• The Group’s sales for the period amounted to SEK 333 (253) million

• EBITDA amounted to SEK 54 (22) million

• EBIT amounted to SEK 43 (18) million

• The net profit after tax for the period amounted to SEK 15 (33) million1)

• Earnings per share after tax for the period were SEK 0,04 (0,16 ) before and after dilution1)

Significant events during the period

• The capital acquisition implemented in the 2nd quarter was fully subscribed and brought BioPhausia proceeds of SEK 64 million before expenses.

• During the period, the government adopted the proposal for re-regulation of the Pharmacy Market.

Period April-June

• The Group’s sales for the quarter amounted to SEK 153 (130) million

• EBITDA amounted to SEK 26 (8) million

• Operating profit was SEK 20 (6) million

• Profit after tax amounted to SEK 6 (21) million1)

• Earnings per share after tax was SEK 0.02 (0.13) before and after dilution1)

(For table see attached file.)

MD´s report

Strong Recovery for Licensed Products

Sales for the group as a whole rose by 32% to SEK 333 (253) million in the fi rst half of the year. The increase is largely a result of the product acquisition from AstraZeneca in June 2008. Organic growth for the period was zero percent, having been adversely affected by a diffi cult market situation as a result of the weak Swedish currency. EBITDA for the period increased to SEK 54 (22) million, which corresponds to an EBITDA margin of 16 (9) percent.

The second quarter of 2009 was a successful period for the company’s licensed products, with the EBITDA margin improving signifi cantly to 20 percent from -24 percent in the same quarter the previous year. Organic growth for licensed products in the period January-June 2009 was 41 percent, while the number of products on the market rose to 29 from 13 at the end of Q2 2008. It is heartening to see the segment showing sound growth and higher margins after a period of price pressure and weak growth. It is notable that the segment’s Q2 earnings were adversely affected by conditional penalties of SEK 3 million arising from delivery problems with certain hospital products. These are non-recurring costs. In Poland, preparations to ensure sales can start there by the end of 2009 are on schedule, and key personnel were recruited to the Polish market organisation during the second quarter. Sales started in Lithuania during the second quarter, and preparations to establish sales on the other Baltic markets are progressing according to plan.

The Swedish market for parallel-imported products declined by as much as 26 percent during the period. This was largely due to EUR/SEK movements. A strong Euro restricts purchasing opportunities for parallel-imported pharmaceuticals, as the majority of purchases are in the Euro.

The parallel-imported products segment’s sales for the fi rst half of the year fell by 14 percent in Sweden. This is a much less severe decline than that experienced by the market. This means we increased our parallel-imported market share to 12 percent, which represents an improvement of almost two percentage points compared with the same period in 2008.

The strong Euro also had a negative effect on the company’s own products. Higher purchase prices were partly offset by price increases. Unlike the licensed products and parallel-imported products segments, it is not always practicable to adjust the sales prices for all the products in the segment.

The period was marked by the decision to re-regulate the Swedish pharmacy monopoly, although it is not yet clear who the Swedish market protagonists will be. The re-regulation will bring with it new requirements and new openings for BioPhausia. We are following developments closely - particularly through our trade associations.

As previously communicated, a successful raising of capital during the period brought the company SEK 64 million before expenses. SEK 30 million has been used for bank loan repayments. The extra repayments have resulted in the repayment rate for 2010 falling to SEK 67 million, compared with SEK 93 million for 2009.

In conclusion, sales of licensed products have risen signifi cantly during the period, geographical expansion continues unabated and the group’s EBITDA margin is still improving (now at 16 percent) despite difficult market conditions.

(For full report see attached file.)

Company information


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