Nycomed H1 results 2007

22.08.2007The financial results reported in this press release are related to Nycomed S.C.A. SICAR and comprises all of the Nycomed Group’s operations including the ALTANA Pharma activities acquired in December 2006. Comparison figures for H1 2006 are pro-forma and un-audited. A full interim report is available under http://www.nycomed.com/investors/financials

Highlights

Positive impact from integration synergies

Nycomed’s net turnover grew by 6.1% in H1 2007 to € 1,774.0 million. The results reflect a positive sales growth in all regional segments.

The Group’s adjusted EBITDA (see Financial Background) reached € 623.3 million in H1 2007, representing an increase of 33.3% over the same period in 2006. The development is among others due to strong sales of pantoprazole, in the US in particular, but also reflects the positive synergies of the ongoing integration of the ALTANA Pharma and Nycomed organisations.

     

Outlook for 2007 

The main focus for 2007 is on the integration of Nycomed and ALTANA Pharma with a continuous focus on our customers and markets.

In 2007, we expect low single digit growth in our net turnover but a strong increase in adjusted EBITDA of approx. 25%, excluding restructuring and integration costs.

 

Europe 1 (Baltics, Belgium, Denmark, Finland, Norway and Sweden) had net sales growth of 1.9% to 182.6 million in H1 2007, primarily driven by accelerating strong growth in the Baltics, while the other markets were under significant pressure from generic competition.

Europe 2 (Austria, France, Germany, Italy, Netherlands, Poland and Switzerland) grew by 0.5% reaching a net turnover of € 498.6 million. Poland and Switzerland both achieved strong double-digit growth with Austria close behind, but overall growth was modest due among others to significant parallel import of pantoprazole from lower priced countries, resulting in reduced sales in a number of markets.

Europe 3 (Croatia, Czech Republic, Greece, Hungary, United Kingdom/Ireland, Portugal, Romania, Slovakia and Spain) had sales growth of 29% to € 160.0 million. The development was driven by overall strong business performance except in the United Kingdom.

LASA-CAN (Argentina, Brazil, Canada, Mexico and South Africa) grew net sales by 24.5% to € 262.5 million, based on continued exceptionally strong performance in Canada, due to the repatriation of pantoprazole.

Russia/CIS reached a net turnover of € 121.7 million representing a growth of 11.2% over the same period last year. The growth was influenced by temporary uncertainty related to payments under the Federal Reimbursement Programme and a continued weakening of the dollar.
     

Fougera in the United States grew by 9.9% to € 115.0 million.
     

International sales (Asia, Australia, China, India, Japan and other export countries) grew by 12.2% to a net turnover of € 393.7 million based on an overall satisfactory market performance specifically related to pantoprazole / Protonix in the US.

Contract production grew by 17.6% to € 29.1 million in H1 2007 due to increased demand related to our toll manufacturing agreement.
     

Among the key products, especially Pantoprazole boosted net turnover with a 19% growth in overall sales over the same period last year. But also the Merck portfolio in the CIS and sales of Neosaldina (Brazil) had strong growth rates above 20%. Sales of calcium, the Group’s second-largest product, declined by 19%, mainly due to parallel import in some countries and a slow start in the CIS.

CEO statement

Håkan Björklund, Nycomed CEO said:

“Our overall market performance in the first half of 2007 has been under pressure with selective European markets showing negative growth due to increasing generic competition and continued cost savings in the health care sector. This has been compensated by a strong performance in markets outside Europe and our contract production.

On the internal lines, we have proceeded according to plans with the integration of the former ALTANA Pharma and Nycomed organisations, and we are realising the expected synergies from these efforts as we proceed. This has made it possible to increase our adjusted EBITDA in H1 by an impressive 33% despite the modest top-line growth.”


Financial background

Adjusted EBITDA and EBITDA are key figures used in order to have a more comprehensive analysis of our operating performance and of our ability to service our debt.

Adjusted EBITDA means net earnings before net financial items, income taxes, depreciation of tangible assets and amortization of intangible assets, adjusted for certain unusual or non-recurring items.

In connection with Nycomed’s acquisition of ALTANA Pharma AG on 29 December 2006, a new holding structure became effective by way of a share exchange between the private equity investors of Nycomed A/S (the former holding company of the Nycomed Group) and the new holding company, Nycomed S.C.A. SICAR, Luxembourg. At that date, Nycomed became the ultimate parent company in the Nycomed Group. Comparison figures are presented as if Nycomed S.C.A. SICAR had always been the ultimate parent company.


Financial calendar

Nycomed expects to announce its results for Q3 2007 on 19 November 2007.


About Nycomed

Nycomed provides products for hospitals, specialists and general practitioners, as well as over-the-counter medicines in selected markets.

The company is active within a range of therapeutic areas, including cardiology, gastroenterology, osteoporosis, respiratory, pain and tissue management. New products are sourced both from own research and from external partners. Operating throughout Europe and in fast-growing markets such as Latin America, Russia/CIS and the Asia-Pacific region Nycomed has a presence in about 50 markets worldwide.

Privately owned, the combined group had non-audited estimated annual sales of approximately € 3.4 billion and an EBITDA of € 933.4 million (2006 results).

For more information visit http://www.nycomed.com/


For further information
 
International:
Christoffer Jensen, VP Communications
Phone +45 46 77 11 12
Mobile +45 22 43 69 44

Germany:
Susanne Hof, Head of External Communications
Phone +49 7531 84 30 59
Mobile +49 151 55 00 26 65

 

For further information

Media:
General phone:

+41 44 555 15 10
Beatrix Benz,

phone: +41 44 555 1508
Tobias Cottmann,

phone: +41 44 555 1501

Investors:
Christian B. Seidelin,

phone: +41 44 555 11 04

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