Celon Pharma S A : Doubled export sales, continuation of the strategy of investing in research and development

· Over PLN 40 million EBIDTA in the generic drugs segment, increase by 14.6%

· Compared to 1H2020, sales revenues increased by 45%.

· Compared to an analogue period of time in 2020, 252.5% increase in export

· Revenue from subsidies: PLN 11.5 million, a 50% increase compared to the same period in 2020.

Record-breaking export volumes exceeded domestic sales

Net revenue from total sales in the first half of 2021 totalled PLN 105 million. Mostly due to export sales, which exceeded domestic sales. The majority of the Company's products have maintained their market share in Poland, while the dynamic of the entire drug market in Poland has been decreasing.

Jacek Glinka, Vice-president of the Celon Pharma S.A.'s Management Board:In Poland, the market shares of our products have not been subject to dynamic changes, although the export sales, for the first time, have reached a historical level, with a twofold growth. It was possible thanks to the good sales dynamic on the Italian and French markets.

Continuation of the strategy of investing in research and development

Revenue from subsidies in the first half of 2021 totalled PLN 11.5 million, it has increased by 50% compared to the same period in 2020. Continued investment in research and development of new drugs has been reflected in the increase of costs by nature in the R&D segment from PLN 28.5 to 33.6 million.

Maciej Wieczorek, President of the Management Board at Celon Pharma S.A.: Another two clinical projects have completed Phase I, confirming its safety and good tolerability. The results for CPL'116 - JAK/ROCK collected in the Phase I trial provide a strong foundation for the compound's development in the course of subsequent clinical phases in autoimmune diseases, including disorders for which a therapy with proven effectiveness still does not exist. CPL'20 (GPR40 agonist) has demonstrated a favourable safety profile without any disturbing adverse effects observed, either after single or repeated administration. We are almost finished with the formalities needed for starting the clinical Phase II for both of these compounds. In the case of Falkieri. The pandemic has extended the waiting period for a meeting with European regulators, but we have used that time to consult the Phase III documentation with international experts. Simultaneously, we are preparing the team and infrastructure needed for developing technologies in the field of mRNA for anti-viral uses.

Iwona Giedronowicz, CFO: The revenue increase of over 45% in the operational segment and the increased number of innovative projects currently conducted have caused a natural increase in the basic operating costs. Costs by type for the business in the operation (generic) segment totalled PLN 69.0 million, which is an over 45% increase compared to the first half of 2020. Investment costs are generating increasing depreciation costs, over 47%. Payroll increase of over 30% is linked to the increase of employment, from 437 to 514 individuals, and the natural increase of individual salaries. What also has been noted is the increased cost of raw materials and consumables, generally due to the depreciation of the Polish zloty (PLN), and also a significant increase of energy costs.

ABOUT THE COMPANY

Celon Pharma is an integrated biopharmaceutical company which designs, develops, manufactures and distributes pharmaceutical products. It was founded in 2002 by Maciej Wieczorek, PHD. The company currently has over 450 employees. It employs 160 scientists responsible for research and development, half of whom either have a PhD or are in the process of acquiring their PhD. The company operates more than a dozen projects for the development of innovative drugs with therapeutic groups such as oncology, neuro-psychiatry, autoimmunity and metabolism. The Company has its own research and development laboratories, which allow it to develop its own pharmaceutical technologies by using extensive laboratory equipment resources, as well as the experience and expertise of its staff. It also has a modern manufacturing facility where dry pharmaceutical forms are manufactured. Over the last few years the Company has introduced products into the market in the following therapeutic areas: oncology, central nervous system diseases, cardiology, HIV treatment, respiratory diseases. The Company has been developing the technology for manufacturing inhalation drugs and several projects of innovative drugs since 2007. It has been listed on the Warsaw Stock Exchange since 2016.

More information can be obtained by contacting: Małgorzata Siewierska [e-mail] [phone]

Doubled export sales, continuation of the strategy of investing in research and development

Celon Pharma reports 1H2021

Press release�09/30/2021