DGAP-News: CHEPLAPHARM CONTINUES PROFITABLE GROWTH TRACK IN 2021 AS WELL

- Revenue exceeds 1bn for the first time: +69% YOY to 1,082.0m (FY2020: 639.6m)

- EBITDA +86% YOY to 623.9m (FY2020: 335.1m)

- Further increased EBITDA margin (58% vs. 52% in FY2020) and gross profit margin (75% vs. 70% in FY2020) demonstrating continued operational leverage with scale

- Free cash flow grew by +41% to 371.3m (FY2020: 264.0m) and strengthens self-financing ability

Cheplapharm AG (the "Company" and, together with its subsidiaries, "Cheplapharm"), a leading specialty pharma platform for long-established pharma brands worldwide¹, looks back on a successful financial year 2021. With the publication of the 2021 annual financial statements today, the Company reported strong increases in its most important key financial ratios, thereby delivering on its targets and continuing the profitable growth track of the past years.
 

Cheplapharm increased revenue by +69% year-on-year to 1,082.0m in the financial year 2021 (FY2020: 639.6m). The Company thus achieved a sales level above the 1bn mark for the first time in its history. EBITDA reached 623.9m in the reporting period, corresponding to growth of +86% if compared to the financial year 2020 (FY2020: 335.1m).
 

At the same time Cheplapharm increased its EBITDA margin² and gross profit margin³ further to 58% (FY2020: 52%) and 75% (FY2020: 70%), respectively, thereby providing a strong proof of concept for the Company's business model based on a highly scalable specialty pharma platform and an international buy-and-build strategy.
 

Furthermore, the Company's free cash flow⁴ grew by +41% year-on-year to 371.3m (FY2020: 264.0m) and thus strengthens Cheplapharm's self-financing ability to continue investing in its highly attractive pipeline of long-established pharma brands. In addition to this pleasing development, the Company is continuing to examine an IPO on the Frankfurt Stock Exchange as well as other financing options to ensure flexibility and liquidity to further pursue its growth strategy.
 

Cheplapharm's strong increase in sales and earnings in the financial year 2021 is primarily based on the investments made in the second half of 2020. In this period the Company acquired a total of 40 products (including one acquisition that closed in early January 2021) for a total purchase price of 1.5bn, marking a record investment volume in its history. Consequently, 2021 has been a period of enhanced focus on the successful integration of these products.
 

Cheplapharm has continued with its core expansion strategy in the financial year 2021 and successfully acquired several products from companies such as Sanofi, Astellas or Bristol Myers Squibb. The portfolio from Sanofi includes a total of ten products consisting of a combination of corticosteroids and antibiotics, which will be distributed in more than 15 countries, while the five products acquired from Astellas are anti-infective and gastroenterology medicines. From Bristol Myers Squibb the Company acquired three chemotherapeutic drugs, which are mainly sold in Asia.
 

These recent investments enabled Cheplapharm to further diversify its portfolio. With the three new therapeutic areas gained in the financial year 2021 (metabolic disorders, neurology and dermatology), the Company is highly diversified in terms of therapeutic area, with no single area representing more than 30% of revenue.
 

In summary, Cheplapharm in 2021 continued to evidence the highly attractive and profitable nature of its asset-light investment focused business model, integrating a record number of acquisitions whilst continuing to deploy capital into new and diversified product portfolios.

 

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_{¹Based on total number of publicly reported deals involving off-patent originator products divested by top-30 biopharma companies (from Jan 1, 2014 to May 14, 2021).
²EBITDA: Result of earnings before income taxes before amortization, depreciation and impairment and net finance expenses; EBITDA margin: EBITDA divided by revenue.
³Gross profit: revenue less cost of materials and change in inventories; gross profit margin: gross profit divided by revenue.
⁴Free Cash Flow: cash flow from operating activities less payments to acquire property, plant and equipment, less payments to acquire financial assets plus proceeds from disposal of financial assets.}

 

Investor Relations Contact

Cheplapharm AG
Jens Remmers
Head of Treasury & Investor Relations
mail: investor-relations(at)cheplapharm.com
phone: +49 3834 3914 145
 

About CHEPLAPHARM

CHEPLAPHARM is a fast-growing pharmaceutical company in Europe, headquartered in Greifswald, Germany, offering branded and niche products in approximately 145 countries worldwide. The family-owned company specializes in selected active substances and indications and focuses on an international buy-and-build strategy.

Please refer to www.cheplapharm.com for additional information.

Press office:

CHEPLAPHARM Ziegelhof 24 17489 Greifswald presse(at)cheplapharm.com

DISCLAIMER

The financial data presented in this press release has been taken or derived from the audited consolidated financial statements of Cheplapharm AG as of and for the year ended December 31, 2021. This release contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management of CHEPLAPHARM Arzneimittel GmbH (the "Company"). Forward-looking statements should not be construed as a promise of future results and developments and involve known and unknown risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in these statements, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this release or the underlying assumptions. The Company does not assume any obligations to update any forward-looking statements. Moreover, it should be noted that all forward-looking statements only speak as of the date of this release and that the Company assumes no obligation, except as required by law, to update any forward-looking statement or to conform any such statement to actual events or developments.

The Company expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statement contained in this release, whether as a result of new information, future developments or otherwise.

Certain financial data included in the document consists of "non-IFRS financial measures". These non-IFRS financial measures may not be comparable to similarly titled measures presented by other companies, nor should they be construed as an alternative to other financial measures determined in accordance with IFRS. You are cautioned not to place undue reliance on any non-IFRS financial measures and ratios included herein.