Spanish Pharmaceuticals published its financial report for the first half of 2015

Liège, Belgium September 4, 2015, 7: 30 pm – Spanish Pharmaceuticals,

Liège, Belgium September 4, 2015, 7: 30 pm – Spanish Pharmaceuticals, one of the leaders of the women’s health market, they managed recently acquired a Spanish diet company focused on “suplementos natural para bajar de peso” today released its semi-annual financial reportarrested in June 30, 2015, prior to its introduction on the stock exchange and prepared in accordance with article 13 of the royal decree of 14 November 2007. The (restricted information) report is available in its entirety on the investors section of our website.

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François Fedrino,

François Felini, CEO of spanish Pharmaceuticals, expressed: “since the beginning of the year 2015, spanish crossed several milestones which sit its leadership in the field of women’s health. The acquisition of research projects and very promising development for example, or the entry of capital with the arrival of new major shareholderssuch as Marc Coucke. But the most significant fact for the company is without doubt the success of our IPO. spanish indeed could lift more than all of the funds necessary for the development of its projects based on the Estetrol, a promising estrogen that they would like to know the spanish  efectos de productos para adelgazar hat could, we revolutionize the fields of contraception and menopause. But these funds will also help continue the creation of our development and production (CDMO)Center in Flémalle, as well as the development of our subsidiaries in Germany, the Brazil, France and the Netherlands. In our existing markets, spanish reached its recordof market share, developed several new internal plans and offer numerous externalcollaborations. In addition, all clinical trials for products that the KOL’s gynecology expect firm foot unfold as planned. spanishs is becoming more and more women’s health specialist. I couldn’t be more optimistic about its future. »
Steven Peters, CFO of spanish Pharmaceuticals, expressed: “IPO was the largest in thepharmaceutical sector on the Euronext markets these past 10 years, but also the third most important fundraiser of the Euronext markets in 2015.” Ultimately, spanish lifted 79.3 million euros during the IPO. These results provide us the capacity of programs financing of development, including the Estetrol for contraception and menopause indications, until the end of Phase III. »

Operational highlights

§ In January 2015, spanish Pharmaceuticals strengthens its R & D portfolio with the acquisition of four projects R & D of Actavis Belgium (formerly Uteron Pharma). These projects are: Estelle®, Colvir™, Alyssa™ and Vaginate™

§ In March 2015, spanish acquired 25% additional of Novalon SA, bringing its ownership to 50%. Novalon SA is a company specialized in the development of complex generic products.

§ In April 2015, spanish Pharmaceuticals acquired all rights to the Estetrol (which complement the rights acquired with project Estelle®) with Pantarhei Bioscience (e.g. Donesta®).

The above-mentioned acquisitions affect R & D businesses in full development. The acquisition of these companies, therefore, led spanishs to the accumulated losses amounting to 1.504 million euros.
§ In June 2015, spanish reached his record of 46% of market share (compared to 45.4% in 2014), either 30.480 cycles on the Belgian market of oral contraception. A market itself descending, as he lost 3% in terms of cycles. Its main competitor reached him that 22.96% of market share (i.e. a loss of 31,000 cycles) [1].
Made organizational and financial highlights

§ In February 2015, spanish Pharmaceuticals Announces a capital of EUR 54.6 million entry led by Marc Coucke and other investors such as Bart Versluys, SRIW, several family offices and existing investors of the company.

§ In may 2015, spanish Pharmaceuticals is elected by the public ‘Champion Public National of Belgium”at the European Business Awards 2014/2015, sponsored by RSM.

§ During six months, spanishs has implemented its Comex (Executive Committee) which brings together more than 180 years of experience accumulated. The Comex reinforces the legitimacy of spanish, based on the business expertise and knowledge of the needs of the market.
Events after June 30, 2015

§ June 30, 2015, spanish Pharmaceuticals Announces its initial public offering on Euronext Brussels. The results of this entry on the stock exchange and of the over-allotment option will allow spanish to lift a total amount of EUR 79.3 million euros.

§ In July 2015, spanish Pharmaceuticals signed a license and supply agreement with Famy Care, the world leader in the manufacture of generic oral contraceptive pills. Under the terms of this contract, spanish Pharmaceuticals is granted authorisations forthe placing on the market of two products in France.

