Interview with Navamedic’s CEO Kathrine Gamborg Andreassen

For those who have not heard about Navamedic, could you tell us about your business, what you do, and what markets you are active in?

Navamedic is a Nordic pharmaceutical company with operations across several European countries. We have a significant market presence in the Nordics, while also addressing the European market where the Netherlands is a quite big market for us. Our product portfolio includes consumer health products available in pharmacies, prescription medications, and hospital-specific tender products such as antibiotics.

Founded in 2002, Navamedic initially focused on developing a drug product for the European market. Navamedic was listed in 2006 and acquired Vitaflo Scandinavia AB in 2007, a company with a Nordic market platform providing medical nutrition for people with inborn metabolic errors and a distributor for pharma companies. This platform has been the foundation for our current business. After selling assets in 2007-2008 Navamedic transitioned into a distribution business for a period until a strategic shift in 2019 to move towards product ownership through in-licensing of products and brands and acquiring smaller companies and product portfolios.

We have around 40 employees, whereby half of them are in commercial roles across our markets, which as of now include Finland, Sweden, Denmark, the Netherlands, and Norway.

Our strong local insight and expertise distinguish us from larger pharmaceutical companies. We understand and adapt to specific market requirements, whether regulatory, market access, or sustainability. This flexibility enables us to move products between markets during shortages, with support from local authorities.

Our platform is highly scalable, which means we can easily integrate new products or portfolios, which enhances profitability. While growth remains our current focus, we intend to balance this with profitability in the future.

What is your view on market growth ahead, regarding your different segments?

We operate in three distinct business areas: prescription medicines (Rx), consumer health, and hospital, which each presents unique opportunities. Our hospital segment consists of medical nutrition and antibiotics. Our medical nutrition products are designed for individuals with inborn metabolic disorders, a patient group that remains stable in size. As a result, growth in this segment comes from capturing market share, introducing new and higher-value products, while expanding the portfolio. Despite the stability of the market, we’ve seen steady growth, ranging between 6-10%.

Navamedic plays a crucial role in providing essential antibiotics to hospitals across the Nordic region through tender agreements. These antibiotics, vital for combating bacterial infections, are primarily administered via infusion or injection, making them readily accessible for healthcare professionals to deliver effective treatment to patients. Although overall market expansion is limited, we are being awarded tenders and expanding into new markets.  In addition to its operational focus, Navamedic is deeply invested in addressing the global health challenge of antimicrobial resistance (AMR). As a member of the AMR Industry Alliance, Navamedic actively participates in collaborative efforts to combat AMR. By having a dedicated representative in the manufacturing group of the AMR Industry Alliance, Navamedic ensures that its practices align with industry-wide initiatives aimed at promoting responsible antibiotic use and mitigating the emergence of drug-resistant pathogens. This proactive stance underscores Navamedic’s commitment to safeguarding public health and preserving the effectiveness of antibiotics for future generations.

The consumer health segment has been a strong growth area over the past 10-15 years, and we expect this trend to continue. Several factors are driving growth, including an increasing focus on preventative healthcare and an aging population. Additionally, we are seeing more people switching from prescription to non-prescription products, which allows consumers to choose the products themselves. Authorities are also supporting this trend by encouraging over-the-counter solutions where appropriate.

Lastly, in our prescription (Rx) segment, we have two key areas: Obesity and neurology.

We have seen substantial growth in the obesity market in the Nordics, driven by population weight increases, greater recognition of obesity as a disease, and the availability of effective treatments. We are well positioned in this segment, having experienced significant growth and played a key role in expanding this category in Norway. However, we are only at the beginning of this journey in Sweden, Denmark, and Finland, where only 2-3% of those eligible for treatment have tested an obesity prescription drug, compared to 8-10%, or even higher, in Norway.

In neurology, particularly with Parkinson’s disease, the market is projected to double over the next decade due to an aging population and improved diagnostics, allowing earlier treatment of patients.

Could you elaborate a bit about your products, e.g. Mysimba and Flexilev, and how they hold up against competitors?

Since Mysimba’s launch in 2017/18, it has shown tremendous growth, stabilizing more recently in late 2023 and 2024. We take pride in maintaining our position in what has been an increasingly competitive market. Although competitors have entered the market, we believe there is still significant growth potential for Mysimba, especially in Norway, where alternative treatments are gaining traction, which in turn supports growth across the category. Mysimba has a unique mechanism of action, targeting the brain to reduce hunger and control cravings, unlike other products. Its two Active Pharmaceutical Ingredients are well-established, and we are uniquely positioned compared to competitors, giving us a distinct advantage in a growing niche.

Moreover, Mysimba is the only product in Norway that offers individual reimbursement, which is a significant benefit for eligible patients. It also provides individual reimbursement in Finland, where we are seeing strong growth and expect continued expansion as more patients qualify for treatment.

