Navamedic third quarter results 2010

On track in developing the Generics Business Area

  • MNOK 6.4 invested in 2010
  • Regulatory expertise strengthened
  • Moving towards first product launch end of 2011

Improved performance in the Vitaflo Scandinavia Business Area

  • Sales at par with last year
  • Operating costs reduced by 21% in 2010
  • EBITDA improved in Q3; however, reduced gross margin.
  • Product base expanded

Navamedic experienced a positive development in the third quarter. While revenues were relatively stable, the Vitaflo Scandinavia Business Area benefitted from a reduced  operating costs and ended the quarter with a  improvement in EBITDA. The result for the quarter as well as for the first nine months of the year was partly offset by the costs related to the ongoing build-up of Navamedic's new Generics Business Area.

Navamedic`s third quarter revenues ended at MNOK 13.7 compared with MNOK 13.9 in the same period of 2009. Revenue year to date ended at MNOK 39. 4 compared to MNOK 38.8 year to date in 2009.

EBITDA reached MNOK -1.7 compared with MNOK 0,4 in the same period of 2009. EBITDA for the first nine months of the year ended at MNOK - 4.5 compared to MNOK -2.2 year to date in 2009.

Net cash derived from operations was MNOK - 3.2 in the third quarter of 2010, compared to MNOK 36.6 in the third quarter of 2009 (Last year cash flow included a NOK 40 million sale of the Company's Glucomed businesss). Net cash from operations year to date 2010 was MNOK - 6.5 against MNOK 38.7 year to date 2009.

Key financial indicators 2010 vs. 2009

  Group Group Group
(in NOK '000) Q3
2010		 Q3
2009		 YTD
2010		 YTD
2009		 FY
2009
Revenues 13 654 13 883 39 410 38 789 52 593
Gross Profit 5 248 5 803 15 965 15 809 20 630
Gross margin 38 % 42 % 41 % 41 % 39 %
EBITDA -1 722 389 -4 489 -2 231 -2 508
EBIT -3 389 -1 309 -9 482 -7 977 -9 995

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)