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Introduction & Market Context
Navamedic ASA (OB:NAVA) presented its second quarter and first half 2025 results on August 14, 2025, revealing a period of strategic expansion amid challenging year-over-year comparisons. The Nordic pharmaceutical company, which closed at NOK 25.8 per share on August 13, up 2.38%, demonstrated underlying growth when adjusted for a significant one-time license fee recorded in the previous year.
The presentation, delivered by CEO Kathrine Gamborg Andreassen and CFO Lars Hjarrand, highlighted the company’s progress toward its ambition of becoming a NOK 1 billion revenue company through a combination of organic growth and strategic acquisitions.
Quarterly Performance Highlights
Navamedic reported Q2 2025 revenue of NOK 137.3 million, representing a 12.2% year-over-year decline. However, when adjusted for a NOK 22.7 million license fee from Orion Corporation recorded in Q2 2024, revenue actually increased by 2.8% compared to the previous year.
Gross margin for the quarter stood at 37.3%, down from 46.1% in Q2 2024, primarily due to product mix and currency effects. EBITDA reached NOK 10.1 million, significantly lower than the NOK 32.7 million reported in Q2 2024, but in line with the adjusted Q2 2024 EBITDA of NOK 10.0 million when excluding the license fee.
The company reported a net loss of NOK 1.5 million for the quarter, compared to a profit of NOK 19.5 million in the same period last year. This decline was primarily attributed to the absence of the license fee and negative net financial items of NOK 8.1 million due to interest payments, currency effects, and a decrease in the value of shares in Observe Medical.
For the first half of 2025, Navamedic recorded revenue of NOK 269.3 million, representing a 2.8% year-over-year decline, but a 5.8% increase when adjusted for the license fee. H1 2025 EBITDA reached NOK 22.9 million, compared to NOK 41.1 million in H1 2024.
Segment Performance Analysis
Navamedic’s performance varied significantly across its three main business segments. The prescription drugs (RX) segment showed mixed results with Q2 2025 revenue of NOK 68.2 million, down 2.8% year-over-year, while H1 2025 revenue increased by 3.7% to NOK 133.3 million.
Within this segment, Imdur® delivered exceptional performance with 101.0% year-over-year growth, and Flexilev® continued its positive trajectory with 4.8% growth. However, Mysimba® underperformed with revenues down 26.6% year-over-year for the quarter and 12% year-to-date.
The consumer health segment reported Q2 2025 revenue of NOK 33.3 million, a 3.5% year-over-year decline, with H1 2025 revenue down 1.5% to NOK 67.2 million. Eroxon® was a bright spot in this segment, with revenues increasing by 10.7% year-over-year following a successful launch in Denmark.
The hospital segment emerged as the strongest performer, with Q2 2025 revenue growing 23.5% year-over-year to NOK 35.7 million, driven primarily by the antibiotics portfolio, which saw a 48.4% increase following recent tender wins. For H1 2025, the segment’s revenue increased by 19.4% to NOK 68.8 million.
Strategic Initiatives and Acquisitions
Navamedic’s presentation highlighted several strategic initiatives aimed at driving future growth. The company received its first approval for OraFID® as the primary package for Flexilev®, with commercial launch anticipated across the Nordic countries in Q4 2025. This development targets the Parkinson’s disease market, which affects over 1.2 million people in Europe, with approximately 195,000 potentially eligible for Flexilev® treatment.
A significant milestone was the acquisition of dne pharma, effective July 15, 2025. The acquisition strengthens Navamedic’s position in addiction and pain therapies, establishing the company as a leader in opioid substitution treatment across the Nordic region. Key products acquired include Ventizolve, Levopidon, and Metadon dne, with market authorizations across multiple European countries.
The dne pharma acquisition is expected to contribute approximately NOK 25 million in annual EBITDA based on 2024 net sales, providing Navamedic with fully owned products and significant synergies with its existing platform.
Navamedic is also repositioning Mysimba® to target patients struggling with emotional eating, with individual reimbursement secured in Norway and Finland. The company aims to transform efficacy perceptions by highlighting that responders can achieve 10-15% weight loss.
Financial Position and Outlook
Navamedic maintained a solid financial position with cash at the end of Q2 2025 standing at NOK 42.7 million, up from NOK 37.3 million at the end of 2024. The company reported an equity ratio of 45% and has reduced its total loans and borrowings compared to the previous year.
Looking ahead, Navamedic reaffirmed its ambition to become a NOK 1 billion revenue company through profitable, sustainable growth. The company’s vision is to build a leading Nordic pharmaceutical company that makes a significant contribution to public health.
The company’s three-pronged growth strategy focuses on unlocking potential in its existing portfolio, expanding through product ownership, and continuing growth through strategic M&A activities. With the upcoming Q3 2025 results scheduled for October 28, 2025, investors will be watching closely to see if Navamedic’s strategic initiatives translate into accelerated revenue growth and improved profitability.
Full presentation:
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