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Pharming Group (NL:PHARM)
:PHARM
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Pharming Group
(PHARM)
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Rating:62Neutral
Price Target:
€1.50
▼(-6.83% Downside)
Action:ReiteratedDate:02/03/26
The score is driven primarily by improving financial momentum and cash flow strength, though it is constrained by very weak profitability metrics. Technical signals are mixed with softer near-term momentum, and valuation is unattractive/unclear due to a deeply negative P/E and no dividend yield data. Earnings call tone is a clear positive thanks to strong growth and upgraded guidance, partially offset by planned RUCONEST market withdrawals.
Positive Factors
Revenue growth & upgraded guidance
A 30% quarterly revenue increase and upgraded full-year guidance indicate durable demand for Ruconest and Joenja. This supports scale economics, improves planning visibility for R&D and commercial investment, and underpins multi-quarter revenue predictability for a rare-disease specialty company.
High gross margins and strong FCF
Very high gross margins (~90%) reflect pricing power and efficient biologics manufacturing, while near-doubling free cash flow shows improved cash conversion. Together these sustain funding for pipeline programs and commercialization without immediate reliance on dilutive financing, supporting multi-quarter operational resilience.
Improved leverage and balance sheet
A lower debt-to-equity ratio (0.49) signals reduced financial risk and greater flexibility to invest in late-stage trials or geographic expansion. Improved capital structure enhances the company’s ability to absorb setbacks, fund strategic initiatives, and pursue partnerships over the coming 2-6 months.
Negative Factors
Very weak net profitability
Despite revenue gains, negligible net margin and near-zero ROE show limited ability to convert sales into retained earnings. Persistently low profitability constrains internal funding for R&D, increases reliance on external capital for growth, and raises execution risk across upcoming quarters.
RUCONEST market withdrawals
Withdrawing RUCONEST from some European markets is a structural commercial contraction that reduces addressable market and patient access. It can lower long-term revenue diversification, concentrate sales in fewer markets, and increase sensitivity to pricing or reimbursement in remaining territories.
FDA CRL for Joenja pediatric sNDA
A CRL requiring additional pediatric PK data and analytical clarifications delays U.S. label expansion for Joenja. This regulatory setback can postpone pediatric market revenue, extend development costs, and push back strategic milestones central to medium-term growth and commercialization plans.
Pharming Group (PHARM) vs. iShares MSCI Netherlands ETF (EWN)
Market Cap
€1.01B
Dividend YieldN/A
Average Volume (3M)19.18M
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth24.19%
EPS Growth99.16%
CountryNL
Employees404
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)<0.01
Shares Outstanding701,404,050
10 Day Avg. Volume15,825,784
30 Day Avg. Volume19,178,179
Financial Highlights & Ratios
PEG Ratio-2.95
Price to Book (P/B)2.98
Price to Sales (P/S)2.22
P/FCF Ratio-255.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.02
Revenue Forecast (FY)€406.79M
Pharming Group Business Overview & Revenue Model
Company DescriptionPharming 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 MoneyPharming Group generates revenue primarily through the sale of its flagship product, Ruconest, which is marketed in various countries as a treatment for HAE. The company employs a direct-to-consumer sales model in some markets while also collaborating with distribution partners in others to maximize reach. Significant revenue streams include product sales, royalties from licensing agreements, and potential milestone payments from partnerships with other pharmaceutical companies. Pharming has established collaborations with various organizations to enhance its research and development capabilities and expand its product portfolio, which further contributes to its earnings.
Pharming Group Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant revenue growth and upgraded guidance. RUCONEST and Joenja both showed robust performance, and the company's cash position has been restored. However, there is a planned withdrawal of RUCONEST from certain markets due to financial sustainability concerns. Overall, the positive aspects significantly outweigh the lowlight.Q3-2025 Updates
Positive Updates
Strong Revenue Growth
Total revenues grew by 30% in Q3 2025 versus the same quarter last year, and operating profit jumped to $15.8 million, nearly 4x last year's result.
RUCONEST and Joenja Performance
RUCONEST revenue grew 29% year-on-year, driven by new prescribers and patient enrollments. Joenja third quarter revenue increased by 35%, reflecting strong patient growth and new patient identification.
Upgraded Revenue Guidance
The company raised its full-year 2025 revenue guidance to $365 million to $375 million from the previous $335 million to $350 million.
Cash Position Recovery
Operating cash flow was $32 million, bringing the cash position nearly back to its level before the Abliva acquisition at the end of 2024.
