Almirall, the Catalan pharmaceutical company, saw its shares jump 5.63 percent on Monday, the top rise in the continuous market, even after reporting a 38.5 million euro loss for 2023. The result was largely driven by a reduced book value of the drug Seysara and the cost of launching new products. The stock touched a 5.92 percent intraday high before closing at 9.095 euros, aided by the announcement of acquiring a license from Novo Nordisk to market a newly developed product. The deal aims to develop and exclusively market a monoclonal antibody, NN-8828, for use in certain inflammatory immune-mediated dermatological conditions. Through the year, the company has gained 7.95 percent in value. This turn of events suggests investors see potential for Almirall to compete in a promising segment of dermatology and to accelerate growth through strategic partnerships.
Almirall stands out beyond its stock moves. This Catalan firm has repeatedly retooled through mergers and continuous reinvention to weather fluctuations in revenue and earnings, while prioritizing research and development despite a modest size by global pharma standards. The 2023 losses were a setback for its aspirations, linked to the diminished accounting value of Seysara, an antibiotic used to address inflammatory skin lesions associated with acne, and the costs tied to bringing new medicines to market. In mid-sized pharmaceutical companies, a single underperforming product can carry a heavy price, especially when the market is active. Yet, excluding those adjustments, 2023 would have closed with a profit of 15.5 million euros. Revenues rose 2.3 percent to 898.8 million euros, with net sales reaching 894.5 million, up 3.6 percent.
Today’s stock surge, aside from short-term speculative moves, signals support for the company’s objective of remaining a prominent player in the exciting field of dermatology. Novo Nordisk is recognized for its insulin delivery devices and for products like Ozempic and Wegovy, which address diabetes and obesity. Novo Nordisk ranks among the top market cap companies in Europe. Following Almirall’s results, analysts noted that despite the 2023 financial challenges, the company has shown resilience and strategic clarity.
Back in June of the previous year, Almirall signaled a push to accelerate growth through inorganic opportunities. The board approved a capital increase of 200 million euros with no pre-emptive rights to speed up potential acquisitions. The leadership described a plan to gain scale, optimize finances, and secure a future by acquiring other firms or their patented medicines. Growth opportunities in this sector depend on securing a product with a clear patent or recurring revenue potential. Almirall has consistently framed growth as driven primarily by acquisitions, especially of medicines in development slated for market within six to 18 months.
Competitive intensity in the dermatology field remains a key risk, but the Novo Nordisk agreement could be a hedge against this pressure when supported by a strong commercial strategy and a capable development team at Almirall. Analysts expect 2024 to bring an improvement in financials, with higher revenues, stable gross margins, and the possibility of greater profits if the Phase III development advances successfully. The NN-8828 program is described as a first-in-class monoclonal antibody with high affinity for the cytokine IL-21. It has progressed to Phase II in indications not limited to dermatology and holds the potential to dampen multiple biological activities driven by IL-21 in immune cells linked to inflammatory and autoimmune skin diseases. This distinct mechanism positions NN-8828 as a promising option for treating a range of skin-related inflammatory conditions.