1 | Annual report 2023, Navamedic ASA
Annual report 2023
2 | Annual report 2023, Navamedic ASA
03
Navamedic at a glance
03
Key figures
04
Comment from the CEO
06
Directors’ report
15
ESG report
22
Corporate governance
30
Consolidated financial statements 2023
37
Notes to the consolidated financial statements
70
Parent Company Navamedic ASA - financial statements 2023
76
Navamedic ASA - notes to the financial statements 2023
88
Auditor’s report
94
Alternative Performance Measures (APMs)
Table of contents
3 | Annual report 2023, Navamedic ASA
Key figures
(in NOK '1000)
2023
Total revenue
511,997
Gross profit *
199,054
Adjusted EBITDA *
51,566
Operating profit (EBIT) *
23,580
Profit before tax continuing operations
10,834
Net profit / loss (-)
3,305
Total assets
524,305
Total equity
222,391
Gross margin (%) *
38.9 %
Adjusted EBITDA margin (%) *
10.0 %
Equity ratio (%) *
42.4 %
* Alternative performance measures (APMs)
Highlights for 2023
• In 2023, Navamedic increased revenues by 34% year-over-year to record high NOK 512 million (NOK 382 million)
and for the first time, all 3 business areas passed the NOK 100 million mark.
• Adjusted EBITDA was NOK 51.6 million, same as the year before (NOK 51.7 million), demonstrating the
company’s capacity and ability to deliver profitable growth.
• Acquired Sensidose AB, a Swedish company, with marketing approval across ten countries in Europe for
Flexilev® in MyFID® dispensers for treatment of Parkinson’s disease.
• Subsequently, and in line with Navamedic’s out-licensing strategy, a non-binding agreement was entered with
Orion for supply of Flexilev® with OraFID® dispensers in continental Europe.
• Acquired rights to market and distribute Eroxon® in the Nordic. This clinically proven treatment of erectile
dysfunction was launched in Norway in early 2024.
• Reiterated the 20% annual growth target and mid-term ambition to build a NOK 1 billion revenue company with
15% EBITDA margin.
4 | Annual report 2023, Navamedic ASA
Comment from the CEO
2023 was a great year for Navamedic with many significant achievements. On
one hand we reached our expressed mid-term goal of NOK 500 million in
revenues a year before anticipated, while simultaneously completing the
transformative Sensidose acquisition. The year can be summarized by
Navamedic having delivered higher than expected growth, both organically,
through acquisitions and new product launches, staying true to our strategy.
We increased revenues by 34 percent year-over-year to a record high NOK 512
million. We added NOK 130 million in revenue from 2022 to 2023 and
maintained an adjusted EBITDA level of NOK 51.6 million in a year of acquisitions
and significant investments in future growth. And, for the first time, all business
areas surpassed NOK 100 million.
A year with many achievements
In May, we expanded Navamedic’s footprint in Sweden. First, we expanded the geographic footprint by acquiring
the rights to distribute and sell Alflorex® in Sweden, a food supplement providing everyday support for gut and
digestive health. We also completed the acquisition of Sensidose AB, a Sweden-based company offering a unique
and individualised micro-dosage treatment for advanced Parkinson’s Disease. Between 1-2 percent of the
population is affected by the disease and it is estimated to double by 2030, becoming an increasingly serious public
health challenge. We estimate that our Flexilev® treatment is relevant to 20 percent of those affected, opening up a
whole new window of opportunity for Navamedic to expand its horizons into other geographies outside the
Nordics.
Commercial marketing and distribution activities are well underway in the Nordics through our own sales and
distribution channels. Towards the end of the year, we signed a non-binding agreement with the Finnish
multinational company Orion Corporation to market, distribute and sell Flexilev® in 27 countries in Europe,
including the “big five”: Germany, France, Italy, Spain, and the UK. During the second half of 2023, we landed an
agreement for Navamedic to distribute and sell Eroxon, a nonprescription erectile dysfunction treatment, in the
Nordics. We subsequently launched Eroxon in Norway in early 2024 and aim at launching in the other Nordic
countries later during this year.
Always starting with consumer needs
At Navamedic, we are passionate about people and public health. When looking for new opportunities, we start by
identifying unmet consumer and patient needs in our main territories, upon which we actively seek out potential
products and partners that can help us achieve our goals.
