Pharmamar shares plummeted 11 percent, the biggest drop since January, after trading quarterly results that dismantled even what this Wednesday was the best value of the IBEX 35.
The figures were in line with the analysts’ projections, but the drop in Zepzelca’s turnover and the higher spending on R&D uncovered the thunder box.
The company reported a net profit in the semester of 34.9 million euros, 19 percent less than in the same period last year.
In the quarter, net profit was 12.9 million, slightly below the 13.8 million expected by the consensus of analysts.
PHARMA MAR (PHM)PHARMA MAR (PHM)
Zepzelca clicks on income for a legal change in France
The most negative surprise was brought by Zepzelca, the star drug, whose revenues in Europe reached 11.1 million euros in the semester, compared to 15.8 million in June 2021.
With this, the recent news of the approval of Zepzelca in China was overshadowed.
The figure suffered the impact of a change in the French regulations that regulate the prices of drugs marketed under the Temporary Use Authorization (ATU) system.
This meant the application of “significant discounts” and is the reason that explains the drop in income attributable to Zepzelca, despite the increase in the number of patients treated.
“We have slightly reduced our short-term forecasts” to reflect this regulatory change, they explained to Finanzas.com in sources from the London broker RX Securities.
Specifically, these experts projected revenue for the year as a whole of 212.4 million euros, compared to the 217 million to calculate. In addition, the EBITDA will reach 71.5 million, compared to the 80.5 million expected by the market.
Pharmamar R&D investments
Regarding the 19 percent decrease in net profit, the Galician biopharmaceutical explained that the fall is due to the increase in investments in R&D, which accounted for 39 percent more, up to 40.3 million euros.
In the oncology segment as of June 30, Pharmamar invested 33.3 million euros in R&D, of which 9.9 million euros correspond to the costs incurred in the development of plitidepsin (Aplidin) for the treatment of Covid-19.
The company also highlighted that net sales of Yondelis they hardly changed compared to the first half of 2021. Price pressure in Europe is the factor that explains why this item remained flat.
As a whole, recurring income (sales plus royalties), recorded an increase of 5 percent, to 86.7 million euros during the first half.
“We are seeing that the market is severely punishing the value, falling below forecasts due to the increase in R&D, both in oncology and in Aplidinso we could say that its results have disappointed”, analysts at IG.
Pharmamar tests supports
After the publication of these results, Pharmamar shares went directly to test the support area at 66 euros.
“It has gone directly to look for the 32.8 Fibonacci retracement, where the fall has stopped for the moment, because it also supports the 200-session average,” explained the director of analysis for Inversión magazine, Joseph Codina.
The share, which was the best value of the IBEX 35, with an annual rise of almost 30 percent, reduced its profits this year to 15 percent, and entered a lateral range.
If it loses 66 euros, the next support is at 62 euros, pointed out the expert from Inversión magazine.
Above, the key for Pharmamar is to recover the 70 euros, although it has a first resistance at 68 euros. All in all, to think about more increases, the share would have to exceed 75 euros, which would open a new stretch of momentum.
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