Newbury Pharmaceuticals

Quarter 4, June 2023 – August 2023
· Net revenue was 2 827 (4 570) tkr.
· EBITDA was -4 468 (-3 626) tkr.
· Operating cash flow was -3 631 (-4 987) tkr.

Year-end period, September 2022 – August 2023
· Net revenue was 10 266 (5 516) tkr.
· EBITDA was -18 332 (-13 661) tkr.
· Operating cash flow was -23 227 (-15 001) tkr.
· Cash position at the end of period was 8 528 (33 334) tkr.
· No of products in the portfolio at end of period were 36 (30).
· Products with marketing authorization at the end of the period were 13 (4).
· Products launched in Nordics at end of the period 3 (1).

Significant events during the quarter
· Interim report for third quarter 2022/2023 brought forward from July 7 to June 14.
· Newbury sets new financial goals for 2024 and 2028. By 2028, the company expects to achieve sales of SEK 350 million. The goal for EBITDA is an operating margin of 20% in 2028 and in 2024 to achieve a positive quarterly EBITDA. The new goals are replacing goals announced early 2022.
· Desmopressin Newbury approved by the Swedish Health Authorities.
· Newbury gains access to the Nordic hospital market with a new strategic partnership for prescription medicine

Significant events after the end of the quarter
· Newbury has signed a 15 MSEK loan agreement with a maturity date of 31 Dec 2024.
· Newbury is strengthening its portfolio with Levodopa/Benserazide.
· Newbury has entered into a partnership with Amarox granting access to 6 registered products.

A word from the CEO
It has been another exciting quarter with strong sales from Scandinavia plus two new very important partnerships adding short and mid-term value. Furthermore, we are financially equipped to finance the planned sales growth based on a recently announced loan totalling 15 MSEK.

Sales and operations are running according to plans
Compared to previous year we close of the financial year with a growth in sales of +86% vs last year the growth has been driven by international business.

Sales during the 4th Quarter has shown very promising progress with regards to uptake from the products being launched in Scandinavia. Sales from Scandinavia has increased by 173% over previous quarter – and we continue sales growth in the first month of Q1. We have doubled the number of marketed products in Scandinavia from two to four. Another doubling will take place during the next months where we will launch products indicated for diseases like idiopathic pulmonary fibrosis, severe infections and breast cancer. With more products marketed, – we also expect higher sales during 2024 where we assume to launch additional products. It is our expectation to have app 14 products on the market by the end of 2024.

The nature of the business requires us to have sufficient stock at hand to bid for tenders. We have therefore successfully announced a loan amounting to 15 MSEK which we intend to use primarily for financing the inventory build-up.

Business development is securing three important deals
We have secured three new partnerships during the last couple of months as earlier announced.

A partnership focused on exclusive distribution rights for certain hospital products in the Nordics. We anticipate seeing the first launch from this partnership at the end of 2024 – and assume to expand the product range over time.

Another distribution partnership was recently announced where we will act as distributor for Amarox who presently focus on the bigger markets in EU. We expect to launch the first products during the first half of 2024.

Lastly, we expanded the portfolio with in-licensing of the combination product Levodopa + benserazide which is offering access to an attractive future market for Newbury.

Outlook – looking forward seeing the impact on sales from several planned launches
We remain committed to achieve solid sales from the launches in Scandinavia while at the same time to grasp sales opportunities from international markets. We are entering a very exciting period with several launches and implementation of two new strategically important partnerships which will add short and mid-term value to shareholders.

The report is publised on Newbury Pharmaceuticals website:
https://www.newburypharma.com/investors/financial-information/