Burgdorf, 28 May 2015, 7:00h - In business year 2014/15 Ypsomed Group posted consolidated sales of CHF 306.6 million, which represents an increase of 11% year on year. The operating result (EBIT) rose by more than 80% to
CHF 28.5 million in comparison with the previous year (15.6 million) and resulted in a net profit of CHF 19.4 million. The rise in profitability is primarily due to increased sales in all segments and thus the better capacity utilisation of the infrastructure as well as to the consistent and ongoing cost and process optimisation process.

Delivery Devices: Growth trajectory fuelled by GLP-1 In 2014/15 the Delivery Devices segment posted growth in sales of 6.9% to CHF 151.7 million and thus continued its growth trajectory that began in 2012. The main drivers for this are:
The market for glucagon-like peptide-1 (GLP-1), a drug that is becoming increasingly important in the treatment of type 2 diabetes, is growing fast. In the reporting year two of the Ypsomed pens based on GLP-1 products of our pharmaceutical partners GlaxoSmithKline and AstraZeneca were successfully brought to market.

The disposable platform UnoPen™, for which we began automated production in Q1 2015, generated its first sales with a pen for our Russian pharmaceutical partner Pharmstandard.

Business with pen needles also posted impressive growth, in particular thanks to the clever dealings of our sales companies.

In addition, production efficiency was further improved.

On the one hand, the lower sales in the contract manufacturing of pen components had a dampening effect on the segment result. The extraordinarily high order volumes of the previous year due to Sanofi returned to more normal levels. A further factor can be seen in the impairment of CHF 1.5 million for injection moulding tools that became obsolete during the course of the process optimisations and of CHF 1.2 million for pen platforms that were discontinued. The end effect was a marked improvement in the EBIT for the Delivery Devices segment, which rose from CHF 9.3 million in the previous year to CHF 13.4 million.

Diabetes Direct Business: sharp climb following turnaround

In the reporting year 2014/15 Ypsomed once again posted strong growth in the Diabetes Direct Business segment. Sales rose from CHF 118.4 million in the previous year to CHF 137.6 million (+16.3%). The driver for this growth was once again the tubeless mylife™ OmniPod® insulin patch pump, sales of which rose by around 50% in comparison with the previous year. But also sales with blood glucose monitoring systems increased in this segment by 8.5%, despite zero global growth, in particular due to several good results in the tendering business. Provisions amounting to CHF 0.7 million for possible legal costs in connection with our international distribution network, which could occur based on historic receivables, had a negative impact on the results. Overall there is an increase in the profitability of the Diabetes Direct Business. Following he turnaround in 2013/14 (EBIT CHF 6.3 million), the operating result in the reporting year has already more than doubled and is recorded at CHF 13.0 million.

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