Our portfolio can be explained by three business areas:
Prescription Drugs being the largest area with more than NOK 300 million in revenues. Revenues from Mysimba, a
first-in-line prescription treatment for obesity in Norway, and currently the only obesity medication approved for
reimbursement in Norway, has seen significant increases over the last few years and is the one of the main drivers
for the portfolio growth. The other key driver in Prescription Drugs is Imdur, a branded generic drug to treat angina.
Kathrine Gamborg Andreassen
Chief Executive Officer
5 | Annual report 2023, Navamedic ASA
The second business area, Consumer Health, reached the NOK 100 million revenue mark in 2023, with Modifast
being the one of the main contributors for growth. This range of low-calorie meal replacement products was part of
the Impolin transaction in 2022. We also achieved solid growth for several of the other brands in Consumer Health,
including Absolut Torr, Thermacare, SmectaGo and others.
Last, but not least, we have had a robust development of our products in the Hospital business area, which also
reached NOK 100 million in revenues. This area consists mainly of two product portfolios, our antibiotics portfolio
and the Medical Nutrition products. The main growth driver in this business area was the antibiotics portfolio,
which increased mainly as a result of new tender wins, but we also saw solid growth in our Medical Nutrition
portfolio.
We see rapid growth in the obesity treatment space. Mysimba continues to be the main engine in our obesity
offering, but Navamedic has a range of other treatment options that can individually support patients throughout
their weight loss journey, such as Modifast.
We also offer help and guidance through our patient support programs, MyControl Support and ‘Lättare
tillsammans’, where we experience a steady increase in participants each year.
2023 also marked a milestone for Navamedic’s sustainability efforts. We have taken tremendous strides in our focus
on sustainability in all aspects of our operations, including identifying and delivering on our quantified targets,
increased ability to quantify and analyze our carbon footprint and ensuring that our key partners in the value chain
also commit themselves to responsible operations. More details on our sustainability efforts are available in the
sustainability report later in this report.
Our many achievements in 2023 would not have been possible without the dedicated Navamedic team, who has
worked hard every day. We strive to be a company with a cooperative work environment and to have a work culture
with interesting and exciting challenges so we can live up to our aim to be a proud contributor to public health. I
really believe our team’s dedication to this makes a difference in our patients’ lives. I would also extend my
gratitude to our investors and stakeholders who have supported us along the way.
This is an incredibly exciting time for Navamedic. We continue to work towards our ambition to be a NOK 1 billion
company with a 15 per cent EBITDA margin. We stand behind our vision to become a leading pharmaceutical
company in the Nordics, while simultaneously being conscious of our environmental footprint. Our competitive and
well-balanced portfolio enables further growth, and we continue to look for opportunities to strengthen our
product range even further, both in the Nordics and elsewhere.
I look forward to keeping you all updated on our achievements as we go.
6 | Annual report 2023, Navamedic ASA
Directors’ report 2023
7 | Annual report 2023, Navamedic ASA
Group performance
Navamedic result for 2023
In 2023, the Group reported revenues of NOK 512.0 million, up from NOK 382.1 million in 2022, representing an
increase of 34%, mainly driven by growth in Rx and Consumer health area.
The EBITDA in 2023 was NOK 35.5 million, compared to NOK 51.7 million in 2022. However, the EBITDA included
NOK 16.1 million in transaction costs related to the Sensidose AB acquisition. Taking that into consideration, the
EBITDA was relatively flat compared to last year, mostly as a result of continued investments in future growth
initiatives.
The operating result (EBIT) in 2023 was NOK 23.6 million, compared to NOK 44.4 million in 2022. Net financials were
negative NOK 12.7 million in 2023, compared to negative NOK 10.4 million last year. The profit before tax was NOK
10.8 million in 2023, down from NOK 42.5 million in 2022 while the profit after tax was NOK 3.3 million in 2023,
compared to NOK 29.4 million last year.
The total comprehensive income was NOK 3.8 million in 2023, compared to NOK 32.4 million in 2022.
The Group’s cash flow 2023
The Group had a net cash flow from operating activities in 2023 of NOK 2.2 million, compared to NOK 17.9 million in
2022. The decrease of NOK 15.8 million was driven by significant transaction costs related to the Sensidose AB
acquisition, higher personnel costs and higher inventory levels.
Net cash used in investing activities was NOK 104.6 million in 2023, compared to NOK 25.4 million in 2022. The
investing activities cash flow is primarily related to the purchase price paid for Sensidose AB in 2023, Impolin AB
earn-out paid in 2023 and a loan granted to Observe Medical ASA.
