presentation will take place at Dronning Eufemias Gate 16 in Oslo, and will be available to follow via webcast at the following link:  https://navamedic.com/investors/financial-results/

Representatives from Navamedic’s management team, CEO Kathrine Gamborg Andreassen and CFO Lars Hjarrand will host the presentation.

EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as a part of the APM section of the attached presentation on slide 23.