First Berlin – Pharming Group NV Research Update (19/05/2020)

First Berlin Equity Research has published a research update on Pharming Group NV (ISIN: NL0010391025). Analyst Simon Scholes reiterated his BUY rating and increased the price target from EUR 2.00 to EUR 2.10.

Abstract
Pharming reported strong Q1 results showing a 40.1% rise in revenue to €49.3m (Bloomberg consensus: €47.2m; Q1/19: €35.2m) and a 59.0% increase in EBIT to €19.4m. (Bloomberg consensus: €19.3m; Q1/19: €12.2m). The sales increase was driven by increased patient numbers attracted to Ruconest's efficacy both in an acute setting and for treatment of breakthrough attacks when using the prophylactic therapies Takhzyro and Haegarda. The SARS-CoV-2 pandemic has delayed the trials of Ruconest in preeclampsia and acute kidney injury patients but recent results from five covid-19 patients treated with Ruconest under a compassionate use programme were very promising. Pharming has not so far experienced any impact of the pandemic on the availability or distribution of Ruconest, but for the sake of conservatism we have shaved our 2020 revenue forecast by 5% to €206m (previously: €216m). However, against the background of Ruconest's current momentum our previous 2021 forecast now looks too low, and we raise it to €230m (previously: €222m). Our price target moves from €2.00 to €2.10 and we maintain our Buy recommendation.