Q1 2009 Results Announcement of Deva Holding
EASTPHARMA LTD.
London, 15 May 2009 - EastPharma (EAST LI), a company active in the
manufacturing and marketing of branded generic and in-licensed
pharmaceutical products in Turkey and other regional markets, informs
that its main subsidiary Deva Holding announced its Q1 2009
consolidated and audited financial results today.
* Sales in Q1 2009 amounted to TRY 103mn versus TRY 54mn in Q1 2008,
showing a 91% increase
* Sales of Roche products amounted to TRY 24mn in Q1 2009, whereas
total sales realised TRY 50mn in 2008 under Deva Holding portfolio
* Gross Profit Margin according to IFRS results reached to 47% in Q1
2009 from 28% at the end of the year 2008. Roche acquisition has
positive effect on gross profit margin
* EBITDA margin in Q1 2009 was 22% versus negative result at the end
of the year 2008
* Net Profit reached to TRY 9.4mn versus a net loss of TRY 16.5mn in
Q1 2008
* Improvement in receivable and inventory turnover days compared to
year end 2008
* Market share in unit terms decreased to 3.4% in Q1 2009, compared
to 4.5% in Q1 2008 according to IMS Healthcare data
Detailed financial statements of Deva Holding are provided in the
attachment and are available on the Deva website www.deva.com.tr.
EastPharma informs that EastPharma will be announcing its Q1 2009
consolidated and audited financial results on 22 May 2009.
For further information, please contact:
EastPharma Ltd.
Idil Bora - Investor Relations
Tel.: + 90 (212) 6929326
Market Outlook and Deva Holding's Sales Performance in the Q1 2009
according to IMS Healthcare data:
Turkish Pharmaceutical Market shows a growth on the basis of unit
terms as 3.78%, on the value basis of TRY 18.02%, and on the value
basis of USD a decrease of 14.28% in Q1 2009 versus Q1 2008.
Deva Holding's sales in Q1 2009 compared with Q1 2008 declined on the
basis of unit terms by 21.75%, on TRY basis 7.24%, and 32.73% in USD
basis.
Deva Holding's market share in Q1 2009 in unit terms was 3.41%, which
was at the level of 4.52% in Q1 2008. Deva Holding's market share in
Q1 2009 in TRY and USD basis have regressed from the 3.23% to 2.54%.
The first 10 best-selling drugs of Deva Holding in Q1 2009 generates
48.99% of its total unit sales, 72.00% of its revenue in TRY terms
and 71.91% of its revenue in USD terms.
Azitro and Cefaks from Deva Product Portfolio were again the market
leaders in Q1 2009 both in value (TRY) terms as well as unit terms.
The therapheutic breakdown of the total sales of Deva products in Q1
2008 in the basis of the unit was; Systemic Anti-infectives 42.76%,
Musculo-Skeletal System 18.69%, Alimentary T. & Metabolismn 16:03%,
Cardiovascular System 3.70%, Respiratory System 6.80%, dermatology
1.61%, Nervous System 3.05%, G.U. System & Sex Hormones 2.74%,
Antineoplast + Immunomodul 0.33%, and other drugs is 1:04%.
The therapheutic breakdown of the total sales of Deva products in Q1
2008 in the basis of USD was; Systemic Anti-infectives 56.37%,
Musculo-Skeletal System 7:50%, Alimentary T. & Metabolismn 17.72%,
Cardiovascular System 4.88%, Respiratory System 4.90%, Dermatology
0.73%, Nervous System 0.85%, G.U. System & Sex Hormones 5.55%,
Antineoplast + Immunomodul 0.51%, and other drugs is 0.42%.
The therapheutic breakdown of the total sales of Deva products in Q1
2008 in the basis of the TRY was; Systemic Anti-infectives 56.27%,
Musculo-Skeletal System 7.52%, Alimentary T. & Metabolismn 17.77%,
Cardiovascular System 4.90%, Respiratory 4.89%, Dermatology 0.73%,
Nervous System 0.85%, G.U. System & Sex Hormones 5.58%, Antineoplast
+ Immunomodul 0.51%, and other drugs is 0.42%.
