Pharming Group (PHARM) AI Stock Analysis

• Market Cap: €955.31M
• Dividend Yield: N/A
• Average Volume (3M): 19.18M
• Price to Earnings (P/E): 408.6
• Beta (1Y): 1.05
• Revenue Growth: 24.19%
• EPS Growth: 99.16%
• Country: NL
• Employees: 404
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): <0.01
• Shares Outstanding: 701,404,050
• 10 Day Avg. Volume: 15,825,784
• 30 Day Avg. Volume: 19,178,179
• PEG Ratio: -3.33
• Price to Book (P/B): 3.72
• Price to Sales (P/S): 3.10
• P/FCF Ratio: 23.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.02
• Revenue Forecast (FY): €405.15M

• Rating: 56 Neutral
• Price Target: €1.50 ▼(-6.83% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is driven primarily by improving but still volatile financial performance (fragile profitability and uneven cash flow), with a constructive earnings-call outlook (upgraded guidance and strong product growth) partly offset by weak technical momentum and a very high P/E valuation without dividend support.

Positive Factors

High Gross Margins

Sustained very high gross margins (~80–90% historically, with a reported improvement to 93%) indicate strong product economics typical of specialty biologics. High gross margins support durable cash generation, enable reinvestment in R&D and commercialization, and provide a buffer against pricing or COGS pressure over the medium term.

Recovered Cash Generation

A material recovery to positive operating cash flow in 2025 (reported $32m) and free cash flow roughly matching net income improves the company's internal funding capacity. Durable positive cash generation reduces reliance on external financing, supports late-stage trials and commercialization, and increases resilience against revenue swings over 2–6 months.

Commercial Momentum and Pipeline

Two commercial products delivering high double-digit growth provide diversified, durable revenue streams rather than dependence on a single medicine. Coupled with an advancing late-stage pipeline (Phase II PIDs and registrational KL1333), this combination creates multiple structural growth levers and lowers single-product execution risk over the medium term.

Negative Factors

Revenue Volatility

A pullback in 2025 after earlier expansion highlights an inconsistent top-line trajectory. For a rare-disease company, unstable revenue complicates forecasting, payer negotiations, and commercial investment pacing, making it harder to sustain steady rollout and fund pipeline priorities without external support.

Fragile Profitability

The swing between multi-year profits and losses and only a marginal 2025 profit implies earnings are sensitive to volume and cost shifts. Thin operating and net margins mean minor adverse events (reimbursement setbacks, cost inflation) could erase profits, limiting durable returns and constraining reinvestment capacity.

Market Withdrawal Risk

Withdrawing RUCONEST from some European markets is a structural contraction in geographic footprint. That reduces addressable patient pools and scale economies, weakening revenue diversity and long-term commercial leverage in affected regions, and may slow global growth and bargaining power with payers.

Pharming Group Business Overview & Revenue Model

Company Description

Pharming Group N.V., a biopharmaceutical company, develops and commercialize protein replacement therapies and precision medicines for the treatment of rare diseases and unmet medical needs in the United States, Europe, and internationally. The company's lead product is Ruconest, a recombinant human C1 esterase inhibitor that is used for the treatment of acute hereditary angioedema. It also engages in the development of rhC1INH for the treatment of pre-eclampsia, acute kidney injury, and COVID-19; leniolisib, a phosphoinositide 3-kinase delta (PI3K delta) to treat patients with activated PI3K delta syndrome; and alpha-glucosidase therapy for the treatment of pompe and fabry diseases. The company has a development collaboration and license agreement with Novartis; and a strategic collaboration agreement with Orchard Therapeutics plc for research, development, manufacturing, and commercialization of OTL-105, an investigational ex-vivo autologous hematopoietic stem cell gene therapy for the treatment of hereditary angioedema. Pharming Group N.V. is headquartered in Leiden, the Netherlands.

