EQL Pharma

CEO's comments

A warm welcome to our Q3 report! It's been another busy quarter for us at EQL Pharma with strong growth in our drug sales, new approvals and a lot of Covid self-test sales. The comparison quarter Q3 2021/22 as a whole is difficult to match because people were more likely to test themselves a year ago. We update the growth forecast for the current full year from north of 30% to closer to 40%.

Third quarter in summary

The third quarter's total sales in 2022/23 amounted to SEK 80.2 (117.6) million. Adjusted for non-recurring sales, sales amounted to SEK 56.1 (33.1) million, an increase of almost 70%. Operating profit (EBIT) amounted to SEK 15.5 (18.0) million, a decrease of 14%. The operating margin was 19% (15%), the positive trend continues. During the quarter, development projects where the outlook has deteriorated have been written down in the balance sheet. We have also taken some height for the uncertainty in the sale of self-tests by writing down a proportion of the current stock.

Financial goals and full-year forecast

Our long-term financial goals remain fixed. However, we adjust the outlook for the current year from a sales growth north of 30 percent to a growth close to 40%, i.e. on par with our long-term plan.

Strategic focus of EQL

• Launch the pipeline products as fast as possible
• Maximize the utility of our assets by launching products in more countries, by ourselves or through partnerships
• Continuously identify and sign new niche generics to be launched in the Nordics and elsewhere to secure long-term growth
• Outlicense and market our strategic key asset Mellozzan
• Be cost-efficient in everything we do
• Continue to curiously explore new business models and potential revenue streams (e.g. as was done with the personal protective equipment (PPE) and the covid tests)

Products and market

Our first distribution product Abiraterone Qilu against disseminated prostate cancer has been launched in Norway and Sweden during the quarter.

During the quarter, we have also launched the medicine Ondansetron EQL Pharma against nausea from, among other things, radiotherapy and chemotherapy in both Sweden and Denmark. The market is approx. SEK 15 million annually with three to six active competitors.

Sales of self-tests for Covid-19 have continued in the third quarter mainly as a result of the peak of infection in December. EQL is and will remain well positioned if the demand for tests continues.

In the quarter, the drugs Copneg, Levosimendan and Tigecyclin EQL Pharma have been approved for sale in a number of countries. Furthermore, the distribution products Ampitar and Penicryl Polfa as well as Meropenem and Sugammadex Qilu have been approved. Above medicines are hospital products.

In November, EQL was named "Gasell company Skåne" by Dagens Industri ("gasell" meaning ~ exceptionally fast growing) and among 99 Gasell companies in southern Sweden, we placed 6th.