Pharming Group (PHAR) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: N/A
• Average Volume (3M): 13.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: 22.68%
• EPS Growth: 42.45%
• Country: US
• Employees: 404
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.06
• Shares Outstanding: 68,514,760
• 10 Day Avg. Volume: 14,689
• 30 Day Avg. Volume: 13,751
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 2.44
• Enterprise Value/Ebitda: 24.47
• 1Y Price Target: $39.00
• Price Target Upside: 165.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: $13.00 ▼(-11.38% Downside)

Pharming Group's overall stock score is driven by strong technical analysis and positive earnings call sentiment, indicating potential growth. However, financial performance challenges, particularly in profitability and valuation, weigh down the score. The company's stable balance sheet and cash flow improvements provide a foundation for future growth if profitability can be enhanced.

Positive Factors

Revenue Growth

The 26% revenue growth indicates strong demand for Pharming's products, particularly RUCONEST and Joenja, supporting long-term expansion and market presence.

Pipeline Expansion

Expanding the pipeline with new products like KL1333 positions Pharming for future growth and diversification, enhancing its competitive edge in the biotech sector.

Cash Flow Improvements

Improved cash flow and increased cash reserves provide Pharming with financial flexibility to invest in R&D and manage operational needs, supporting sustainable growth.

Negative Factors

Profitability Challenges

Negative net profit margins highlight ongoing profitability issues, which could impact Pharming's ability to reinvest in growth and maintain financial health long-term.

Potential Market Disruption

New competitor products like sebetralstat could disrupt Pharming's market share, challenging its revenue streams and necessitating strategic responses to maintain its position.

Inventory Management Impact

Inventory management issues affecting Joenja's revenue highlight operational inefficiencies that could hinder Pharming's ability to optimize sales and profitability.

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 Group generates revenue primarily through the sale of its pharmaceutical products, with Ruconest being its main source of income. The company has established a direct sales model in certain markets, particularly in the United States and Europe, allowing it to retain a larger share of revenue from its product sales. Additionally, Pharming engages in partnerships and collaborations with other pharmaceutical companies and research institutions, which can provide additional funding and shared resources. These collaborations may involve licensing deals or joint ventures that contribute to the company's revenue stream. Furthermore, Pharming receives revenue from the production and sale of recombinant proteins to third parties, enhancing its financial stability. The company's focus on expanding its product pipeline and entering new markets is also a critical factor in its overall earnings strategy.

Pharming Group Financial Statement Overview

Summary

Pharming Group shows strong revenue growth and a solid gross profit margin. However, challenges include negative net income and low EBIT margins. The balance sheet is stable with moderate leverage and strong equity ratios, but negative ROE highlights profitability issues. Cash flow improvements are notable, though converting profits to free cash remains a challenge.

Income Statement

Pharming Group's recent TTM data reveals a gross profit margin of 89.22%, showcasing strong cost efficiency. However, the net profit margin is negative at -2.41%, indicating challenges in achieving net profitability. The revenue has shown a positive growth rate of 14.81% from the previous year, demonstrating a capacity for expansion. Despite this, the EBIT margin remains low at 4.40%, and the EBITDA margin at 8.91% suggests limited operating profitability.

Balance Sheet

The debt-to-equity ratio stands at 0.54, reflecting a moderate leverage position. The return on equity (ROE) is negative at -3.44%, indicating a lack of profitability from shareholder equity. However, the equity ratio is a healthy 53.68%, highlighting a strong equity base relative to assets.

Cash Flow

The company has improved its free cash flow, growing to $30.8 million from a negative position. The operating cash flow to net income ratio is favorable at 3.85, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio of -3.74 suggests ongoing challenges in converting profits into free cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	341.20M	297.20M	245.32M	205.62M	189.85M	228.39M
Gross Profit	304.52M	261.80M	220.10M	188.06M	169.67M	203.06M
EBITDA	30.42M	16.32M	9.88M	33.53M	48.78M	92.11M
Net Income	-8.24M	-10.64M	-10.55M	13.67M	16.00M	37.75M
Balance Sheet
Total Assets	446.26M	399.99M	462.85M	425.80M	396.90M	419.12M
Cash, Cash Equivalents and Short-Term Investments	128.73M	167.89M	213.42M	207.34M	191.72M	205.49M
Total Debt	128.33M	108.42M	171.54M	166.69M	161.59M	162.22M
Total Liabilities	206.71M	178.92M	244.07M	221.16M	204.19M	235.39M
Stockholders Equity	239.55M	221.06M	218.78M	204.64M	192.72M	183.73M
Cash Flow
Free Cash Flow	30.80M	-2.59M	-18.77M	20.92M	20.17M	74.51M
Operating Cash Flow	31.72M	-1.79M	-17.30M	22.90M	36.13M	90.98M
Investing Cash Flow	21.37M	31.62M	-129.39M	5.32M	―	―
Financing Cash Flow	-10.67M	-34.41M	-1.04M	-4.98M	―	65.33M