Turning to Flexilev, which contains levodopa-carbidopa, the standard treatment for Parkinson’s disease, our unique offering lies in our mini-tablets combined with a digital device. This combination provides an easier, non-invasive alternative to existing treatments. The device not only dispenses the medication, which allows for a more constant and individually adjusted dosing regimen, but also records data, which enables doctors to monitor patient compliance and progress. Flexilev is well-priced, profitable, and reimbursed in all four Nordic countries. It has marketing authorization in 10 European countries, with plans to expand across the rest of Europe. We are targeting Parkinson’s patients in stages three to four, which accounts for 20-30% of the patient population. Next year, we will also launch OraFID, a mechanical dosing device with 2 250 mini-tablets, enabling patients and caregivers to dispense the exact number of tablets desired.

How big do you estimate that the current market is for Eroxon in Sweden, given that you are the sole actor within the non-prescription segment?

Eroxon stands out as the first non-prescription product for erectile dysfunction in Sweden, distinguished by its mode of action. In Sweden, 67% of men who experience erectile dysfunction from time to time do not seek treatment, and 38% of all men report occasional or regular issues with erectile dysfunction. Given Sweden’s population of approximately 5 million men, this presents a substantial market opportunity.

In comparison to other countries, Finnish men tend to use more RX pharmaceutical products, indicating a greater inclination toward treatment. In Norway, the incidence of erectile dysfunction is slightly lower, with 2 out of 10 men affected, and a smaller portion, around 40%, who do not treat themselves. Notably, the market in Norway experienced a 60% growth following the launch of non-prescription Viagra, which gives us optimism about Eroxon’s potential in Sweden.

In Norway, we attained a 7% market share shortly after our launch in March this year, and we’ve seen similar results in other countries which are in a comparable situation to Sweden. While it takes time to build the category in new markets, we believe Eroxon will become a big contributor in our consumer health portfolio.

Looking ahead, we are preparing to launch Eroxon in Finland in November, and the positive feedback from KOLs provides strong endorsement for the product.

You have made several acquisitions in the past years. Have these been fully integrated, and are acquisitions a part of your strategy going forward?

All our recent acquisitions have been successfully integrated. Our first acquisition, which was an antibiotic portfolio, was relatively straightforward since it did not involve transferring any personnel, it was just a simple plug-and-play. However, integrating Sensidose, which we acquired last year, was more complex because it was a publicly listed company with tailored internal systems designed to support their strategy. We have spent this past year fully integrating it, and it is now running smoothly. We are moving forward quickly, especially in collaboration with Orion Pharma, to which we have out-licensed the product Flexilev in OraFid®  in 27 European countries, including the “big five”: Germany, France, Italy, Spain and the UK.

Looking ahead, acquisitions will remain a key part of our growth strategy. We are quite selective in what we acquire, ensuring the product or company has strong growth potential, rather than focusing solely on past performance. It also needs to align with our competencies so we can continue scaling the business effectively. An interesting development is that, as we grow, we are now in a position to consider larger targets than before, especially since our positive EBITDA makes financing of acquisitions easier.

Where do you see Navamedic in three years?

We are aiming to reach NOK 1bn in revenues within three to five years based on our current portfolio. However, I believe the most interesting aspect is the strategic transformation we have undergone, which gives credibility to where we will be in three years. When my colleagues and I started in 2019, Navamedic was primarily a distribution company with a mix of short- and long-term agreements, but no owned assets. Our history included a major partner that, despite our strong performance, eventually parted ways. This highlighted the need for a strategic shift as we could not just rely on distribution agreements, we also needed to own brands and take control.

Over the past five years, we have systematically executed this strategy by in-licensing products where we can control the brand, marketing authorizations (MAs), and in some cases even securing patents to sell globally. This approach has reduced our risk exposure. While we recognize that products will eventually exit or face new competitors, our diversification and ownership of more assets have positioned us well for profitable growth.

In three years, we anticipate having expanded our antibiotic portfolio into more European markets, and with our partner Orion Pharma launched Flexilev in OraFID in multiple European countries. We will look for a global partner to eventually launch Flexilev in OraFID outside of Europe in Japan, China, and the US.

Additionally, I anticipate we will have completed a few more acquisitions to further bolster our portfolio.

Could you give three reasons as to why Navamedic is a good investment today?

• Growth: As a growth company with a solid track record, we are well-positioned in our segments to capitalize on both current market growth and untapped potential in existing products. Additionally, our pipeline includes several promising new products slated for launch in the coming years.
• Strategic Shift: Our strategic move towards owning products allows us to more easily expand into new markets and out-license to partners, reducing financial risk while scaling up our business. 

• Risk Aversion: We are a pharma company, and unlike many biotech companies, we do not take any development risks by in-licensing products still in development. Our focus is on commercial risk, which, combined with our diversified portfolio and ownership of products, makes us an attractive investment in comparison to others in the sector.