The therapheutic breakdown of the total sales of Deva products in Q1
2009 in the basis of the unit was; Systemic Anti-infectives 39.38%,
Musculo-Skeletal System 18:59%, Alimentary T. & Metabolismn 16.61%,
Cardiovascular System 4.07%, respiratory 8.52%, dermatology 2.71%,
Nervous System 1.82%, G.U. System & Sex Hormones 3.95%, Antineoplast
+ Immunomodul 0.77% and other drugs is 0.24%.
The therapheutic breakdown of the total sales of Deva products in Q1
2009 in the basis of the USD was; Systemic Anti-infectives %54.01,
Musculo-Skeletal System 7.13%, Alimentary T. & Metabolismn 15.86%,
Cardiovascular System 6.05%, Respiratory System 7.06%, Dermatology
1.15%, Nervous System 0.44%, G.U. System & Sex Hormones 7.08%,
Antineoplast + Immunomodul 0.43%, and other drugs is 0.21%.
The therapheutic breakdown of the total sales of Deva products in Q1
2009 in the basis of the TRY was; Systemic Anti-infectives 53.98%,
Musculo-Skeletal System 7.13%, Alimentary T. & Metabolismn 15.85%,
Cardiovascular System 6.01%, Respiratory %7.07, Dermatology 1.15%,
Nervous System 0.44%, G.U. System & Sex Hormones 7.16%, Antineoplast
+ Immunomodul 0.42%, and other drugs is 0.21%.
Comments on financial performance and business developments in the Q1
2009 in Deva Holding:
2008 was a highly active year that was full of achievements for Deva
Holding including investments and restructuring, which was also
reflected into the year end financials of Deva Holding. The Company
sales in 2009 started stronger as planned. One of the reason was that
this year the company overcome the supply problems which the move
has caused in the past and as all the new plants become operational.
Four new manufacturing plants for Penicillin, Cephalosporin,
Non-Betalactam Oral and Topical Products, and Sterile Ampoules,
respectively, have been constructed in 2008. Foreign authorities have
been invited to inspect our facilities in 2009. This will open the
doors for Deva to export to highly regulated and mature markets
beside the already existing exports to less regulated emerging
markets in the long run.
The revenues reached to TRY 103mn in Q1 2009, showing a 91% increase
to perior year's same quarter. The stronger sales figure is mainly
depends on the new, well organized and aggressive sales force
together with the capability of the company to overcome the supply
problems with its new facilities. Another contributon was coming from
Roche products sales under Deva portfolio. The sales of Roche
products amounted to TRY 24mn in Q1 2009, whereas total sales
realised TRY 50mn in 2008. Considerin the budget realisation of sales
in Q1 2009, 92% budget realisation has been reached, although the MoH
approved price increase of 8% was applicable in the market as of
April, which was expected by the company as of the beginning of the
year 2009. The unit sales are inline with the budgeted figures.
The margins were improved as the efficiency in sales increases. The
gross profit margin according to IFRS results reached to 47% in Q1
2009, whereas the year end realization was 28% in 2008. Product
aquisition from Roche and the new product launches of Deva Holding
have positive effect on gross profit margin. EBITDA margin in Q1 2009
was 22% versus negative result at the end of the year 2008. The
EBITDA was realised around TRY 52.9mn as a loss, whereas EBITDA in Q1
2009 was TRY 22.3mn, showing an important increase in operational
performance.
Another improvement can be seen on the expenses accounts. The
marketing and sales expenses as of percentage of sales was around 55%
levels at the end of the year 2008, whereas the percentage has been
significantly decreased to 30% levels in the Q1 2009.
The company announced considering the above mentioned business
updates, a net profit of TRY 9.4mn versus a net loss of TRY 16.5mn in
Q1 2008.
There is a significant improvement in receivable and invetory
turnover days compared to year end 2008. Recevable turnover days in
Q1 2009 has been decreased to approx 125days level whereas it was
around 177 days at the end of the year 2008. The inventory turnover
days has been decreased to 125 days compared to the 200 days at the
end of the year 2008.
Optimism for 2009
Drawing upon the experience we acquired from the extremely tough
market conditions in 2008, we continue to focus on delivering
positive results to our shareholders. Together with our management
team and valued employees, we are closely following cost control
mechanisms to continue our strong capital structure and liquidity
discipline. As Deva Holding, we shall grow and continue our
activities with strong business model, increased capacity and our
established brands. Therefore, we look into 2009 with optimism and we
are confident we will achieve the results that our esteemed
shareholders deserve.
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