Building a base for sustainable growth
(Thomson Reuters ONE) -
11 February 2011, Lysaker, Norway: Pronova BioPharma ASA today announced fourth
quarter revenues of NOK 388 million (NOK 538 million) and EBITDA of NOK 129
million (NOK 231 million). Full year revenues were NOK 1 644 million (NOK 1 790
million) and EBITDA was NOK 627 million (NOK 823 million). The performance
reflected the impact of lower 2010 prices and inventory adjustments by Pronova
BioPharma's US marketing partner.
Highlights for the quarter
* Strong underlying market growth and continued roll out into new markets
including Australia and Mexico
* Continued growth in end-user demand offset by partner inventory adjustment
in the USA and lower 2010 prices
* Improved cost position after implementation of efficiency programme
* Strong cash flow enables reduction of net debt
* Next-generation omega-3 compound on track to enter clinical phase in Q2 2011
Omacor® /Lovaza(TM) cemented its position as a blockbuster pharmaceutical
product, led by strong demand in the US, Spanish, French and Korean markets.
Total end-user demand rose 19 per cent to NOK 7.6 billion in the current eight
largest markets. The company ensured its ability to continue to meet rising
consumer demand for its pharmaceutical omega-3 drug with the manufacturing plant
at Kalundborg, Denmark, coming fully on stream during the year.
The robust end-user demand was offset by a decision by Pronova BioPharma's US
marketing partner GSK to bring inventory levels of Lovaza(TM) in line with end-
user demand as well as lower partner prices in the USA . The impact of the US
inventory adjustment is expected to continue during 2011 but will be partially
offset by a sharp rise in US partner prices, which is expected to increase the
overall revenue/shipment ratio to 1.10 - 1.20. The end-user market in volume
terms is growing at an annual run-rate of 16 per cent in Pronova BioPharma's
current eight largest markets.
Pronova BioPharma has taken significant steps during 2010 to diversify into new
markets, including signing a new distribution agreement with Abbott Laboratories
to market Omacor® in 69 countries around the world. Marketing approval was
received in Australia in July and the company's strategy of accelerating roll
out in high growth emerging markets was manifested by approvals in Mexico and
Paraguay, with Mexico being the world's 14th largest market in value. During
2010, Pronova BioPharma launched and started shipment to Mexico, Paraguay and
Australia. Roll out of Omacor® in other fast-growth markets including India,
Taiwan, South Africa, Brazil and Venezuela is expected in the coming years, with
marketing approvals pending in 27 countries including China and Turkey. In
Japan, Phase II trials by Takeda are on track for completion in H2 2011.
Progress was also made on new lifecycle developments for Omacor®/Lovaza(TM) and
the group's R&D efforts are expected to result in the first next-generation
omega-3 derived pharmaceutical focused on the entire lipid profile entering
clinical phase during H1 2011.
The company significantly strengthened its financial position during the year,
with full-year cash generation from operations of NOK 484 million. Net debt was
reduced by NOK 432 million in the 12 months to December 2010. The company will
also benefit from an efficiency programme during the year aimed at reducing
manufacturing costs by approximately NOK 50 million in full-year 2011.
Pronova BioPharma continued to act to strengthen and defend its IP position. In
December 2009, patents were granted in Europe for the group's proprietary
technology for the removal of environmental pollutants and cholesterol. Patents
on the same technology were granted in the USA in March and May 2010. In
addition, a patent covering pharmaceutical compositions with a low concentration
of environmental pollutants was granted in the USA and later listed in the US
Food and Drug Administration ("FDA") Orange Book in July 2010. Paragraph IV
letters regarding this recently granted pharmaceutical composition patent were
received from Par, Apotex and Teva during the year.
Pronova BioPharma will vigorously defend the intellectual property portfolio
protecting Lovaza(TM) in the US market. It also remains confident that the
quality and manufacturing capacity advantages that it has achieved through
significant investment over recent years will provide important protection for
the Lovaza(TM)/Omacor® brand. Some 18 months after patent expiry in most
countries in Europe, no generic versions of Omacor® have been seen in the
European market.
The board has decided not to propose payment of a dividend at this time, but
will continue to review use of cash on an ongoing basis as the company maintains
focus on creating value for shareholders over the longer term.
Chief Executive Officer Morten Jurs commented, "Pronova BioPharma is well
positioned to achieve further growth in revenues and profit. Over the last
decade, Pronova BioPharma has shaped the omega-3 industry by developing a
differentiated market position within the lipid pharmaceutical industry. In
2011, we intend to continue to build a base for sustainable growth by defending
our existing market position and participating in potential new structural
solutions
to further strengthen our leadership in the industry domain that we have
pioneered. With the benefits of the cost reduction programme implemented during
2010, we will continue to focus on strengthening our financial position whilst
investing in broadening our portfolio, bringing new products into the clinic and
continuing our expansion into new markets."
The complete fourth quarter report is available at www.newsweb.no and at
www.pronova.com.
The company will present the results today at 08:30AM CET/07:30 GMT. The
presentation will be webcast live and can be accessed at www.pronova.com.
(Internet explorer web browser needed). Webcast attendees may send questions
electronically during the session.
-- Ends --
For further information, please contact:
Hamed Brodersen, Vice President IR and Communications + 47 22 53 48 60
Synne H. Røine, CFO +
47 22 53 48 92
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
Q4 2010 Report :
http://hugin.info/137506/R/1487945/423409.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Pronova BioPharma ASA via Thomson Reuters ONE
[HUG#1487945]
Unternehmensinformation / Kurzprofil:
Datum: 11.02.2011 - 07:00 Uhr
Sprache: Deutsch
News-ID 51348
Anzahl Zeichen: 7682
contact information:
Town:
Lysaker
Kategorie:
Business News
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