The net cash flow from financing activities was NOK 83.2 million in 2023, compared to NOK 10.1 million in 2022. Net
proceeds from loans equals to NOK 90.1 million and interest paid was NOK 7.3 million. Proceeds from share capital
issuance are related to the share options exercised.
The cash and cash equivalents were NOK 38.0 million at 31 December 2023, compared to NOK 55.3 million at 31
December 2022.
Financial position as of 31 December 2023
The Group’s consolidated total assets were NOK 524.3 million at 31 December 2022, up from NOK 382.8 million at
year-end 2022. Non-current assets were NOK 314.2 million, up from NOK 139.2 million. Current assets were NOK
210.2 million compared to NOK 243.5 million at 31 December 2022. The increase in non-current assets is mainly
driven by the goodwill and intangible assets related to Sensidose AB as well as reclassification of the loan to
Observe Medical AS from current to non-current. The net decrease in current assets is primarily related to the loan
receivables reclassification.
At the end of 2023, Navamedic had equity of NOK 222.4 million, compared to NOK 209.7 million per 31 December
2022, representing an equity ratio of 42.4%. Non-current liabilities are NOK 112.6 million per 31 December 2023
compared to NOK 47.0 million at 31 December 2022. The Group had current liabilities of NOK 189.3 million
8 | Annual report 2023, Navamedic ASA
compared to NOK 126.1 million at 31 December 2022. The increase in liabilities is driven by the new loan facility
from Nordea and recognized licence liability.
Navamedic strategy and outlook
Navamedic’s vision is to become a leading Nordic pharma company. Navamedic aims to continue delivering on its
growth strategy both organically, by further fostering the sales of existing products, and through acquisition of new
product licenses and companies. Successful acquisition and integration of Sensidose AB and Impolin AB
demonstrated our capability to not only deliver on our existing portfolio growth ambitions, but to recognize the
possibility for expansion into other product areas. Therefore, both growth strategies will remain equally important
in the future.
We see substantial potential to include more products in the existing distribution and market access platform in the
Nordic region and the Benelux countries. With a well-functioning system of logistics and distribution, as well as
skilled product specialists who regularly meet with hospitals, specialists, general practitioners and pharmacies,
Navamedic has the right set-up to launch new prescription and non-prescription pharmaceuticals.
The Company also actively strives to build and retain value through ownership and in-licensing as well as further
development of assets, both short- and long-term. Through attaining new licensing rights and acquiring new
products, the Company will increase its share of pharmaceuticals it owns the marketing rights and trademarks.
Navamedic has solid expertise and capacity within this field and is constantly building a solid pipeline of products
to be launched in the coming years.
Based on the growth strategy and outlook, the Board of Navamedic expects the Company to continue the positive
development in 2024 and show solid growth in the coming years. Navamedic’s financial targets are 20% annual
growth coupled with accretive acquisitions to reach its ambition to, in the mid-term, build a 1 billion NOK company
with a gross margin of 40% and an EBITDA margin of 15%.
Risk management
The operational and financial risks Navamedic is exposed to are for the most part similar to many other
pharmaceutical companies, however, there are some key differences. Unlike many other pharmaceutical
companies, Navamedic does not have significant product development risks and only has indirect risks related to
production.
The Group's operations expose it to various types of financial risk: Market risk (including operational risk, currency
risk, interest rate risk, and price risk), credit risk, and liquidity risk.
The Group is exposed to operational risk. The Group believes that such a risk will primarily arise in relation to the
development of future sales of the Company's products, measured in terms of both price and volume. Factors that
can influence market risk include increased competition, out-of-stock situations at its suppliers, price reductions
and competition from existing and future pharmaceuticals within the Company's range of therapies.
9 | Annual report 2023, Navamedic ASA
The Company depends on supply and distribution from suppliers. The Company has supply and distribution
agreements with suppliers in which the term of the agreement varies from one to eight years. The Company is
dependent on renewing these agreements at fair prices and on market terms and conditions and is therefore in
continuous dialogue with the key suppliers to ensure they are renewed at favorable terms.
There is a risk that some of the Company's products may face competition from new products as well as generic
products. The risk of this can be reduced by a more diversified and broader portfolio of products.
Financial risk mainly consists of interest-, currency-, credit- and liquidity risks. Navamedic continuously monitors
these factors and actively manages risk through its operations and through other measures. In 2023, the relative
weakening of the Norwegian Krone (NOK) had a negative impact on the Group’s results, most noteworthy on the
gross margin.
