Biomm (BIOM3) Q3 2024 earnings summary

Executive summary

• 9M 2024 revenue rose 5% YoY to R$102.905m and net loss narrowed 14% to R$51.645m; EBITDA remained negative at R$47.269m amid factory ramp-up costs.

• Nova Lima plant began industrial operations in Q3 after regulatory approval, enabling local Glargilin production; market share advanced in glargine insulin, trastuzumab and enoxaparin.

Financial highlights

• Q3 net revenue was R$32.261m, down 2.6% YoY; gross profit fell 47.7% to R$4.221m on mix, lower Herzuma prices, higher average costs and production ramp-up.

• 9M gross profit rose 4% YoY to R$20.810m, mainly on sales-volume growth and Glargilin replacing Wosulin in the mix.

• 9M net loss narrowed to R$51.645m from R$60.085m; Q3 net loss narrowed to R$16.284m from R$21.931m.

• 9M net financial result improved to R$5.354m income from R$5.965m expense, mainly from interest income on capital-raise proceeds.

• 9M operating cash outflow was R$81.153m, investing outflow R$72.775m and financing inflow R$187.570m, including the R$217.012m capital increase.

Outlook and guidance

• Strategy centers on growing the Brazilian biopharma portfolio, consolidating marketed products and producing Glargilin locally; no numerical financial guidance was stated.

• Ministry of Health tender awarded a distribution contract for 3.3m insulin glargine units, expected to generate ~R$50m; supply starts after signing.

• FUNED human-insulin technology transfer and supply remain subject to final Executive Project approval; the program targets 50% of the Ministry of Health’s annual human-insulin demand.

• Bevyx bevacizumab received ANVISA registration approval; commercialization awaits CMED pricing authorization.

• Insulin aspart distribution agreement was signed; Brazilian import and commercialization depend on ANVISA registration and CMED pricing.