Almirall’s 2020 Full-Year Results

February 22, 2021 |

5 min read

Almirall appointed Gianfranco Nazzi as the new CEO, effective May 1, 2021. Mr. Nazzi will bring continuity to the strategy as the business prepares for important launches to support future growth prospects

Almirall delivers on latest 2020 guidance and sets growth targets for 2021

BARCELONA, Spain, Feb. 22, 2021 /PRNewswire/ --

The company delivered on its latest guidance despite a challenging year impacted by COVID-19 and the genericization of Aczone^®: Net Sales €807.4 MM (-5.4%, flat excluding the Aczone^® generic impact), Total Revenues €814.5 MM (-10.3%), EBITDA €238.3MM (-21.7%), all year-on-year and due to the expected generic competition to Aczone in the US and a reduction in milestones from AstraZeneca
Almirall appointed Gianfranco Nazzi as the new CEO, effective May 1, 2021. Mr. Nazzi will bring continuity to the strategy as the business prepares for important launches to support future growth prospects
A continued positive outlook for key growth drivers will be boosted in 2021 by the recent launch of Klisyri^® (tirbanibulin) in the US, with the launch in Europe expected in the second half of 2021
Almirall is advancing our strong late-stage pipeline aiming to unlock significant mid-term value. Key 2021 milestones are expected to include topline phase 3 lebrikizumab data and the anticipated approval in Europe for a psoriasis cream (calcipotriene and betamethasone dipropionate) commercialised under the tradename Wynzora^®in US
Introducing Core Guidance for 2021: Core Net Sales growth of mid-single-digit and Core EBITDA of €190-€210 MM (versus 2020 Core EBITDA of €181 MM) which equates to total EBITDA of approximately €215-€235 MM
Dividend proposal of €0.19 per share will be submitted at the next Annual General Meeting May 7^th

Financial highlights (€ rounded million)
	2020	2019	Variation	Variation (CER¹)
Total Revenues	814.5	908.4	(10.3%)	(10.3%)
· Net Sales	807.4	853.1	(5.4%)	(5.3%)
· Other Income	7.1	55.3	(87.2%)	(87.5%)
Gross Profit	560.1	603.9	(7.3%)	(7.1%)
· % of sales	69.4%	70.8%
EBITDA	238.3	304.2	(21.7%)	(21.6%)
Normalized Net Income	95.1	136.1	(30.1%)	(29.9%)
[1] CER (Constant Exchange Rates): Excluding the effects of exchange rate fluctuations.

“2020 has been a challenging year given the impact of COVID-19 and the genericization of Aczone^®, however, we have delivered the latest guidance with an EBITDA of €238.3 MM and Net Sales of €807.4 MM.

The pandemic has created an unprecedented situation and I am proud of our employees who have worked hard and continued to put the patient at the heart of everything we do. We maintained our unwavering commitment to patients and we ensured an uninterrupted supply of our medicines for patients in need throughout the pandemic.

To highlight our key products performance, Ilumetri^® continued to perform strongly with increasing market share within the anti-IL23 class in Germany. Skilarence^® performed within expectations having been impacted by COVID-19 related restrictions. Seysara^®has seen a modest recovery from May 2020 having also been adversely impacted by COVID-19. We rely on growth in our key products to continue to improve our core EBITDA in 2021 and we expect Core Net sales to be boosted by new launches, like Klisyri^® for actinic keratosis. Klisyri^® was recently launched in the US and is expected to be launched in Europe in H2 2021, with global peak sales expected to reach €250 million in the future.

We have begun 2021 with the appointment of Gianfranco Nazzi as the new CEO of Almirall, effective May 1, 2021. We are sure that his wealth of international experience in the pharmaceutical sector will help Almirall achieve its objectives of sustained growth in its core business going forward.

We have also announced two important collaborations during the first weeks of 2021 with Tyris Therapeutics and MC2 Therapeutics that will reinforce our pipeline potential and will allow Almirall to expand its innovative options in Medical Dermatology. We will continue to make significant efforts to build and develop our pipeline of future products by maintaining an investment of around 10% to 12% of our annual Net Sales in R&D. Almirall is very well positioned and has all of the ingredients to grow our core business in the coming years.”

Mike McClellan, CFO and Interim CEO.

Almirall, S.A. (ALM) the global biopharmaceutical company based in Barcelona, has announced its full-year 2020 financial results today.

Summary results

Net Sales of €807.4 MM represents a decline of 5.4% year-on-year, impacted both by COVID-19 and the generic competition to Aczone^®. Net sales excluding the impact of the Aczone^® generic competition in the US were flat versus 2019.
Total Revenues reached €814.5 MM, a 10.3% year-on-year decrease, and were additionally impacted by the expected significant decline in Other Income (-87.2%) due to the reduction in milestones from AstraZeneca.
Gross Profit of €560.1 MM reflected a decline of -7.3% as expected relating to the generic competition to Aczone^® in the US.
Operating Cash Flow reached €165 MM (+95% growth vs. 9M 2020) and Financial Debt totalled €392.5 MM, ending with a net debt to EBITDA ratio of 1.6x.
Research & Development expenses were €78.9 MM (-14.4%).
Selling, General & Administrative expenses were €370.2 MM, with a 6.1% lower spend on sales & marketing largely due to COVID-19.
EBITDA for 2020 was €238.3 MM, down 21.7% driven by the generic competition to Aczone^® as well as the significant decline in Other Income.
Normalised Net Income was €95.1 MM.
Shareholders Equity represented 56.8% of Total Assets.

Conclusions and 2021 Outlook

We delivered the latest Guidance despite a challenging year with impact from COVID-19 and the generic competition of Aczone®. Our key products and new launches will continue to grow our Core Net Sales and Core EBITDA in 2021. With the arrival of Gianfranco Nazzi as the new CEO, we will continue to drive our strategy as the business prepares for important launches to support future growth prospects. At Almirall, we are committed to developing our pipeline to unlock the significant potential to grow our core Medical Dermatology business with exciting milestones coming in 2021. We are also focused on leveraging our strong balance sheet for external opportunities to generate sustainable value for shareholders.

2021 Full Year Guidance vs. 2020

Core Net Sales: mid-single-digit growth (versus €755 MM in 2020).

Core EBITDA: between €190 - €210 MM (versus €181 MM in 2020) which equates to approximately €215 - €235 MM of total EBITDA.

For more information on 2020 Full year results, please visit https://www.almirall.com/newsroom/news/2020_financial_results

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