"The third quarter marks the first period following the discontinuation of the Aspen agreement, which is reflected in the quarterly revenues. The underlying growth in our portfolio, excluding Aspen, is solid with overall revenues up 52 per cent. We continue our sales and marketing activities for new products added during the last year, which are all progressing according to plan. We are also working continuously to strengthen the portfolio with additional products and partnerships. During the quarter, we entered into a long-term agreement with bene-Arzneimittel for the launch and commercialisation of ELMIRON, the currently only EU-approved oral medication to treat adults with bladder pain syndrome. We look forward to continuing our work on the pipeline of new and exciting products and scheduled launches," says Tom Rönnlund, Chief Executive Officer of Navamedic.
Revenues in the third quarter of 2017 were NOK 44.9 million, a decrease from NOK 65.2 million in the corresponding quarter of last year. EBITDA for the quarter was positive at NOK 0.6 million (NOK 1.8 million in Q3 2016), despite the revenue decrease from the discontinued Aspen agreement and reflects the company's preparations for the post-Aspen portfolio and reduction of cost base. EBITDA for the first nine months was NOK 9.4 million (NOK 2.3 million in Q3 2016). The underlying positive portfolio development, excluding Aspen products, was mainly driven by expanded distribution of Imdur®, as well as other prioritised brands.
"The company is in the process of identifying several new and interesting products for the Nordic market and will continue to strengthen its product portfolio with additional products and partnerships. We are working on a pipeline of new and exciting products with launches scheduled for the coming 6-24 months, bringing the company back on a growth track in the medium-term perspective. Two recent examples of this pipeline are Mysimba and ELMIRON, representing a combined annual peak sales potential of NOK 100-150 million provided positive reimbursement approvals by authorities, " says Rönnlund.
Navamedic is developing its proprietary product, Sippi®, offering a new standard for urine monitoring in hospitals by enabling automated digital measurement, where the continued development of the Sippi® product family creates opportunities for multiple future revenue streams.
The development process has been prolonged, mainly due to the finalisation of the wireless communication platform between Sippi® and Patient Data Management Systems (PDMS) in the hospitals. Navamedic has now finalised the work with two PDMS-suppliers, currently undergoing clinical evaluations at Intensive Care Units, and is developing the necessary communication protocols in close cooperation with other PDMS-suppliers.
"The Sippi product family holds significant future revenue potential for Navamedic and the interest for the technology and related patents is high, also beyond the healthcare sector. To accelerate and leverage the Sippi growth opportunity the company is reviewing strategic alternatives for the Medtech business area, including partnering and co-investments," says Rönnlund.
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 Benelux 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 is a distributor of products supplied by a number of pharmaceutical manufacturers. Navamedic is listed on the Oslo Stock Exchange (ticker: NAVA).