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Pharming Group (PHAR)
NASDAQ:PHAR
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Pharming Group
(NASDAQ:PHAR)
Rating:68Neutral
Price Target:
$12.00
▲(11.63%Upside)
Positive Factors
Financial Guidance
Total revenue guidance has been increased from $315-335 million to $325-340 million.
Product Development
Pharming announced that the first patient has been dosed in its Phase 2 proof-of-concept trial evaluating leniolisib (Joenja) in patients with common variable immunodeficiency (CVID) with immune dysregulation.
Revenue
Total revenue for the quarter was $79.5 million vs. our estimate of $71.5 million.
Negative Factors
Leadership Changes
Pharming announced that Mr. Joroen Wakkerman, the current CFO, will be departing to explore other opportunities.
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
$758.68M
Dividend YieldN/A
Average Volume (3M)3.15K
Price to Earnings (P/E)―
Beta (1Y)0.51
Revenue Growth23.92%
EPS Growth-27.69%
CountryUS
Employees404
SectorHealthcare
Sector Strength58
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.22
Shares Outstanding68,030,876
10 Day Avg. Volume3,584
30 Day Avg. Volume3,151
Financial Highlights & Ratios
PEG Ratio-4.46
Price to Book (P/B)4.76
Price to Sales (P/S)0.00
P/FCF Ratio46.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$37.00Price Target Upside244.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Pharming Group Business Overview & Revenue Model
Company DescriptionPharming 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 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: 19.44%|
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 exhibits mixed financial performance with maintaining gross profit margins and a stable balance sheet as strengths. However, challenges include negative profitability and fluctuating cash flows. The consistent increase in stockholders' equity and manageable debt levels provide a foundation for potential recovery, but operational inefficiencies need addressing.Income Statement
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.65
Positive
Balance Sheet
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.70
Positive
Cash Flow
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.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 320.86M | 297.20M | 245.32M | 205.62M | 189.85M | 228.39M |
| Gross Profit | |||||
| 285.30M | 252.72M | 220.10M | 188.06M | 169.67M | 203.06M |
| EBIT | |||||
| -379.11K | -8.32M | -4.88M | 18.23M | 27.84M | 82.09M |
| EBITDA | |||||
| 14.49M | 7.19M | 9.88M | 33.53M | 48.78M | 92.11M |
| Net Income Common Stockholders | |||||
| -14.09M | -10.64M | -10.55M | 13.67M | 16.00M | 37.75M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 107.27M | 162.07M | 213.42M | 207.34M | 191.72M | 205.49M |
| Total Assets | |||||
| 403.18M | 386.88M | 462.85M | 425.80M | 396.90M | 419.12M |
| Total Debt | |||||
| 119.14M | 108.42M | 171.54M | 166.69M | 161.59M | 162.22M |
| Net Debt | |||||
| 59.05M | 55.38M | 109.80M | -40.65M | -30.13M | -43.27M |
| Total Liabilities | |||||
| 187.89M | 172.72M | 244.07M | 221.16M | 204.19M | 235.39M |
| Stockholders Equity | |||||
| 214.00M | 214.16M | 218.78M | 204.64M | 192.72M | 183.73M |
| Cash Flow | Free Cash Flow | ||||
| 5.13M | -2.59M | -18.77M | 20.92M | 20.17M | 74.51M |
| Operating Cash Flow | |||||
| 6.13M | -1.79M | -17.30M | 22.90M | 36.13M | 90.98M |
| Investing Cash Flow | |||||
| 40.59M | 31.62M | -129.39M | 5.32M | ― | ― |
| Financing Cash Flow | |||||
| -38.62M | -34.41M | -1.04M | -4.98M | ― | 65.33M |
Pharming Group Technical Analysis
Positive
10.75
Price Trends
9.56
Positive
9.15
Positive
8.81
Positive
Market Momentum
0.57
Positive
50.81
Neutral
44.80
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 10.75 is below the 20-day moving average (MA) of 10.92, above the 50-day MA of 9.56, and above the 200-day MA of 8.81, indicating a neutral trend. The MACD of 0.57 indicates Positive momentum. The RSI at 50.81 is Neutral, neither overbought nor oversold. The STOCH value of 44.80 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 (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $758.68M | ― | -6.33% | ― | 23.92% | -27.69% | |
60 Neutral | $685.15M | ― | -343.83% | ― | 387.20% | 21.00% | |
55 Neutral | $725.59M | ― | -55.12% | ― | ― | -60.26% | |
54 Neutral | $5.37B | 3.26 | -45.10% | 3.30% | 16.81% | 0.02% | |
49 Neutral | $800.51M | ― | -69.21% | ― | -13.76% | 57.73% | |
47 Neutral | $588.85M | ― | -28.73% | ― | 189.31% | 51.03% | |
45 Neutral | $644.31M | ― | -150.50% | ― | ― | -18.75% |
* Healthcare Sector Average
Performance Comparison
PHAR
Pharming Group
11.32
2.77
32.40%
KALV
KalVista Pharmaceuticals
13.04
1.67
14.69%
ANAB
AnaptysBio
23.90
1.01
4.41%
DNTH
Dianthus Therapeutics
18.22
-6.66
-26.77%
TRVI
Trevi Therapeutics
6.34
3.65
135.69%
IMNM
Immunome
9.54
-3.74
-28.16%
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.