Swedish Orphan Biovitrum: Report for the Fourth Quarter and Full Year 2011
Published: Feb 23, 2012
STOCKHOLM, SWEDEN--(Marketwire - February 23, 2012) -
Geoffrey McDonough, CEO: "2011 was a year of consolidation and stabilization for Sobi. Our full year results show revenues in line with the previous year, with impact from currency and discontinued products balanced by growth in our product portfolio and the ReFacto® manufacturing business. During the year, we expanded geographically, reduced our cost base and decreased our net debt. In order to improve operational efficiency, we are implementing a new organization and reporting structure based on the three business lines: Core Products, Partner Products, and ReFacto® manufacturing and royalty. We enter 2012 focused on the operating performance and growth of our business lines, and on achieving the key milestones in our pipeline in the second half of the year."
Fourth quarter (1)
* Total revenues as reported declined by 6% to SEK 436.4 M (465.0), and were unchanged adjusted for currency effects and discontinued products.
* Product revenues rose by 11% adjusted for currency effects and discontinued products.
* Gross margin declined to 64.9% (67.4), primarily due to lower manufacturing revenues. Gross margin improved from the third quarter mainly as a result of higher plant utilization.
* Write-down of balance sheet items affecting EBIT by SEK 291.4 M.
Full year 2011(1)
* Total revenues as reported were unchanged at SEK 1,910.8 M (1,906.7), but increased by 9% adjusted for currency effects and discontinued products.
* Product revenues increased by 8% adjusted for currency effects and discontinued products.
* Revenues from ReFacto® manufacturing and royalty increased by 16% to SEK 575 M.
* Gross margin declined to 56.4% (64.0) mainly due to a lower margin for manufacturing and currency effects.
* Operating expenses declined by 6% reflecting the ongoing streamlining of operations.
Significant events after reporting period
* Extension of supply agreement with Pfizer for ReFacto®/XYNTHA® until 2020.
* Agreement with Pfizer to return co-promotion rights in exchange for a payment of USD 47.5 M.
Outlook for 2012
* Total revenues for the full year 2012 are expected to be approximately SEK 100 M lower than 2011 reflecting the divestment of the ReFacto® co- promotion rights. Gross margin expected to be in line with 2011, which was 54% after adjustment for both the balance sheet write-downs and co-promotion rights.
The interim report for the fourth quarter and full year 2011 will be presented by CEO Geoffrey McDonough and CFO Lars Sandström at a media and analyst telephone conference.
Time: Thursday, 23 February 2012 at 3 p.m. (CET)
To participate in the telephone conference, please call:
SE: +46 (0)8 505 598 09 UK: +44 (0)207 750 9950 US: +1 866 676 58 69
The presentation can be followed live or afterwards at www.sobi.com
The above information has been made public in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was released for public distribution on 23 February 2012 at 8.30 CET.
(1) Adjusted for balance sheet write-downs in Q4 2011.
Complete Report for the Fourth Quarter and Full Year 2011: http://hugin.info/134557/R/1588410/498491.pdf
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Source: Swedish Orphan Biovitrum AB (publ) via Thomson Reuters ONE
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Telephone: +46 8 697 26 33