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Pharming Group (PHAR)
NASDAQ:PHAR
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Pharming Group
(NASDAQ:PHAR)
Rating:72Outperform
Price Target:
$10.50
▲(1.16%Upside)
Positive Factors
Financial Performance
Total revenue for the quarter was $79.5 million vs. the estimate of $71.5 million.
Product Expansion
NICE recommendation secured for Joenja, expanding UK access as development advances in CVID and pediatric APDS.
Strategic Acquisitions
Pharming builds on rare disease expertise with proposed acquisition of Abliva, which has received unanimous approval from Abliva’s board and acceptance commitments from its three largest shareholders.
Negative Factors
Leadership Changes
Pharming announced that Mr. Joroen Wakkerman, the current CFO, will be departing to explore other opportunities.
Market Penetration Challenges
Lack of meaningful market penetration could impede reaching the price target.
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. SPDR S&P 500 ETF (SPY)
Market Cap
$719.85M
Dividend YieldN/A
Average Volume (3M)3.10K
Price to Earnings (P/E)―
Beta (1Y)0.46
Revenue Growth23.92%
EPS Growth-27.69%
CountryUS
Employees404
SectorHealthcare
Sector Strength40
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.22
Shares Outstanding68,030,876
10 Day Avg. Volume3,287
30 Day Avg. Volume3,100
Financial Highlights & Ratios
PEG Ratio-1.54
Price to Book (P/B)3.09
Price to Sales (P/S)0.00
P/FCF Ratio-149.02
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue0.66
Enterprise Value/Gross Profit2.83
Enterprise Value/Ebitda47.09
Forecast
1Y Price Target
$38.00Price Target Upside266.09% 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 Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 15.33%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call was largely positive, with significant revenue growth and successful execution of strategic initiatives. However, challenges such as acquisition-related expenses and increased tax costs were noted.Q1-2025 Updates
Positive Updates
Impressive Revenue Growth
Total revenues increased by 42% in the first quarter of 2025, driven by a 49% growth in RUCONEST sales.
RUCONEST Strong Performance
RUCONEST sales reached $68.6 million, with a 49% increase year-over-year, driven by new patient enrollment and prescriber expansion.
Joenja Revenue Increase
Joenja revenue increased by 9%, driven by new patient enrollment and expansion into new markets like the U.K.
Operating Loss Narrowing
Operating loss narrowed significantly year-over-year, with a third consecutive quarter of profit, excluding nonrecurring expenses.
Pipeline Progress
Initiation of Phase II studies for genetic PID and CVID, with potential to expand Joenja's patient population significantly.
Financial Guidance Upgrade
Full-year revenue guidance increased to $325 million-$340 million, reflecting a growth of 9%-14%.
Negative Updates
Non-Recurring Acquisition Expenses
Operating expenses increased due to $7.8 million in non-recurring Abliva acquisition-related costs.
Impact of Foreign Exchange and Tax Costs
Net loss of $14.9 million, impacted by foreign exchange exposure and increased tax costs.
Reduced Cash Reserves
Cash and marketable securities decreased by $60.5 million, driven by the Abliva acquisition.
Company Guidance
During the Q1 2025 call, Pharming announced several key metrics and strategic updates that illustrate the company's robust growth and future prospects. The company reported a 42% increase in total revenues, with RUCONEST sales surging 49% to $68.6 million, driven by increased patient enrollment and an expanded prescriber base. Joenja's revenue rose by 9% to $10.5 million, buoyed by new patient enrollments. Pharming upgraded its full-year revenue guidance to between $325 million and $340 million, reflecting a growth range of 9% to 14%. The company also plans to cut G&A expenses by $10 million annually to optimize capital allocation. Additionally, Pharming is advancing its pipeline with initiated Phase II studies for genetic PID and CVID, and it has resumed the enrollment of the Phase II registrational trial for KL1333 in MTD, all of which are expected to significantly expand their market presence. Despite a reported Q1 operating loss, the company maintained a positive operating cash flow for the third consecutive quarter, even after accounting for non-recurring acquisition costs.Pharming Group Financial Statement Overview
Summary
Pharming Group shows strengths in revenue growth and efficient gross profit generation. However, it faces challenges in profitability and cash flow management. The balance sheet is stable with manageable debt levels, but recent losses have impacted equity returns. Improvements in operational efficiency and cash flow conversion are needed.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
Positive
10.38
Price Trends
8.87
Positive
8.95
Positive
8.58
Positive
Market Momentum
0.48
Negative
68.71
Neutral
90.02
Negative
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 10.38 is above the 20-day moving average (MA) of 9.59, above the 50-day MA of 8.87, and above the 200-day MA of 8.58, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 68.71 is Neutral, neither overbought nor oversold. The STOCH value of 90.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 1 New Risks
1.
Joenja is a newly approved drug in the U.S. and could develop unexpected safety or efficacy concerns, which would likely have a material adverse effect on us. Q4, 2023
Pharming Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $719.85M | ― | -6.33% | ― | 23.92% | -27.69% | |
55 Neutral | $639.97M | ― | -55.12% | ― | ― | -60.26% | |
53 Neutral | $5.14B | 3.23 | -45.01% | 2.85% | 17.55% | -0.69% | |
48 Neutral | $592.55M | ― | -28.73% | ― | 189.31% | 51.03% | |
46 Neutral | $600.54M | ― | -343.83% | ― | 387.20% | 21.00% | |
45 Neutral | $557.81M | ― | -150.50% | ― | ― | -18.75% | |
45 Neutral | $748.31M | ― | -69.21% | ― | -13.76% | 57.73% |
* Healthcare Sector Average
Performance Comparison
PHAR
Pharming Group
10.80
1.75
19.34%
KALV
KalVista Pharmaceuticals
11.22
0.14
1.26%
ANAB
AnaptysBio
20.13
-3.23
-13.83%
DNTH
Dianthus Therapeutics
17.93
-3.99
-18.20%
TRVI
Trevi Therapeutics
6.16
3.60
140.63%
IMNM
Immunome
8.60
-6.02
-41.18%
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.