Pipeline Advancements
Progress in the pipeline includes Phase II proof-of-concept studies for PIDs with immune dysregulation, and a registrational study for KL1333 in primary mitochondrial disease.
Negative Updates
RUCONEST Withdrawal in Certain Markets
The company plans to withdraw RUCONEST from certain European markets where commercialization is not financially sustainable.
Company Guidance
During the third quarter of 2025, Pharming Group N.V. reported a robust performance, with total revenues increasing by 30% compared to the same period in the previous year. Operating profit soared to $15.8 million, nearly four times the result of Q3 2024, supported by an operating cash flow of $32 million. The company's strong financial results were largely driven by significant growth in its two primary commercial products: RUCONEST and Joenja, which saw revenue increases of 29% and 35% year-on-year, respectively. This performance led to an upgrade in Pharming's full-year 2025 revenue guidance, now projected between $365 million and $375 million, up from the previous range of $335 million to $350 million. The company also highlighted a gross margin improvement to 93% and noted a strategic reduction in G&A headcount to optimize capital deployment. Pharming continues to leverage its strong rare disease capabilities to build a leading global rare disease company, with a promising late-stage pipeline poised to deliver further growth.Pharming Group Financial Statement Overview
Summary
Revenue growth is positive (6.54% TTM) and free cash flow growth is strong (74.94% TTM) with good cash conversion, but profitability remains very weak (net margin 0.11% TTM; ROE 0.16% TTM) despite an improved debt-to-equity of 0.49.Income Statement
Pharming Group shows a positive revenue growth rate of 6.54% TTM, indicating a recovery from previous declines. The gross profit margin remains strong at 89.90% TTM, reflecting efficient cost management. However, the net profit margin is very low at 0.11% TTM, suggesting challenges in translating revenue into net income. The EBIT and EBITDA margins have improved but remain moderate, indicating room for operational efficiency improvements.65
Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 0.49 TTM, indicating a more balanced capital structure. Return on equity is low at 0.16% TTM, reflecting limited profitability relative to shareholder equity. The equity ratio is stable, suggesting a solid asset base, but the low ROE highlights the need for better asset utilization.60
Neutral
Cash Flow
Pharming Group's free cash flow growth rate is strong at 74.94% TTM, showing significant improvement in cash generation. The operating cash flow to net income ratio is healthy at 0.61 TTM, indicating good cash conversion. The free cash flow to net income ratio is nearly 1, suggesting that the company is effectively converting its net income into free cash flow.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 362.27M | 286.89M | 245.32M | 205.62M | 189.85M | 228.39M |
| Gross Profit | 325.69M | 231.82M | 220.10M | 188.06M | 169.67M | 203.06M |
| EBITDA | 44.73M | 13.18M | 9.88M | 33.53M | 48.78M | 92.11M |
| Net Income | 382.00K | -10.64M | -10.55M | 13.67M | 16.00M | 37.75M |
Balance Sheet | ||||||
| Total Assets | 473.79M | 386.88M | 462.85M | 425.80M | 396.90M | 419.12M |
| Cash, Cash Equivalents and Short-Term Investments | 166.17M | 162.07M | 213.42M | 207.34M | 191.72M | 205.49M |
| Total Debt | 130.92M | 108.42M | 171.54M | 166.69M | 161.59M | 162.22M |
| Total Liabilities | 209.14M | 172.72M | 244.07M | 221.16M | 204.19M | 235.39M |
| Stockholders Equity | 264.64M | 214.16M | 218.78M | 204.64M | 192.72M | 183.73M |
Cash Flow | ||||||
| Free Cash Flow | 52.71M | -2.50M | -18.77M | 20.92M | 20.17M | 74.51M |
| Operating Cash Flow | 53.33M | -1.73M | -17.30M | 22.90M | 36.13M | 90.98M |
| Investing Cash Flow | 16.51M | 31.62M | -129.39M | 5.32M | -20.34M | -16.82M |
| Financing Cash Flow | -1.75M | -34.41M | -1.04M | -4.98M | -26.68M | 65.33M |
Pharming Group Technical Analysis
Negative
1.61
Price Trends
1.48
Negative
1.40
Negative
1.22
Positive
Market Momentum
-0.03
Negative
43.92
Neutral
77.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:PHARM, the sentiment is Negative. The current price of 1.61 is above the 20-day moving average (MA) of 1.41, above the 50-day MA of 1.48, and above the 200-day MA of 1.22, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 43.92 is Neutral, neither overbought nor oversold. The STOCH value of 77.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:PHARM.
Pharming Group Peers Comparison
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.