On February 28, 2024 PharmaMar reported total revenues of €158.2 million in 2023, compared with €196.3 million in the same period of the previous year (Press release, PharmaMar, FEB 28, 2024, View Source [SID1234640776]). Recurring revenues, which result from the sum of net sales plus royalties on sales made by our partners, totaled €124.1 million, compared with €156.0 million in 2022. These changes in revenues are mainly due to the introduction of generic trabectedin (Yondelis) products on the European market, which has put significant pressure on prices. Thus, Yondelis recorded net sales of €26.1 million at December 31st, 2023, compared with the €63.8 million reported the previous year.
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Revenues from Zepzelca (lurbinectedin) continued to grow. Both revenues in Europe and royalties from sales in the US recorded significant increases. Revenues from the early access program grew to €29.7 million at year-end, compared with €15.5 million in 2022. These revenues come mainly from France, although other early access programs are also open in countries such as Spain and Austria.
The increase in Zepzelca’s revenues in Europe reflects a positive adjustment made by the French authorities in relation to the previous year’s discounts.
In addition, revenues in Europe in 2023 reflect the first sales of Zepzelca in Switzerland since its commercial launch in the second half of the year.
The sale of raw materials of both Yondelis and Zepzelca to our partners is also included in recurring revenues. These sales reported revenues of €14.9 million at the end of 2023, compared with €21.4 million reported in the previous year. This difference is mainly due to the accumulation of stocks that some of our partners carried out in 2022.
It is important to highlight the growth in royalty revenues, which amounted to €52.2 million in fiscal year 2023. This revenue mainly includes royalties received from our partner Jazz Pharmaceuticals for lurbinectedin sales in the US, which amounted to €48.4 million, compared with the €46.9 million reported in 2022. Excluding the currency effect, royalty growth stood at 8%.
In addition to the royalties received from Jazz Pharmaceuticals, royalties on Yondelis sales from our partners in the US and Japan totaled €3.8 million in 2023, compared with €3.4 million in 2022.
Non-recurring revenues from licensing agreements amounted to €33.6 million at year-end 2023, compared with €40.2 million in the previous year. Most of this revenue came from Zepzelca licensing agreements for a total of €24.2 million, to which must be added the €9.4 million recorded in the last quarter of 2023 for the fulfillment of a commercial milestone under the contract signed with Janssen (Johnson & Johnson) for Yondelis in the United States.
At December 31st, 2023, R&D expenditure amounted to €99.3 million, an increase of 19% compared with the previous year. Of the total R&D investment in 2023, the amount earmarked for the oncology segment increased to €83.6 million compared with €68.1 million in 2022. This increase is largely related to the confirmatory Phase III trial of lurbinectedin in Small Cell Lung Cancer, called LAGOON, which is progressing in patient recruitment and where an additional effort is being made to open new centers. Part of this investment was also designated for a Phase IIb/III trial with lurbinectedin for the first-line treatment of Leiomyosarcoma, which began in the last quarter of the year. The Company continues to invest in the clinical development of other molecules at earlier stages. A Phase II clinical trial is under way with ecubectedin for solid tumors, and Phase I clinical trials are also under way with ecubectedin, PM534 and PM54 for the treatment of solid tumors.
Despite the pressure on Yondelis sales prices and the growing R&D effort, PharmaMar reported net income of €1.1 million at the end of 2023.
At 31st December 2023, PharmaMar Group had a cash and cash equivalents position of €168.6 million and a total debt of €39.9 million, which translates into net cash of €128.8 million. This cash position already reflects dividends paid and the €15 million acquisition in treasury stock, which the Company completed in January of this year 2024.
The Board of Directors of Pharma Mar, S.A. will propose to the General Shareholders’ Meeting the distribution of a dividend of €0.65 per outstanding share that will be charged to unrestricted reserves (share premium), with a maximum distribution amount set at 11,930,689.55 Euros.
PharmaMar Results Conference Call for Investors and Analysts
PharmaMar management will host a conference call and webcast for investors and analysts on Thursday February 29th, 2024 at 13:00 (CET).
The numbers to connect to the teleconference 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: 889062. Interested parties can also follow the webcast live via the following link: View Source
A recording of the teleconference can be accessed on PharmaMar’s website by visiting the Events Calendar section of the Company’s website www.pharmamar.com