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Classified in: Health, Science and technology, Business, Covid-19 virus
Subjects: EARNINGS, Conference, Conference Call, Webcast

Vifor Pharma reports strong H1 2021 growth, on track to meet full year guidance1


Regulatory News:

Vifor Pharma Group reported profitable revenue growth in H1 supported by a strong recovery in Ferinject® / Injectafer® with sales up 22.8% at CER as a result of improved patient access as COVID-19 restrictions eased in key markets. Based on the solid results in H1 2021, the Group is confident of achieving its full year guidance.

FINANCIAL PERFORMANCE2: CONTINUED OVERALL GROWTH

Commenting on the first half-year results, Stefan Schulze, Chief Executive Officer of Vifor Pharma, said: "Vifor Pharma saw continued growth in reported revenues and profitability in the first half of 2021. This encouraging performance was boosted by a significant rebound in sales of our i.v. iron therapy Ferinject® / Injectafer®, as patient access improved in many markets in line with the easing of COVID-19 restrictions. Despite ongoing challenging conditions in certain regions, we continued to increase our leadership in iron deficiency and made further substantial progress in strengthening our leadership position in the treatment of kidney diseases. We anticipate several approvals and launches in our innovative nephrology pipeline over the next 18 months, keeping our promise to patients to support them leading better, healthier lives. Based on a solid first half and continued positive momentum, we are confident of delivering our guidance for the full year."

FERINJECT® / INJECTAFER® REBOUNDS IN LINE WITH LOCKDOWN EASING IN Q2

NEPHROLOGY: SOLID PERFORMANCE OF PORTFOLIO AND SUBSTANTIAL PIPELINE PROGRESS

VELTASSA®: SUSTAINED COMMITMENT TO DRIVE EVIDENCE-BASED CARE

OTHER IRON THERAPIES

CORPORATE DEVELOPMENTS

1. FINANCIAL PERFORMANCE2

In million CHF

H1 2021

H1 2020

Change

Net sales

859.3

846.2

1.5%

EBITDA

281.0

280.4

0.2%

Net profit attributable to shareholders of Vifor Pharma Ltd.

124.4

67.9

83.2%

Core earnings per share from continuing operations (in CHF)

2.92

2.38

22.7%

KEY PROFIT AND LOSS FIGURES

Vifor Pharma Group net sales increased by 1.5% to CHF 859.3 million compared to H1 2020, or 5.0% at CER, as patient access recovered in line with easing COVID-19 restrictions in key markets. The growth was mainly driven by our iron portfolio with better patient access to i.v. iron treatment.

EBITDA increased to CHF 281.0 million compared to CHF 280.4 million in H1 2020, an increase of 0.2% or 5.3% at CER despite a significant decline in other income. Excluding other income, EBITDA increased by 9.4% compared to H1 2020, or 15.0% at CER. This is a result of profitable growth in net sales combined with diligent cost containment.

Other income was CHF 20.4 million compared with CHF 42.2 million in H1 2020. This was primarily due to lower income from partnering and other activities compared to H1 2020.

Cost of sales amounted to CHF 329.7 million compared to CHF 345.9 million in H1 2020, resulting in a gross profit margin of 62.5% compared to 61.1% in H1 2020. The gross profit margin increase is primarily due to the higher share of sales from injectable iron products.

Marketing and distribution expenses amounted to CHF 193.5 million, up 0.6% from H1 2020. The additional investments in pre-launch activities of our pipeline products were largely offset by cost containment.

Investments in R&D amounted to CHF 108.1 million compared to CHF 146.6 million in H1 2020. The decrease was mainly attributable to the impairment of the CCX140 intangible asset of CHF 56.2 million in H1 2020 partially offset by higher DIAMOND, CARE-HK and vamifeport (VIT-2763) study costs in H1 2021 compared to H1 2020.

General and administration expenses amounted to CHF 71.0 million compared to CHF 90.1 million in H1 2020. The decrease was mainly driven by a reduction of personnel related costs across support areas.

