Pharming Group (PHAR) AI Stock Analysis

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Pharming Group

(NASDAQ:PHAR)

Rating:64Neutral

Price Target:

$11.50

▲(4.93%Upside)

Pharming Group's overall stock score is driven by a positive earnings call with strong revenue guidance and product performance. However, financial performance is weighed down by negative net income and profitability issues, and valuation metrics are unattractive. Technical indicators present a mixed picture, contributing to a moderate overall outlook.

Positive Factors

Earnings

Pharming posted an EPS of $0.006, surpassing the estimate of ($0.025), and reported total quarterly revenue of $93.2 million against an estimated $83.26 million.

Product Expansion

Research indicates potential expansion of Joenja's addressable market by reclassifying VUS patients, which could drive new growth.

Revenue Growth

Ruconest revenue exceeded expectations, coming in at $80.4 million compared to the estimated $70.64 million.

Negative Factors

Executive Changes

The departure of CFO Mr. Joroen Wakkerman could introduce uncertainty during Pharming's expansion phase.

Risk Factors

Potential risks to reaching price targets include lack of market penetration and challenges in securing adequate funding.

Pharming Group (PHAR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$737.14M

Dividend YieldN/A

Average Volume (3M)5.36K

Price to Earnings (P/E)―

Beta (1Y)0.43

Revenue Growth22.68%

EPS Growth42.45%

CountryUS

Employees404

SectorHealthcare

Sector Strength39

IndustryBiotechnology

Share Statistics

EPS (TTM)0.06

Shares Outstanding68,514,760

10 Day Avg. Volume8,196

30 Day Avg. Volume5,355

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.01

Enterprise Value/Revenue2.18

Enterprise Value/Gross Profit2.44

Enterprise Value/Ebitda24.47

Forecast

1Y Price Target

$39.00

Price Target Upside255.84% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Pharming Group Business Overview & Revenue Model

Company DescriptionPharming Group (PHAR) is a biotechnology company primarily focused on the development, production, and commercialization of human therapeutic proteins to treat rare diseases and unmet medical needs. The company's core product, RUCONEST, is a recombinant human C1 esterase inhibitor approved for the treatment of acute hereditary angioedema (HAE) attacks. Pharming operates in the biopharmaceutical sector and is engaged in research and development activities to expand its product portfolio.

How the Company Makes MoneyPharming Group generates revenue mainly through the sales of its flagship product, RUCONEST, which is marketed in various countries either directly or through distribution and marketing partnerships. Revenue is earned from product sales to healthcare providers, hospitals, and specialty pharmacies. The company also engages in strategic collaborations and licensing agreements to expand its market reach and leverage additional revenue streams. Key partnerships with distributors and pharmaceutical companies enhance its commercial footprint, contributing significantly to its earnings.

Pharming Group Earnings Call Summary

Earnings Call Date:Jul 31, 2025

(Q2-2025)

% Change Since: 8.62%|

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Positive

The earnings call was largely positive, driven by strong revenue growth and successful product performance from RUCONEST and Joenja. Despite some challenges in operating expenses and patient reclassification, the company has increased its revenue guidance and is making progress in its pipeline expansion, indicating a strong overall outlook.

Q2-2025 Updates

Positive Updates

Strong Revenue Growth

Total revenues grew by 26% in Q2 2025 compared to Q2 2024, with operating profit reaching $12.9 million from a previous loss.

Successful Product Performance

RUCONEST showed a 28% year-on-year growth, with Joenja also seeing significant patient uptake and revenue growth.

Increased Revenue Guidance

Pharming raised its 2025 total revenue guidance to between $335 million and $350 million.

Pipeline Expansion

Joenja's geographic expansion and potential pediatric label expansion are expected to facilitate further growth.

Positive Cash Flow

Cash and marketable securities increased from $108.9 million to $130.8 million due to net cash flows from operating activities.

Negative Updates

Increased Operating Expenses

Operating expenses for 2025 are expected to be slightly above prior guidance due to a $5.3 million impact from higher euro-dollar exchange rates.

Challenges in Reclassification Process

The reclassification of VUS patients to APDS is expected to take time, impacting the speed of potential growth for Joenja.

