On April 23, 2024 PharmaMar Group (MSE: PHM) reported total revenues of €38.0 million, representing a 12% increase compared to the €34.0 million reported in the first quarter of 2023 (Press release, PharmaMar, APR 23, 2024, View Source [SID1234642249]). Recurring revenues, resulting from net sales plus royalties received from our partners, have increased by 15% to €31.7 million, compared to €27.4 million in the same period of the previous year.

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Sales in oncology have increased by 25% to €19.0 million. This increase is primarily due to commercial sales of Zepzelca in Europe amounting to €4.2 million, as well as raw material sales to our partners, both for Yondelis and Zepzelca, totaling €3.3 million, and revenue from the "early access" program, which increased by 12% to €6.3 million. These latter revenues mainly come from France, although there are also ongoing "early access" programs in countries such as Spain and Austria.

Yondelis sales in the European market, after the entry of generics, total €5.2 million (compared to €8.1 million in 1Q23).

As of March 31, 2024, royalty revenues amounted to €12.7 million, representing a 14% increase compared to the same period of the previous fiscal year. These revenues include royalties received from our partner Jazz Pharmaceuticals for lurbinectedin sales in the U.S., which have increased by 13% to €11.6 million. Royalties for the first quarter of 2024 are an estimate, as information on sales made by Jazz was not available as of the publication date of this report. Any discrepancies will be corrected in the following quarter.
In addition to royalties received from Jazz Pharmaceuticals, royalties for Yondelis sales from our partners in the U.S. and Japan amounted to €1.1 million in the first quarter of 2024, compared to €0.9 million in the same period of the previous fiscal year.

Regarding non-recurring revenues from licensing agreements, as of the end of the first quarter of 2024, these amounted to €6.0 million, of which €5.7 million correspond to the deferred revenue portion of the 2019 agreement with Jazz Pharmaceuticals regarding Zepzelca.

Investment in R&D reached €27.2 million in the first quarter of 2024, representing a 29% increase compared to the previous fiscal year.

Of the total R&D investment in this first quarter of 2024, the amount allocated to the oncology segment increased by 39% to €24.6 million, compared to €17.8 million in the first quarter of 2023. This increase is directly related to the significant increase in activity related to ongoing lurbinectedin clinical trials, primarily the LAGOON (phase III clinical development in small cell lung cancer indication) and SaLuDo (phase IIb/III clinical development in leiomyosarcoma indication) trials. Additionally, the company continues to invest in the clinical development of other molecules in earlier stages. In this regard, a phase II clinical trial with ecubectedin is underway in solid tumors, and phase I clinical trials are also underway, with ecubectedin, PM534 and PM54 for the treatment of solid tumors.

With all this, the PharmaMar Group reports a net profit of €2.3 million at the end of the first quarter of 2024.

As of March 31, 2024, PharmaMar Group has a cash and equivalents position of €164.5 million and reduced total debt by 8% since December 2023, to €36.8 million. Thus, the net cash position stands at €127.7 million