Pharming Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHAR, the sentiment is Positive. The current price of 14.67 is above the 20-day moving average (MA) of 14.63, above the 50-day MA of 13.54, and above the 200-day MA of 10.50, indicating a bullish trend. The MACD of 0.45 indicates Positive momentum. The RSI at 51.64 is Neutral, neither overbought nor oversold. The STOCH value of 71.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHAR.

Pharming Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHAR	67 Neutral	$1.05B	―	-3.40%	―	22.68%	42.45%
TRVI	55 Neutral	$1.21B	―	-35.74%	―	―	-8.46%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SPRY	50 Neutral	$1.01B	174.05	-23.56%	―	22367.80%	-5.15%
PRAX	48 Neutral	$1.07B	―	-60.98%	―	338.45%	-19.64%
PRME	43 Neutral	$1.08B	―	-154.81%	―	739.42%	24.90%
ORIC	43 Neutral	$1.40B	―	-43.82%	―	―	-7.33%

Pharming Group Corporate Events

Pharming Group Announces Restructuring to Cut Costs and Boost Growth

On October 6, 2025, Pharming Group announced an organizational restructuring aimed at accelerating growth by reducing general and administrative expenses. The restructuring involves a 20% reduction in non-commercial and non-medical staff, primarily in the Netherlands, and is expected to decrease annual G&A expenses by 15% or $10 million. The company anticipates incurring one-time restructuring costs of approximately $7 million in the fourth quarter of 2025. This move is part of Pharming’s strategy to optimize capital allocation and enhance its operational efficiency.

Pharming Group’s Leniolisib Receives FDA Priority Review for Pediatric APDS Treatment

On October 1, 2025, Pharming Group announced that the U.S. FDA has accepted and granted Priority Review to its supplemental New Drug Application for leniolisib, aimed at treating children aged 4 to 11 years with activated phosphoinositide 3-kinase delta syndrome (APDS), a rare primary immunodeficiency. This decision, based on positive Phase III study results, marks a significant step for young patients in the U.S. as leniolisib could become the first approved treatment for this age group, potentially altering the disease’s progression and offering new hope to affected families.

Pharming Group Joins Euronext AMX® Index Reflecting Growth Momentum

On September 10, 2025, Pharming Group N.V. announced its promotion from the Euronext AScX® (Small Cap) to the AMX® (MidCap) index, effective September 22, 2025. This advancement reflects the company’s strong growth momentum and is expected to enhance its visibility and attractiveness to investors, supporting its goal of becoming a leading global rare disease company.

Pharming Group Appoints Kenneth Lynard as CFO Amid Strong Financial Performance

On September 2, 2025, Pharming Group announced the appointment of Kenneth Lynard as Chief Financial Officer, effective October 1, 2025. Lynard, a seasoned finance executive with over 20 years of experience in the life sciences industry, is expected to strengthen Pharming’s financial leadership as the company continues its growth strategy. His extensive background in financial and operational transformation across multinational organizations is anticipated to support Pharming’s vision of becoming a leading global rare disease company. This strategic appointment follows Pharming’s strong financial performance in the first half of 2025, signaling a commitment to enhancing operational efficiency and sustainable value creation.

Pharming Group Reports Strong Q2 2025 Financial Results and Business Update

On July 31, 2025, Pharming Group reported a 26% increase in total revenues for the second quarter of 2025, driven by significant growth in RUCONEST® and Joenja® sales. The company achieved a positive operating profit of $10.8 million, reversing a loss from the previous year. Pharming raised its full-year revenue guidance and highlighted a study suggesting a potential 100-fold increase in APDS prevalence, which could expand Joenja®’s market. The company also launched Joenja® in the U.K. and submitted a regulatory filing in Japan, while advancing clinical trials for other pipeline products. Pharming is addressing U.S. tariffs but does not expect a material impact on its business.