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Pharming Group Nv (PHAR)
:PHAR
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Pharming Group
(NASDAQ:PHAR)
49Neutral
Positive Factors
Clinical Trials Success
A pre-planned interim analysis of the FALCON study revealed significant differences over placebo for both primary endpoints, alongside a favorable safety profile without serious drug-related adverse events.
Financial Performance
Ruconest revenue came in at $252.2 million vs. our estimate of $239.6 million.
Market Expansion
Joenja was recently approved in Israel and the U.K, which are expected to provide a near-term revenue bump.
Negative Factors
CEO Departure
CEO Sijmen de Vries has announced that after 16 years as CEO, he informed the board that he will not seek reappointment to the position.
Risk Factors
Risk factors that could impede reaching the price target include lack of meaningful market penetration, failed or inconclusive clinical trials or inability of the company to secure adequate funding.
Pharming Group (PHAR) vs. S&P 500 (SPY)
Market Cap
$553.17M
Dividend YieldN/A
Average Volume (3M)7.36K
Price to Earnings (P/E)―
Beta (1Y)0.71
Revenue Growth20.69%
EPS Growth-5.94%
CountryUS
Employees382
SectorHealthcare
Sector Strength71
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.16
Shares Outstanding68,030,876
10 Day Avg. Volume6,139
30 Day Avg. Volume7,360
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.42
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$38.00Price Target Upside372.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Pharming Group Business Overview & Revenue Model
Company DescriptionPharming Group (PHAR) is a biopharmaceutical company headquartered in the Netherlands. It is focused on the development and commercialization of innovative protein replacement therapies and precision medicines, particularly for rare diseases. The company's flagship product is Ruconest, a recombinant human C1 esterase inhibitor used to treat acute hereditary angioedema (HAE) attacks. Pharming Group operates primarily in the biotechnology and pharmaceuticals sectors, providing solutions for unmet medical needs through advanced biotechnological processes.
How the Company Makes MoneyPharming Group generates revenue primarily through the sales of its therapeutic product, Ruconest, which is marketed and sold in various global markets either directly or through strategic distribution partnerships. The company earns income from product sales, royalties, and licensing agreements. Ruconest's sales are driven by the demand for effective treatments for hereditary angioedema, a rare genetic disorder. Additionally, Pharming Group is involved in research and development activities, aiming to expand its product pipeline and explore new therapeutic indications, which could contribute to future revenue streams. Strategic collaborations and partnerships, particularly in regions where they do not have direct sales operations, also play a significant role in their revenue model.
Pharming Group Financial Statement Overview
Summary
Pharming Group shows a moderate revenue growth but struggles with profitability, as evident from a negative EBIT and net income. The balance sheet is stable, with a moderate debt-to-equity ratio, but cash flow challenges persist due to negative operating and free cash flows.Income Statement
Pharming Group has experienced a moderate growth in revenue, with a 16.98% increase from 2023 to 2024. However, the company has been struggling to maintain profitability, with a negative EBIT and net income for the last two years, leading to negative net profit margins. The gross profit margin remains relatively strong at 88.09% in 2024, indicating efficient production and operational capabilities, but the company needs to address its operating expenses to improve overall profitability.45
Neutral
Balance Sheet
The company maintains a moderate debt-to-equity ratio of 0.51, indicating a balanced approach to financing. The equity ratio stands at 55.37%, showcasing a healthy level of equity financing relative to its total assets. However, the return on equity has been negative due to recent losses, which is concerning. Overall, the balance sheet reflects a stable financial position with manageable leverage.60
Neutral
Cash Flow
Pharming Group's cash flow statements highlight challenges in generating positive cash flow from operations, with a negative operating cash flow of -1.73 million in 2024. The free cash flow has also been negative, indicating struggles in maintaining liquidity. The free cash flow to net income and operating cash flow to net income ratios are negative, signaling inefficiencies in converting income into cash flow.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 286.89M | 245.32M | 205.62M | 189.85M | 228.39M | Gross Profit |
| 252.72M | 220.10M | 188.06M | 169.67M | 203.06M | EBIT |
| -8.32M | -4.88M | 18.23M | 27.84M | 82.09M | EBITDA |
| 7.19M | 9.88M | 33.53M | 48.78M | 92.11M | Net Income Common Stockholders |
| -10.64M | -10.55M | 13.67M | 16.00M | 37.75M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 162.07M | 213.42M | 207.34M | 191.72M | 205.49M | Total Assets |
| 386.88M | 462.85M | 425.80M | 396.90M | 419.12M | Total Debt |
| 108.42M | 171.54M | 166.69M | 161.59M | 162.22M | Net Debt |
| 55.38M | 109.80M | -40.65M | -30.13M | -43.27M | Total Liabilities |
| 172.72M | 244.07M | 221.16M | 204.19M | 235.39M | Stockholders Equity |
| 214.16M | 218.78M | 204.64M | 192.72M | 183.73M |
| Cash Flow | Free Cash Flow | |||
| -2.59M | -18.77M | 20.92M | 20.17M | 74.51M | Operating Cash Flow |
| -1.79M | -17.30M | 22.90M | 36.13M | 90.98M | Investing Cash Flow |
| 31.62M | -129.39M | 5.32M | ― | ― | Financing Cash Flow |
| -34.41M | -1.04M | -4.98M | ― | 65.33M |
Pharming Group Technical Analysis
Negative
8.05
Price Trends
8.58
Negative
8.75
Negative
8.43
Negative
Market Momentum
-0.19
Positive
43.74
Neutral
46.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHAR, the sentiment is Negative. The current price of 8.05 is below the 20-day moving average (MA) of 8.38, below the 50-day MA of 8.58, and below the 200-day MA of 8.43, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 43.74 is Neutral, neither overbought nor oversold. The STOCH value of 46.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PHAR.
