APONTIS PHARMA AG withdraws forecast for fiscal year 2023 and medium-term planning for 2026 – Preparation of program to increase operating performance and efficiency launched – Biotech Investments

APONTIS PHARMA AG withdraws forecast for fiscal year 2023 and medium-term planning for 2026 – Preparation of program to increase operating performance and efficiency launched
 

• Preliminary Single Pill revenue declines by 32% to EUR 12.1 million in first half of 2023 (H1 2022: EUR 17.7 million), mainly due to delivery delays
• Preliminary total revenue in first half of 2023 at -32% to EUR 19.1 million (H1 2022: EUR 28.1 million)
• Preliminary EBITDA in first half of 2023 declines to EUR -4.0 million (H1 2022: EUR 3.2 million)
• Single Pill business grows more slowly than expected – EBITDA for the full year 2023 additionally burdened by one-off effects from the change in the Management Board
• Preparation of program to increase operational performance and efficiency launched

Monheim am Rhein, 27 July 2023. APONTIS PHARMA AG (ticker APPH / ISIN DE000A3CMGM5), a leading pharmaceutical company specializing in Single Pills in the German market, has withdrawn today its forecast for fiscal year 2023 and its medium-term planning for 2026 on the basis of the preliminary business figures for the first half of 2023 and the expectations for the second half of the year. This is due to slower growth in the Single Pill business than originally expected. According to preliminary calculations, the Company recorded a 32% decline in total sales to EUR 19.1 million in the first half of 2023 (H1 2022: EUR 28.1 million). In addition to the expiry of co-marketing agreements for Jalra® and Icandra® in September 2022, tenders for the Single Pills Atorimib® and Caramlo® as well as supply problems for the largest sales driver Atorimib® made themselves felt. Preliminary EBITDA declined to EUR -4.0 million in the first half of 2023 (H1 2022: EUR 3.2 million). For the full year, EBITDA is additionally burdened by one-off effects in connection with the resignation of the previous CEO in the amount of approximately EUR 813 thousand.

Growing demand for Single Pills expected

In view of the medically and scientifically founded superiority of Single Pill therapy and the highlighting of its importance in a European and a national health care guideline, APONTIS PHARMA continues to view the Single Pill business model as intact. Thus, Single Pill therapy will be regarded as a preferable treatment option in the future, both in the joint National Health Care Guideline (NVL) of the German Medical Association (BÄK), the National Association of Statutory Health Insurance Physicians (KBV) and the Association of Scientific Medical Societies (AWMF) and in the guideline of the European Society of Hypertension (ESH).

In addition, the importance of the scientific superiority of the Single Pill therapy is now also underscored by the conclusion of selective contracts for a total of four Single Pills with two leading statutory health insurers in Germany, due to the emphasis placed on its significance in the two guidelines. The selective contracts include a communication concept in the form of letters to doctors from the two health insurance funds that refer to the superior evidence of APONTIS PHARMA’s Single Pills.

In addition, the market launch of the Single Pill Finder expands the distribution and application possibilities for Single Pills.

Financially solidly positioned

Based on preliminary figures, APONTIS PHARMA has an equity ratio of 71.2% (31 December 2022: 69.4%) and cash and cash equivalents of EUR 26.3 million as of 30 June 2023 (31 December 2022: EUR 36.6 million) and continues to enjoy a solid asset and financial position for financing the product developments already commissioned and planned. In addition to the negative development of earnings, cash flow was affected by the increase in working capital and milestone payments for contract development and in-licensing.

Delivery situation and market launches

With regard to the supply situation with Atorimib®, the required quantities can be expected again from November 2023 following the already completed commissioning of another production facility of the manufacturer, while according to the manufacturer’s information, a third plant is currently also in the approval process.

In terms of new Single Pill launches, the AP-D12 Single Pill, originally planned for March 2023, is now expected for early October 2023 following approval delays. Following the launch of Rosazimib®, at least two more new Single Pills are planned for the current fiscal year 2023 – one more than announced. The Single Pill AP-D13 is scheduled for launch in September 2023 and AP-D19 in October 2023.

Forecast for 2023 and medium-term planning for 2026 withdrawn – preparation of program to increase operating performance and efficiency launched

In view of the slower than originally expected growth of the Single Pill business and the aforementioned effect from the change in the Management Board, APONTIS PHARMA withdrawn its forecast for fiscal year 2023 and also its medium-term planning for 2026, on the basis of the preliminary business figures for the first half of 2023 and the expectations for the second half of the year. No forecast for fiscal year 2023 can be issued at this time.

In order to improve profitability in the years ahead, the Company has started preparing a program to increase its operational performance and efficiency. This will involve evaluating strategic options for sales and marketing activities to increase sales on the one hand and measures to improve cost structures on the other. The Company will report regularly on the progress of the program.

Detailed financial information

APONTIS PHARMA will publish its 2023 half-year report as planned on 10 August 2023. CPO Thomas Milz and CFO Thomas Zimmermann will explain the results of the six-month period of 2023 and the current development in a webcast presentation on 10 August 2023 at 9.00 CEST.

About APONTIS PHARMA:

APONTIS PHARMA AG is a leading pharmaceutical company specializing in Single Pills in Germany. Single Pills combine two to three generic active ingredients in a single dosage form administered once a day. APONTIS PHARMA develops, promotes, and sells a broad portfolio of Single Pills and other pharmaceutical products, with a special focus on cardiovascular diseases. Since 2013, APONTIS PHARMA successfully launched several Single Pill products alone for cardiovascular indications such as hypertension, hyperlipidemia and secondary prevention. With its headquarters in Monheim am Rhein, APONTIS PHARMA is located in one of Europe’s leading pharmaceutical and chemical regions. From here, the company maintains a broad network with research-based pharmaceutical companies and a customer target group of approx. 25,000 physicians in Germany. For additional information about APONTIS PHARMA, please visit www.apontis-pharma.de.

APONTIS PHARMA AG

Investor Relations
ir@apontis-pharma.de
T: +49 2173 89 55 4900
F: +49 2173 89 55 1521
Alfred-Nobel-Str. 10
40789 Monheim am Rhein
Germany
apontis-pharma.com

APONTIS PHARMA Press Contact

CROSS ALLIANCE communication GmbH
Sven Pauly
ir@apontis-pharma.de
T: +49 89 125 09 0330