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Introduction & Market Context
Navamedic ASA (OB:NAVA), a Nordic pharmaceutical company, presented its Q1 2025 financial results on April 30, 2025, highlighting strong revenue growth and improved operational efficiency. The company’s stock closed at 21.6 NOK on April 29, down 1.37% ahead of the presentation, trading well off its 52-week high of 35.9 NOK.
The presentation, delivered by CEO Kathrine Gamborg Andreassen and CFO Lars Hjarrand, emphasized Navamedic’s position as a reliable supplier of high-quality pharmaceutical products addressing global health challenges, with a particular focus on the Nordic markets.
Quarterly Performance Highlights
Navamedic reported Q1 2025 revenue of 132.0 million NOK, representing a 9.2% increase year-over-year. The company also achieved significant improvement in profitability metrics, with gross margin expanding to 40.7% from 38.7% in Q1 2024, and EBITDA rising to 12.8 million NOK, a substantial 52% increase from 8.5 million NOK in the same period last year.
As shown in the following key financial highlights:
Despite the strong operational performance, Navamedic reported a net loss of 7.5 million NOK for the quarter, compared to a loss of 2.0 million NOK in Q1 2024. This widening loss was primarily attributed to increased financial expenses of 11.0 million NOK, up from 6.1 million NOK in the prior-year period.
The company’s revenue has shown consistent growth over the past four years, as illustrated in this rolling 12-month chart:
Segment Analysis
Navamedic operates across three main business segments, each contributing to the company’s overall growth in Q1 2025:
The Prescription Drugs (RX) segment was the strongest performer, generating revenue of 65.0 million NOK, an 11.5% increase year-over-year. Key products in this segment showed varied performance, with Imdur delivering exceptional growth of 54% YoY, while Mysimba, the company’s weight management product, grew by 7.3%. Nitrolingual and Flexilev also performed well, with growth of 22% and 13% respectively. However, Forlax experienced a 45% decline due to increased competition.
The Consumer Health segment reported stable revenue of 33.9 million NOK, a modest 0.3% increase from Q1 2024. Within this segment, several products delivered strong growth, including Absolut Torr (up 49% YoY) and ThermaCare (up 8% YoY), while Eroxon saw a 9% decline, partly due to inventory build-up effects from the previous year.
The Hospital segment, which includes antibiotics and medical nutrition, showed robust growth of 15.2% year-over-year, reaching 33.1 million NOK in Q1 2025. This performance was primarily driven by the antibiotics portfolio, which grew by 32% following recent tender wins.
Strategic Initiatives & Outlook
Navamedic outlined its strategy to become a 1 billion NOK revenue company with at least 15% EBITDA margin. The three-pillar approach focuses on:
1. Growth based on the existing product portfolio and territories
2. Portfolio expansion through in-licensing and out-licensing of products
3. Strategic M&A activities targeting smaller companies and product portfolios with growth potential
Key upcoming initiatives include the commercial rollout of Flexilev and the OraFID dispenser in the second half of 2025, new product launches in Medical (TASE:BLWV) Nutrition and Antibiotics, and the out-licensing of proprietary products such as Absolut Torr to markets beyond the Nordics.
A significant development for the company was the renewal of its agreement for Imdur for an additional eight years, securing a stable revenue stream from one of its fastest-growing products.
Financial Position
Navamedic maintained a solid financial position with 40.3 million NOK in cash at the end of Q1 2025, up from 37.3 million NOK at year-end 2024. The company reported positive operating cash flow of 9.2 million NOK for the quarter, a substantial improvement from the negative 5.6 million NOK in Q1 2024.
The company’s balance sheet showed total assets of 484.4 million NOK as of March 31, 2025, with an equity ratio of 44%. Total (EPA:TTEF) debt decreased compared to the same period last year, with non-current interest-bearing borrowings at 78.6 million NOK, down from 95.5 million NOK in Q1 2024.
While Navamedic has demonstrated strong operational performance and improved cash flow generation, the significant financial expenses continue to impact the bottom line, resulting in a net loss for the quarter. Management did not specifically address strategies to reduce these financial costs during the presentation.
As Navamedic continues to execute its growth strategy, investors will likely focus on both the company’s ability to maintain top-line momentum and its progress in translating improved operational metrics into positive bottom-line results.
Full presentation:
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