Biomm (BIOM3) Q2 2023 earnings summary

Executive summary

• H1 2023 revenue rose 36.9% YoY to R$65.057m; net loss narrowed to R$38.154m from R$45.133m, while EBITDA remained negative at R$28.142m.

• Q2 revenue grew 37% YoY to R$30.774m but declined 10.2% QoQ; lower selling prices amid competition pressured quarterly gross profit.

• Glargilin and Herzuma gained market traction, while enoxaparin share declined; an exclusive ustekinumab biosimilar agreement expanded the portfolio.

Financial highlights

• H1 gross profit rose 35.7% YoY to R$11.905m, supported by higher volumes, a shift from Wosulin to Glargilin and lower average product acquisition costs.

• H1 operating expenses were R$45.800m, down 8.4% YoY; lower write-offs, marketing and infrastructure costs contributed.

• Q2 gross profit fell 8% YoY to R$4.980m; H1 net finance costs declined to R$3.755m from R$4.553m.

• Consolidated EBITDA was negative R$15.741m in Q2 and negative R$28.142m in H1; H1 net loss narrowed to R$38.154m.

• H1 operating cash outflow was R$45.067m; cash and equivalents at June-end were R$24.499m, down from R$75.931m at year-end 2022.

Segment performance

• Glargilin reached 23.2% insulin glargine share in H1, versus 8% in H1 2022 in reported market-share comparisons; sales growth was 216% in H1 and 119% in Q2.

• Herzuma reached 25.8% oncology market share, up 9.2% versus 2022; H1 sales volume rose 24% YoY, with share gains in private and decentralized public markets.

• Enoxaparin share fell to 2% in Q2 and H1 from 4% and 5%, respectively; reported sales declined 33% in Q2 and 60% in H1.

• Ghemaxan H1 sales volume rose 129% YoY, while Wosulin and Ghemaxan market shares declined 3.4% and 2.1% versus the prior-year period.

• Q2 sales volumes increased 13% for Herzuma and 377% for Ghemaxan YoY; total diabetes portfolio volume rose 55%.