Copenhagen, 2015-05-05 07:45 CEST (GLOBE NEWSWIRE) --
Performance for the period (unaudited) (Comparative figures for 2014 are shown in brackets / revenue growth is measured in local currencies. Revenue from ALK's base business is defined as total revenue excluding revenues from the SLIT-tablet partnerships in North America and International markets).
In the first quarter, ALK delivered revenue growth in the base business at the upper end of the guidance range. Operating profit before milestone payments and sales royalties increased slightly despite investments in strategic growth initiatives.
- Total revenue, including partner income, decreased by 9% (local currencies) to DKK 650 million (684).
- Revenue in the base business was DKK 626 million (585) where growth was 4% driven by SCIT products, SLIT-tablets (GRAZAX ® ) and adrenaline auto-injectors (Jext ® ).
- Partner income decreased to DKK 24 million (99) due to significantly lower milestone payments compared to last year.
- Reported EBITDA was DKK 128 million (206). Excluding milestones payments and sales royalties, EBITDA before special items increased slightly to DKK 132 million (130).
- All pipeline activities continue to advance as planned. ALK’s new partner bioCSL is preparing for a regulatory submission of both GRAZAX ® and the HDM SLIT-tablet in Australia in 2015/16.
Subsequent events
- ALK has decided to dissolve its adrenaline business unit in Switzerland and integrate the adrenaline activities into other areas and locations in ALK. All assets regarding the adrenaline business have been transferred to the Danish parent company. As a consequence, ALK will record a one-off positive tax adjustment of approximately DKK 75 million in the income statement for 2015, which will be incorporated in the Q2 interim report.
2015 financial guidance
The 2015 guidance has been updated to reflect the current exchange rates but is otherwise unchanged:
- ALK still expects to grow revenue in the base business by 0-5% in local currencies based on low single-digit growth in Europe and high single-digit growth in non-European markets. To reflect current exchange rates, reported revenue in the base business is now expected at DKK 2.25-2.35 billion (previously DKK 2.2-2.3 billion).
- ALK's SLIT-tablet partnerships in North America and International markets are expected to generate additional revenue in the form of sales royalties, product supply, service fees, and, potentially, milestone payments.
- Production and capacity costs are forecast to grow slightly as ALK increasingly allocates funds in support of key elements of the long-term growth strategy.
- Operating profit (EBITDA before special items), excluding sales royalties and milestone payments from partnerships, is expected to be in the range of DKK 225-300 million. Exchange rates are not expected to materially affect EBTIDA.
Hørsholm, 5 May 2015
ALK-Abelló A/S
Contact: Jens Bager, President and CEO, tel. +45 4574 7576
Today, ALK hosts a conference call for analysts and investors at 11.00 a.m. (CEST) at which Management will review the financial results and the outlook. The conference call will be audio cast on www.alk-abello.com/investor . Participants in the audio cast are kindly requested to call in before 10.55 a.m. (CEST). Danish participants should call in on tel. 8088 1257 and international participants should call in on tel. +44 (0) 20 7572 1187 or +1 646 722 4972. Please use the following Participant Pin Code: 33109033#. The audio cast will also be available live on our website, where the related presentation will be available shortly before the call begins.
