Almirall half-year results 2016

Growth in total revenues and net sales driven by dermatology

27-Jul-2016 - Spain

Almirall, the global pharmaceutical company based in Barcelona, has announced its results for the first half of 2016.

Eduardo Sanchiz, CEO, commented: "We have delivered a solid set of results in first half of 2016, boosted by Dermatology which puts us on track to achieve our yearly guidance. As we anticipated at the beginning of the year, Total Revenues and Net sales have accelerated in Q2, helped by the contribution of new businesses. Dermatology sales have grown by 13.3%, and now represent 43% of group Net Sales. The company´s performance will be boosted in H2 by Veltin and Altabax, which were launched at the beginning of July 2016 in the US. We are very pleased with the recently announced transaction of Patagonia Pharmaceuticals, which reinforces our pipeline and brings an additional potential growth driver to Almirall, as we continue to position ourselves as a leading Dermatology player."

Performance on track to achieve yearly guidance

As of July 26^th, Total Revenues were €428.1 MM, representing an increase of +5.0%.
Total Revenues comprised Net Sales of €388.3 MM (+8.0%) driven by Dermatology (+13.3%) and Other Income of €39.8 MM.
Gross Profit YTD came in at €273.2 MM, which represents 70.4% of Net Sales (versus 69.1% in H1 2015).
The company's Net Cash Position was at €76.5 MM at the end of H1, whereas the Financial Debt was €320 MM, representing 12% of the total liabilities.

Both R&D and SG&A expenses in this period are more reflective of a Specialty Pharma model.

Research & Development expenses accounted for €44 MM, or 11.3% of sales in the first half of 2016, representing a slight increase as a percentage of sales, compared with the same period of 2015.

Selling, General & Administrative expenses meanwhile came in at €196.3 MM remaining stable versus H1 2015.

As a result of the above, EBITDA increased to €123.5 MM (+0.1%). Net Income was €80.5 MM (+36.9%), a significant increase in comparison to last year, and positively affected by the divestment of the Mexican affiliate during the second quarter of the year. Shareholders Equity represented 56.6% of Total Assets.

Strong Dermatology sales growth

The Dermatology franchise boosted sales growth by 13.3% in H1 2016. This therapeutic area now accounts for 43% of total Net Sales vs 41% H1 2015. This was due to a strong performance of Dermatology in Europe, where sales increased by +27% vs the same period of last year (driven by the actinic keratosis franchise, Solaraze^® and Actikerall^{® ,}and Ciclopoli^®).

As anticipated, there is a tougher operating environment in the US and H1 sales decreased by 2.5%. The US Dermatology franchise will be boosted by the recent launches of Veltin® and Altabax®.

R&D and pipeline

Our clinical stage projects continue to make good progress. Recently, Almirall entered into a global licensing agreement with Patagonia LLC for the development and commercialization of a novel medicinal treatment to enter Phase 2 clinical studies in patients with Congenital Ichthyosis.

https://www.bionity.com/en/news/159114/almirall-half-year-results-2016.html