On February 28, 2022 PharmaMar Group (MSE: PHM) reported recurring revenue growth of 27% to €165 million (Press release, PharmaMar, FEB 28, 2022, View Source [SID1234609144]). These revenues are the sum of net sales plus royalties received for sales.
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The increase in recurring revenues in 2021 is due to the good performance of the oncology business. To year-end, oncology sales revenues totaled €119 million, an 18% increase compared with the sales recorded the previous year. Royalty revenues grew by 162% to €41 million1. This strong growth is mainly due to royalty revenues received from our partner in the United States, Jazz Pharmaceuticals, for sales of Zepzelca (lurbinectedin).
In the case of non-recurring revenues from licensing agreements, these mainly relate, in both 2020 and 2021, to the licensing agreement entered into with Jazz Pharmaceuticals, and total €65 million in 2021 and €140.3 million in 2020. License revenues in 2021 include the accrual of US$25 million (€22 million) from Jazz Pharmaceuticals for achieving certain commercial targets.
The difference in these revenue between years is due to the accounting recognition of the receivables collected in 2020 for the signing of the agreement with Jazz and for the approval of lurbinectedin in the US.
Eliminating the effect of the collections from the lurbinectedin license to Jazz Pharmaceuticals in both 2021 and 2020, PharmaMar Group’s operating profit in 2021 would have increased by 57% with respect to 2020.
In the molecular diagnostics segment, GENOMICA, reported net revenues of €5 million at the end of 2021, compared with €13 million in 2020. This difference was mainly due to lower revenues from Covid-19 tests, PCR, lateral flow and antibody tests, as a result of increased competition, which has led to a significant decrease in the prices of these tests.
In 2021, the Group generated operating cash of €26 million. It should be noted that this cash generation followed an investment of €72 million in R&D, an increase of 34% compared to the resources devoted to this, the previous year.
One of the PharmaMar Group’s most important clinical trials is LAGOON, which will evaluate lurbinectedin for treating patients with relapsed Small-Cell Lung Cancer which commenced in 2021.
If successful, LAGOON will serve as the confirmatory trial for lurbinectedin to secure full approval in the U.S. LAGOON will also be used as a registrational trial with the European Medicines Agency (EMA) to obtain marketing authorization in Europe.
PharmaMar Group increased its net cash position in 2021 to €167 million, from €163 million the previous year thus ending to December 31st, 2021 with cash and cash equivalents (cash and cash equivalents plus current and non-current financial investments) of €212 million and total debt of €45.5 million.
As a result, the PharmaMar Group reported net income of €93 million at the end of 2021.
The Board of Directors of Pharma Mar, S.A. will propose to the Shareholders’ Meeting that a dividend in cash of €0.65 gross per Pharma Mar, S.A. share be paid to shareholders against 2021 earnings, 8% higher than the dividend paid in the previous year.
Conference call on results for analysts and investors
PharmaMar will hold a conference call for analysts and investors on Tuesday, March 1st, 2022, at 13:00 (CET). The numbers to connect to the conference call are: +34 91 901 16 44 (from Spain), +1 646 664 1960 (from the US or Canada) or +44 20 3936 2999 (other countries). Participants’ access code: 146916. To view the webcast, please click on the following link: View Source
The teleconference and the recording of the webcast can be accessed on PharmaMar’s website by visiting the Events Calendar section of the Company’s website at www.pharmamar.com.