Pharma Mar (PHM) Q2 2024 earnings summary

Executive summary

• Group revenue reached €80.8 million in H1 2024, up 1% year-over-year, mainly driven by Zepzelca income and higher royalties.

• Net profit for H1 2024 was €3.5 million, down from €6.4 million in H1 2023, mainly due to increased R&D and operating expenses.

• Cash and equivalents stood at €139.6 million, with net cash position at €103.3 million as of June 30, 2024.

• API sales grew significantly, reflecting robust commercial activity and partner stock management.

• R&D investment remained high, mainly due to accelerated recruitment in clinical trials.

Financial highlights

• Revenues for H1 2024 reached €80.8 million, up 1% year-over-year, with royalties up 16% to €26.5 million and API sales up 85% to €15.2 million.

• R&D expenses rose 10% to €51.3 million, representing 63% of total revenue.

• EBITDA was -€0.8 million in H1 2024, compared to €4.2 million in H1 2023, reflecting higher R&D and operating costs.

• Gross margin remained high, with gross result at €76.0 million on €80.8 million revenue.

• Cash and equivalents at June 30, 2024, were €139.6 million; financial debt reduced by 9% to €36.3 million since December 2023.

Outlook and guidance

• Recruitment for the LAGOON phase III trial is expected to complete by end of 2024, with potential for EU submission and US confirmatory trial if results are positive.

• SaLute trial recruitment is ahead of expectations, with completion targeted for end of 2025.

• IMforte trial PFS data is expected by late 2024 or early 2025, with possible EU submission in spring 2025.

• Zepzelca approval in China is anticipated from September, with significant market potential due to higher incidence rates.

• Sufficient net cash position to support planned R&D and development activities without liquidity concerns.