EQL Pharma (EQL) DNB Carnegie Micro Cap Day Conference summary

Company overview and business model

• Focuses on niche generics, targeting stable, low-competition products with predictable sales and profits.

• Operates virtually, relying on contract partners for development and manufacturing, with rigorous product selection and registration in target markets.

• Direct sales in Nordic countries, partner-based sales in continental Europe, and plans to enter Dutch and German markets directly as new growth levers.

• Business units include pharmacy, hospital, branded, and newly launched specialty generics, each with distinct market approaches.

• Branded segment, featuring Mellozzan and Memprex, is currently the fastest-growing area.

Financial performance and growth ambitions

• Achieved 30–40% annual growth from 2017 to 2025, but recent growth slowed to 16%, with 15% expected for the current year.

• EBITDA margin has declined from 20–25% to 15% due to operational challenges and increased OpEx.

• Growth ambitions remain at 30% top-line annually, with a strong focus on returning to previous performance levels.

• Committed to single-digit OpEx growth moving forward, aiming for improved profitability and operational efficiency.

• No surcharges were paid to increase inventory levels despite recent stockouts.

Operational challenges and turnaround strategy

• Faced significant supply chain issues and product launch delays since September last year, leading to multiple stockouts among key products.

• Only two products launched last year versus the 10–15 needed for optimal growth.

• Turnaround efforts focus on upgrading core processes, supplier management, and cross-functional launch forums.

• Inventory management and structural improvements are key priorities, with optimism for a stronger autumn and recovery in Q2 and Q3.

• AI adoption and further team adjustments are underway to enhance efficiency.