Ad hoc announcement pursuant to Art. 53 LR
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Cosmo reports excellent preliminary unaudited Full Year 2023 core financial results - Record guidance for 2024 - Doubles dividend to € 2.00 per share
Dublin, Ireland – 20 March 2024: Cosmo Pharmaceuticals N.V. (SIX: COPN, XETRA: C43) (“Cosmo”) today announced its preliminary unaudited results for the financial year 2023.
Financial highlights
Cosmo delivered strong growth across its core business in 2023.
The company continues to make excellent progress on execution of its strategy with the announcement of an expansion of its agreement with Medtronic for GI Genius. This agreement has further strengthened the company’s financial position and enables an acceleration of investment in exciting opportunities in both pharma and AI, as well as an increase in the dividend.
Cosmo’s core business has performed as follow:
The preliminary unaudited figures above and the detailed note below reflect the Company’s position with respect to certain accounting matters for which the Company and its auditors, BDO, are finalising the accounting treatment. These matters are explained in detail below.
Cosmo’s two key growth drivers, GI Genius and Winlevi, continue to perform in line with expectations
GI Genius: new agreement with Medtronic, FDA clearance of new operating system and meaningful expansion of customer base
Winlevi continues to be the #1 prescribed branded topical acne product in the U.S.
Development pipeline highlights
Financial highlights
Key preliminary unaudited figures:
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EUR /000 |
2023 |
2022 |
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Income statement |
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Revenues |
96,723 |
102,089 |
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Cost of sales |
(39,340) |
(40,488) |
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Gross profit |
57,383 |
61,601 |
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Other income |
1,453 |
1,896 |
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R&D costs |
(18,811) |
(15,525) |
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SG&A costs |
(27,799) |
(19,915) |
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Net operating expenses |
(45,157) |
(33,544) |
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Operating profit |
12,226 |
28,057 |
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Net financial expenses |
(4,615) |
(3,584) |
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Profit before taxes |
7,611 |
24,473 |
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Profit after taxes for the period |
1,347 |
17,505 |
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Statement of financial position |
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Non-current assets |
451,754 |
453,495 |
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Cash and cash equivalents |
50,275 |
185,825 |
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Other current assets |
51,951 |
120,272 |
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Liabilities |
120,346 |
295,804 |
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Equity attributable to owners of the Company |
426,758 |
456,927 |
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Non-controlling interests |
6,876 |
6,861 |
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Equity ratio (%) |
78.3% |
61.1% |
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Shares |
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Weighted average number of shares |
16,105,126 |
16,425,395 |
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Earnings per share (in EUR) |
0.071 |
1.049 |
Mauro Ajani, Chairman of Cosmo , said: “ I am extraordinarily proud of the work the team was able to accomplish over the last few years, which has brought the company to where it stands today, with an exciting pharma pipeline coupled with the new deal with Medtronic in AI. The opportunities are limitless, and Cosmo is best positioned to exploit them”.
Alessandro Della Chà, Chief Executive Officer , said: “2023 has delivered beyond our expectations, with the final rush to close the Medtronic deal. The subsequent proceeds enable Cosmo to further develop and accelerate the many incoming opportunities both in pharma and AI. We are not short of exciting new ideas for the future, which we intend to relentlessly deliver” .
2024 Guidance
Outlook 2025
Accounting matters under finalisation
On the 6 th of December 2023 Cosmo executed an agreement with certain former Linkverse shareholders (the “New Linkverse Agreement”) which amended certain of the provisions of an agreement entered into with the former Linkverse shareholders in 2019 (the “Old Linkverse Agreement”). The effectiveness of the New Linkverse Agreement was contingent on the effectiveness of a new agreement between Cosmo and Medtronic. Cosmo executed a new agreement with Medtronic on the 8 th of December 2023 (the “New Medtronic Agreement”), this agreement was subject to certain closing conditions which were fulfilled on the 20 th of February 2024 and the New Medtronic Agreement became effective on the 21 st of February 2024. The terms of the New Linkverse Agreement which replaced certain terms of the Old Linkverse Agreement, therefore, also became enforceable on the 21st of February 2024.
