THE PERIOD AND THE SECOND QUARTER
· Net sales amounted to MSEK 281.8 (163.2), of which MSEK 142.5 (81.9), in the second quarter. This corresponds to an increase for the period of 72.7%, and for the second quarter of 74.0%.
· EBITDA amounted to MSEK 93.5 (12.6), of which the second quarter MSEK 49.7 (3.3), corresponding to a margin of 33.2% (7.7%) for the six months and 34.9% (4.0%) for the second quarter
· Cash flow from operating activities amounted to MSEK 78.5 (-41.7), of which the second quarter MSEK 43.6 (-39.7)
· Earnings per share were SEK 0.46 (0.00), of which the second quarter SEK 0.20 (-0.04)
· Cash and other short-term investments at the end of the period amounted to MSEK 150.2 (157.6)
· A milestone payment of MUSD 2 was received during the period from Pfizer for the RORgamma project
SIGNIFICANT EVENTS AFTER PERIOD END
The Board of Karo Pharma AB has decided to bid for all shares in the Norwegian pharmaceutical company Weifa ASA, which is listed on the Oslo stock exchange.
The offer applies to all shares at NOK 35 per share and corresponds to a total value of MNOK 1 280 on a fully diluted basis. The offer is recommended by the Board of Weifa ASA.
The two companies fit well together both product wise and geographically. We see synergies of more than MSEK 500 during the next coming three years. This mainly through new launches.
See separate press release!
SIGNIFICANT EVENTS AFTER PERIOD END
· Karo Pharma acquires the product “Kolestemin” containing a unique patented combination of plant sterols. The product has a clinically documented effect of lowering cholesterol in the blood.
· A long-term agreement for the Nordic region has been signed with the British company Venture Life Group plc for a product against bad breath. The agreement gives Karo Pharma exclusive rights to sell the product in the Nordic region.
· Karo Pharma extends the cooperation with DR Wolff by launching the Plantur product, which is a product that enhances hair growth for women in transition.
· The organization has been strengthened.
AUDIOCAST TODAY AT 11.00 A.M. CET
A presentation of the report (in Swedish) will take place today at 11 a.m. The presentation can be attended through the corporate website www.karopharma.se or by telephone +46 8 505 564 74. Questions may be submitted over the internet or by the telephone.
COMMENT ON OPERATIONS
We are following our plan and the second quarter gave growth with increased profits.
Karo Pharma is now a Specialty Pharma company with strong market orientation.
We have strengthened our organization in order to expand the operations both organically and through acquisitions. Through our enhanced pipeline of new products, we will further strengthen our position within the OTC and pharmacy sectors. We invest less in fast-moving consumer goods, where the margins are lower. We focus more on strengthening our Nordic platform in order to later expand our business further to Europe. We have bid for all shares in the Norwegian pharmaceutical company Weifa ASA, which is listed on the Oslo stock exchange. The bid is supported by the board of Weifa. The company’s net sales is around 400 MNOK. (See separate press release). Karo Pharma is an interesting option for shareholders who want to invest in Health Care. We look confidently on our ability to continue to deliver good performance that creates shareholder value in a non-cyclical area.
FOR FURTHER INFORMATION, PLEASE CONTACT
Peter Blom, CEO, +46 70 655 56 98 or email@example.com
ABOUT KARO PHARMA
Karo Pharma is a specialty pharma company that develops and markets products to pharmacies and directly to healthcare providers. The share is listed on Nasdaq Stockholm in the Mid Cap segment.
The information in this report is such that Karo Pharma is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on August 24, 2017 at 8.00 a.m. CET.