APONTIS PHARMA confirms preliminary figures – H1 2023 sales and earnings decline

APONTIS PHARMA confirms preliminary figures – H1 2023 sales and earnings decline
 

• Single Pill revenue of EUR 12.1 million (6M 2022: EUR 17.7 million)
  • Atorimib down EUR 5.3 million due to ongoing supply bottlenecks – normalization as of November announced by supplier
  • Strong growth of Tonotec HCT (+41%) and Tonotec Lipid (+88%), Biramlo, Losamlo and Iltria (between +7% to +13%)
• Total sales of EUR 19.1 million (6M 2022: EUR 28.1 million)
• Higher share of Single Pills improves gross margin to 63.6% (6M 2022: 61.3%)
• EBITDA of EUR ‑4.0 million (6M 2022: EUR 3.2 million), in particular due to the decline in sales
• Sales launch of the new Single Pill Rosazimib

Monheim am Rhein, 10 August 2023. APONTIS PHARMA AG (ticker APPH / ISIN DE000A3CMGM5), a leading pharmaceutical company specializing in Single Pills in the German market, has confirmed the preliminary figures it announced in July by publishing its half-year report. The company reported a total decline in sales of 32% to EUR 19.1 million in the first half of 2023 (6M 2022: EUR 28.1 million). In addition to the expiration of co-marketing agreements for the products Jalra and Icandra in September 2022, the tenders for Atorimib and Caramlo as well as the continued insufficient supply situation for the product Atorimib were particularly noticeable.

Single Pill revenue decreased by 32% to EUR 12.1 million (6M 2022: EUR 17.7 million) mainly due to the impact of the aforementioned tenders and the insufficient supply situation of the product Atorimib. Thereby, the supply bottlenecks of the contracted manufacturer for Atorimib continued. Sales of Atorimib declined by EUR 5.3 million to EUR 4.1 million. In addition, the weaker than expected growth of the Single Pill business had an overall impact. Stronger demand was recorded by Tonotec HCT at 41%, Tonotec Lipid at 88%; Biramlo, Losamlo and Iltria increased between 7% and 13%. The share of Single Pills increased to 63.4% (6M 2022: 62.9%).

In the cooperation business, APONTIS PHARMA generated sales revenues of EUR 5.9 million (6M 2022: EUR 9.1 million). The effects from the scheduled termination of co-marketing for Jalra/Icandra (EUR 3.8 million) in the previous year were offset by an increase in revenues from fee-for-call activities of EUR 0.9 million in the first half of 2023. Here, the successes with the AstraZeneca product Trixeo and the cooperation with Puren GmbH for the product Pentalong that commenced in April 2023 had a positive impact.

The gross margin increased to 63.6% (6M 2022: 61.3%) due to the higher share of sales of Single Pills. By contrast, earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR -4.0 million were mainly influenced by the development of sales (6M 2022: EUR 3.2 million).

Loss and higher working capital reduce liquidity

Negative cash flow from operating activities of EUR 9.0 million (6M 2022: cash inflow of EUR 5.0 million) resulted in particular from the negative development of earnings and the increase in working capital. Working capital increased in particular due to the increase in inventories. Cash flow from investing activities of EUR 1.0 million reflects further milestone payments for contract developments and in-licensing. With an equity ratio of 71.2% and cash and cash equivalents of EUR 26.3 million, APONTIS PHARMA has a solid asset and financial position to finance the product developments already commissioned and planned, as well as the continued growth of the company.

Group figures (unaudited)

in EUR million   6M 2023   6M 2022   ∆ Single Pill revenue   12.1   17.7   -31.7% Total sales   19.1   28.1   -32.2% EBITDA   -4.0   3.2   -223.0% EBITDA margin (in %)   -21.0%   11.6%   -3.260 bps EBIT   -4.9   2.4   -307.1 % EBIT margin (in %)   -26.0%   8.5%   -3.450 bps Net result   -3.5   2.4   -249.8 %

Note: The figures for the six-month period 2023 are unaudited. Rounding differences can occur.

Forecast for 2023 and medium-term planning for 2026 withdrawn – Preparation of program to increase operational performance and efficiency launched

In particular, due to the slower growth of the Single Pill business the Management Board withdrew the current forecast for fiscal year 2023 as well as the medium-term planning for 2026 on 27 July 2023. This includes delayed launches of two Single Pills in the second half of 2023 as well as the weaker development of sales of the three Single Pills newly launched in 2022.

In order to improve profitability in the years ahead, the company has started preparing a program aimed at enhancing operating performance and efficiency. This will involve evaluating strategic options for sales and marketing activities to increase sales on the one hand and measures to improve cost structures on the other.

