Oslo, August 24, 2018 - Navamedic ASA (OSE: NAVA) reported revenues of NOK 45.2 million in the second quarter of 2018, down from NOK 89.7 million in the same period in 2017, following the planned discontinuation of the Aspen agreement. The company significantly strengthened the gross margin to 35%, compared to 22.7% in the same quarter last year, reflecting growth in higher margin products. Sippi® wireless connectivity to Patient Data Monitoring Systems (PDMS) was completed during the quarter, with a solid test backlog of hospitals across Europe.
"The second quarter of 2018 marks important milestones for Navamedic, as we are seeing the results of our continued transition from dependence on a single partner to building a strong base portfolio of license and distribution agreements with longer contractual periods, significantly better gross margins, and strong growth potential. By launching new, innovative brands with good margins, such as the anti-obesity drug Mysimba, we are continuing our journey to position our company for future growth and profitability," says Tom Rönnlund, Chief Executive Officer of Navamedic.
Revenues in the second quarter of 2018 were NOK 45.2 million, a decrease from NOK
89.7 million in the corresponding quarter last year. The gross margin improved to 35.0%, up from 22.7% in Q2 2017, reflecting growth in higher margin products. The Navamedic group's EBITDA for the second quarter was NOK 3.5 million, down from NOK 5.5 million in Q2 2017.
"The anti-obesity drug Mysimba, which has seen significant market uptake, is gaining headlines and receives solid feedback from clinicians and patients across the Nordics, is one example of our strategy to focus on launching new and innovative treatments that drive our return to profitability. We continue to see great growth opportunities for this long-awaited innovation treating serious, and to a large extent, unmet medical need," says Rönnlund, and continues:
"We also look forward to the upcoming anticipated launch of Elmiron, for the treatment of interstitial cystitis, and to continuing our work to return to profitable growth and to add to our pipeline of new and exciting original products, with launches scheduled for the coming 6-18 months," says Rönnlund
During the quarter, the company also announced the finalisation of the Sippi® wireless connectivity solution to Patient Data Monitoring Systems (PDMS), now under testing at European hospitals. Sippi® is a new standard for urine monitoring enabling automated digital measurement. The system represents a new and improved way of monitoring urine output, the last manual and non-digitalised vital parameter within the Intensive Care Unit (ICU).
"We have a back-log of clinics across Europe now initiating tests of the first wireless PDMS-connected digital urinometer on the market. With successful outcomes from these, we see a great opportunity to begin the era of setting new standards in the field of urine volume monitoring in intensive care and other wards in hospitals across Europe and the world. As previously announced, we have appointed a renowned, internationally established adviser to ensure we create the best possible conditions for the global launch of Sippi® and accelerate the successful market introduction of this innovative technology," says Tom Rönnlund
The company is hosting a presentation of the second quarter 2018 figures at Felix Konferansesenter, Aker Brygge, Oslo, Friday 24 August. The presentation will start at 08.00. The presentation will be webcasted live on www.navamedic.com .
For further information, please contact:
Tom Rönnlund, CEO, Navamedic
Telephone: +46 727 320 321
Navamedic ASA is a Norwegian medtech and pharmaceutical products company, delivering products to patients, hospitals and pharmacies in the Nordic and selected European markets. The Group's Medtech business has developed and is currently introducing the next generation of digital urine meter Sippi®. Navamedic's Pharma and Healthcare business segment is a distributor of products supplied by a number of pharmaceutical manufacturers. Navamedic is listed on the Oslo Stock Exchange (ticker: NAVA).
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