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Vistin Pharma — Earnings Release 2016
Aug 30, 2016
3782_rns_2016-08-30_c8b947f3-fd33-4a41-9e13-435c59e5a017.html
Earnings Release
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Vistin Pharma ASA : Solid second quarter driven by all-time high metformin revenue
Vistin Pharma ASA : Solid second quarter driven by all-time high metformin revenue
Oslo, Norway, 30 August 2016
Norwegian pharmaceutical company Vistin Pharma ASA (OSE: VISTIN) recorded its
highest ever revenue from its main metformin business in the second quarter of
2016. The Company expects the metformin growth story to continue and is scaling
up to meet future demand by expanding the production facility by 3,000 metric
tonnes ("MT").
"We are very pleased with our metformin business and we expect this segment to
continue to grow. In order to take part in that growth, we have decided to make
a NOK 120 million investment to double the current production capacity. With
this production volume we will be targeting a 15 percent share of the global
Metformin API market," says CEO Kjell-Erik Nordby.
Metformin is the standard first line treatment of Type 2 Diabetes. Vistin
Pharma's products are sold to international pharmaceutical companies, which use
it to make finished products. According to Vistin Pharma's estimates, the
Company controls about eight percent of the global metformin market with its
current annual manufacturing capacity of 3,000 MT.
A feasibility study for a 3,000 MT capacity expansion was concluded during the
second quarter. The study concluded that the planned expansion is technically
feasible and financially sound. The capacity increase will require an investment
of approximately NOK 120 million, and is expected to be fully operational from
2019. The investment will be financed through a combination of existing cash
reserves, cash generation and debt. In parallel, the Company is working on
stretching the current capacity by approximately 500 MT (+16-17 percent capacity
increase) through an efficiency program, to ensure that Vistin Pharma can meet
the expected increase in demand in the short-term.
Within opioids, Vistin Pharma's second B2B division, the Company recorded a five
percent growth in revenue in the second quarter, despite continued price
pressure in the market. A higher portion of higher priced codeine tablets sold
more than offset a 10 percent drop in prices for Active Pharmaceutical
Ingredients ("API"). The contract manufacturing business ("CMO") continued its
stable performance during the quarter.
Vistin Pharma recorded overall revenue of NOK 109.7 million in the second
quarter. Reported EBITDA was NOK 12.6 million, while the net profit came in at
NOK 9.8 million. The Company's financial position remains strong, with net cash
of NOK 55.7 million at 30 June. A dividend for 2015 of NOK 0.60 per share,
totalling NOK 10.2 million, was distributed to the shareholders in June.
Vistin Pharma will give a presentation today at 08:30 CET at Felix
Konferansesenter, Bryggetorget 3, Oslo, Norway. CEO Kjell-Erik Nordby and CFO
Gunnar Manum will represent the Company. The presentation will be webcast live
and can be accessed directly from
http://webtv.hegnar.no/presentation.php?webcastId=36208894, or
http://www.vistin.com/investors/webcast-article214-455.html.
Please find the report and presentation for the second quarter 2016 enclosed.
The report and presentation will also be made available on www.vistin.com.
For further information, please contact:
Kjell-Erik Nordby
CEO
+47 91 36 42 80
Gunnar Manum
CFO
+47 95 17 91 90
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
About Vistin Pharma
Vistin Pharma is a Norwegian pharmaceutical company producing Active
Pharmaceutical Ingredients (APIs) and solid dosage forms for the global
pharmaceutical industry. The Company has key positions in the Metformin and
Opioids markets, and a strong foundation for creating a highly efficient
Contract Manufacturing tablet production (CMO) business. Solid growth
potentials exist in all the business segments.
With more than 65 years of pharmaceutical industry experience, Vistin Pharma has
built significant capacity and expertise as an API provider. The Company has
more than 140 highly qualified employees and two manufacturing facilities in
Kragerø, Norway. Both facilities are certified according to current Good
Manufacturing Practice (cGMP) and successfully inspected by the US Food and Drug
Administration (FDA) in 2014. Vistin Pharma's headquarter is in Oslo, Norway.