Navamedic ASA, the Norwegian pharmaceutical products company, today announced its fourth quarter and 2011 full year results. Sales reached yet another all time high in the fourth quarter and profit margins improved significantly. Navamedic also made its debut in the generic pharmaceuticals market in the quarter.
"The combination of increasing sales and profitability in our traditional business area while we move into the new and exciting generics segment confirms that Navamedic's strategy is proving successful," said CEO Olof Milveden.
Navamedic sales in the fourth quarter were NOK 19.2 million, which is a 22 per cent growth over the previous year's fourth quarter. Sales were mainly attributable to the Vitaflo business area, however the new Generics business area posted sales for the first time with revenues of NOK 0.1 million.
While Vitaflo profitability continues to improve, Navamedic's group results are affected by costs related to the build-up of its new generics business. The Group's EBITDA came in at NOK 0.3 for the quarter, a significant improvement over the corresponding quarter last year.
Navamedic launched its two first generic drugs in the fourth quarter and is well underway towards building a position in this fast growing segment. The Company currently has 11 generic products filed for approval and expects to launch eight of these in the market during 2012. Generics developing costs and capitalised investments in the business area totalled NOK 5.7 million in the fourth quarter.
The Vitaflo business area, which is a distributor of health care products and patented drugs in the Nordic markets, experienced high sales growth also in the fourth quarter. Profitability continued to improve and the EBITDA margin reached 10 per cent in the fourth quarter.
For the full year, Navamedic's sales grew by almost 30 per cent and reached NOK 71.3 million. EBITDA after generics development costs came in at NOK -2.6 million, a significant improvement over the previous year's EBITDA of NOK -6.5 million.
Navamedic forecasts continued double digit sales growth and attractive margins in its Vitaflo business area. As generics products are rolled out during 2012, the Company expects profitability also in this area towards the end of the year.