Oasmia Pharmaceutical AB :OASM-US: Earnings Analysis: Q1, 2017 By the Numbers : September 6, 2016

Oasmia Pharmaceutical AB reports financial results for the quarter ended July 31, 2016.

We analyze the earnings along side the following peers of Oasmia Pharmaceutical AB – OncoMed Pharmaceuticals, Inc., Omeros Corporation and Ohr Pharmaceutical, Inc. (OMED-US, OMER-US and OHRP-US) that have also reported for this period.

Highlights

  • Summary numbers: Revenues of USD 0.00 million, Net Earnings of USD -4.37 million.
  • Gross margins narrowed from -17,269.86% to -90425% compared to the same period last year, operating (EBITDA) margins now -87,255.56% from -16,678.54%.
  • Year-on-year change in operating cash flow of -58.88% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • Earnings rose compared to same period last year, despite decline in operating and pretax margins.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2015-07-31 2015-10-31 2016-01-31 2016-04-30 2016-07-31
Relevant Numbers (Quarterly)
Revenues (mil) 0.03 0.01 0.7 0.01 0
Revenue Growth (%YOY) -82.43 -92.08 1045.32 67.97 -83.53
Earnings (mil) -4.7 -5.13 -2.96 -4.01 -4.37
Earnings Growth (%YOY) 3.73 -38.14 16.46 -14.11 7.08
Net Margin (%) -18182.19 -83451.92 -419.36 -55901.69 -102558.33
EPS -0.15 -0.16 -0.08 -0.11 -0.12
Return on Equity (%) -44.68 -50.29 -28.68 -39.78 -46.86
Return on Assets (%) -31.66 -33.95 -19.1 -25.8 -27.99

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Market Share Versus Profits

Revenues History
Earnings History

OASM-US‘s change in revenue this period compared to the same period last year of -83.53% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that OASM-US is holding onto its market share. Also, for comparison purposes, revenues changed by -40.58% and earnings by -9.02% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Earnings Growth Analysis

The company’s earnings rose year-on-year. But this growth has not come as a result of improvement in gross margins or any cost control activities in its operations. Gross margins went from -90425% to -17,269.86% for the same period last year, while operating margins (EBITDA margins) went from -87,255.56% to -16,678.54% over the same time frame.

Gross Margin Versus EBITDA Margin

Cash Versus Earnings – Sustainable Performance?

OASM-US‘s change in operating cash flow of -58.88% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.

Operating Cash Flow Growth Versus Earnings Growth

Margins

Despite a decline in operating (EBIT) margins as well as a decline in pretax margins, the company’s earnings rose.

EBIT Margin Versus PreTax Margin
EBIT Margin History
PreTax Margin History

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Company Profile

Oasmia Pharmaceutical AB engages in the research, development, and manufacture of drugs. It formulates pharmaceutical products for ovarian and breast cancer for humans and cancer for animals. Its portfolio includes Paclical, Doxophos, Docecal, and OAS-19 for human health; and Paccal Vet and Doxophos Vet for animal health. The company was founded by Julian Aleksov and Bo Cederstrand on April 15, 1988 and is headquartered in Uppsala, Sweden.

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