LONDON - ADVANZ PHARMA Corp. Limited ('ADVANZ PHARMA' or 'the Company'), a specialty pharmaceutical company with a strategic focus on complex medicines in Europe, today announced its financial and operational results for the three and nine months ended September 30, 2020.
All financial references are in U.S. dollars ('USD') unless otherwise noted.
'The Company delivered strong financial results during its third quarter and first nine months of 2020,' said Graeme Duncan, Chief Executive Officer of ADVANZ PHARMA. 'These results demonstrate the important nature of our established portfolio of medicines, and reflect a significant contribution from our recently acquired Alprostadil products, and Correvio Pharma, which we acquired late in our second quarter. Looking ahead, we believe ADVANZ PHARMA has set a strong foundation for the remainder of the year and beyond, and we remain very excited about our future prospects.'
Consolidated Third Quarter 2020 Financial and Operational Results
Reported third quarter 2020 revenue of $128.7 million, compared to $119.6 million for the third quarter of 2019, and $131.9 million for the second quarter of 2020.
Reported a net loss for the third quarter of 2020 of $42.0 million.
Reported third quarter Adjusted EBITDA1 of $53.5 million, compared to $55.9 million for the third quarter of 2019, and $65.1 million for the second quarter of 2020.
Generated cash flows from operating activities of $112.8 million in the first nine months of 2020, compared to $150.9 million during the same period in 2019.
As of September 30, the Company had a cash and cash equivalents balance of $141.0 million compared to $261.1 million as of December 31, 2019.
About ADVANZ PHARMA
ADVANZ PHARMA is a specialty pharmaceutical company with a strategic focus on complex medicines in Europe. With an agile and experienced team, including direct sales, marketing and medical capability across Europe's major markets, the Company innovates and enhances the critical medicines patients depend on, broadening patient access and improving health outcomes.
ADVANZ PHARMA has deep expertise in the Anti-Infectives and Endocrinology therapy areas, along with strong relationships with hospital decision makers, making it a go-to-partner when commercialising complex medicines in Europe.
ADVANZ PHARMA has an operational headquarter in London, an operations centre of excellence in Mumbai, commercial affiliates in North America, Europe, and Australia/NZ, and an established global network of commercial partners throughout the rest of the world.
Non-IFRS Financial Measures
This press release makes reference to certain measures that are not recognized measures under International Financial Reporting Standards ('IFRS'). These non-IFRS financial measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. When used, these measures are defined in such terms to allow the reconciliation to the closest IFRS measure. These measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute to the Company's financial information reported under IFRS. Management uses non-IFRS measures such as Adjusted Gross Profit, EBITDA, and Adjusted EBITDA to provide investors with supplemental information of the Company's operating performance and thus highlight trends in the Company's core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures in the evaluation of issuers. Management also uses non-IFRS financial measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets, to assess its ability to meet future debt service requirements, in making capital expenditures, and to consider the business' working capital requirements. Readers are cautioned that the non-IFRS financial measures contained herein may not be appropriate for any other purpose.
Notice Regarding Forward-looking Statements and Information
This news release includes forward-looking statements and forward-looking information within the meaning of Canadian securities laws. Often, but not always, and forward-looking information can be identified by the use of words such as 'plans', 'is expected', 'expects', 'scheduled', 'intends', 'contemplates', 'anticipates', 'believes', 'proposes' or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved. Forward-looking statements and information include, but are not limited to: the Company's continued expansion into France, Germany, Spain, Italy and the Benelux region, including by leveraging the expertise of Correvio's European team; the expansion of the Company's product portfolio; the Company's ability to deliver mid-term value and long-term growth, including through pipeline filling, optimization, licencing and development partnerships; the Company's initiatives being focussed on niche and differentiated generics, complex specialty and value-added medicines; product launches in 2020 from its pipeline not generating a material amount of revenue; there being no material continuity risks specifically associated with COVID-19; the ability of patients to access the Company's medicines during the COVID-19 pandemic; there being no significant change in the expected recoverability of the Company's accounts receivables and the impact of COVID-19 on the Company and its business and operations, including the ability of the Company to ensure the health and well-being of its employees, the ability of the Company to ensure the supply and movement of its medicines around the world, and the ability of the Company to continue to execute its strategic plan. Such statements and information are based on the current expectations of ADVANZ PHARMA's management, and are based on assumptions and subject to risks and uncertainties. Although ADVANZ PHARMA's management believes that the assumptions underlying these statements and information are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this news release may not occur by certain dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting ADVANZ PHARMA, including risks associated with ADVANZ PHARMA's securities, increased indebtedness and leverage, ADVANZ PHARMA's growth, risks associated with the use of ADVANZ PHARMA's products, the inability to generate cash flows, revenues and/or stable margins, the inability to repay debt and/or satisfy future obligations, risks associated with a delay in releasing ADVANZ PHARMA's financial statements (which could result in a default under ADVANZ PHARMA's debt agreements and a violation of applicable laws), ADVANZ PHARMA's outstanding debt, risks associated with the geographic markets in which ADVANZ PHARMA operates and/or distributes its products, the pharmaceutical industry and the regulation thereof, regulatory investigations and proceedings, the failure to comply with applicable laws, risks associated with distribution agreements, risks associated with general economic factors and market conditions, risks associated with growth and competition, the failure to obtain regulatory approvals, the equity and debt markets generally, general economic and stock market conditions, risks associated with fluctuations in exchange rates (including, without limitation, fluctuations in currencies), political risks (including changes to political conditions), risks associated with the United Kingdom's exit from the European Union (including, without limitation, risks associated with regulatory changes in the pharmaceutical industry, changes in cross-border tariff and cost structures and the loss of access to the European Union global trade markets), risks related to patent infringement actions, the loss of intellectual property rights, risks and uncertainties detailed from time to time in ADVANZ PHARMA's filings with the Canadian Securities Administrators, risks related to the spread of COVID-19 (including, without limitation, risks associated with reliance on third party manufacturers and suppliers, uncertainties relating to its ultimate spread, severity and duration, and related adverse effects on the economies and financial markets of many countries), and many other factors beyond the control of ADVANZ PHARMA. Although ADVANZ PHARMA has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement or information can be guaranteed. Except as required by applicable securities laws, forward-looking statements and information speak only as of the date on which they are made and ADVANZ PHARMA undertakes no obligation to publicly update or revise any forward-looking statement or information, whether as a result of new information, future events, or otherwise.
Contact:
Tel: +44 (0) 208 588 9100
ADVANZ PHARMA CORP. LIMITED 
