The gestures of Pharmacy They fell 11%, the biggest drop since January, after citing quarterly results that dismantled even what was Wednesday’s best value on the IBEX 35.
The figures were in line with analysts’ projections, but the drain on the invoicing of Zepzelca and higher R&D spending uncovered the thunder box.
The company reported net profit in the six months of 34.9 million euros, down 19% from the same period last year.
During the quarter, net profit was 12.9 million, slightly lower the 13.8 million expected by the consensus of analysts.
PHARMA MAR (PHM)PHARMACY (PHM)
Zepzelca clicks revenue for legal change in France
The most negative surprise was brought by Zepzelca, the star drug, whose revenues in Europe reached 11.1 million euros over the half-year, against 15.8 million in June 2021.
With that, recent news from Approval of Zepzelca in China was eclipsed.
This figure was impacted by a change in French regulations which regulates the prices of drugs marketed under the Temporary Authorization for Use (ATU) regime.
This meant the application of “significant discounts” and is the reason for the decline in revenues attributable to Zepzelca, despite the increase in the number of patients treated.
“We have reduced our short-term forecast slightly” to take this regulatory change into account, they told Finanzas.com in sources at London broker RX Securities.
Specifically, these experts were counting on a turnover for the whole of the year of 212.4 million euros, against 217 million to be calculated. In addition, EBITDA will reach 71.5 million, against the 80.5 million expected by the market.
Pharmamar R&D investments
Regarding the 19% drop in net profit, the Galician biopharmaceutical company explained that the drop is due to the increase in R&D investments, which accounted for 39% more, up to 40.3 million euros.
In the oncology segment as of June 30, Pharmacy invested 33.3 million euros in R&D, of which 9.9 million euros correspond to the costs incurred in the development of plitidepsin (Aplidin) for the treatment of Covid-19.
The company also pointed out that the net sales of Yondelis they have hardly changed compared to the first half of 2021. Pricing pressure in Europe is the factor that explains why this item has remained stable.
Overall, recurring revenue (sales plus royalties) rose 5% to €86.7 million in the first half.
“We see the market severely penalizing value, falling below expectations due to increased R&D, both in oncology and aplidineone could therefore say that its results disappointed”, the analysts of GI.
Supports Pharmamar testing
After the publication of these results, the Pharmamar share went directly to test the support zone at 66 euros.
“He went straight for the 32.8 Fibonacci retracement, where the fall has stopped for the moment, because it also supports the 200 session average,” explained Inversión magazine’s director of analysis, Joseph Codine.
The stock, which was the best value on the IBEX 35, with an annual rise of almost 30%, has reduced its profits this year to 15% and entered a sideways range.
If it loses 66 euros, the next support is at 62 euros, pointed out the expert from Inversión magazine.
Above, the main thing for Pharmamar is to recover the 70 euros, although it has a first resistance at 68 euros. In total, to consider other increases, the action would have to exceed 75 euros, which would open up new momentum.
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