ROUNDUP: Drug manufacturer Dermapharm wants to continue growing after a record year

GRNWALD (dpa-AFX) – The drug manufacturer Dermapharm expects further profitable growth thanks to the cooperation with Biontech and the planned legalization of cannabis. “Despite the current events in Ukraine, we are optimistic about the 2022 financial year,” said company boss Hans-Georg Feldmeier in Grnwald on Tuesday.

The Executive Board is therefore aiming for an increase in sales of ten to 13 percent for the current year, and adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) should increase by three to seven percent compared to the record year 2021. The company’s goals are somewhat below the previous expectations of the experts recorded by Bloomberg. Analyst Alexander Thiel from the investment house Jefferies spoke in an initial reaction of a “disappointing outlook”. However, there is still room for the company to exceed its own forecasts.

Investors on the stock exchange turned their backs on the stock on Tuesday morning. The share, which is listed in the SDax, lost a good 2.6 percent to EUR 59.25 in the morning, making it one of the bottom performers in the index of smaller stocks. The paper has been under pressure for weeks after climbing steadily over the past three years. But after the price reached a record high of EUR 91.95 in January 2022, more than a third of its value has since been lost.

According to company boss Feldmeier, the expanded vaccine cooperation with the Mainz-based company Biontech (BioNTech (ADRs)) and the recently acquired cannabis business should contribute to growth this year in addition to the core business. The acquired C3 Cannabinoid Compound Company will be integrated into the company in the coming months. “The expected liberalization of the cannabis market also offers additional growth potential,” added the Dermapharm manager.

Dermapharm intends to present the final figures for the past year on April 12. The company published preliminary figures a week ago. Accordingly, sales had grown by 19 percent year-on-year to 943 million euros, the operating result adjusted for one-off costs (Ebitda) increased by three quarters to 351 million euros. According to the company, 2021 was the most successful in the company’s 30-year history.

Last year, Dermapharm benefited from high demand for immune-boosting preparations, such as vitamin D products.

The takeover of the Merck subsidiary Allergopharma and the vaccine cooperation with Biontech also gave impetus. Dermapharm produces for the Mainz-based corona vaccine manufacturer in Brehna near Leipzig and in Reinbek in Schleswig-Holstein./tav/nas/mis