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Vistin Pharma — Earnings Release 2017
Aug 31, 2017
3782_rns_2017-08-31_173fad22-2fa1-41cb-bfd7-b8d7cf126779.html
Earnings Release
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Vistin Pharma ASA : Second quarter 2017 results - continuing strong demand for metformin
Vistin Pharma ASA : Second quarter 2017 results - continuing strong demand for metformin
Norwegian pharmaceutical company Vistin Pharma ASA (OSE: VISTIN) experienced
strong demand and stable prices for its metformin products in the second quarter
of 2017. Upon completion of the recently announced sale of its opioids and
contract manufacturing business (CMO), Vistin Pharma will become a pure play
metformin company with considerable growth ambitions and a solid financial
platform to support its strategy.
"The sale of our opioids and CMO business will allow us to focus entirely on
strengthening our position as one of the world's largest producers of premium
metformin, the gold standard treatment of type 2 diabetes. Diabetes is one of
the largest global health emergencies of the 21st century, and from a commercial
perspective, we are attractively positioned to take our significant share of
what is an ever-growing market," says CEO Kjell-Erik Nordby.
Vistin Pharma estimates its global market share of the metformin market to
approximately 8 per cent. The Company is investing in a doubling of its current
production capacity, and expects the new production line to be fully operational
during 2019.
The decision to sell its opioids and CMO business was announced on 11 July. A
Sales and Purchase agreement has been entered with Australian company TPI
Enterprises Ltd, and closing of the transaction is expected early in the fourth
quarter. The Board of Directors of Vistin Pharma will propose an extraordinary
dividend after the completion of the transaction.
Vistin Pharma had total revenues and other income from continuing operations of
NOK 54.1 million in the second quarter 2017, compared to NOK 54.6 million in the
second quarter 2016. Total revenues and other income for the quarter included a
net gain of NOK 8.8 million relating to an insurance settlement received in
connection with the reactor failure at its metformin factory in the fourth
quarter 2016.
Sales volumes in the quarter were 13 per cent lower compared to all-time high
volumes in the corresponding quarter 2016. The company is currently producing at
full capacity. Vistin Pharma's decision to invest in a new production line at
its metformin plant in Kragerø, Norway, will effectively double the current
production capacity upon completion in 2019. The project is running according to
plan, and is currently in the detailed engineering phase.
The Company's financial position remains strong, with a cash position of NOK
59.7 million as of 30 June. Total equity was NOK 179.0 million, giving an equity
ratio of 66.4 per cent (73.1 per cent). Vistin Pharma holds no interest-bearing
debt.
Vistin Pharma will hold a presentation today at 08:30 CET at Carnegie AS,
Fjordalleen 16, Oslo. CEO Kjell-Erik Nordby and CFO Gunnar Manum will represent
the Company. The presentation will be streamed live via webcast and can be
accessed directly from
http://webtv.hegnar.no/presentation.php?webcastId=58639933or
http://www.vistin.com/investors/webcast-article214-455.html.
Please find the report and presentation for the second quarter 2017 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
About Vistin Pharma
Vistin Pharma is a Norwegian pharmaceutical company producing Active
Pharmaceutical Ingredients (APIs) and solid dosage forms for the global
pharmaceutical industry.
With more than 75 years of pharmaceutical industry experience, the Group has
built significant capacity and expertise as an API and Solid Dosage Form
provider to pharmaceutical companies all over the world, and Vistin Pharma's
API's are marketed in more than 50 countries.
On 11 July 2017 Vistin Pharma announced that the Company had entered a Sales and
Purchase agreement with TPI Enterprises Limited for the sale of its opioids and
tablet manufacturing business. The transaction is expected to be closed early in
the fourth quarter of 2017.
Upon completion of the transaction, Vistin Pharma will be a focused metformin
producer, with a single purpose manufacturing plant for metformin API in
Kragerø, Norway, and with a strong position in the global market and with
significant growth ambitions. The Company's head office is in Oslo, Norway.
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.