HUDDINGE, Sweden, Feb. 19, 2020 /PRNewswire/ -- OCTOBER - DECEMBER
JANUARY - DECEMBER
*Alternative Financial Ratios (APM), see page 6 for further information.
COMMENT BY CEO CHRISTOFFER LORENZEN
During the fourth quarter of 2019, the company declined organically with 4 % but grew in total with 40 % compared to previous year driven by the acquisition of Trimb and positive currency effect.
On December 23, we announced the acquisition of a new product portfolio for Intimate Care and Dermatology from the Danish pharmaceutical company Leo Pharma for EUR 90 million. Leo Pharma estimates sales for the full year 2019 at EUR 35 million. All products in the portfolio are well-established in the market and are characterized by stable sales and profitability. From a strategic perspective, the acquisition will strengthen Karo Pharma's European presence and facilitate market expansion in Germany, Switzerland and Austria.
The integration of Trimb is proceeding according to plan. We are building a stable and scalable platform, which will enable future growth in our new sales companies. As expected, integration and expansion into several European markets have required energy, focus and investment, but the organization is now in place, including the teams that will run the business in 2020.
We have a commercial focus and focus primarily on sales and marketing of both prescription and non-prescription drugs as well as self-care products sold in pharmacies and in retail outlets. today, we own around 100 brands that are sold through these channels and as we grow, an important part of our work is to continually assess if we are the best owner of different parts of the portfolio. To that effect, we have decided to evaluate opportunities in the business area Hospital Supply, including a divestment scenario but also acquisitions or unchanged operations. The business area had sales of SEK 118 million in 2019. We expect to conclude the process over the next six months.
Sales increased by 40 percent in the quarter and by 18 percent for the full year. As previously mentioned, the Trimb Group was consolidated from September 12, contributing to sales growth during the fourth quarter. Earnings for the quarter was negatively impacted by a lower gross margin, stemming from an unfavorable product mix and one-off costs related to the acquisition of Trimb.
CEO Christoffer Lorenzen
SIGNIFICANT EVENTS AFTER PERIOD END
Karo Pharma has been informed by Pfizer Inc. that it has decided to terminate the Research Collaboration and the License Agreement that the parties signed in December, 2011. After this collaboration has been concluded, there will be no active cooperation agreement between the parties. This information follows Pfizer's previous decision to terminate the specific development project PF-06763809, which Karo Pharma informed about in press releases published on November 5 and 20, 2019. The termination of the cooperation agreement has no impact on ongoing operations or the company's future prospects.
A strategic review is currently underway regarding the company's various business areas, including an internal restructuring aimed at clarifying the various business areas and streamlining their operations - ia the business area Hospital Supply, which will be streamlined. There are ongoing evaluations of various strategic alternatives around the company and its business areas, which may involve both acquisitions and divestments of one or more business segments (the evaluations may also result in operations remaining unchanged).
Interim report Jan-Mar 2020 April 29, 2020
Interim report Jan-June 2020 July 21, 2020
Interim report Jan-Sept 2020 Oct 30, 2020
The annual report for 2019 is planned to be published in week 14, 2020 and the Annual General Meeting takes place on April 29, 2020 at Näringslivets Hus in Stockholm.
About Karo Pharma
Karo Pharma is a pharmaceutical company specializing in the sale and marketing of both prescription and non-prescription drugs as well as self-care products sold in pharmacies and retail. Karo Pharma is listed on the Nasdaq Stockholm Stock Exchange's Mid Cap segment.
The information in this report is such that Karo Pharma is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on February 19, 2020 at 8.00 a.m. CET.
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