In This Article:
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Pharming Group (PHGUF) reported a 42% increase in total revenues for Q1 2025, driven by strong sales of Ruconest and Joenja.
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Ruconest sales grew by 49% to $68.6 million, supported by increased patient enrollment and an expanded prescriber base.
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The company has initiated phase 2 studies for genetic PID and CID, which could significantly expand the addressable patient population.
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Pharming Group (PHGUF) has successfully reduced its operating loss and generated a profit for the third consecutive quarter, excluding non-recurring expenses.
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The company has raised its full-year revenue guidance, reflecting confidence in continued growth and financial discipline.
Negative Points
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Operating expenses increased due to non-recurring Aliva acquisition-related costs of $7.8 million.
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The net loss for Q1 2025 was $14.9 million, primarily due to non-tax deductible acquisition expenses and foreign exchange exposure.
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Cash and marketable securities decreased by $60.5 million, largely due to the Aliva acquisition.
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Potential import tariffs between the US and Europe could impact Pharming Group (PHGUF)'s supply chain and pricing strategies.
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The company faces challenges in reducing general and administrative expenses by $10 million annually while maintaining growth.
Q & A Highlights
Q: Can you clarify on the flat operating expenses for 2025 pre-Aliva while reducing GNA by $10 million? Should we be thinking about the $10 million adjusting into R&D or how should we think about that? A: The adjustment is specifically on GNA (General and Administrative expenses) to optimize capital allocation for business growth. The goal is not to impact R&D or commercial expenses, which are crucial for short and long-term growth. - CEO
Q: Given your European manufacturing and most of your sales in the US, how are you thinking about potential tariffs with the US and opportunities for mitigation? A: We are evaluating a range of scenarios to mitigate the risk and impact of potential tariffs, which could include adjustments in our supply chain, manufacturing, and custom pricing. However, it's too early to provide specifics. - CEO
Q: How did first quarter insurance and Medicare resets impact Ruconest growth? A: The Medicare reset had some impact but wasn't a major factor in our growth. The growth was primarily driven by the underlying strength of the brand and focus on severely affected patients. - Chief Commercial Officer