"We are very pleased with our metformin business and we expect this segment to continue to grow. In order to take part in that growth, we have decided to make a NOK 120 million investment to double the current production capacity. With this production volume we will be targeting a 15 percent share of the global Metformin API market," says CEO Kjell-Erik Nordby.
Metformin is the standard first line treatment of Type 2 Diabetes. Vistin Pharma's products are sold to international pharmaceutical companies, which use it to make finished products. According to Vistin Pharma's estimates, the Company controls about eight percent of the global metformin market with its current annual manufacturing capacity of 3,000 MT.
A feasibility study for a 3,000 MT capacity expansion was concluded during the second quarter. The study concluded that the planned expansion is technically feasible and financially sound. The capacity increase will require an investment of approximately NOK 120 million, and is expected to be fully operational from 2019. The investment will be financed through a combination of existing cash reserves, cash generation and debt. In parallel, the Company is working on stretching the current capacity by approximately 500 MT (+16-17 percent capacity increase) through an efficiency program, to ensure that Vistin Pharma can meet the expected increase in demand in the short-term.
Within opioids, Vistin Pharma's second B2B division, the Company recorded a five percent growth in revenue in the second quarter, despite continued price pressure in the market. A higher portion of higher priced codeine tablets sold more than offset a 10 percent drop in prices for Active Pharmaceutical Ingredients ("API"). The contract manufacturing business ("CMO") continued its stable performance during the quarter.
Vistin Pharma recorded overall revenue of NOK 109.7 million in the second quarter. Reported EBITDA was NOK 12.6 million, while the net profit came in at NOK 9.8 million. The Company's financial position remains strong, with net cash of NOK 55.7 million at 30 June. A dividend for 2015 of NOK 0.60 per share, totalling NOK 10.2 million, was distributed to the shareholders in June.
Vistin Pharma will give a presentation today at 08:30 CET at Felix Konferansesenter, Bryggetorget 3, Oslo, Norway. CEO Kjell-Erik Nordby and CFO Gunnar Manum will represent the Company. The presentation will be webcast live and can be accessed directly from http://webtv.hegnar.no/presentation.php?webcastId=36208894, or http://www.vistin.com/investors/webcast-article214-455.html.
Please find the report and presentation for the second quarter 2016 enclosed. The report and presentation will also be made available on www.vistin.com.
For further information, please contact:
+47 91 36 42 80
+47 95 17 91 90
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 Company has key positions in the Metformin and Opioids markets, and a strong foundation for creating a highly efficient Contract Manufacturing tablet production (CMO) business. Solid growth potentials exist in all the business segments.
With more than 65 years of pharmaceutical industry experience, Vistin Pharma has built significant capacity and expertise as an API provider. The Company has more than 140 highly qualified employees and two manufacturing facilities in Kragerø, Norway. Both facilities are certified according to current Good Manufacturing Practice (cGMP) and successfully inspected by the US Food and Drug Administration (FDA) in 2014. Vistin Pharma's headquarter is in Oslo, Norway.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Vistin Pharma ASA via Globenewswire