Thomas Milz, Chief Product Officer of APONTIS PHARMA AG: “As announced, 2023 is a transition year. The current business development reflects the expiration of the co-marketing agreement for the diabetes products Jalra/Icandra as well as the tenders for Atorimib and Caramlo and supply problems for our product Atorimib. Following a commitment from the manufacturer of Atorimib, normal deliveries are expected to resume in November.

Overall, we are convinced of the transformation of our business model to focus on Single Pills: The market is there and acceptance is growing – however, implementation of the growth planned is taking longer than expected. At the same time, the expansion of the Single Pill portfolio is ahead of plan: we will launch not only three, but rather four Single Pills this year.

It should be noted that Single Pill therapies remain a growth market in view of their medical and scientific superiority and that APONTIS PHARMA’s Single Pill business model is intact. Our focus is now on improving our sales and marketing activities. APONTIS PHARMA’s clear goal is now to return to the path of profitability while at the same time realizing the ‘Single Pill as Gold Standard’ vision.”

Webcast/Teleconference:

CPO Thomas Milz and CFO Thomas Zimmermann will hold a webcast presentation today, 10 August 2023, 9:00 CEST, to discuss the 2023 six-month results. The presentation will be held in English.

Please register in time to attend at:

APONTIS PHARMA Quarterly Statement 6M - Webcast/Phone Conference.

The accompanying presentation will also be available on the company’s website before it begins.

Condensed Group Income Statement (unaudited)

in EUR million   6M 2023   6M 2022   ∆ Sales   19.1   28.1   -9.0 Other operating income
    0.5   1.8   -1.3 Cost of materials   -6.9   -10.9   -4.0 Personnel expenses   -9.5   -8.6   -0.9 Depreciation and amortization   -1.0   -0.9   -0.1 Other operating expenses   -7.1   -7.1   0.0 Operating result   -4.9   2.4   -7.3 Financial result   0.1   0.0   0.1 Result before taxes   -4.8   2.4   -7.2 Taxes on income and earnings   1.3   0.0   1.3 Result after taxes   -3.5   2.4   -5.9 Other taxes   0   0   0 Group result for the period   -3.5   2.4   -5.9

Note: The figures for the six-month period 2023 are unaudited. Rounding differences can occur.

Condensed Group Statement of Financial Position (unaudited)

in EUR million   June 30, 2023   Dec. 31, 2022   ∆ Assets             Fixed assets   17.3   17.0   0.3 Inventories   5.2   3.2   2.0 Receivables   2.9   2.9   0.0 Cash on hand and bank balances   26.3   36.3   -10.0 Prepaid expenses and deferred charges   0.6   0.4   0.2 Deferred tax assets   1.1   0.0   1.1               Liabilities             Equity   38.0   41.6   -3.6 Difference from capital consolidation   0.6   0.6   0.0 Provisions   9.8   11.5   -1.7 Liabilities   5.0   6.1   -1.1               Balance sheet total   53.4   59.8   -6.4

Note: The figures as of 30 June 2023 are unaudited. Rounding differences may occur.

Condensed Group Statement of Cash Flows (unaudited)

in EUR million		6M 2023		6M 2022		∆
Cash flow from operating activities		-9.0		5.0		-14.0
Cash flow from investing activities		-1.0		-1.7		0.7
Cash flow from financing activities		0.0		-0.9		0.9
Net cash flow		-10.0		2.4		-12.4

Note: The figures for the six-month period 2023 are unaudited. Rounding differences can occur.

About APONTIS PHARMA:

APONTIS PHARMA AG is a leading pharmaceutical company specializing in Single Pills in Germany. Single Pills combine two to three generic active ingredients in a single dosage form administered once a day. APONTIS PHARMA develops, promotes, and sells a broad portfolio of Single Pills and other pharmaceutical products, with a special focus on cardiovascular diseases. Since 2013, APONTIS PHARMA has successfully launched several Single Pill products alone for cardiovascular indications such as hypertension, hyperlipidemia and secondary prevention. With its headquarters in Monheim am Rhein, APONTIS PHARMA is located in one of Europe’s leading pharmaceutical and chemical regions. From here, the company maintains a broad network with research-based pharmaceutical companies and a customer target audience of approx. 25,000 physicians in Germany. For additional information about APONTIS PHARMA, please visit www.apontis-pharma.de.

APONTIS PHARMA AG

Investor Relations
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F: +49 2173 89 55 1521
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40789 Monheim am Rhein
Germany
apontis-pharma.com

APONTIS PHARMA Press Contact

CROSS ALLIANCE communication GmbH
Sven Pauly
ir@apontis-pharma.de
T: +49 89 125 09 0330