Celon Pharma S A : Dynamic export and continuation of positive trends in the development of innovative products

Export as the engine for growth of revenues in the 1Q 2021.

In 1Q2021, the Company's total drug sales value increased by 40%. The domestic sales reached a stable level of PLN 20 million per quarter and confirmed the market position of the Company's flagship products, with a small increase in shares in the market of neuropsychiatric products. Dynamic growth has been recorded in the export of Salmex. In the 1st quarter, its sales value reached the level of PLN 23.1 million, surpassing the sales value of other products. The growing export activity has translated into an increase in the Company's generic segment margin.

Jacek Glinka, Vice President of the Board of Celon Pharma S.A.: We are maintaining the sales trends from the end of 2020, both in Poland and worldwide. We will continue to systematically enhance export, by systematically launching Salmex on new markets, in accordance with the license agreement dated March 2021 signed with Glenmark, regarding our new, mainly non-European, market outlets.

Financial support in the amount of nearly PLN 50 million for the next R&D projects and progress in currently conducted clinical trials on new treatments.

In 1Q 2021, Celon Pharma received a decision on the recommendation for co-funding of two new research and development projects: development of the GPR40 agonist in neuropathic pain treatment, totaling up to PLN 22.2 million, and an inhalation drug candidate for COVID-19 treatment, totaling up to PLN 27.2 million. Furthermore, 1Q2021 brought about the completion of important clinical development stages of the Company's 3 projects: Phase II of esketamine in the treatment of bipolar depression, IA CPL'116 - JAK/ROCK, the world's first dual inhibitor for the treatment of certain autoimmune diseases, and the Phase I CPL'280 trial - a representative of the latest generation of drugs for the treatment of diabetes and metabolic conditions. Moreover, the due diligence processes for Falkieri, which had been initiated during the previous year, were continued in 1Q2021. The Company actively operates in the field of commercialization of the upcoming projects in its n pipeline: in oncology and autoimmune diseases.

Maciej Wieczorek, PhD, President of the Board of Celon Pharma S.A.:Our well-balanced pipeline of innovative drugs is sparking more and more interest, which not only is a confirmation of our projects' potential, but also an important strategic challenge. We are continuing the previously initiated partnering conversations. Currently, we are considering the regional scenario as the most probable one; it offers us significant flexibility in terms of building the position of our product in the future. Our priority is to ensure that the terms of the license agreement with our partner will be beneficial long-term, not only to the Company, but also to its shareholders.

From the financial point of view, the completion of the development investments crucial to the Company translated into an increase in depreciation. An increase in sales correlates with an increase in material costs. The operating costs for 1Q2021 included the non-recurring costs of the disposal of finished goods and raw materials used in the development of drugs. The total operating costs increased by 28%.

Iwona Giedronowicz, CFO, Member of the Board of Celon Pharma S.A.: We managed to maintain our EBITDA margin level thanks to the significant increase in the turnover for the generic segment and the well-managed and efficient cost structure of the innovative segment in 1Q2021. The 1st quarter of 2021 brought about a relatively insignificant drop in the R&D costs, e.g., in the area of clinical research; it was not caused, however, by a slowdown in project works.

In accordance with the resolution adopted by the Extraordinary General Meeting of Shareholders, the Company publishes its financial statements based on the International Financial Reporting Standards.

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ABOUT THE COMPANY

Celon Pharma is an integrated biopharmaceutical company which designs, develops, manufactures and distributes pharmaceutical products. It was founded in 2002 by Maciej Wieczorek, PHD. The company currently has approx. 450 employees. It employs approx. 100 scientists responsible for research and development, half of whom either have a PhD or are in the process of acquiring their PhD. The Company's pipeline includes more than a dozen projects for the development of innovative drugs with therapeutic groups such as oncology, neuro-psychiatry, autoimmunity and metabolism. The company has its own research and development laboratories, which allow it to develop its own pharmaceutical technologies by using extensive laboratory equipment resources, as well as the experience and expertise of its staff. It also has a modern manufacturing facility where dry pharmaceutical forms are manufactured. Over the last few years, the Company has introduced products into the market in the following therapeutic areas: oncology, central nervous system diseases, cardiology, HIV treatment, respiratory diseases. The Company has been developing the technology for manufacturing inhalation drugs and several projects of innovative drugs since 2007. It has been listed on the Warsaw Stock Exchange since 2016.

More information can be obtained by contacting: Małgorzata Siewierska [e-mail]

Dynamic export and continuation of positive trends in the development of innovative products.

Celon Pharma S.A. summarizes 1Q2021.

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