Cosmo Half-Year Report 2020

Cosmo Half-Year Report 2020

Dublin, Ireland - 30 July 2020 - Cosmo Pharmaceuticals N.V. (SIX: COPN) reports half-year results for the period ended 30 June 2020.

Cosmo obtained important product approvals, continued to execute its equity for product strategy and is on track to return to operating profit in FY20.

Key Events Half-Year 2020 - Products and Business

• ByFavo™ sub-licensed to Acacia Pharma Group (EURONEXT: ACPH) in January in equity for product deal for €30m in upfront payment, regulatory and commercial milestones due in equity plus up to $105m in sales related commercial milestones. Additional equity investment of €21.1m made in the company plus €25m in loan financing provided. ByFavo™ approved by the FDA in July 2020.
• European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) adopted a positive opinion for Methylene Blue MMX in June 2020.
• Protocol and related statistical analysis plan for the confirmatory phase III trial for Methylene Blue MMX filed with the U.S. FDA in April 2020 for final comment.
• Very positive results of the first investigator initiated prospective clinical study of GI Genius™ announced. ADR (Adenoma Detection Rate) and APC (Adenoma Per Colonoscopy) were significantly higher in the GI Genius™ group compared to the control group.
• GI Genius™ further approved in Australia, Israel and the United Arab Emirates.

Financial Highlights Half-Year 2020

• Revenues €25.9m vs €21.5m last year, mainly because of increase in manufacturing income for generic and Lialda® and milestones income which did not occur in prior period.
• Expenses (net) down 40% to €23.2m following the elimination of our U.S. organisation. ​
• Operating profit €2.7m vs operating loss €17.2m in prior period​.
• Net financial expense €5.8m mainly relates to interest on convertible bonds of €4.2m of which cash impact €2.2m. ​
• Loss for the period €3.0m including share of Cassiopea loss €2.2m. ​
• Cash inflow from operations before changes in working capital €4.8m for the period.
• Cash and investments in funds €238.4m at 30 June 2020 (excluding 574,312 treasury shares at cost of €47.1m) vs €268.2m at 31 December 2019.
• Market value of Cosmo's stake in Cassiopea at 30 June 2020 €188.2m versus carrying value of €138.8m.
• Equity €405.4m vs €393.7m at 31 December 2019.

Key figures

EUR 1,000	H1 2020	H1 2019
Income statement
Revenues	25,883	21,507
Cost of sales	(12,845)	(11,029)
Gross profit	13,038	10,478
Other income	5,530	277
R&D costs	(7,289)	(7,667)
SG&A costs	(8,617)	(20,289)
Net operating expenses	(10,376)	(27,679)
Operating profit/(loss)	2,662	(17,201)
Net finance (expenses) / income	(5,773)	(2,600)
Share of result of associate	(2,220)	(2,818)
Loss before taxes	(5,331)	(22,619)
Income tax	2,316	1,837
Loss for the period	(3,015)	(20,782)
Shares
Weighted average number of shares	14,488,454	14,715,110
Earnings per share (in EUR)	(0.208)	(1.407)

EUR 1,000	30 Jun 20	31 Dec 19
Statement of financial position
Non-current assets	304,700	282,795
Cash and cash equivalents	82,591	110,387
Other current assets	209,326	191,978
Liabilities	191,177	191,427
Equity attributable to owners of the Company	405,440	393,733
Equity ratio (%)	68.0%	67.3%

Alessandro Della Chà, Chief Executive Officer, said: "In the first half of 2020 we continued to execute our equity for product strategy which allows us to participate in the equity upside of our products by taking stakes in our partners. We believe that we have substantially de-risked our business and are well positioned with a pipeline of products and €238.4 million in cash and investments and look to the future with optimism. We are maintaining our FY20 guidance of revenue in the range of €52 to €56m and operating profit in the range of €2m to €8m"

The Half-Year Report 2020 with further information was published on 30 July 2020, 07:00 am CET, and is available for download at:

http://www.cosmopharmaceuticals.com/investor-relations/financial-reports

Half-Year 2020 Results Conference Call on Thursday, 30 July 2020, 10:00am CET

Alessandro Della Chà, CEO and Niall Donnelly, CFO will present the half-year results 2020 and will provide an update of Cosmo's activities. The conference call is scheduled to last 30-45 minutes and will be held in English.

Dial-in numbers:

From Continental Europe:	[phone]
From UK:	[phone]
From USA:	[phone]

The presentation is available for download at:

http://www.cosmopharma.com/ir/presentations.aspx

About Cosmo Pharmaceuticals

Cosmo is a specialty pharmaceutical company focused on developing and commercialising products to treat selected gastrointestinal disorders and improve endoscopy quality measures through aiding the detection of colonic lesions. Cosmo has also developed medical devices for endoscopy and has recently entered into a partnership with Medtronic for the global distribution of GI Genius™ its artificial intelligence device for use in coloscopies and GI procedures. Cosmo has licensed Aemcolo™ to Red Hill Biopharma and is the licensee of BYFAVO™ (Remimazolam) for the US for procedural sedation, which it has sub-licensed to Acacia. For additional information on Cosmo and its products please visit the Company's website: www.cosmopharma.com

Financial calendar

Investora, Zurich

September 23, 2020

Contact

Niall Donnelly, CFO & Head of Investor Relations

Cosmo Pharmaceuticals N.V.

Tel: [phone]

[e-mail]

Disclaimer

Some of the information contained in this press release contains forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. Cosmo undertakes no obligation to publicly update or revise any forward-looking statements.

This communication is not an offer of securities of any issuer. Securities may not be offered or sold in the United States absent registration or an exemption from the registration requirement of the US Securities Act of 1933.

This press release constitutes neither an offer to sell nor a solicitation to buy securities and it does not constitute a prospectus within the meaning of article 652a and/or 1156 of the Swiss Code of Obligations or a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange or any similar document. The offer will be made solely by means of, and on the basis of, a securities prospectus to be published. An investment decision regarding the securities to be publicly offered should only be made on the basis of the securities prospectus.

This press release is made to and directed only at (i) persons outside the United Kingdom, (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"), and (iii) high net worth individuals, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order. Any person who is not a relevant person should not act or rely on this press release or any of its contents.

This press release does not constitute an "offer of securities to the public" within the meaning of Directive 2003/71/EC of the European Union (the "Prospectus Directive") of the securities referred to in it (the "Securities") in any member state of the European Economic Area (the "EEA"). Any offers of the Securities to persons in the EEA will be made pursuant to an exemption under the Prospectus Directive, as implemented in member states of the EEA, from the requirement to produce a prospectus for offers of the Securities.

Press Release (PDF)

Provider		Channel		Contact
EQS Group Ltd., Switzerland switzerland.eqs.com		newsbox.ch www.newsbox.ch		Provider/Channel related enquiries [e-mail] [phone]