Monday, January 17

Pharmamar’s profits will improve from 2022


Pharmamar ended 2020 with the best results in its history by earning 137 million euros with revenues of 270 million and an ebitda of 163 million thanks to the extraordinary computed by its agreement with Jazz Pharmaceuticals.

The biopharmaceutical improved its annual results thanks to the injection of 300 million dollars from its license extension agreement to its Irish partner for the commercialization of Zepzelca in the USA.

The amount was produced by the provisional marketing approval of the US FDA and the entry of royalties for sales objectives of the drug, but this year the items were reduced and the results declined.

Market consensus estimates predict that profit in 2021 falls to 66.6 million euros, 51.75 percent less than in 2020 and the ebitda would be reduced to 85 million, 47.85 percent less.

Revenues would be the item that would best resist as they would fall to 26 percent, up to 200 million euros. The forecast in the drop in income is the sample of the decrease in results that quarter by quarter when sales are anchored.

Zepzelca closed a record quarter in the US

Yondelis, the oldest drug in the Pharmamar portfolio with more than 20 years in the market, is the one that best resists with sustained sales between 20 million and 25 million euros per quarter.

In contrast, sales of Zepzelca in Europe, under the compassionate use formula, stagnate despite the pull of the drug in markets such as France. In addition, sales of diagnostic tests are significantly reduced due to increased competition and greater control of the virus.

The royalties from Jazz thus become the great catalyst for the results and they point to higher increases, according to the sales achieved by Jazz Pharmaceutials in the United States in the third quarter.

Zepzelca closed its best three months in the market since it began to be marketed in July of last year and estimates from Jazz Pharmaceuticals and the market suggest that the growth rate will be stable.

Barclays He noted in a recent report that Zepzelca’s underlying growth is “intact” at over 10 percent a year and that new research for the product will continue to boost the small cell lung cancer drug.

Profit would grow 26.5% in 2022

These projections on Zepzelca are what lead experts to improve Pharmamar’s profit estimates for 2022 compared to those offered for this year, although they will not reach those of 2020.

The projected profit for 2022 would grow to 84.3 million euros, 26.5 percent more in the interannual rate; EBITDA would improve to 102.8 million, 21 percent more, and revenues would rise to 219 million, 9.5 percent more.

The projections could be favorably impacted by the final approval of the full commercialization of Zepzelca in the United States that would mean the direct entry of 150 million dollars for Pharmamar, as per its agreement with Jazz Pharmaceuticals.

The company’s estimates were to obtain this approval during the first quarter of 2022, as pointed out by the president of the biopharmaceutical, Jose Maria Fernandez Sousa, in an interview with finanzas.com, but that date is already expired.

Jazz Pharmaceuticals expects to start the confirmatory trial of the efficacy of Zepzelca in the second line of treatment, after patients have been medicated with platinum-based chemotherapy, this month.

The FDA will decide on its sell-off based on this study and analysts believe that trial completion and possible approval would not come, in the best case, until well into the second half of 2022.

Total commercialization, by the end of 2022

Confidence in the product is highest in both Pharmamar and Jazz Pharmacéuticals and for this reason the Irish company has already started another phase three study, the pre-marketing one, to make Zepzelca a first-line drug.

The drug will be tested in combination with the Tencet from Roche, reference in oncology. The two studies may be used by Pharmamar to accelerate the application for commercialization in the European Union.

The processes are one year behind the United States And since Jazz Pharmaceuticals’ confirmatory study has yet to begin, no delivery to the community health regulator, EMA, is expected until mid-2023 at best.

Pharmamar also has other open parallel studies with Zepzelca in combination with irinotecan to test its efficacy against soft tissue sarcoma, where Yondelis also acts, and it is that at stake are another 550 million dollars in royalties and new applications.

However, if the license agreement with Jazz Pharmamar is fully complied with, it would achieve a capital injection of 1,000 million dollars, while it is licensing the product to other partners on five continents.



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