How the Company Makes Money

Pharming primarily makes money by selling its prescription medicines. A key revenue stream is net product sales of RUCONEST for the on-demand treatment of acute HAE attacks, generated through commercial distribution (including sales to wholesalers/specialty pharmacies and related channel partners, depending on market). Another major revenue stream is net product sales of Joenja (leniolisib) for APDS, which contributes revenue as patient identification, payer coverage, and market rollout progress. The company’s earnings are influenced by factors typical for rare-disease pharma, including the size of treatable patient populations, diagnosis rates, pricing and reimbursement outcomes with public and private payers, geographic expansion, and commercial execution. If applicable in specific periods, Pharming may also recognize other income such as collaboration-related revenue, licensing income, or milestone/royalty payments; null.

Pharming Group Financial Statement Overview

Summary

Financials show improvement but remain volatile: revenue grew strongly through 2024 but dipped in 2025, profitability swung from profits (2020–2022) to losses (2023–2024) and only a small profit in 2025, and cash flow turned positive in 2025 after prior negatives but still declined year over year. Balance sheet leverage looks more manageable with a lower debt-to-equity trend, but returns on equity have been inconsistent.

Income Statement

Revenue expanded strongly from 2022–2024, but the latest year (2025) shows a pullback (about -8%), indicating a less consistent growth profile. Profitability has been volatile: the business swung from healthy profitability in 2020–2022 to losses in 2023–2024, then returned to a small profit in 2025. Gross profit remains very strong (consistently ~80–90%+), but operating and net margins are thin in 2025, suggesting profitability is still fragile and sensitive to cost and volume changes.

Balance Sheet

Leverage appears manageable and improving, with debt-to-equity trending down versus prior years (2025 is meaningfully lower than 2020–2023). Equity has grown over time, supporting a steadier capital base. The main weakness is that returns on equity have been inconsistent—negative in 2023–2024 and only slightly positive in 2025—implying the balance sheet is healthier than the company’s ability to consistently earn attractive profits on that capital.

Cash Flow

Cash generation improved materially in 2025, with solid positive operating cash flow and free cash flow after negative results in 2023–2024. However, free cash flow declined year over year in 2025 (roughly -17%), so momentum is not purely upward. A key positive is that cash flow is broadly in line with reported earnings in 2025 (free cash flow roughly matches net income), but the sharp year-to-year swings in cash flow over the period raise the risk of uneven funding capacity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	333.28M	286.89M	245.32M	205.62M	189.85M
Gross Profit	292.97M	231.82M	220.10M	188.06M	169.67M
EBITDA	27.05M	13.18M	9.88M	33.53M	48.78M
Net Income	2.53M	-10.64M	-10.55M	13.67M	16.00M
Balance Sheet
Total Assets	425.70M	386.88M	462.85M	425.80M	396.90M
Cash, Cash Equivalents and Short-Term Investments	153.15M	162.07M	213.42M	207.34M	191.72M
Total Debt	98.58M	108.42M	171.54M	166.69M	161.59M
Total Liabilities	189.76M	172.72M	244.07M	221.16M	204.19M
Stockholders Equity	277.10M	214.16M	218.78M	204.64M	192.72M
Cash Flow
Free Cash Flow	43.57M	-2.50M	-18.77M	20.92M	20.17M
Operating Cash Flow	44.24M	-1.73M	-17.30M	22.90M	36.13M
Investing Cash Flow	16.28M	31.62M	-129.39M	5.32M	-20.34M
Financing Cash Flow	12.79M	-34.41M	-1.04M	-4.98M	-26.68M

Pharming Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:PHARM, the sentiment is Neutral. The current price of 1.61 is above the 20-day moving average (MA) of 1.37, above the 50-day MA of 1.45, and above the 200-day MA of 1.25, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.11 is Neutral, neither overbought nor oversold. The STOCH value of 46.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NL:PHARM.

Pharming Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLPG	71 Outperform	€1.82B	5.75	-16.72%	―	―	―
PHARM	56 Neutral	€955.31M	408.57	0.87%	―	24.19%	99.16%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VVY	42 Neutral	€38.20M	-1.74	-225.69%	―	―	―