Nycomed continues to outperform in emerging markets in first quarter 2011

25.05.2011
  • Strong first quarter driven by broad emerging market growth in Russia/CIS, Asia Pacific, Middle East and Latin America
  • Emerging markets accounted for 47.9% of Q1 turnover, when excluding a one-time payment from Forest Laboratories
  • Adjusted EBITDA €312.4m, up 34%, including one-time Forest Laboratories payment
  • Daliresp™ (roflumilast) approved in US, triggering $182.0m/€131.3m payment from Forest Laboratories; Daliresp™/Daxas® included in new GOLD COPD treatment guidelines; REACT study launched to further evaluate Daxas® when added to standard treatments
  • Agreement with Takeda to acquire Nycomed announced in May 2011, subject to antitrust clearance

 

The financial results reported in this press release are related to Nycomed S.C.A. SICAR and comprise all of the Nycomed Group’s operations. The full interim report is available at www.nycomed.com/Investors/Reports

Nycomed today announced results for the first quarter of 2011, demonstrating continued outperformance in the key emerging economies which are driving growth in the global pharmaceuticals industry. There was good growth in Nycomed’s Key Products portfolio (excluding Pantoprazole, which is now off patent worldwide), led by respiratory, OTC and Regional and Local Rx products.

Net turnover in the first quarter 2011 was up 19.9% year-on-year at €923.7 million, boosted by a one off-payment of $182.0 million/€131.3 million from our US marketing partner Forest Laboratories following the US approval of Daliresp™ (roflumilast, marketed as Daxas® outside the United States) for the treatment of COPD. Revenues were up 15.1% in local currencies. Excluding the Forest Laboratories payment, revenues were up 2.1% year-on-year (-1.2% in local currencies).

Progress was especially strong in the three leading emerging regions, with Russia/CIS registering growth of 34.9% to €139.5m (+31.5% in local currencies); Latin America grew by almost 25% to €106.0 million (+14.1% in local currencies); and Asia Pacific/Middle East and Africa were up 72% to €91.8 million (+57.8% in local currencies). This strength helped to overcome challenging conditions in the more mature markets of Western Europe and the US. Pantoprazole revenues declined following the loss of exclusivity for Protonix® and price erosion in Europe. In several European countries and in emerging markets, sales of pantoprazole grew at double-digit rates.

Commenting on the company’s first quarter performance, Nycomed CEO Håkan Björklund said: “This was a strong quarter for Nycomed, with a good sales performance in leading markets and continued outperformance in the key emerging markets of Latin America, Asia Pacific and Russia/CIS demonstrating the success of our long-term strategy. Continued strong expansion in these younger markets, which we believe will be an engine for growth in our industry, helped to offset declines in Western Europe and the US, with Russia/CIS now our second-largest region after Europe, and Asia Pacific, Middle East overtaking North America in overall sales.”

“A key event was the US approval of Daliresp™, known in other markets as Daxas®, for the treatment of COPD, triggering a one-off payment from our partner Forest Laboratories of $182.0/€131.3 million. Sales of Daxas in Europe, where it is currently being rolled out, were in line with our expectations and we are encouraged by the response from clinicians and patients”, Mr. Björklund continued.

On the acquisition by Takeda, he said: “We believe the anticipated acquisition of Nycomed by Takeda Pharmaceutical Company Limited, announced last week, will bring together Takeda’s track record of innovation and Nycomed’s efficient commercialization and manufacturing infrastructure to create a global player able to meet the needs of patients and healthcare providers around the world.”

Q1 2011 (€m) Q1 2010 (€m) Change
Net turnover 923.7 776.4

+19.9%
+15.1%(1)
-1.2%(2)
+2.1%(3)

Gross profit

Margin

671.6

72.7%

548.2

70.6%

+22.5%

Operating profit (EBIT) 167.6 41.6 +302.9%

EBITDA

Margin

294.1

31.8%

212.6

27.4%

+38.3%

Adjusted EBITDA



Margin

312.4


33.8%

233.1


30.0%

+34.0%
+27.4%(1)
-26.2%(2)
-22.3%(3)

(1) Change in local currency.
(2) Change in local currency excl. one-time payment from Forest Laboratories.
(3) Change excl. Forest Laboratories Payment (in euro).

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. EBITDA means net income adjusted for net financial terms, income taxes, depreciation of tangible assets and amortisation of intangible assets. Adjusted EBITDA is EBITDA adjusted for unusual or non-recurring items not related to the future and ongoing business. The difference between EBITDA and adjusted EBITDA mainly comprises integration, projects and restructuring costs.

About Nycomed

Nycomed is a privately owned global pharmaceutical company with a diversified portfolio focused on branded medicines in gastroenterology, respiratory and inflammatory diseases, pain, osteoporosis and tissue management. A range of OTC products completes the portfolio.
Its R&D is structured around collaborations. In-licensing and expanding in emerging markets are cornerstones of the company's growth strategy.

Nycomed employs 12,500 associates worldwide, and its products are sold in more than 100 countries. It has strong platforms in Europe and in fast-growing markets such as Russia/CIS, Latin America, Asia and the Middle East. In the US and Japan its products are available through best in class partners.

Headquartered in Zurich, Switzerland, the company generated total sales of € 3.2 billion in 2010 and an adjusted EBITDA of € 851 million.

 

For further information

Media:
General phone:
+41 44 555 15 10
Tobias Cottmann, phone:
+41 44 555 15 01

Investors:
Christian B. Seidelin, phone:
+41 44 555 11 04

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