PHAR

Pharming Group N.V. 2024 Annual Report (Form 20-F) Summary

Business Context and Reporting Period

This summary covers the fiscal year ended December 31, 2024, for Pharming Group N.V., a global biopharmaceutical company headquartered in Leiden, The Netherlands. The company focuses on rare diseases, primarily commercializing RUCONEST® (for Hereditary Angioedema) and Joenja® (leniolisib, for Activated Phosphoinositide 3-kinase Delta Syndrome). The company is dually listed on Nasdaq (PHAR) and Euronext Amsterdam (PHARM).

Key Financial Metrics (Year Ended Dec 31, 2024)

Note: All figures in USD millions. Net Debt is calculated as convertible bonds less cash and marketable securities.

Material Changes vs. Prior Period

• Revenue Growth: Total revenue increased 21.1% to $297.2 million, driven by an 11% increase in RUCONEST® sales (primarily in the U.S.) and a 147% increase in Joenja® sales to $45.0 million.
• Customer Concentration: Two U.S. specialty wholesale customers accounted for 77% of total revenue in 2024 ($227.7 million), down slightly from 83% in 2023.
• Expense Increases: Research and Development (R&D) expenses rose 20.7% to $83.1 million due to expanded clinical trials for Joenja® (pediatric and new indications) and General & Administrative (G&A) costs increased 26.4% to $70.7 million due to organizational growth and one-off acquisition costs.
• Debt Restructuring: In April 2024, the company issued €100 million ($103.5 million) of new convertible bonds due 2029 to repurchase outstanding 2025 bonds, extending the debt maturity profile.
• Impairments: The company recognized $5.0 million in impairment charges related to right-of-use assets (cancelled production facility lease) and $4.8 million in obsolete inventory impairments.

Guidance, Outlook, and Risks

• Strategic Acquisitions: The company completed the acquisition of Abliva AB in March 2025 (post-year-end), adding the late-stage asset KL1333 for mitochondrial diseases to its pipeline.
• Regulatory Outlook: Joenja® received approval in the U.K. (Sept 2024) and Australia (March 2025). The company expects regulatory decisions in Canada and Japan in 2026 and 2025, respectively. Pediatric label expansion for Joenja® is targeted for U.S. submission in H2 2025.
• Liquidity: Management expects current cash and marketable securities ($167.9 million) to fund operations for more than 12 months. No immediate capital raise is planned, though options remain open for future acquisitions.
• Material Weaknesses in Internal Controls: The company disclosed material weaknesses in internal controls over financial reporting regarding corporate income tax processes and complex, non-routine transactions. An adverse opinion on internal controls was issued by the auditor. A remediation plan is underway for 2025.
• Key Risks: Heavy reliance on RUCONEST® (84.9% of revenue); competition in the HAE market; potential safety/efficacy concerns with newly approved Joenja®; and dependence on third-party manufacturers.

Investor Verification Checklist

• Internal Control Remediation: Verify the progress of the remediation plan for material weaknesses in internal controls over financial reporting, specifically regarding tax and complex transactions.
• Customer Concentration: Monitor the stability of the two major U.S. specialty pharmacy customers representing 77% of revenue.
• Joenja® Commercialization: Track the pace of patient enrollment and revenue growth for Joenja® following U.K. and Australian approvals and the upcoming pediatric data readouts.
• Abliva Integration: Review the final Purchase Price Allocation (PPA) and integration costs associated with the Abliva AB acquisition completed in Q1 2025.
• Inventory Valuation: Assess the adequacy of inventory reserves given the $4.8 million impairment charge for obsolete inventory in 2024.