Pharming Group’s Earnings Call Highlights Robust Growth

Pharming Group N.V. ((NL:PHARM)) has held its Q4 earnings call. Read on for the main highlights of the call.

Pharming Group N.V. recently held its earnings call, showcasing a strong sentiment of growth and optimism. The company reported significant revenue increases and successful product performances, particularly highlighting RUCONEST and Joenja. Despite facing some challenges, such as inventory impairments and regulatory hurdles, the overall outlook remains positive with promising growth prospects.

Record Revenue Growth

Pharming Group N.V. reported a remarkable 21% increase in full-year 2024 revenues, reaching $297 million. This growth exceeded the company’s guidance range, driven by a robust fourth quarter and positive operating cash flow in the last two quarters.

RUCONEST Performance

RUCONEST, one of Pharming’s flagship products, saw an 11% revenue growth, totaling $252 million. This increase was fueled by new patient enrollments and an expanded prescriber base, particularly evident in the last quarter.

Joenja Revenue Surge

Joenja’s revenue surged by 147% to $45 million in 2024, with the US market showing significant growth. This impressive performance underscores the product’s strong market acceptance and potential for future expansion.

Abliva Acquisition

Pharming completed the $66.1 million acquisition of Abliva, aiming to enhance its high-value pipeline. The acquisition is expected to incur an additional $30 million in operating expenses for 2025, reflecting the company’s strategic expansion efforts.

Positive Operating Profit

The company achieved a second consecutive quarter of positive operating profit, attributed to higher gross profit from strong sales and effective operating expense management.

Inventory Impairment

Despite the robust revenue growth, gross profit growth was slightly hampered by a one-off inventory impairment due to a RUCONEST production issue at one of the contract manufacturing organizations.

Future Cost of Abliva Acquisition

The Abliva acquisition is projected to add approximately $30 million in additional operating expenses for 2025, including non-recurring transaction and integration costs, highlighting the financial impact of this strategic move.

Regulatory Challenges

Pharming is addressing a single CMC issue with the EMA for leniolisib approval, which is expected to be resolved by January 2026. This regulatory hurdle is a key focus for the company moving forward.

Forward-Looking Guidance

Looking ahead, Pharming Group provided robust guidance for 2025, projecting total revenues between $315 million and $335 million, reflecting a growth rate of 6% to 13%. The company plans to maintain flat operating expenses from 2024, excluding the impact of the Abliva acquisition. This strategic focus aims to expand its portfolio and leverage its clinical development and commercial infrastructure to become a leading global rare disease company.

In conclusion, Pharming Group N.V.’s earnings call conveyed a strong sentiment of growth and strategic expansion. Despite facing some challenges, the company remains optimistic about its future prospects, driven by robust product performances and strategic acquisitions. Investors and stakeholders can look forward to continued growth and development in the coming years.