Advanz Pharma: Weak numbers but as expected, our OW thesis intact

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Advanz Pharma: Weak numbers but as expected, our OW thesis intact

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Advanz Pharma

Weak numbers but as expected, our OW

thesis intact

Earnings Review

Weak numbers but in line with expectations 15 May 2026

Advanz Pharma reported weak Q1-26 results but they were not as bad as feared, in our High Yield Credit

view. Revenue decreased -4% yoy and Adjusted EBITDA down -12% yoy, driven by Luxembourg

supply chain issues with Paliperidone and Lanreotide and contribution of the M&A which Pharmaceuticals

closed last quarter. Excluding the gain on disposal of the Indian marketing rights for Joshgun Garayev

Progynova, Adjusted EBITDA decline was -22% yoy. That said, Q1-25 was a higher comp Research Analyst

and benefitted from sizeable contribution from Ocaliva, Lanreotide and Paliperidone. MLI+44 (UK)20 7996 3126

Leverage increased to 5.9x in the quarter and management guided to peak leverage in joshgun.garayev@bofa.com

Q2 or Q3-26 before declining into the year end.

Bonds sold off more than 2 points into the call, which we thought was an over-reaction,

based on the following: 1) we had low expectations into the numbers, as guided by

NWC: net working capitalmanagement in Q4-25; 2) no cash burn in the quarter notwithstanding the large NWC

outflow and our expectation of slight positive FCF for 2026 at the current Q1-26 run

rate EBITDA; 3) high multiple realised on the Progynova India sale, an indication of a

lever available to management if needed; 4) confirmation that Lanreotide and

Paliperidone remediation works remain on track, and Lanreotide batches continued to be

released to the market and 5) biosimilar contribution for the first time.

We came away from the call relatively positively. Revenue and EBITDA guidance for