Nycomed Q1 results 2007

29.05.2007The 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 Q1 2006 are pro-forma and un-audited. A full interim report is available under www.nycomed.com/investors/financials

Highlights

Strong start for the combined group

Nycomed’s net turnover grew by 6.2% in the first quarter of 2007 to € 873.5 million. The results are based on satisfactory growth in most of our established home markets, despite the intensified focus on cost containment from health authorities and increasing generic competition.

The Group’s adjusted EBITDA (see Financial Background) reached € 286.3 million in the first quarter of 2007, representing an increase of 30.0% over the same period in 2006. The increase was mainly due to reduced expenses for marketing & sales and R&D as the cost base was lower than anticipated entering 2007 but also due to the start of integration of the Nycomed and ALTANA Pharma organisations.

Outlook for 2007

2007 will be a year where main focus will be on the integration of Nycomed and ALTANA Pharma AG 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. 20%, excluding restructuring and integration costs.

Europe 1 (Baltics, Belgium, Denmark, Finland, Norway and Sweden) had net sales growth of 5.3% to 93.7 million in Q1 2007, primarily driven by strong market performance in the Baltics, Finland and Norway which all experienced double-digit growth.

Europe 2 (Austria, France, Germany, Italy, Netherlands, Poland and Switzerland) grew by 2.3% reaching a net turnover of € 257.2 million. France and Poland in particular showed strong growth over the same period last year.

Europe 3 (Croatia, Czech Republic, Greece, Hungary, United Kingdom/Ireland, Portugal, Romania, Slovakia and Spain) had sales growth of 31% to € 79.7 million driven by repatriation of key products in Spain and positive business development in all countries except the UK and Portugal.

LASA-CAN (Argentina, Brazil, Canada, Mexico and South Africa) grew net sales by 19.7% to € 126.0 million, based on exceptionally strong results in Canada, which grew by 132% over Q1 in 2006.

Russia/CIS reached a net turnover of € 58.9 million representing a growth of 8.1% over the same period last year. Results are affected by a 9.4% decrease in USD vs. EUR. In Russia, which represents 72% of the total business, the growth was influenced by temporary uncertainty related to payments under the Federal Reimbursement Programme

Fougera in the United States grew by 42.8% to € 56.8 million over a strong Q1 in 2006.This was based among others on a growth in branded generics and the branded dermatological line.

International sales (Asia, Australia, China, India, Japan and other export countries) decreased by 6.6% to a net turnover of €184.6 million. The development is caused by significantly reduced sales in the export business, but positively affected by good performance in sales to Wyeth and a strong market performance in Australia.

Contract production grew by 42.5% to € 16.6 million in Q1 2007.

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:

“In the first quarter of 2007, the new combined Nycomed successfully continued to build on the strong momentum created in the former ALTANA Pharma and Nycomed organisations. The performance gives us confidence, that we are on the right track. Even though we have used large internal resources on getting our integration programme up and running, we have managed to sustain an attractive growth rate, and our earnings show a very promising development.

We still have a long way to go before our two organisations are completely integrated and all synergies are fully realised. Many challenges still lie ahead. But we are proceeding according to plans, and we are highly motivated to continue striving towards realising our strategic goals, while at the same time keeping focused on our customers and patients.”

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 the first half of 2007 on Wednesday, 22 August 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 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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