Newbury Pharmaceuticals year-end report September 2025 – August 2026

Quarter 4, June 2026 – August 2026

• Net revenue was 13 578 (5 915) tkr.
• EBITDA was -5 141 (-5 876) tkr.
• Operating cash flow was -5 105 (-5 004) tkr.

Year-end period, September 2025 – August 2026

• Net revenue was 42 685 (31 573) tkr.
• EBITDA was -18 309 (-16 299) tkr.
• Operating cash flow was -19 680 (-12 370) tkr.
• Cash position in the end of period was 9 344 (14 562) tkr.
• The Board of Directors proposes that no dividend be paid for the financial year 2025/2026.

Significant events during the quarter

• Secures generic approval for Dalbavancin Newbury.
• Secures generic approval for Tofacitinib Newbury.
• Accelerates its neuroscience ambitions with a new partnership for Guanfacine tablets.

Significant events after the end of the quarter

• Secures exclusive rights to a 40-product hospital portfolio in Iraq.
• The distribution partner receives import approvals in Iraq for 19 hospital products.
• Secures generic approval for Prukalopride Newbury.

A word from the CEO
Turnover and Performance
During the fourth quarter of the 2025/2026 financial year (June 2026 – August 2026), Newbury Pharmaceuticals reported net revenue of SEK 13,6 million, up from SEK 5,9 million in the same quarter last year, an increase of approximately 130%. For the full financial year, net revenue reached SEK 42,7 million, compared to SEK 31,6 million last year, representing growth of approximately 35%.
 
Revenue for the year was generated almost entirely from the Nordic markets, where net revenue grew by approximately 59%. As anticipated, the final quarter benefited from additional product launches and a growing number of products active in tenders across the Nordics. International sales amounted to SEK 0,1 million (SEK 4,9 million) for the year as activities in the Middle East progressed at a slower pace due to the geopolitical situation in the region. The return of international orders has therefore taken longer than we previously anticipated.
 
Portfolio Development
The Company continued to build its product portfolio across the Nordic markets, and we now have 29 products launched in the Nordics and remain on track for our target of more than 30 products launched by December 2026.
 
During the quarter we secured generic approvals for Dalbavancin Newbury, an antibiotic for hospital use, and Tofacitinib Newbury, an oral treatment for inflammatory diseases such as rheumatoid arthritis. Both strengthen our specialty offering. We also signed a new partnership for Guanfacine tablets, used in the treatment of ADHD, which accelerates our ambitions within neuroscience.
 
A broader launched portfolio strengthens our ability to participate in tenders across multiple therapeutic areas, which over time should support a more stable and diversified sales base. We have continued to increase inventory to support planned launches and tender commitments. Inventory increased during the year to SEK 12,9 million (SEK 9,0 million), which tied up working capital and contributed to the weaker operating cash flow of SEK -19,7 million (SEK -12,4 million).
 
Profitability and Financial Position
Gross margin was under pressure during the year at approximately 25% (41%), mainly due to product mix and tender price pressure. As a result, the strong revenue growth has not yet translated fully into earnings. EBITDA for the full year was SEK -18,3 million (SEK -16,3 million), while EBITDA for the fourth quarter improved to SEK -5,1 million (SEK -5,9 million). We expect the gross margin to improve again in the coming quarters.

Cash and bank balances at 31 August 2026 were SEK 9,3 million (SEK 14,6 million). Equity stood at SEK 19,6 million, giving a solidity ratio of 26%.

Outlook
My primary focus as CEO remains reaching EBITDA breakeven as the foundation for long-term, profitable growth, and every decision we make - on portfolio prioritization, cost management and commercial execution - is guided by that goal.

After the end of the period, Newbury signed an exclusivity agreement with an established Chinese pharmaceutical manufacturer granting the Company exclusive rights to register, market and sell a portfolio of 40 products in Iraq over a ten-year term. The products are predominantly injectables for hospital and acute care use, and will be registered and sold under Newbury's label or own brand names.

The international business operates on a different model from the Nordic business. In the Nordics, Newbury goes directly to market and carries the cost of launch and market development. Internationally, the Company works B2B with local distribution partners who are responsible for sales in their market, giving a different investment and cash flow profile than the direct model. In October 2026, Newbury’s local distribution partner in Iraq received import approvals from the Iraqi Ministry of Health for 19 products. The approvals are valid for one year and allow these products to be imported and sold ahead of the full registration process. We will inform the market once orders have been confirmed.

Products for the international business are ordered against confirmed customer orders, and payment terms with distribution partners broadly mirror those on which the Company pays its manufacturers. The structure is designed to limit the working capital tied up in the international business. Costs relating to product registration are incurred ahead of any related revenue.

I would like to thank our shareholders, partners and employees for their continued support, and I look forward to reporting on
further progress.

Audit
This report has not been reviewed by Newbury Pharmaceuticals auditor.

The report is publised on Newbury Pharmaceuticals website:
https://www.newburypharma.com/investors/financial-information/