As at 31 December 2023, the Company considered the Group’s liquidity to be satisfactory.
The interest rate risk is primarily linked to the Group's liquidity and interest rates may affect the Group's borrowings
and deposits. Navamedic has entered into a hedging agreement with Nordea to limit the interest rates fluctuation
risk. The Company's interest rates on bank deposits and short-term liquidity investments are floating. Interest rates
on external loans are based on 3-month NIBOR plus a margin.
In 2023 a substantial portion of the Group’s revenue and the majority of salaries and other operating expenses were
in NOK and SEK while smaller part was in DKK and EUR. Materials are generally paid for in EUR, GBP, SEK and USD.
Net investments in foreign subsidiaries are exposed to currency risk in SEK. The Board assesses the Company's
need for currency hedging on an ongoing basis but has currently not introduced specific hedging strategies beyond
natural hedging and specific assessments in larger agreements.
Navamedic trades with third parties deemed creditworthy and generally sells its products to major actors such as
pharmacy chains and wholesalers, as well as public health sectors and hospitals.
Trade receivables are continuously monitored, and the risk of incurring losses is generally regarded as low. The
Group also has a factoring agreement with a third party to further reduce the risk of incurring losses on receivables.
Navamedic performs internal evaluation of climate related risks connected to its operations and important parts of
the value chain. The Company currently sees limited risk and the monitoring of these risks is going to continue in
the future. There has been an increased focus on the affect Navamedic has on the environment and a more
comprehensive description on this can be found in the Sustainability section of this report.
Navamedic is, as most other companies, exposed to adverse developments in the geo-political arena. Imbalances
and/or disruption in global markets may pose a risk to the Navamedic on-going business to the extent that our
suppliers, production partners or other partners may be unable to uphold their production or deliveries. It may also
lead to increased transportation costs which may in turn negatively affect Navamedic’s margins. In 2023 the war in
Ukraine gave a situation of some instability, however, this did not directly affect Navamedic as the Company has no
suppliers, customers nor other business relations in Ukraine or Russia.
10 | Annual report 2023, Navamedic ASA
Navamedic performs regular risk assessment as stipulated by the Act relating to enterprises' transparency and work
on fundamental human rights and decent working conditions (Åpenhetsloven) in Norway. The report covering this
risk assessment will be available at the Company’s website by 30 June 2024.
Organization
The Group had 45 employees at the end of 2023, compared to 34 at the end of 2022. Most of the increase is due to
the acquisition of Sensidose AB in 2023, but we have also strengthened the team in other key areas.
In accordance with the Norwegian Public Limited Liability Companies Act, the Board has prepared a report
concerning pay and other benefits for executive personnel, which is partly included in note 15.
Navamedic ASA has entered into Board liability insurance for the Group’s Board of Directors and CEO. The
insurance covers financial claims against the Board members or CEO that may arise as a result of actions taken by
the Board or CEO. The insurance policy is with a reputable firm, and it applies to Navamedic ASA as well as all of its
subsidiaries.
Corporate governance
Navamedic complies with the Norwegian Code of Practice for Corporate Governance (NUES). Please see the
separate section of the annual report (page 24) for the Company's corporate governance report.
The share
The Navamedic share has been listed on the Oslo Stock Exchange since 2006 with the ticker NAVA. As at 31
December 2023, the Company had 17.352.777 outstanding shares, each with a nominal value of NOK 0.74 per share,
and 1,344 shareholders.
Parent company
Internal support and shared services have been organized in the parent company, Navamedic ASA, in areas where
substantial economies of scale and synergies can be realized. The parent company has a master agreement on
royalties from its subsidiaries Navamedic AB and Navamedic AS. The parent company holds the rights to various
products that are resold by the subsidiaries and the parent company thereby earns royalties. The royalties are
based on actual sales in Navamedic AB and Navamedic AS. Service fees are charged to subsidiaries covering costs
for strategic development, marketing, logistics and purchasing management, as well as financial and accounting
management. In addition, the parent company has activities relating to insurance, systems development and
operations and other operating activities that are performed on behalf of its subsidiaries, which are also charged
out.
11 | Annual report 2023, Navamedic ASA
The operating revenue in Navamedic ASA of NOK 47.6 million in 2023, compared to 46.3 million in 2022. Total
operating expenses increased to NOK 81.2 million in 2023 from NOK 56.0 million in 2022 mainly due to transaction
and personnel cost.
