INTERIM REPORT

• Net sales amounted to SEK 73.0 (79.3) million

• EBITDA was SEK -2.9 (5.2) million.

• Basic earnings per share were SEK -0.14 (-0.02)

SIGNIFICANT EVENTS

• There was a lower level of net sales and gross profit during the period

  • Net sales fell by 8% to SEK 73.0 million

  • Gross profit fell by 21% to SEK 30.2 million

• Negative EBITDA of SEK -2.9 million for the period

• Future outlook 2017

  • Karl Karlsson, CEO and Susanna Urdmark, CFO left the company in April 2017. Berit Lindholm is the newly appointed CEO.

  • Higher sales growth

  • Improved profitability

OPERATIONS

Stronger platform despite lower growth

Sales weakened during the first quarter of the year compared with the first quarter of 2016. For the first quarter of the year, net sales were SEK 73.0 (79.3) million, of which SEK 15.7 (19.4) million in the Nordic region, SEK 29.2 (30.5) million in Northern Europe, SEK 27.9 (24.3) million in Southern Europe and SEK 0.2 (5.1) million in Rest of World. The sales has been fueled by markets outside the Nordic region, like Spain, Germany, Ireland, UK and Austria, while sales in the Nordic countries fell during the period.  Sales in the Nordic countries fell due to such things as price volatility.

Investments in continued growth

During the year, ongoing evaluations of the business were made, resulting in newly identified growth opportunities as regards both subsegments and expansion into new markets. Efforts were also made to fortify the sales organization with additional expertise and experience, with particular emphasis on the company’s operations in Northern Europe, including the markets in the Nordic region. Our assessment is that we currently have a strong organization in place that has extensive knowledge of both local regions and markets.

With the aim of ensuring successful product launches and maintaining a competitive supply chain, the company initiated efforts during the year to add a new contract manufacturer, which will be implemented during 2017.

Bluefish also made additional investments in IT systems that support marketing, quality and finance activities, all of which is aimed at strengthening the platform for continued growth.

Optimization of the product portfolio

During the period, efforts have progressed according to plan with the company's third product that has been developed in-house. The product will be submitted for registration to the authorities early in the second quarter of 2017. The company now has two products developed in-house that are in the launch phase, Hydroxyzine Bluefish and Acetylsalicylic acid Bluefish. Each launch is progressing as planned and introduction to the market will occur in 2017.

Besides the two products developed in-house that will be launched in 2017, another four newly licensed products will be launched and an additional five existing products will be launched in more European markets.  

During 2016, Bluefish signed its first licensing agreements for Hydroxyzine. Product licensing provides the company with opportunities to create sales in markets where Bluefish does not have its own operations. The launches are expected to occur approximately 18-24 months after the contracts have been signed. 

The composition of the product portfolio in each market is critical to the company’s future growth and profitability. The expected earnings potential of products is also continually evaluated. The company is continuing to invest in additional new product licenses and in new development projects at our R&D unit. At the rate that Bluefish grows and gains more market share, we become noticed as a potential partner by companies offering unique products. Investments are made selectively and only in the markets where Bluefish feels there is high potential in terms of both sales and profitability. During the first quarter, the product portfolio grew with the addition of two licensed products for a diverse number of markets in the EU.

FUTURE OUTLOOK

In 2017, the company expects an increase in sales growth compared to the prior year. Sales growth will primarily be fueled by sales of newly launched products, which is a result of efforts that were made in 2016. Bluefish is fortifying its sales organization in selected markets and going forward, it will be focusing on higher delivery performance. Sales growth is also expected to contribute to higher profitability compared to the full year 2016.

For more information, contact

Berit Lindholm, CEO Bluefish Pharmaceuticals 

Tel. 46 8 519 116 00

Email: berit.lindholm@bluefishpharma.com

About Bluefish Pharmaceuticals
Bluefish has undergone significant international expansion since the company was founded in 2005. Bluefish focuses on the development, manufacture and sale of generic pharmaceuticals. The company conducts marketing operations in a large number of European markets and is expanding into territories outside Europe. The product portfolio consists of a total of approximately 80 products and is growing.

www.bluefishpharma.com

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