Company Guidance

In the Q2 2025 earnings call, Pharming CEO Fabrice Chouraqui highlighted significant financial achievements and updated guidance. The company reported a 26% increase in total revenues compared to the same quarter last year, driven by RUCONEST's 28% year-on-year growth and accelerated patient uptake of Joenja. The operating profit reached $12.9 million, excluding $2 million in nonrecurring acquisition-related expenses. Pharming upgraded their full-year 2025 revenue guidance to $335-350 million, up from $325-340 million, reflecting a projected growth of 13-18%. The company also noted an increase in gross profit by 27% to $84.2 million, and a notable rise in cash and marketable securities from $108.9 million to $130.8 million by the end of the quarter, primarily due to positive net cash flows from operations. Pharming's focus remains on RUCONEST's continued double-digit growth and Joenja's expansion into new markets, with efforts to optimize operating expenses and further develop their promising late-stage pipeline.

Pharming Group Financial Statement Overview

Summary

Pharming Group exhibits mixed financial performance with strengths in maintaining gross profit margins and a relatively stable balance sheet. However, the company faces challenges with negative profitability and fluctuating cash flows. The consistent increase in stockholders' equity and a manageable debt level provide a foundation for potential recovery.

Income Statement

Positive

Pharming Group shows a challenging income statement with declining revenue growth and profitability. The TTM (Trailing-Twelve-Months) data reveals a negative EBIT and net income, indicating operational struggles. However, the company has managed to maintain a relatively consistent gross profit margin, showcasing some strength in its core business operations. The revenue growth rate has fluctuated, with a decrease from 2020 to 2021, a recovery in 2022, but a decline again in 2023 and TTM. The net profit margin remains negative, highlighting sustained losses.

Balance Sheet

Positive

Pharming Group's balance sheet reflects a stable equity base with a moderate debt-to-equity ratio. There has been a consistent increase in stockholders' equity, reflecting some financial stability despite operational challenges. The equity ratio indicates a balanced approach to asset financing, with stockholders' equity forming a significant portion of total assets. However, the company has a notable amount of total debt, which could pose potential risks if not managed carefully.

Cash Flow

Neutral

The cash flow statement of Pharming Group indicates volatility, with fluctuating free cash flow and operating cash flow figures. The TTM shows a positive free cash flow, but historical performance has been inconsistent, with negative free cash flow in some periods. The operating cash flow to net income ratio is positive in the TTM, suggesting some improvement in cash generation relative to net income, albeit from a negative base. The cash flow from operations has shown improvement recently, but the overall cash flow performance remains mixed.

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 Price10.96

Price Trends

50DMA

10.68

Positive

100DMA

9.69

Positive

200DMA

9.23

Positive

Market Momentum

MACD

<0.01

Negative

RSI

57.66

Neutral

STOCH

77.68

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 10.96 is above the 20-day moving average (MA) of 10.20, above the 50-day MA of 10.68, and above the 200-day MA of 9.23, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.66 is Neutral, neither overbought nor oversold. The STOCH value of 77.68 is Neutral, 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 0 New Risks

Pharming Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHAR	64 Neutral	$737.14M	―	-3.40%	―	22.68%	42.45%
ANAB	55 Neutral	$725.40M	―	-343.83%	―	387.20%	21.00%
TRVI	55 Neutral	$873.33M	―	-55.12%	―	―	-60.26%
IMNM	52 Neutral	$921.46M	―	-69.21%	―	-13.76%	57.73%
Sector *	51 Neutral	$7.37B	0.33	-68.94%	2.37%	16.27%	0.42%
DNTH	51 Neutral	$662.17M	―	-28.73%	―	189.31%	51.03%
KALV	45 Neutral	$659.89M	―	-121.50%	―	―	-18.75%

* Healthcare Sector Average

Performance Comparison

PHAR

Pharming Group

10.96

3.38

44.59%

KALV

KalVista Pharmaceuticals

13.21

0.42

3.28%

ANAB

AnaptysBio

24.69

-7.68

-23.73%

DNTH

Dianthus Therapeutics

20.59

-7.77

-27.40%

TRVI

Trevi Therapeutics

7.33

4.72

180.84%

IMNM

Immunome

10.59

-1.77

-14.32%

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.Date of analysis: Aug 03, 2025