Leiden, The Netherlands, 30 July 2015. Biotech company Pharming Group N.V. (“Pharming” or “the Company”) (Euronext Amsterdam: PHARM) today published its (unaudited) financial report for the six months ended 30 June 2015.
FINANCIAL HIGHLIGHTS
• Revenues from operations increased to €5.2 million (H1 2014: €2.5 million) as a result of substantially increased revenues from product sales of €4.1 million (€2.9 million for Q2), compared to €1.4 million for H1 2014. Revenues from Ruconest® sales in the US amounted to €3.0 million (€2.4 million for Q2) and in the EU amounted to €1.1 million (€0.5 million for Q2).
• Gross profit increased to €2.9 million (€2.1 million for Q2) from €0.7 million in H1 2014 as a result of sales in the US and a gain on inventory impairments, reflecting the improving yields from sales in the US and direct commercialisation in the EU.
• As result of increasing costs of operations (R&D, General and Administrative and Marketing and Sales), operating result decreased by €0.7 million, to a loss of €6.1 million compared to a €5.4 million loss for H1 2014. The increase is mostly a result of the (non-cash) share-based compensation.
• Financial income and expenses improved by €14.9 million to a gain of €2.6 million (H1 2014: €12.3 million loss). The loss in 2014 was a result of a (non-cash) revaluation of warrants due to the strong increase in Pharming’s share price during H1 2014.
• Net loss amounted to €3.5 million (H1 2014: €17.7 million).
• The equity position decreased to €27.9 million compared to 31 December 2014, as a result of the net loss in H1 2015.
• The inventories of Ruconest increased to €14.6 million from €13.4 million as per 31 December 2014 in preparation of growing sales.
• The cash position decreased during H1 2015 by €9.4 million to €25.0 million, due to negative cash flows from operating activities.
OPERATIONAL HIGHLIGHTS
• Following the completed acquisition of our US partner, Salix Pharmaceuticals by Valeant Pharmaceuticals (VRX), the Ruconest US commercial infrastructure remains intact and commercialisation continues to be unaffected.
• A steady inflow of new patients into Ruconest Solutions (the US total care program under which Ruconest is made available to Hereditary Angioedema (HAE) patients in the US) continued during H1 2015, creating the basis for continued revenue growth from sales in the US.
• Patient enrollment for the randomised double blind placebo controlled Phase II clinical trial to investigate Ruconest for the prophylaxis of HAE was initiated in January and continued during the period.
• In February, Dr. Perry Calias was appointed as Chief Scientific Officer. Dr. Calias has overall responsibility for the Company’s new Enzyme Replacement Therapy (ERT) programs, achieving the scientific milestones set in the business plan, enhancing the IP portfolio, overseeing new product development and contributing to the overall strategic direction of the Company.
• In May, Pharming and Clinigen Group (CLIN) entered into an international global access collaboration for HAEi, the International Patient Organisation for C1-Inhibitor Deficiencies. The “HAEi GAP” program will provide access to Ruconest to eligible patients with HAE, who currently do not have access to effective medication, to treat acute attacks of the disease.
• The Company entered into an exclusive distribution agreement with Cytobioteck S.A.S. (“Cytobioteck”), a privately owned Bogota, Colombia based specialty healthcare company, for the distribution of Ruconest for the treatment of acute attacks of HAE in Colombia and Venezuela.
Sijmen de Vries, Pharming’s CEO, commented: “Pharming’s performance during the first half of 2015 continued to reflect the transformational changes made in 2014. In particular, on a quarter by quarter basis, we have seen substantially increasing Ruconest sales in the US. We have also established new agreements that will widen the availability of Ruconest to HAE patients across the world, such as the HAEi GAP programme and the distribution agreement for Colombia and Venezuela with Cytobioteck. Outside of this reporting period, we were pleased to report, on 20 July, that we have attracted non-dilutive growth capital financing from Oxford Finance and Silicon Valley Bank, which represents an important validation of our business model, growth plans and financial stability. The funding enables us to accelerate the growth of the business by simultaneously financing the working capital required to support manufacturing for increasing Ruconest sales and our investments in additional indications for Ruconest, as well as the development of new products, utilising the strengths of our platform.”