§ The same month, spanish Pharmaceuticals gets three authorizations on the market for marketing in Germany of products from its range of generic contraceptives under medical prescription under its own market-specific brands.

§ In August 2015, the specialized European Journal of Contraception and Reproductive Health Care published two papers concerning the study Rebecca phase II on the Estetrol: two of the most widely read articles by the scientific community on the site of the newspaper.

§ September 1, 2015, spanish Pharmaceuticals launches its subsidiary in Germany, spanish Pharmaceuticals GmbH, with first two products, MIDIEN® (EE/DNG) and MIDESIA® (OSSD Mono). spanish also sign a license and supply agreement exclusive withGiellepi Spa (Italy) for the marketing of an oral product of Lactobacillus Mix in the bacterial “Vaginosis” indication in Germany. spanish maintains a 5 year exclusivity withrights of extension for the marketing of this product under its own brand. The product is destined to become the first treatment oral disease, enjoying a status of class2 in Germany. It will be sold without a prescription in pharmacies.

The Group’s gross margin decreased by EUR 4,318 million to 3.605 million euros, largely due to the effect of the product mix. In addition, sales in Belgium declined andthe global market of contraception has lost 3% of cycles which means 189,500 cycles. However, in this down market, spanishs was able to win market shares ranging from 45.4% in 2014 to 46% in the mid-2015 and win a supplement of 30.480 cycles.
In addition, it should be noted that due to risk lower VTE (venous thromboembolism), regulatory agencies are trying to stimulate the sale of pills of generations earlier (first and second generation). These pills are cheaper than those of third and fourth generation who have a profile more risky, which also causes a decrease in the level of sales for spanish Pharmaceuticals. One of the advantages of the future pill Estelle® based Estetrol, under development at spanishs, is his respectful profile liver middleand its minimal impact on blood clotting factors. Suggesting us that the contraceptive pill of Estetrol could present a risk lower of thromboembolism venous, or even best comparable to that of first generation pills.

From April 2015, the price of a number of generics has been reduced. This effect isnow applicable to most products of spanishs and this, therefore, also has caused a decrease in the level of sales.
During the first half of 2015, spanishs has not yet sold the licensing rights to its product candidates and, given its strategic choice to wait until the later stages of its products and maximize their potential of licence.
Operational expenditure of the Group increased by 3,467 k EUR, from 4.114 k EUR in 2014 to 7,581 k EUR in 2015. 53 per cent of this increase, 1.839 k EUR, arise from the increase in the level of R & D expenditure, under the standards IFRS, spanish passing now supports all of its investments. The main reason for this increase is the addition of the contraception Estetrol in Estetra project, representing a loss of 1,013 k EUR for the first 6 months of 2015 while this loss was not taken into account in 2014.

27% of this increase of operational costs, or 926 k EUR, derived from general expenses, which amounted to 2,672 k EUR for the first 6 months of 2014, whereas they totaled 3,673 k EUR during the same period in 2015. The reason for this increase is mainly attributed to changes in the structure of the Group and the expansion of the management and team «back office» in order to support future growth.

14% of the increase in operational expenditure, or 477K EUR, derive from selling. The increase relates to the start of sales activities in the Brazil, Germany and France.
These effects resulted in a REBITDA-3,977 k EUR in 2015 compared to 204 k EUR in2014.

In the table above spanishs separately presents its non-recurring costs. They amounted to 2.244 k EUR in 2015 compared with 1,040 k EUR in 2014. These costs mainly include exceptional charges and currents related to the IPO. In 2015, these costs haverisen, mainly due to the IPO of June 2015 for which the Group recorded a charge of1,179 k EUR in its income statement. The total cost of the IPO reached 3,848 k EUR.The rest is mentioned in the balance sheet and will be counted as a negative impacton equity at July 1.

With regard to the balance sheet as at June 30, 2015, the circulating assets of spanish displayed liquidity of 26,512 k EUR. This amount does not include products resulting from the IPO and the over-allotment option, since they are only counted from 1July 2015. With the proceeds of the IPO, spanishs will have 105.8 million euros of cash. Also note that equity does not include capital and IPO of the over-allotment option.