"The first quarter revenues ended in line with our expectations, following last year's discontinuation of the Aspen agreement, where the new products are performing well and contributes to improved gross margin. The launch of anti-obesity drug Mysimba is underway in the Nordics to strong feedback from clinicians and patients. We look forward to continuing our work on our pipeline of new and exciting products to bring the company back on a growth track, "says Tom Rönnlund, Chief Executive Officer of Navamedic.
Revenues in the first quarter of 2018 were NOK 42.6 million, a decrease from NOK
78.2 million in the corresponding quarter last year. The revenues decreased by 4% excluding Aspen products. EBITDA for the quarter was NOK -5.0 million (NOK 3.3 million in Q1 2017) following NOK 4.1 million in extraordinary expenses related to strategic processes. The gross margin improved to 30.3%, up from 22.1% in Q1 2017, through growth in higher margin products.
"2018 is an important year for Navamedic where we continue the process of transitioning from high dependence on a single partner to building a strong base portfolio of licence and distribution agreements with longer contractual periods, better gross margins and strong growth potential, as well as having streamlined operations and reduced operational expenses", says Rönnlund, and continues:
"The launch of Mysimba is well underway, with strong initial interest from physicians and a positive sales start in the Nordics, reaffirming the potential of the product. We will also launch Elmiron during this year, and these two innovative products represent an annual peak sales opportunity of NOK 100 -150 million in the Nordic region. Additionally, we are working on a pipeline of new and exciting original products, with launches scheduled for the coming 6-18 months, targeting to be back on a growth track in the medium term, "says Rönnlund
After the closing of the quarter, the company also announced the finalisation of the Sippi® wireless connectivity solution to Patient Data Monitoring Systems (PDMS). Sippi® is a new standard for urine monitoring enabling automated digital measurement. The system represents a new and improved way of monitoring urine output, the last manual and non-digitalised vital parameter within the Intensive Care Unit (ICU).
"We have a back-log of 30 clinics across Europe waiting to test the first wireless PDMS-connected digital urinometer on the market, and are reviewing several strategic alternatives to accelerate and leverage the Sippi growth opportunity. Navamedic sees significant worldwide opportunities with a wireless-connected Sippi and has appointed a renowned, internationally established adviser for the process of maximising the value of Sippi and evaluating several strategic alternatives for the global Sippi launch," says Tom Rönnlund
The company is hosting a presentation of the first quarter 2018 figures at Felix Konferansesenter, Aker Brygge, Oslo, Wednesday 30 May. The presentation will start at 08.00. The presentation will be webcasted live on www.navamedic.com.
For further information, please contact:
Tom Rönnlund, CEO, Navamedic
Telephone: +46 727 320 321
Navamedic ASA is a Norwegian medtech and pharmaceutical products company, delivering products to patients, hospitals and pharmacies in the Nordic and selected European markets. The Group's Medtech business has developed and is currently introducing the next generation of digital urine meter Sippi®. Navamedic's Pharma and Healthcare business segment is a distributor of products supplied by a number of pharmaceutical manufacturers. Navamedic is listed on the Oslo Stock Exchange (ticker: NAVA).