Biomm (BIOM3) Q2 2024 earnings summary

Executive summary

• 2Q24 revenue rose 4.3% YoY to R$32,083 thousand and gross profit increased 62.7% to R$8,103 thousand; higher operating expenses kept EBITDA negative at R$17,331 thousand.

• 1H24 revenue increased 9% to R$70,644 thousand and gross profit rose 39% to R$16,589 thousand; net loss narrowed to R$35,361 thousand from R$38,154 thousand.

• Nova Lima received Anvisa approval for Glargilin manufacturing and began local insulin glargine production; distribution agreements expanded the diabetes portfolio.

Financial highlights

• 2Q24 net revenue was R$32,083 thousand, up 4.3% YoY and down 16.8% QoQ due to product mix; gross profit was R$8,103 thousand, up 62.7% YoY and down 4.5% QoQ.

• 2Q24 operating expenses were R$28,618 thousand, up 22% YoY, mainly on higher marketing expenses; consolidated EBITDA was negative R$17,331 thousand versus negative R$15,741 thousand in 2Q23.

• 2Q24 net loss was R$18,279 thousand versus R$20,222 thousand a year earlier; net financial income was R$2,316 thousand versus net expense of R$1,695 thousand.

• 1H24 cost of sales was R$54,055 thousand versus R$53,152 thousand; operating expenses totaled R$54,642 thousand, up 19% YoY.

Segment performance

• Glargilin sales grew 38% in 2Q24 versus 17% market growth; Q2 share reached 27%, while LTM Jun24 sales grew 38% versus 12% market growth and share was 24%.

• Herzuma's 440mg private-market sales grew 14% in 2Q24 versus 6% market growth; share reached 22%. 1H24 sales volume grew 20%, and it ranked second in trastuzumab prescriptions.

• Ghemaxan private-market sales grew 31% in 2Q24 versus 20% market growth; share was 3% in Q2 and 4% for LTM Jun24. Q2 volume fell 65%.

• Wosulin's private-market share fell 3.7 percentage points as the market contracted 14%; Q2 sales volume rose 221% YoY.

• A public-sector tender awarded supply of 13,432 regular-insulin vials and 1,528,206 NPH-insulin vials to the Ministry of Health.