Pharming Group Risk Analysis
Pharming Group disclosed 63 risk factors in its most recent earnings report. Pharming Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pharming Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
57 Neutral | $526.55M | ― | -182.71% | ― | 432.03% | 14.41% | |
55 Neutral | $537.55M | ― | -52.59% | ― | ― | -60.26% | |
49 Neutral | $553.17M | ― | -4.99% | ― | 20.69% | -5.94% | |
48 Neutral | $6.46B | 1.17 | -48.25% | 2.67% | 19.50% | 0.61% | |
45 Neutral | $594.10M | ― | -150.50% | ― | ― | -18.75% | |
42 Neutral | $565.74M | ― | -32.60% | ― | 351.48% | 80.10% | |
40 Underperform | $617.35M | ― | -194.63% | ― | -35.50% | 3.81% |
* Healthcare Sector Average
Performance Comparison
PHAR
Pharming Group
8.00
-2.78
-25.79%
KALV
KalVista Pharmaceuticals
11.95
0.21
1.79%
ANAB
AnaptysBio
17.86
-3.41
-16.03%
DNTH
Dianthus Therapeutics
18.71
-6.56
-25.96%
TRVI
Trevi Therapeutics
5.95
3.14
111.74%
IMNM
Immunome
7.35
-11.50
-61.01%
Pharming Group Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: 4.01% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, successful product launches, and strategic acquisitions contributing to a positive outlook for Pharming. However, challenges such as inventory impairment and additional costs from the Abliva acquisition were noted. Despite these challenges, the company's growth prospects and pipeline expansion efforts suggest a positive trajectory.Highlights
Strong Revenue Growth
Full-year 2024 revenues increased by 21% to $297 million, surpassing guidance. RUCONEST grew 11% to $252 million, and Joenja revenue increased by 147% to $45 million.
Successful Launch and Expansion of Joenja
Joenja was launched in the US and is preparing to launch in other key markets. The drug saw a 147% revenue increase, with 96 patients on paid therapy in the US and additional patients globally.
Acquisition of Abliva
Pharming completed the acquisition of Abliva, which is seen as a stepping stone in the company's development. The acquisition adds a pivotal stage program in mitochondrial disease.
Positive Cash Flow and Operating Profit
Pharming achieved positive operating cash flow and profit in the last two quarters of 2024.
Pipeline Expansion
Pharming expanded its pipeline with promising opportunities, including Phase 2 trials for leniolisib in larger indications like CVID and APLS.
Lowlights
Inventory Impairment
A one-off inventory impairment occurred due to a RUCONEST production issue, affecting gross profit growth.
Regulatory and Integration Costs
Anticipated additional operating expenses of $30 million for 2025 related to Abliva, including $17 million in R&D and the remainder in non-recurring transaction and integration costs.
Company Guidance
In the Pharming Group's fourth-quarter and full-year 2024 results conference call, CEO Fabrice Chouraqui highlighted the company's impressive financial performance and strategic vision. The full-year 2024 revenues increased by 21% to $297 million, surpassing guidance, with strong contributions from RUCONEST and Joenja. RUCONEST revenue grew by 11% to $252 million, driven by a 24% increase in new patient enrollments and an 11% expansion in prescriber base. Joenja's revenue soared by 147% to $45 million, supported by the enrollment of new APDS patients and upcoming market launches. The company reported operating profit and positive cash flow in the last two quarters, with guidance for 2025 revenues set between $315 million and $335 million, reflecting a 6% to 13% growth. RUCONEST is expected to maintain its momentum despite new competitors, while Joenja's growth is anticipated to accelerate with new patient enrollments and geographic expansion. The acquisition of Abliva is anticipated to add $30 million in operating expenses for 2025, including $17 million in R&D costs, as Pharming continues to build a diverse portfolio in the rare disease sector.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.