Norwegian pharmaceutical company Vistin Pharma ASA (OSE: VISTIN) experienced strong demand and stable prices for its metformin products in the second quarter of 2017. Upon completion of the recently announced sale of its opioids and contract manufacturing business (CMO), Vistin Pharma will become a pure play metformin company with considerable growth ambitions and a solid financial platform to support its strategy.
"The sale of our opioids and CMO business will allow us to focus entirely on strengthening our position as one of the world's largest producers of premium metformin, the gold standard treatment of type 2 diabetes. Diabetes is one of the largest global health emergencies of the 21st century, and from a commercial perspective, we are attractively positioned to take our significant share of what is an ever-growing market," says CEO Kjell-Erik Nordby.
Vistin Pharma estimates its global market share of the metformin market to approximately 8 per cent. The Company is investing in a doubling of its current production capacity, and expects the new production line to be fully operational during 2019.
The decision to sell its opioids and CMO business was announced on 11 July. A Sales and Purchase agreement has been entered with Australian company TPI Enterprises Ltd, and closing of the transaction is expected early in the fourth quarter. The Board of Directors of Vistin Pharma will propose an extraordinary dividend after the completion of the transaction.
Vistin Pharma had total revenues and other income from continuing operations of NOK 54.1 million in the second quarter 2017, compared to NOK 54.6 million in the second quarter 2016. Total revenues and other income for the quarter included a net gain of NOK 8.8 million relating to an insurance settlement received in connection with the reactor failure at its metformin factory in the fourth quarter 2016.
Sales volumes in the quarter were 13 per cent lower compared to all-time high volumes in the corresponding quarter 2016. The company is currently producing at full capacity. Vistin Pharma's decision to invest in a new production line at its metformin plant in Kragerø, Norway, will effectively double the current production capacity upon completion in 2019. The project is running according to plan, and is currently in the detailed engineering phase.
The Company's financial position remains strong, with a cash position of NOK 59.7 million as of 30 June. Total equity was NOK 179.0 million, giving an equity ratio of 66.4 per cent (73.1 per cent). Vistin Pharma holds no interest-bearing debt.
Vistin Pharma will hold a presentation today at 08:30 CET at Carnegie AS, Fjordalleen 16, Oslo. CEO Kjell-Erik Nordby and CFO Gunnar Manum will represent the Company. The presentation will be streamed live via webcast and can be accessed directly from
http://webtv.hegnar.no/presentation.php?webcastId=58639933or
http://www.vistin.com/investors/webcast-article214-455.html.
Please find the report and presentation for the second quarter 2017 enclosed. The report and presentation will also be made available on www.vistin.com.
For further information, please contact:
Kjell-Erik Nordby
CEO
+47 91 36 42 80
kjell-erik.nordby@vistin.com
Gunnar Manum
CFO
+47 95 17 91 90
gunnar.manum@vistin.com
About Vistin Pharma
Vistin Pharma is a Norwegian pharmaceutical company producing Active Pharmaceutical Ingredients (APIs) and solid dosage forms for the global pharmaceutical industry.
With more than 75 years of pharmaceutical industry experience, the Group has built significant capacity and expertise as an API and Solid Dosage Form provider to pharmaceutical companies all over the world, and Vistin Pharma's API's are marketed in more than 50 countries.
On 11 July 2017 Vistin Pharma announced that the Company had entered a Sales and Purchase agreement with TPI Enterprises Limited for the sale of its opioids and tablet manufacturing business. The transaction is expected to be closed early in the fourth quarter of 2017.
Upon completion of the transaction, Vistin Pharma will be a focused metformin producer, with a single purpose manufacturing plant for metformin API in Kragerø, Norway, and with a strong position in the global market and with significant growth ambitions. The Company's head office is in Oslo, Norway.
