On October 26, 2023 PharmaMar (MSE:PHM) reported total revenues through September 30th, 2023 of €117.6 million, compared with €145.5 million in the same period last year (Press release, PharmaMar, OCT 26, 2023, View Source [SID1234636382]). Recurring revenues, which result from the sum of net sales plus royalties on sales made by our partners, totaled €98.3 million, compared to the €123.3 million reported for the first nine months of 2022. This change in revenues is mainly due to the introduction of two generic trabectedin products (Yondelis) on the European market, which has put significant pressure on prices. Thus, Yondelis reported net sales of €20.5 million through September 30th, 2023, compared with €52.2 million reported in the same period last year.
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Revenues from Zepzelca (lurbinectedin) in Europe increased significantly. Revenues from the early access program in France, Austria and Spain grew to €26.1 million in the first nine months of the year, compared with €13.8 million in the first nine months of 2022. These revenues come mainly from France, although other early access programs are also open in countries such as Spain and Austria.
This increase is largely due to the positive adjustment made by the French authorities in relation to the previous year’s discounts. No further adjustments are expected for the year. The number of units demanded under this program has increased slightly compared to the same period of the previous fiscal year.
Included in recurring revenues is the sale of raw materials of both Yondelis and Zepzelca to our partners. This area reported revenues of €12.5 million through September 30th, 2023, compared with €17.8 million reported in the first nine months of the previous year.
It is important to highlight the growth in royalty revenues, which totaled €38.3 million through September 30th, representing an 8% increase over the same period last year. These revenues mainly include royalties received from our partner Jazz Pharmaceuticals for lurbinectedin sales in the U.S. which were €35.5 million vs. €32.9 million as of September 2022. The royalties recorded for the third quarter are an estimate, as information on sales made in that quarter by Jazz is not available at the date of publication of this report. Any discrepancies will be corrected in the following quarter.
In addition to the royalties received from Jazz Pharmaceuticals, royalties on Yondelis sales from our partners in the US and Japan totaled €2.8 million through September 30th of this year, €2.5 million for the same period of 2022.
With regard to non-recurring revenues mainly from licensing agreements, as of September 30th, these totaled €18.9 million compared with €22.1 million in the same period last year. During the first nine months of 2023 as well as 2022, revenues from this item came entirely from licensing agreements related to lurbinectedin. Through September 30th, 2023, R&D investment grew by 19% to €70 million.
Of the total R&D investment for the period, the oncology segment’s investment grew by 24% to €59.8 million and this increase is largely related to the confirmatory Phase III trial of lurbinectedin in Small-Cell Lung Cancer, known as LAGOON, which is progressing in patient recruitment. Part of this investment has also been earmarked for activities related to the start of another Phase IIb/III trial with lurbinectedin for the first-line treatment of leiomyosarcoma, which will commence shortly. 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 in solid tumors, and Phase I clinical trials are also under way with ecubectedin, PM534 and PM54 for the treatment of solid tumors. Progress continues to be made in the preparation of new candidates for clinical development and in preclinical trials to bring new molecules into the clinical pipeline.
Despite the pressure on Yondelis sales prices and the growing R&D effort to develop new treatments, PharmaMar reported net income of €8.0 million through September 30th, 2023, compared with €43.4 million in the same period of the previous year.
As for the financial position to 30th September, PharmaMar Group had a cash and cash equivalents position of €185.5 million and total debt of €39.7 million, which translates into net cash of €145.9 million. This cash position includes expenditures already for dividend payments and the Company’s share buybacks.
PharmaMar Results Conference Call for Investors and Analysts
PharmaMar management will host a conference call and webcast for investors and analysts on Friday October 27th, 2023 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: 892531. 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