Pharma Mar (PHM) Q3 2024 earnings summary

Executive summary

• Group revenue reached €126.5 million in the first nine months of 2024, up 8% year-over-year, driven by higher royalties and non-recurring revenue.

• EBITDA increased by 14% year-over-year, reaching €6.3 million, reflecting improved operating profitability despite higher R&D and operating expenses.

• Net profit for the period was €7.4 million, slightly below the €7.9 million reported in the same period of 2023.

• Positive clinical results for Zepzelca (lurbinectedin) in combination with atezolizumab in small cell lung cancer support upcoming regulatory filings in the US and EU.

Financial highlights

• Total revenue rose 8% year-over-year to €126.5 million, with recurring revenue up 1% and non-recurring revenue up 41%.

• Royalties increased 10% to €42.2 million, mainly from Zepzelca sales in the US and Yondelis in the US and Japan.

• Oncology segment net sales declined 4% to €57.0 million, with Yondelis sales in Europe down and lurbinectedin revenue impacted by prior year adjustments.

• R&D expenses rose 8% to €76.0 million, with oncology R&D up 17% to €70.0 million, reflecting increased clinical trial activity.

• Net cash position at September 30, 2024, was €97.3 million, down from €128.8 million at year-end 2023.

Outlook and guidance

• Plans to submit regulatory filings for Zepzelca in combination with atezolizumab in the US and EU in the first half of 2025.

• Ongoing pivotal trials (LAGOON, SaLuDo) expected to complete enrollment by year-end, supporting future growth.

• Net cash position considered sufficient to fund planned R&D and development activities.