The New Linkverse Agreement amends the deferred consideration for the purchase of the non-controlling interest of Linkverse S.r.l. contained in the Old Linkverse Agreement and provides for a payment of €9.0m contingent upon payments from Medtronic.
As the New Medtronic Agreement became effective in 2024 and, as a consequence, the New Linkverse Agreement also became effective and enforceable in 2024, Cosmo is of the opinion that any liabilities associated with the New Linkverse Agreement should be accounted in for 2024, when it became enforceable and in line with the accounting treatment of the New Medtronic Agreement.
Furthermore, the New Linkverse Agreement provides for the grant of share options to certain former Linkverse shareholders in their capacity as employees of Cosmo. Also in this case, Cosmo is of the opinion that these new options should be accounted for only in 2024 as the New Linkverse Agreement only became enforceable in 2024. The accounting impact of this matter could be up to €3.5m.
Cosmo is of the opinion that any different accounting treatment, other than as described above, would not result in a true and fair representation of Cosmo’s 2023 financial performance or position.
The media release (
https://www.cosmopharma.com/investors/news-and-media
) and presentation (
https://www.cosmopharma.com/investors/events-and-presentations
) as well as the preliminary unaudited Annual Report 2023 and Cosmo’s second ESG report (
https://www.cosmopharma.com/investors/financial-reports
) are all available on the corporate website.
Live conference call and video webcast presentation:
Cosmo invites investors, financial analysts and business/life science journalists to a live video webcast with
Mauro Ajani, Founder and Chairman, Alessandro Della Chà, CEO
to discuss the 2023 financial and operating results and next milestones of the company.
Date: Today Wednesday, 20 March 2024 / Time: 11 am CET
Webcast link: Chrome (recommended) or Firefox
https://event.choruscall.com/mediaframe/webcast.html?webcastid=0f72Wkug
Please note that there is a function to type in your questions via webcast.
Via phone:
Participants wishing to ask verbal questions via phone, may call the following numbers below. To ensure prompt access, please call approximately ten minutes prior to the scheduled start of the call.
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Switzerland / Europe |
+41 (0) 58 310 50 00 |
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United Kingdom |
+44 (0) 207 107 06 13 |
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United States |
+1 (1) 631 570 56 13 |
Replay
The webcast, along with the presentation will be available online shortly after the event and accessible for three months.
About Cosmo
Cosmo is a pharmaceutical company focused on developing and commercializing products to treat selected gastrointestinal disorders, to improve endoscopy quality measures through aiding the detection of colonic lesions, and to treat selected dermatological conditions. Cosmo develops and manufactures products which are distributed globally by selected partners including Lialda® /Mezavant®/Mesavancol®, Uceris®/Cortiment®, Aemcolo®/ Relafalk® and Winlevi®. Cosmo has also developed medical devices for endoscopy and has a partnership with Medtronic for the global distribution of GI Genius™ which uses artificial intelligence to help detect potential signs of colon cancer. The company also has a rich development pipeline. For additional information on Cosmo and its products please visit the Company’s website: www.cosmopharma.com
Upcoming Calendar of Events
Annual General Meeting 2024 May 24, 2024
Half Year Results 2024 July 25, 2024
ODDO BHF Nextcap Forum 2024 June 6, 2024
Contact
Hazel Winchester
Head of Investor Relations
Cosmo Pharmaceuticals N.V.
Tel: +353 1 817 03 70
Disclaimer
Some of the statements in this press release may be forward-looking statements or statements of future expectations based on currently available information. Such statements are naturally subject to risks and uncertainties. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements. Cosmo does not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such statements. Therefore, in no case whatsoever will Cosmo and its affiliate companies be liable to anyone for any decision made or action taken in conjunction with the information and/or statements in this press release or for any related damages.