Net financial items amounted to NOK 13.5 million in 2023, compared NOK 59.0 million in 2022. Equity amounted to
NOK 201.5 million compared to NOK 212.8 million in 2022.
Disposal of net result for the year and dividends
The parent company’s result after tax for 2023, after the receipt of group contribution, was negative NOK 20.1
million. The Board proposes that the net result for the year be transferred to retained earnings.
Subsequent events
In February of 2024, Navamedic launched Eroxon, a breakthrough treatment of erectile dysfunction disorder in
Norway. The product will be launched successively in the other Nordic countries during 2024.
Going concern
The annual financial statements have been prepared on the assumption that the Company is a going concern. The
Board confirms that the basis for the Company as a going concern exists and bases its opinion on the Company and
the Group’s financial position, the agreements that have been signed with both suppliers and customers, expected
cash flows in 2024, and the Company's financial liabilities. Due consideration has also been given to possible
negative future impacts of macro-economic conditions and the world’s geopolitical situation in the assessment
supporting the going concern assumption.
12 | Annual report 2023, Navamedic ASA
Responsibility Statement
We confirm, to the best of our knowledge, that the consolidated financial statements for 2023 give a true and fair
view of the Company’s assets, liabilities, financial position, and results of operation. Furthermore, that the report
provides a fair overview of the information specified in Section 5-6, fourth paragraph of the Norwegian Securities
Trading Act.
The Board of Directors and CEO of Navamedic ASA
Oslo, 29 April 2024
Chairman
Board member Board member
Board member
CEO
Board member
Board member
13 | Annual report 2023, Navamedic ASA
Kathrine Gamborg Andreassen
CEO
Kathrine was appointed CEO of Navamedic in January 2019 and has extensive experience from
sales, marketing, and management of healthcare products. Before she was appointed CEO,
Kathrine was elected as Chair of the Board in June 2018. Kathrine held the position of CEO at
Weifa ASA until the company was acquired by Karo Pharma AB in November 2017. Ms
Gamborg Andreassen holds an MSc in Business Strategy & Marketing from the University of
Wisconsin, Madison and a Bachelor of Business and Administration from Oslo School of
Business.
Lars Hjarrand
CFO
Lars joined Navamedic in December 2019. Prior to joining Navamedic Mr Hjarrand has
extensive finance experience from several different companies and industries over the past 20
years. Mr Hjarrand holds a bachelor’s degree in economics from University of Minnesota and
an MBA in Finance from the Carlson School of Management.
Terje Bakken
Chair of the Board
Terje is a partner at Reiten & Co. He has solid investor experience through leading and
implementing various strategic and operational value-based processes, across different
industries, combined with considerable financial transaction and finance experience. Mr
Bakken holds a Master of Science in Financial Economics and Bachelor of Business and
Administration degrees from BI Norwegian Business School. Mr Bakken currently sits on the
Board of Directors of Observe Medical ASA (Chairman of the Board), QuestBack Group AS
(Chairman of the Board) and Tivian Inc. (Chairman of the Board).
Jostein Davidsen
Board Member
Jostein has more than 30 years' experience from the international
pharmaceutical industry, including managerial positions at Nycomed and
Takeda Pharmaceuticals and as CEO of the Swiss company Acino
Pharmaceuticals. Today he holds several Board mandates in the industry.
The Management Team and Board
Management Team
Board of Directors
14 | Annual report 2023, Navamedic ASA
Narve Reiten
Board Member
Narve is the founder of Reiten & Co and has extensive investment and
operational experience in the Nordic market. Mr Reiten holds a Master of
Business and Economics degree from the BI Norwegian Business School
and is a Certified Financial Analyst (CFA) from the Norwegian School of
Economics and Business Administration.
Edmée Jeanne Steenken
Board Member
Edmée has 25 years of experience in the pharmaceutical industry,
working with global brand management and product development. She
has held both global, regional and local commercial roles, and has
experience in integrating and divesting portfolios.
Åsa Kornfeld
Board Member
Åsa has 25 years’ experience from the international pharma industry in
pricing and market access, clinical development, and health economics.
She built and headed Lundbeck’s corporate pricing & market access
department and then had several senior management roles in
consulting. Today she holds several Board mandates and is a consultant.
