Pharma Mar (PHM) Q1 2025 earnings summary

Executive summary

• Recurring revenue rose 19% year-over-year to €37.8M, driven by 22% sales growth and 16% higher royalties, notably from lurbinectedin (Zepzelca) in Europe and the US.

• Total revenue increased 2% to €38.9M compared to Q1 2024, as non-recurring revenue declined sharply.

• EBITDA improved by 60% year-over-year, reflecting higher recurring revenue and stable expenses.

• Net loss of €3.9M in Q1 2025, compared to a €2.3M profit in Q1 2024, due to lower non-recurring revenue and less favorable financial results.

• Board declared a €0.80 per share dividend out of reserves.

Financial highlights

• Oncology sales reached €23.1M, up 22% year-over-year; royalties totaled €14.7M, up 16%.

• Non-recurring revenue fell 84% to €1.0M, mainly from deferred revenue recognition on the Jazz Pharmaceuticals agreement.

• Operating loss narrowed to -€3.1M from -€4.3M year-over-year.

• R&D expenditure decreased 22% to €21.3M, reflecting completion of major trials.

• Net cash position at €93.7M as of March 31, 2025, with cash and equivalents at €142.2M and total debt at €48.5M.

Outlook and guidance

• R&D spending expected to intensify in coming quarters due to new early-stage clinical developments.

• Upfront payment of €22M from Merck for Zepzelca Japan license expected in Q2 2025.

• Results from key clinical trials (e.g., SYL1801, LAGOON) anticipated in 2025–2026.

• Annual income recognition from the Jazz Pharmaceuticals agreement estimated at €4M for 2025, down from €23M in 2024.