Norwegian pharmaceutical company Vistin Pharma ASA (OSE: VISTIN) experienced strong growth in the third quarter of 2017, with a 20 per cent increase in revenue from its metformin business. With a strong financial position following the recent sale of the Company's opioids and CMO business, the Board of Vistin Pharma recently proposed a dividend of NOK 7,00 per share.
"I am pleased to report on the successful divestment of our opioids and CMO business. The sale has allowed us to propose a dividend whilst also maintaining a strong financial position as we continue to move ahead as planned with our project to expand our production capacity," says CEO Kjell-Erik Nordby.
Vistin Pharma is now doubling its current production capacity with a NOK 120 million investment. The project will be financed through existing cash reserves, cash generation and debt.
Vistin Pharma had total revenues and other income from continued operations of NOK 46.7 million in the third quarter 2017, compared to NOK 39.3 million in the third quarter 2016. Sales volumes in the quarter were 31 per cent higher compared to the corresponding quarter 2016. The market outlook for metformin remains strong with stable prices and an annual expected growth rate of 4-5 per cent.
The Company's financial position remains strong, with a cash position of NOK 33.5 million as of 30 September. The cash position at the date of the third quarter report was NOK 197.7 million, excluding an amount in escrow of NOK 16.0 million. Total equity was NOK 182.2 million, giving an equity ratio of 66.9 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.
Please find the report and presentation for the third 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.
The Group was established in 2015 when Vistin Pharma AS, a wholly owned subsidiary of Vistin Pharma ASA, acquired the metformin and opioids business and tablet production assets from Weifa AS.
On 2 October 2017, Vistin Pharma sold its opioids and tablet manufacturing business to TPI Enterprises Limited. Following the sale, Vistin Pharma is a pure play metformin producer, with a strong position in the global metformin market and with significant growth ambitions. Metformin is used as the first line treatment of diabetes 2, a disease which is expected to grow by 50 per cent towards 2030, and affect more than 500 million people. The global market for metformin is expected to grow by four to five per cent per annum, and Vistin Pharma is attractively positioned to capture part of this growth.
The Company's head office is located in Oslo, Norway. The shares of Vistin Pharma ASA are listed on Oslo Axess.