Annika Kollén
Board Member
Annika has 20 years of experience in the pharma industry in various
Supply Chain Management positions such as Nordic lead at Novartis and
Global head of Supply Chain at Sobi. At Inceptua she holds the position
as EVP Global Supply Chain and Operations and is part of the
management team.
15 | Annual report 2023, Navamedic ASA
Sustainability report
Contribution to the United Nations sustainable development goals
16 | Annual report 2023, Navamedic ASA
Contribution to the United Nations sustainable
development goals
Navamedic’s commitment to sustainability took tremendous strides in 2023.
Not just in building a sustainable operation, but also in regard to embedding
sustainability as a focus area both internally, but also up and down the supply
chain. From the initial phases of Navamedic’s sustainability journey, 2023
emerged as a pivotal year marked by strong commitment and concerted efforts
towards our goals communicated in the 2022 ESG report.
Throughout 2023, we embraced sustainability with renewed enthusiasm,
recognizing that it is no longer a mere option but a fundamental driver of resilience,
growth, and long-term value creation. In this section we reflect on our great journey
undertaken during this transformative year—a journey characterized by concrete actions, measurable
contributions, and a steadfast dedication to sustainable practices.
Navamedic continues to base its sustainability goals and efforts on the United Nations Sustainable Development
Goals (SDGs). Our assessment of which SDGs to focus on is based on where we believe our contributions are most
impactful, and they are:
Contribute to safe and timely supplies of medicines by minimizing the risk of shortages through close
collaboration with our partners included in the whole value chain
Contribute to people’s health by focusing on important medical needs, such as obesity, antibiotics and
medical nutrition
Commit to respecting fundamental human and labour rights, both in our own business and
throughout the entire value chain
Support work/life balance for employees as a flexible company
Promote employees competence development
Focus together with suppliers on sustainability initiatives
Focus on packaging material of our products to reduce waste, introduce environmental-friendly
alternatives and improve labelling to sort waste material
Transport products in a more sustainable way to reduce CO
2
emission
Implement a travel policy to support business travel in a more sustainable way
Constantly improve and document our environmental actions through the ISO 14001 certification and
internal Environmental Management System
17 | Annual report 2023, Navamedic ASA
In light of escalating environmental challenges, such as climate change, biodiversity loss and resource depletion,
organizations and the international community has rallied together to implement robust sustainability strategies
aimed at mitigating adverse impacts and fostering positive change. From the adoption of renewable energy
solutions to the implementation of circular economy principles, the business community has demonstrated a
heightened sense of responsibility towards safeguarding our planet for future generations. Navamedic is dedicated
to joining these forces and maintains close dialog with all relevant partners up and down in our value chain in order
to identify and implement actions that contribute to the reduction of the environmental footprint. We recognize
that product packaging, product transportation as well as company cars and business travel are the main areas
where we can contribute. Below are some of the concrete actions taken and results achieved in 2023.
Recognizing the critical importance of tracking carbon emissions, Navamedic implemented robust methodologies
to quantify its environmental footprint in 2023. By doing so, the company aims not only to monitor its
environmental impact but also to set clear targets for emissions reduction and drive meaningful progress towards a
more sustainable future. Navamedic has adopted World Favor, a renowned sustainability system, as our tool for
calculating emissions across Scope 1, 2, and 3. These scopes delineate various categories of carbon emissions, each
with its own significance in understanding and addressing our environmental impact.
Product transport optimization
In 2023, Navamedic made significant strides in optimizing our transportation practices by concentrating efforts on warehouse
consolidation. By reducing the number of warehouses, we aimed to streamline shipments and minimize transportation
requirements. Our primary objective remains the reduction of kilometers traveled in transporting products, both from suppliers
to our warehouses and from warehouses to customers. Through collaborative efforts with our customers and suppliers, we
prioritize maximizing shipment loads to effectively minimize our overall environmental footprint. This commitment to efficient
logistics not only enhances operational efficiency but also aligns with our broader sustainability goals.
Product packaging optimization
During 2023, Navamedic, in collaboration with our product suppliers, succeeded in implementing the removal of excess plastic
from one of our products packages. We also were able to reduce the size of the packaging of another product by reducing the
empty space in the packaging, hence reducing the materials used. We are very pleased to see that the effect of these actions
yields quantifiable contribution to our goals.
