Pharming Group (PHAR) AI Stock Analysis

• Market Cap: $1.16B
• Dividend Yield: N/A
• Average Volume (3M): 14.71K
• Price to Earnings (P/E): 1223.6
• Beta (1Y): 0.37
• Revenue Growth: 26.54%
• EPS Growth: N/A
• Country: US
• Employees: 404
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.10
• Shares Outstanding: 68,514,760
• 10 Day Avg. Volume: 22,068
• 30 Day Avg. Volume: 14,708
• PEG Ratio: -3.28
• Price to Book (P/B): 3.03
• Price to Sales (P/S): 2.26
• P/FCF Ratio: -258.67
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 2.94
• Enterprise Value/Ebitda: 21.41
• 1Y Price Target: $39.50
• Price Target Upside: 177.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $17.50 ▲(23.15% Upside)

Pharming Group's overall stock score is driven by strong earnings call outcomes and positive technical indicators. Financial performance shows growth potential but is hindered by profitability issues. The high P/E ratio suggests overvaluation, which negatively impacts the score.

Positive Factors

Revenue Growth

Consistent revenue growth from key products indicates strong market demand and successful product positioning, supporting long-term expansion.

Cash Flow Improvement

Improved cash flow and a strong cash position enhance financial stability, enabling strategic investments and operational flexibility.

FDA Priority Review

FDA Priority Review for leniolisib could lead to market exclusivity and first-mover advantage, strengthening Pharming's competitive position.

Negative Factors

Profitability Challenges

Negative net profit margins indicate challenges in converting revenue into profit, potentially affecting long-term financial health.

International Market Withdrawal

Withdrawing RUCONEST from international markets could limit revenue diversification and expose the company to regional market risks.

Restructuring Costs

Restructuring costs may strain short-term finances, and workforce reductions could impact operational capabilities and growth momentum.

Pharming Group Business Overview & Revenue Model

Company Description

Pharming Group N.V. is a biopharmaceutical company focused on the development of innovative therapies for rare diseases, particularly those related to protein deficiencies. The company specializes in the production of recombinant human proteins using its proprietary technologies, with a core focus on its lead product, Ruconest, a treatment for acute attacks of hereditary angioedema. Pharming operates primarily in the biotechnology and pharmaceutical sectors, and its mission is to address unmet medical needs through its advanced therapeutic solutions.

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 efficient cost management with a high gross profit margin. However, profitability remains a concern with negative net profit margins and negative return on equity. Cash flow metrics are improving, indicating effective cash management.

Income Statement

Pharming Group shows a positive revenue growth trend with a 6.48% increase in TTM. However, profitability metrics like Net Profit Margin are negative, indicating challenges in converting revenue into profit. Gross Profit Margin remains strong at 89.31%, suggesting efficient cost management. The EBIT and EBITDA margins have improved but remain relatively low, reflecting ongoing operational challenges.

Balance Sheet

The company's Debt-to-Equity Ratio is moderate at 0.54, indicating a balanced approach to leveraging. However, the Return on Equity is negative, reflecting inefficiencies in generating returns for shareholders. The Equity Ratio is stable, suggesting a solid asset base relative to equity.

Cash Flow

Pharming Group has shown significant improvement in Free Cash Flow with a growth rate of 66.76% in TTM. The Operating Cash Flow to Net Income Ratio is positive, indicating good cash generation relative to net income. The Free Cash Flow to Net Income Ratio is nearly 1, suggesting efficient cash flow management despite profitability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	362.27M	297.20M	245.32M	205.62M	198.87M	212.17M
Gross Profit	325.69M	261.80M	220.10M	188.06M	177.73M	188.63M
EBITDA	44.73M	16.32M	9.88M	33.53M	48.78M	58.35M
Net Income	382.00K	-11.84M	-10.55M	13.67M	16.00M	37.75M
Balance Sheet
Total Assets	403.57M	399.99M	462.85M	425.80M	397.31M	342.55M
Cash, Cash Equivalents and Short-Term Investments	141.54M	167.89M	213.42M	207.34M	191.92M	167.94M
Total Debt	111.52M	112.31M	171.54M	166.69M	161.76M	132.58M
Total Liabilities	178.15M	178.92M	244.07M	221.16M	204.40M	192.39M
Stockholders Equity	225.42M	221.06M	218.78M	204.64M	192.92M	150.16M
Cash Flow
Free Cash Flow	50.70M	-2.59M	-18.77M	20.48M	21.13M	68.33M
Operating Cash Flow	51.32M	-1.79M	-17.30M	22.46M	37.84M	83.63M
Investing Cash Flow	14.51M	31.62M	-129.39M	5.32M	-21.30M	-15.63M
Financing Cash Flow	267.99K	-34.41M	-1.04M	-4.98M	-27.95M	60.69M

Pharming Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 14.21 is below the 20-day moving average (MA) of 14.76, below the 50-day MA of 14.61, and above the 200-day MA of 11.26, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 54.67 is Neutral, neither overbought nor oversold. The STOCH value of 66.60 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	70 Outperform	$1.16B	1,223.61	0.44%	―	26.54%	―
PRAX	57 Neutral	$4.94B	-14.27	-75.20%	―	364.98%	-25.33%
TRVI	55 Neutral	$1.32B	-25.81	-36.87%	―	―	15.84%
SPRY	52 Neutral	$723.57M	―	-45.92%	―	5459.66%	-59.70%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRME	43 Neutral	$608.32M	―	-112.34%	―	647.13%	26.79%
ORIC	43 Neutral	$1.19B	―	-39.73%	―	―	4.29%

Pharming Group Corporate Events

Pharming Group Reports Strong Q3 2025 Financial Growth and Strategic Updates

Pharming Group reported significant financial growth in the third quarter of 2025, with a 30% increase in total revenues to $97.3 million compared to the previous year. RUCONEST® and Joenja® saw substantial revenue increases, driven by patient growth and new market entries. The company also announced strategic decisions, including withdrawing RUCONEST® from non-U.S. markets to focus on more profitable opportunities and a leadership change with Leverne Marsh set to become Chief Commercial Officer in January 2026. These developments, alongside a raised revenue guidance for 2025, underscore Pharming’s strategic focus on enhancing its market position and addressing unmet medical needs.

Pharming Group to Present New Data at ACAAI 2025

On October 20, 2025, Pharming Group announced that 12 abstracts were accepted for presentation at the upcoming ACAAI 2025 Annual Scientific Meeting in Orlando, Florida, scheduled for November 6-10. The presentations will showcase new clinical, economic, and comparative data for RUCONEST® in hereditary angioedema (HAE) treatment and real-world effectiveness of Joenja® in treating activated phosphoinositide 3-kinase delta syndrome (APDS). This announcement highlights Pharming’s commitment to advancing patient care and strengthening its position in the rare disease market.

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.