Continued positive development for Navamedic

Navamedic ASA (OSE: NAVA), the Norwegian pharmaceutical company, today announced its second quarter 2011 results. Sales were record high for the third consecutive quarter. The development of Navamedic's new generic drug business remains on track. The first two products will be launched within the next four months and the Company predicts profitability and significant sales growth in 2012.

Navamedics' sales were NOK 18.2 million in the second quarter, which is a 43 per cent growth over last year's second quarter sales. All sales were generated by the Vitaflo business area, a distributor of patented drugs and healthcare products in the Nordic markets. For the first half of 2011 sales were up 36 per cent to NOK 35.0 million.

Navamedic is currently ramping up its new Generics business area, scheduling the first two product launches within the next four months. Eight new products will be launched next year. Navamedic has so far filed for marketing license for a total of ten generic pharmaceutical products. The build-up of the new business area represented costs and investments totalling NOK 9.5 million in the second quarter.

EBITDA for Navamedic in the second quarter was heavily influenced by the generics business costs, partly offset by a positive results development in the Vitaflo business. Navamedic's EBITDA for the quarter came in at NOK -1.1 million, compared to NOK -1.5 million in the second quarter last year. EBITDA for the first half of 2011 was NOK -2.1 million, compared to NOK -2.8 million last year.

"The results reflect that our Vitaflo business area enjoys a positive sales and results development. Furthermore, we are on time and on budget in developing our new attractive Generics business area," said Navamedic CEO Olof Milveden.
The Vitaflo business is expected to grow by approximately 20 per cent per year going forward. The Generics business area forecasts strong growth from 2012 onwards. The company targets sales of more than NOK 300 million at attractive margins for this business area in 2015, making Navamedic one of the top five generic pharmaceutical companies in its defined markets.

Generics business area," said Navamedic CEO Olof Milveden.

The Vitaflo business is expected to grow by approximately 20 per cent per year going forward. The Generics business area forecasts strong growth from 2012 onwards. The company targets sales of more than NOK 300 million at attractive margins for this business area in 2015, making Navamedic one of the top five generic pharmaceutical companies in its defined markets.