Environmental
Environmental
Science based target initiative
The Science Based Targets initiative, a collaboration between the CDP, the United Nations Global Compact, World Resources
Institute, and the World Wide Fund for Nature, welcomed Navamedic into its ranks in 2023. Being part of this initiative affords us
the opportunity to have our emissions reduction targets validated by the Science Based Targets initiative, ensuring alignment
with the Paris Agreement's objectives. We take pride not only in setting comprehensive environmental goals and delineating
future actions but also in ensuring that these actions are grounded in robust scientific foundations.
Environmental
18 | Annual report 2023, Navamedic ASA
As the societal landscape continues to evolve, businesses need to reassess their roles and responsibilities within
the communities they operate. Embracing principles of corporate social responsibility (CSR) and stakeholder
engagement, a vast majority of companies have embarked on their sustainability journey through initiatives
aimed at fostering inclusive growth, promoting diversity and equity, and addressing pressing social issues.
Navamedic is actively assuming its role in this realm by actively contributing to the well-being of society, both by
being an important contributor to public health and by being an attractive place to work.
Central to our social responsibility is the unwavering commitment to ensuring a stable supply of necessary
pharmaceutical products in our portfolio. We recognize the vital role these products play in contribution to public
health, and as such, we prioritize the reliability and accessibility of our offerings. Through proactive supply chain
Quantifying our environmental footprint
Prior to 2023, Navamedic developed a methodology to collect the inputs from all aspects of our operations needed to measure
total CO2 emissions. During 2023, we have collected data related to key activities such as product transportation (from our
suppliers to our warehouses and from our warehouses to our customers), business trips, purchases of various goods, energy
consumption, waste etc. By quantifying emissions across these scopes, we gain comprehensive insights into our carbon footprint,
allowing us to identify areas for improvement and implement targeted strategies to reduce our environmental impact.
Environmental
Direct emission from
company cars
Electricity and heating used
in company facilities
Business trips
Office supplies
Transport of products
16.1
tCO2
0.8
tCO2
59.8 tCO2
9.8 tCO2
68.2 tCO2
Scope 1
Scope 2
Scope 3
Products
transport
44%
Business
trips
39%
Other
17%
3.4 tCO2 per employee
0.3 tCO2 per mNOK revenue
% of total
emission
19 | Annual report 2023, Navamedic ASA
management and strategic partnerships, we strive to mitigate disruptions and ensure that patients have access
piato the medications they need, when they need them.
In addition to maintaining a stable supply chain, we proactively monitor and assess emerging healthcare needs to
identify opportunities for innovation and product development. By staying abreast of evolving medical trends
and public health challenges, we remain agile in our response, continuously seeking to address unmet medical
needs and improve patient outcomes.
At the heart of our social responsibility initiatives is also our commitment to our employees. We recognize that
our success is intrinsically tied to the dedication and expertise of our team members, and as such, we prioritize
creating a culture of inclusion and non-discrimination, ensuring that every individual, regardless of race, gender,
sexual orientation, disability, or background, feels valued, respected, and empowered within our organization.
Through various initiatives, we strive to cultivate a workplace where every individual feels valued, empowered,
and inspired to contribute their best. Of total 44 employees in 2023, 26 are women and 18 are men.
Lighter Together program
Modifast Lighter Together is a support program to make weight management and lifestyle changes more achievable when done
with others. Lighter Together is a structured program with different phases based on the Modifast method developed by a dietitian
more than two decades ago. Rapid initial weight loss may increase motivation by providing positive feedback and promote further
weight control behaviors, as shown in studies. Lighter Together starts with a low-calorie diet (LCD) with Modifast diet replacements
following a gradual reintroduction with healthy and well-balanced meals. Physical activity is also included in the program with
increasing intensity throughout. The program lasts for six weeks and provides evidence-based information, support and
motivation from experienced dietitians online. The program includes dedicated newsletters several times a week and a Facebook
group moderated by a dietitian where participants have the possibility to inspire and support each other during their weight
journey. One main advantage of the program is that the participants start at the same time and therefore experience the different
phases together throughout the process.
Social
My control
With our website MyControl, we hope to increase knowledge about obesity among the general public. The site, which highlights
causes, risks and the benefits of a long-term weight loss, places great focus on the brain’s role in developing and mastering the
disease and, in addition to current treatment options, also addresses the importance of the right treatment. The website is
available in Norwegian, Swedish, Danish and Finnish. Navamedic contributes to obesity management by providing top of the line
pharmaceutical treatment that can help patients lose weight and keep a lower weight. Navamedic also educates healthcare
personnel in obesity management.
