Navamedic Q3 2024: Business remains strong in quarter impacted by cyclical nature of the business

31 Oct 2024 07:00 CET

Oslo, 31 October 2024 - In the third quarter of 2024, Navamedic ASA (OSE: NAVA),
a Nordic pharma company and reliable provider of high-quality products to
hospitals and pharmacies, delivered revenues of NOK 123.1 million compared to
141.0 in the corresponding quarter last year. Adjusted EBITDA amounted to NOK
8.6 million compared to NOK 17.4 million in 2023. Gross margin ended at 37.1 per
cent, slightly down from 37.6 per cent in the third quarter of 2023.

During the quarter, Navamedic has continued its steady operational progress
across its three segments: Prescription Drugs (RX), Consumer Health and
Hospital.

"Compared to last year's record-high quarter, this quarter has been slower and
impacted by the cyclical nature of the business. However, our underlying
business remains strong with Consumer Health and Hospital delivering double
digit growth in the quarter. We are confident that our growth strategy will lead
us to become a profitable NOK 1 billion revenue company," said Kathrine Gamborg
Andreassen, CEO of Navamedic.

"In the third quarter, we signed a significant tender to deliver certain
antibiotics to hospitals in Denmark, Iceland and Norway. Together with the
previously signed LIS tender, these both represent some of the largest
antibiotic tenders in the Nordics. This is a testament to the quality of our
portfolio and demonstrates the growth this portfolio has had in recent years,"
Andreassen added.

Key figures and category update for the third quarter of 2024

Operating results (EBIT) for the third quarter of 2024 amounted to NOK 4.7
million, compared to NOK 12.7 million in 2023. Operating costs ended at NOK 37
million, compared to NOK 35.6 million last year. Net financial items ended at
negative NOK 1.8 million and profit before tax was NOK 3.0 million.

As part of the Prescription Drugs (RX) category, key products Mysimba® and
Imdur® had a slower third quarter than in 2023. This is partly explained by the
record-high sales last year. Forlax® has delivered another strong quarter with
double-digit growth Year-Over-Year.

Navamedic continues to work towards the commercialisation of Flexilev® and
OraFID® in Europe, a unique treatment for advanced Parkinson's patients. The
company has also begun to explore opportunities to commercialise the treatment
outside of Europe.

Within the Hospital category, both the medical nutrition and antibiotics
portfolios have delivered good growth. As mentioned, Navamedic announced another
significant tender win in October, which represents the quality of Navamedic's
antibiotic portfolio and Navamedic's position in a highly competitive market.

This joint Nordic tender is an agreement between Denmark, Iceland and Norway,
whereby Navamedic will be the main supplier of certain antibiotic substances to
hospitals across all three countries. The contracts start in April 2025 and will
run until 2027, with the opportunity for an extension.

The Consumer Health category has shown steady revenue growth over time and
delivered double-digit growth Year-Over-Year in the third quarter of 2024. This
corresponds with Navamedic's local insight into its key markets and ability to
identify and acquire the right products for its portfolio.

Modifast, the range of low-calorie food products delivered double-digit growth
Year-Over-Year. Additionally, key products Absolut Torr, MedMade, ThermaCare and
Aftamed delivered steady and strong growth. Navamedic is currently exploring out
-licensing opportunities for both Absolut Torr and MedMade, which has shown
increasingly high and stable demand amongst consumers.

Outlook

Navamedic continues to see strong growth and new expansion opportunities and
reiterates its mid-term ambition of building a NOK 1 billion revenue company.

"We continue to build on a solid foundation. We are exploring further
opportunities for market expansion and out- licensing of our products. A key
driver for everyone at Navamedic is to be a proud contributor to public health,
which includes identifying treatments and products that can enhance people's
quality of life and ensuring that they are accessible, either through hospitals
or pharmacies," Andreassen concluded.

Presentation

Navamedic will present the results for the third quarter of 2024 at 08.30 today.
CEO Kathrine Gamborg Andreassen and CFO Lars Hjarrand will host the
presentation, which will take place at Haakon VIIs gate 2 in Oslo. It will be
webcast at the following link:

https://navamedic.com/investors/financial-results/

Note: EBITDA and other alternative performance measures (APMs) are defined and
reconciled to the IFRS financial statements as a part of the APM section in the
attached presentation.

For further information, please contact:

Kathrine Gamborg Andreassen, CEO, Navamedic

Mobile: +47 951 78 680

E-mail: kathrine@navamedic.com

Lars Hjarrand, CFO, Navamedic

Mobile: +47917 62 842

E-mail: lars.hjarrand@navamedic.com

About Navamedic

Navamedic ASA is a Nordic pharmaceutical company dedicated to enhancing people's
quality of life by being a reliable supplier of high-quality prescription,
consumer health, and hospital products to hospitals and pharmacies. Our growing
product portfolio has been carefully selected to meet current public health
concerns, such as obesity, Parkinson's disease, and gastro-related ailments, to
empower people to live healthier and more fulfilling lives.

What sets us apart is our deep-rooted commitment to understanding the needs and
requirements of the countries where we are present. Our local insight and
competence enable us to understand the specific needs of each country where we
operate and ultimately to gain market access. This makes us a preferred partner
for international companies expanding their footprint across the Nordics and
Benelux regions, through either in-licensing or out-licensing. Navamedic has
been listed on the Oslo Stock Exchange since 2006 (ticker: NAVA) and is
headquartered in Oslo, Norway.

For more information, please visit Navamedic.com.

This information is subject to the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act.

More information:
Access the news on Oslo Bors NewsWeb site

630816_Navamedic_Q3_2024_Presentation.pdf