PharmaMar Group reports 9 month 2021 financial results

  • The Group’s recurring revenues (sales plus royalties) grew by 31% to €119 million during the first 9 months.
  • Total revenues amounted to €144 million.
  • The Group recorded a net profit of €54.7 million for the first 9 months.
  • Strong operating cash flow generation with €25 million over the first 9 months despite intensification of R&D investments.

PharmaMar Group (MSE: PHM) reported that recurring revenues, comprising net sales plus royalties received from sales by our partners, increased by 31% year-on-year to €119 million for the first 9 months of the year.

As in previous quarters, the increase in recurring revenues was mainly driven by the good performance of our oncology business unit. Oncology sales revenues reached €88.7 million year-to-date in 2021, an increase of 21% compared with the same period last year.

It is worth highlighting the growth in revenues from Zepzelca® (lurbinectedin) in Europe under the compassionate use authorization program, which amounted to €23.3 million through September 30th. This represents an increase of 77.7% when compared with the same period last year. Yondelis® (trabectedin) sales remained stable in 9M 2021, €56.5 million compared to €57.1 million in 9M 2020.

Royalty revenues amounted to €27.2 million in 9M 2021, compared to €7.4 million over the same period in 2020. This significant increase was mainly driven by royalties received from our partner Jazz Pharmaceuticals, which accounted for €25.2 million and have been entirely generated as a result of sales of lurbinectedin in the US. As our partner Jazz Pharmaceuticals has not reported its 3Q 2021 results yet, our recorded 3Q 2021 royalties are an estimate based on our conservative, best available information.

Revenues from licensing agreements refer, both in 2020 and in 2021, to the licensing agreement signed with Jazz Pharmaceuticals in 2019, reaching €24.4 million in 3Q 2021, and €130.4 million in 3Q 2020. This difference is due to the recording as revenue of the upfront payment for the license agreement, as well as the milestone for the approval of lurbinectedin in the US. Both events occurred in the first half of 2020 and are being recognized on the income statement, based on the degree of progress of the contractual commitments.

PharmaMar plans to commence a confirmatory trial with lurbinectedin in second-line recurrent Small-Cell Lung Cancer at the end of 2021. This will be a three-arm clinical trial comparing lurbinectedin in monotherapy or in combination with irinotecan, versus the investigators’ choice of irinotecan or topotecan. If positive, this trial will be used with the US FDA to confirm the benefit of lurbinectedin in the treatment of Small-Cell Lung Cancer when patients progress after first-line treatment with a platinum-based regimen, as well as with the European Medicine Agency as a registration trial in Europe.

GENOMICA, PharmaMar Group’s molecular diagnostics company, reported net revenues of €3.5 million up to September 30th, 2021, compared to €10.5 million in the same period of 2020. This difference was mainly due to increased competition in the market for COVID-19 tests, both PCR, lateral flow and antibody tests, which led to lower prices.

Similarly, the decrease in the incidence of COVID-19 has considerably reduced the use of these tests.

As a result, PharmaMar Group’s total revenues for the first 9 months of 2021 amounted to €143.9 million, compared to €222.2 million over the same period of 2020, which, as mentioned above, included the upfront payment for the licensing agreement with Jazz Pharmaceuticals and the milestone payment for the approval of lurbinectedin in the US.
The Group’s R&D expenditure increased by 21.2% to €47.4 million during the first nine months of 2021, compared with €39.1 million in the same period last year.

As a result, PharmaMar Group posted a net profit of €54.7 million on September 30th, 2021.

As of September 30th, 2021, the PharmaMar Group had cash, and cash equivalents, plus financial investments of €222.0 million and a total debt of €50.7 million. As a result, total net cash amounted to €171.3 million.

PharmaMar’s website, by visiting the Events Calendar section of the company’s website at www.pharmamar.com.

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About PharmaMar

PharmaMar is a biopharmaceutical company focused on the research and development of new oncology treatments, whose mission is to improve the healthcare outcomes of patients afflicted by serious diseases with our innovative medicines. The Company is inspired by the sea, driven by science, and motivated by patients with serious diseases to improve their lives by delivering novel medicines to them. PharmaMar intends to continue to be the world leader in marine medicinal discovery, development and innovation.

PharmaMar has developed and now commercializes Yondelis® in Europe by itself, as well as Zepzelca® (lurbinectedin), in the US; and Aplidin® (plitidepsin), in Australia, with different partners. In addition, it has a pipeline of drug candidates and a robust R&D oncology program. PharmaMar has other clinical-stage programs under development for several types of solid cancers: lurbinectedin and PM14. Headquartered in Madrid (Spain), PharmaMar has subsidiaries in Germany, France, Italy, Belgium, Austria, Switzerland and The United States. PharmaMar also wholly owns other companies: GENOMICA, a molecular diagnostics company; and Sylentis, dedicated to researching therapeutic applications of gene silencing (RNAi). To learn more about PharmaMar, please visit us at www.pharmamar.com.

About Yondelis®
Yondelis® (trabectedin) is a novel, synthetically produced antitumor agent originally isolated from Ecteinascidia turbinata, a type of sea squirt. Yondelis® exerts its anticancer effects primarily by inhibiting active transcription, a type of gene expression on which proliferating cancer cells are particularly dependent.

About lurbinectedin
Lurbinectedin (Zepzelca®), also known as PM1183, is an analog of the marine compound ET-736 isolated from the sea squirt Ecteinacidia turbinata in which a hydrogen atom has been replaced by a methoxy
group. It is a selective inhibitor of the oncogenic transcription programs on which many tumors are particularly dependent. Together with its effect on cancer cells, lurbinectedin inhibits oncogenic transcription in tumor-associated macrophages, downregulating the production of cytokines that are essential for the growth of the tumor. Transcriptional addiction is an acknowledged target in those diseases, many of them lacking other actionable targets.

Miguel Martínez-Cava – logo PharmaMar