Pronova BioPharma revises shipment outlook for 2010
13 June 2010, Lysaker: Pronova BioPharma ASA ("Pronova BioPharma" or "the
company") (OSE: PRON.OL) reduces its shipment outlook for partner demand in
2010 due to GlaxoSmithKline's (GSK's) increased focus on working capital.
GSK reiterated in its first quarter presentation a continued focus on
simplification and working capital management. As a result of its Operational
Excellence Programme, GSK will reduce inventory levels of Omacor®/Lovaza(TM) and
consequently, Pronova BioPharma revises its full year 2010 outlook on partner
demand to 1,600 - 1,700 tonnes.
In addition to the rebalancing of its inventory, GSK has substantially
intensified its marketing investments on the product in 2010, with a recent
launch of a direct-to-consumer advertising program which is expected to further
drive demand for the product.
The global end-user sales of Omacor®/Lovaza(TM) continues to grow well, with 31
per cent growth in the first quarter of 2010 compared to the first quarter of
2009. The growth in the end-user market is a result of the continuous support by
Pronova BioPharma's partners and forms the basis of the forecasted volumes.
Morten Jurs, Chief Executive, Pronova BioPharma today commented:
"Today's announcement reflects reduction of GSK's inventory levels, following
increased focus on working capital. This rebalancing of inventory levels impacts
our 2010 sales expectations, but the US end-user market for Omacor®/Lovaza(TM)
continues to grow and I am pleased with GSK's increased commitment through the
recent introduction of a direct-to-consumer advertising programme."
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For further information, please contact:
Morten Jurs, CEO +47 22 53 49 10
Synne H. Røine, CFO +47 22 53 48 92
Hilde H. Steineger, Vice president of IR and communications +47 22 53 49 09
About Pronova BioPharma
Pronova BioPharma is a global leader in the research, development and
manufacture of marine-originated omega-3 derived pharmaceutical products.
Pronova BioPharma's first commercialized product is branded as Omacor® in a
number of countries throughout Europe and Asia and as Lovaza(TM) in the United
States. The product is manufactured using a unique and complex process at the
company's plant in Sandefjord, Norway and the new manufacturing plant in
Kalundborg, Denmark opened on 1 October 2009.
Omacor®/Lovaza(TM) is the first and only EU- and FDA-approved omega-3 derived
prescription drug. The drug is prescribed as an adjunct to diet for the
treatment of elevated levels of triglycerides in humans, a condition known as
hypertriglyceridemia (HTG), a form of dyslipidemia (or disorder of lipid
metabolism). Very high triglycerides have been linked to a number of
cardiovascular diseases. Omacor® is also approved in key European and certain
Asian markets for the secondary prevention of post-myocardial infarction, or
Post-MI, the period following the initial survival of a heart attack.
Omacor®/Lovaza(TM) has been demonstrated in a number of clinical trials to be a
potent triglyceride-lowering agent as a monotherapy. It has been documented to
be efficacious, safe, and highly complementary to other lipid-lowering agents,
such as statins. In addition, Pronova BioPharma is involved in various projects
to develop Omacor®/Lovaza(TM) in a number of cardiovascular indications,
including as a combination therapy with statins for mixed dyslipidemia which
management believe represents a major market opportunity for the Company.
Pronova BioPharma's global network of license and distribution partners
includes: GlaxoSmithKline PLC (US), Takeda Pharmaceutical (Japan), Prospa
(Italy) and Solvay (UK, Germany and others). The combined sales force from this
network focused on the sale of Omacor®/Lovaza(TM) is approximately 2,650 sales
representatives.
Omacor®/Lovaza(TM) was launched in 2005 in the US and in major European markets,
such as France and Spain. IMS Health reports that global end-user sales of the
product have increased from US$144 million in 2005 to US1.1 billion in 2009.
Pronova BioPharma had revenues of NOK 1,790 million and EBITDA of NOK 823
million in 2009. The company is listed at Oslo Børs. See www.pronova.com
for more information.
Disclaimer
Certain statements in this release concerning our future growth prospects are
"forward-looking statements", which involve a number of risks, and uncertainties
that could cause actual results to differ materially from those in such
forward-looking statements. The risks and uncertainties relating to these
statements include, but are not limited to, risks and uncertainties regarding
fluctuations in earnings, our ability to manage growth, intense competition in
the pharmaceutical industry including those factors which may affect our ability
to manufacture our products, our ability to attract and retain highly skilled
professionals, the regulatory environment in which we operate and unauthorized
use of our intellectual property and general economic conditions affecting our
industry. We do not undertake to update any forward-looking statement that may
be made from time to time by us or on our behalf.
[HUG#1423534]
