During the quarter, sales rose to SEK 118.9 million, an increase of 29% from SEK 92.2 million in the previous year. This represents a new record quarter for EQL
Comments from the CEO
The third quarter of 2025/26 marks a recovery for EQL Pharma. Sales growth of 29 percent and EBITDA grows by 44 percent. Gross and operating margins also strengthen to 42 and 21 percent, respectively. The majority of the stockouts from the second quarter have remained in the third. However, deliveries of Memprex have worked well, resulting in an overall stronger quarter. A gradually improved inventory situation is expected in the fourth quarter combined with an additional product launch. During the third quarter, one new product was launched and five products were added to the pipeline. The forecast for sales growth for the full year 2025/26 remains at around 15%. Two new management team members were recruited during the quarter with the aim of strengthening the company's commercial capabilities internationally and the level of follow-up and analysis in the company.
Financial Overview for the Third Quarter
During the quarter, sales rose to SEK 118.9 million, an increase of 29% from SEK 92.2 million in the previous year. This represents a new record quarter for EQL. Operating profit (EBIT) increased by 32% to SEK 19.5 million compared to SEK 14.8 million the previous year, with an EBITDA margin of 21% (19%). The gross margin was 42% (41%).
Cash and cash equivalents amounted to SEK 72.7 (15.6) million at the end of the quarter. Additionally, there was unused working capital credit of SEK 34.0 (10.5) million.
CAPEX was SEK 11.9 (11.8) million during the quarter. We will closely monitor the level of indebtedness and take necessary measures to ensure it does not increase further. The most important aspect, of course, is to ensure that sales and EBITDA development follow the targets.
Long-term Financial Targets and Forecasts for the Current Financial Year
Sales growth in the third quarter is in line with the long-term goals of growing by 30% on average. The EBITDA margin of 21% does not reach the initial goal in the new five-year plan, to stabilize EBITDA at 25% during the first half of the period. This is mainly due to the remaining stockouts for several important products. For the full year 2025/26, sales growth is forecast at around 15%. Some scrapping of, among other things, Covid-19 tests is expected to negatively affect the fourth quarter by three to four percentage points. The company's long-term goals remain unchanged.
Product Launches and Market Dynamics
During the quarter, a new product was launched. The portfolio thus grows from 46 to 47 launched products.
Six new products were added to our pipeline, which thus grows to 50. Four of these products are traditional niche generics for the Nordic region and two are Special generics products for the Nordic region.
The work to establish EQL in Germany and the Netherlands continues. Products that EQL already has in its portfolio or pipeline are being evaluated together with completely new products, specific to these markets. The focus during the quarter has been to analyze the markets and evaluate a large number of products. The first investment decisions will be made during the spring and for the German market the goal is to launch a pilot product already during the next financial year.
The application for approval of Memprex in BeNeLux has been submitted in the form of a so-called RUP ("Repeat use procedure"). This is a simplified procedure that is available within the EU for products that are already approved in an EU country. The procedure has a processing time of 6-9 months, instead of 12-18 months for new applications. EQL should therefore be able to obtain marketing approval for Memprex in BeNeLux during 2026/27, provided that the procedure is processed according to plan. For the German and French markets, launch activities are underway with the aim of launching in Germany in the spring of 2026 and in France during the summer. These markets are considered to have good potential, which is why extra focus is being placed on this work.
For Mellozzan, the application has been submitted to the GCC with the hope of being able to launch in 2026/27. GCC is a new market for EQL, which means that the timelines for the procedure are more uncertain. Marketing approval in Italy is expected during the fourth quarter and sales in Germany with Medice continue to grow. Dialogues are underway for several new territories for both Mellozzan and Memprex.
The inventory situation at the end of the third quarter is overall better than at the second. EQL is still waiting for some deliveries, but clear delivery plans have been developed in collaboration with suppliers and the situation is expected to gradually improve during the fourth quarter. A number of activities are underway to ensure better delivery precision going forward. Among other things, a feasibility study for ERP implementation has been initiated, more thorough follow-up with central suppliers has been implemented and overall basic processes have been upgraded. The work will continue in 2026 with the goal of finding precise, cost-effective and person-independent working methods.
Other
The situation for our carriers in the Red Sea has not changed since the previous quarter.
EQL has no exposure to the United States or direct impact from potential US tariffs. Moreover, sales of our pharmaceuticals are not affected by the economic cycle, which means that demand for EQL's products remains stable, even in a more uncertain global environment.
EQL is in a phase where there is a strong focus on ensuring that we can deliver on the new five-year plan over the long term. In this context, we are placing great emphasis on working with our suppliers to improve delivery reliability in the long term, including by increasing traceability throughout the supply chain, optimizing transport options according to the circumstances, and strategically ensuring redundancy at the production stage for our key products.
This disclosure contains information that EQL Pharma is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 03-02-2026 12:30 CET.
For more information contact:
Axel Schörling,
CEO & President EQL Pharma AB (publ)
Phone: +46 (0) 76 317 90 60
E-mail: axel.schorling@eqlpharma.com
Web: www.eqlpharma.com
EQL Pharma AB (publ) in short
EQL Pharma AB specializes in developing and selling generics, i.e., drugs that are medically equivalent to original drugs. The company currently has 47 niche generics (i.e., generics with limited competition apart from the original drug) launched in the Nordic markets. In addition to these, there is a significant pipeline of additional niche generics for launch in 2026 and beyond. The business is currently focused entirely on prescription drugs, including hospital products, mainly in the Nordics and European markets. EQL Pharma AB has its operations in Lund and is listed on Nasdaq Stockholm stock market. EQL Pharma AB carries out extensive development work in collaboration with leading contract manufacturers and major pharmaceutical companies in the EU and Asia, among others.