Core earnings per share from continuing operations amounted to CHF 2.92 in H1 2021, an increase of 22.7% compared to CHF 2.38 in H1 2020. The increase is due to revaluation gains on financial investments of CHF 22.4 million and unrealized foreign currency gains of CHF 13.3 million in the net financial result of H1 2021. Core earnings are defined as net profit attributable to shareholders of Vifor Pharma Ltd. adjusted for proportionate amortization and impairment of intangible assets of CHF 65.2 million in H1 2021 (H1 2020: CHF 104.6 million).

CASH FLOWS

Cash flow from operating activities amounted to CHF +189.8 million compared to CHF +172.6 million in H1 2020. The increase is due to lower investments in net working capital in H1 2021 compared to H1 2020.

Cash flow from investing activities amounted to CHF -98.6 million. The key drivers are capital expenditures of CHF -26.0 million in production related assets, milestone payments for in-licensing agreements of CHF -27.5 million, investments in IT projects of CHF -15.0 million and the equity investment in Angion Biomedica Corp. of CHF -22.3 million concurrent with Angion's initial public offering in February 2021.

Cash flow from financing activities amounted to CHF -208.9 million and was mainly influenced by dividend distributions of CHF -189.8 million, whereof CHF -60.0 million was paid to Fresenius Medical Care and CHF -129.8 million was distributed to shareholders of Vifor Pharma.

FINANCIAL POSITION

Goodwill and intangible assets amounted to CHF 2,447.5 million at the end of H1 2021 compared to CHF 2,454.5 million at the end of 2020, representing 49.8% of total assets (end of 2020: 47.1%).

Financial assets amounted to CHF 386.2 million at the end of H1 2021 compared to CHF 725.7 million at the end of 2020. The significant decrease is due to the fair value loss of CHF 386.5 million on our equity investment in ChemoCentryx, Inc. Revaluation adjustments on our equity investments are recorded in other comprehensive income.

Vifor Pharma Group achieved a net cash position of CHF 86.6 million at the end of H1 2021 compared to a net cash position of CHF 190.6 million at the end of 2020. The decrease in net cash is mainly due to the dividend payment of CHF 189.8 million and investments made in H1 2021 which exceed the cash generated from operating activities.

With CHF 3,763.0 million of shareholders' equity at the end of H1 2021, Vifor Pharma Group continues to have a strong equity ratio of 76.5%.

2. FINANCIAL GUIDANCE

In 2021, at constant exchange rates, net sales are expected to grow at a low-to-mid single digit rate, and EBITDA to grow at a high single digit rate.1

3. OUTLOOK 2021

Market Access

Clinical trials

Business development

In line with our ambition to strengthen our product pipeline, we aim to complete at least two in-licensing deals, product acquisitions or corporate transactions.

For further details, please see the Vifor Pharma 2021 Half-year Report at www.viforpharma.com.

Live conference call and webcast

A live webcast and conference call will be held on 5 August 2021 at 14:00 (CET).

Access to live webcast ? link

Pin code and phone numbers for the live conference call:

Pin code: 9368891

Country

Phone number

Switzerland

+41 31 580 0059

France

+33 17 670 0794

Germany

+49 692 443 7351

United Kingdom

+44 207 192 8000

United States of America

+1 631 510 7495

Other countries

+44 207 192 8000

Replay

A webcast replay (link) will be available shortly after the end of the live conference.

About Vifor Pharma Group

Vifor Pharma Group is a global pharmaceuticals company. It aims to become the global leader in iron deficiency, nephrology and cardio-renal therapies. The company is a partner of choice for pharmaceuticals and innovative patient-focused solutions. Vifor Pharma Group strives to help patients around the world with severe and chronic diseases lead better, healthier lives. The company develops, manufactures and markets pharmaceutical products for precision patient care. Vifor Pharma Group holds a leading position in all its core business activities and consists of the following companies: Vifor Pharma and Vifor Fresenius Medical Care Renal Pharma (a joint company with Fresenius Medical Care). Vifor Pharma Group is headquartered in Switzerland, and listed on the Swiss Stock Exchange (SIX Swiss Exchange, VIFN, ISIN: CH0364749348).

For more information, please visit viforpharma.com.

1 Subject to no worsening of the situation due to COVID-19 in H2 2021.

2 Figures of 2020 are restated to reflect the sale of OM Pharma business which was completed on 30 September 2020.


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News published on 5 august 2021 at 01:05 and distributed by: