· Net sales amounted to MSEK 139.3 (82.3), equivalent to an increase of 69.3%. Growth was mainly due to acquisitions.
· EBITDA amounted to MSEK 43.7 (9.3), which corresponds to a margin of 31.4% (11.3%)
· Cash flow from operating activities amounted to MSEK 34.9 (-61.0)
· Earnings per share was SEK 0.29 (0.05)
· Cash and cash equivalents and other short-term investments at the end of the period amounted to MSEK 166.1 (11.2)
· A rights issue raised a total of MSEK 374
SIGNIFICANT EVENTS AFTER PERIOD END
· Pfizer pays a milestone of MUSD 2
· Change of CEO:
Maria Sjöberg resigns, Peter Blom is appointed new CEO
Background: Karo Pharma is evolving from a preclinical re-search company to a Specialty Pharma company
· Babyslide will be launched in October
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
Karo Pharma continues its positive development as a “Specialty Pharma” healthcare company. During the quarter we delivered growth with increased profitability.
The costly early projects have either been out-licensed or are managed virtually. This way we have lowered the cost level and, moreover have partners for projects that provide us with the opportunity of future milestones and royalties.
2017 is an important year for Karo Pharma to develop its operations to a new level, with continued growth and increased profitability.
The company’s changed focus has led to a change of CEO. Maria Sjöberg has been very helpful in bringing about changes within the organization.
Our focus is now to develop into a Specialty Pharma company with strong market orientation. Peter Blom currently deputy CEO, who has long experience in consumer goods, has successfully led the market organization within Karo Pharma over the past two years. Most recently, Peter comes from Swereco Group where he was Sales Director since 2011. Prior to that, Peter has held senior positions in Sony Sweden, Viasat and Valio. Peter has been appointed by the Board as new CEO.
We have several interesting products that are facing launch. One of these is Babyslide, which will be launched in the fall. Babyslide is a new patented Swedish invention aimed at reducing the risk of ruptures at childbirth. The product has been tried by more than 1,100 women in the obstetrics departments in Helsingborg, Lund and Malmö, and has proven to be very effective – 30 percent more women managed without ruptures using Babyslide compared with the control group.
Work on identifying and evaluating different types of acquisition opportunities continues in parallel with the organic growth of operations. This makes the company well prepared to lead the consolidation in the sector.
Karo Pharma is an interesting option for shareholders who want to invest in the health care area. The company is not cyclical and we are confident in our ability to continue delivering a good development to our shareholders.
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 May 10, 2017 at 8.00 a.m. CET.