PharmaMar Says Goodbye To Record Profits To Grow With Oncology

Earn much less but do it naturally. That is the summary of the results that PharmaMar presented yesterday, corresponding to the third quarter of 2021. The company obtained a profit of 54.7 million euros until September, while in the same period of the previous year it reached a profit of 131 million. The difference is that this year it does so thanks to its oncology business, while last year it was because of the extraordinary contract with Jazz Pharmaceutical.

In terms of revenue, the Group’s recurring business (sales plus royalties) grew to 119 million euros. This figure represents a growth of 31% compared to the same period of the previous year.

Revenues are closely tied to the oncology business. This therapeutic area at PharmaMar shows a good state of form. In general numbers, it grows 21% compared to what was harvested in 2021 (88.6 million euros). The growth of Zepzelca in Europe, where the drug is not approved but is used through the compassionate use modality, reached 23.3 million euros until September 30. This represents an increase of 77.7% compared to the same period of the previous year.

In addition, Zepzelca is beginning to bear fruit in the United States. Royalty income reached 25.2 million euros during the first nine months of the year, compared to 7.4 million euros in the same period of the previous year.

In addition, the drug has recently conquered new markets, although this has not yet had an impact on the accounts. Jazz Pharmaceutical will also take it to Canada, while agencies in Australia, Singapore and the United Arab Emirates have already given their yes to the drug. PharmaMar, for its part, has already signed licensing agreements for these countries with local pharmaceutical companies

The Zepzelca explosion comes at an ideal time for Pharmamar. Its flagship drug so far, Yondelis, is starting to show signs of commercial burnout. Total sales of the drug decreased slightly compared to 2020 (57.1 million versus 56.5). PharmaMar has changed the formula for internationalization of the drug and now licenses to local partners instead of to a big pharma as until a year ago. However, the drug has not undergone substantial changes.

Although the area of ​​oncology shows strength, the area of ​​diagnosis is deflating. The lower pressure of the pandemic has meant that the tests are less necessary, which has weighed down the Group’s sales. In fact, the fall reaches 67%.

As of September 30, 2021, the balance of cash and equivalents plus investments in current and non-current financial assets amounted to 222 million euros (216.5 million euros as of December 31, 2020). “In these nine months of 2021, loans have been amortized, both from banks and official bodies, for an amount of 7.9 million euros and new loans (mainly bank) for an amount of 5.4 million have been obtained, therefore the total financial debt has been reduced slightly with respect to the levels of December 2020 “, explains the pharmaceutical company.

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