Social
6-in-1 meetings with pharmacy professionals
Navamedic is proud to collaborate with five other prominent pharmaceutical companies in a program that directly engages
pharmacy employees. By interacting with those who work closest with patients, we gain invaluable insights into their needs and
receive constructive feedback. This engagement also offers us a chance to ensure a thorough understanding of our products within
the healthcare community. We firmly believe that this initiative significantly enhances our ability to make a positive social impact
by fostering better support systems for patients.
Social
20 | Annual report 2023, Navamedic ASA
Further to this, governance considerations remain at the forefront of corporate agendas, as businesses are seeking
to enhance transparency, accountability, and ethical conduct across their operations. Strengthening corporate
governance frameworks, fostering board diversity, and upholding rigorous standards of integrity have become
paramount objectives, ensuring that organizations uphold the highest standards of ethical behavior and decision-
making. Navamedic is continuously committed to conducting its business with the highest ethical standards and
ensuring compliance with applicable laws and regulations. We have therefore structured our governance on
transparency principles that all relevant stakeholders need to adhere to, from our key suppliers to our customers,
employees and management.
Navamedic's Code of Conduct establishes the standard for both business and personal conduct expected from all
employees. It outlines our ethical expectations, commitments, and requirements applicable to all individuals
representing the company, regardless of their contractual relationship. This includes employees, management, the
Board of Directors, and relevant contractors. The Code of Conduct, approved by Navamedic’s Board of Directors,
covers essential topics such as business ethics, anti-corruption measures, workplace environment, and
environmental stewardship. Additionally, Navamedic adheres to the European Federation of Pharmaceutical
Industries and Associations (EFPIA) Disclosure Code. This commitment underscores our collaboration with
stakeholders like patient organizations, healthcare professionals, and governments to influence research,
regulatory decisions, and optimize medication use. Emphasizing transparency, EFPIA and its members advocate for
mandatory registration of lobbying organizations in the EU transparency register. Furthermore, we uphold EFPIA’s
disclosure provisions, ensuring transparent reporting of financial support to patient organizations across Europe.
Navamedic upholds ethical standards, complying with national and international laws and guidelines on human
and labor rights. We strictly prohibit corruption and bribery in any form, as outlined in our Code of Conduct. We
maintain a zero-tolerance policy towards corruption in our daily operations and business interactions. Guidelines
are in place for accepting gifts or benefits, and all employees are expected to identify and address potential
conflicts of interest. The CEO holds ultimate responsibility for enforcing our ethical guidelines.
Navamedic Supplier code of conduct
During 2023, Navamedic launched the Supplier code of conduct, a comprehensive guideline and requirements for our suppliers
describing Navamedic’s expectations to our partners within various categories, including areas like human and labor rights, health
& safety, sustainability, anti-bribery, child labor etc. We believe that having this document signed and committed to by our partners
further strengthens our goal to work with the suppliers whose business is run according to the highest standards.
Governance
Sustainable sourcing partners
We have implemented World Favor, a sustainability software application, to distribute comprehensive questionnaires to all our
partners, addressing key aspects of sustainability and governance. These questionnaires cover Business Ethics & Leadership,
Environmental Practices, Sustainability Approach, and Sustainable Sourcing Approach. By leveraging this platform, we ensured
that our partners adhere to the highest standards in terms of sustainability and governance across our supply chain and
collaborative endeavors. This proactive approach underscores our commitment to fostering transparency, accountability, and
sustainable practices throughout our ecosystem. More details on this can be found in the Norwegian Transparency Act report
available on Navamedic.com.
Governance
21 | Annual report 2023, Navamedic ASA
Summary of Navamedic sustainable operations focus areas
Product packaging optimization
Contribution to public health
Anti-corruption and bribery
CO2 emission reduction
Attractive employer
Code of conduct
Waste and recycling management
Sustainable sourcing
Navamedic remains firmly committed to environmental stewardship, social responsibility, and robust
governance practices. As we reflect on our current achievements, we take pride in the solid foundation we have
established, but we also recognize that our journey towards sustainability is ongoing. Looking ahead, we reaffirm
our dedication to continuous improvement, innovation, and transparency.
With a foundation established in the aforementioned focus areas, we have outlined clear objectives, initiatives,
and measures that will guide our future actions. Some of our major targets are:
- Continuous partners evaluation and follow-up on their sustainable business practice
- Climate neutral business trips by 2030
- Stay at climate friendly hotels
- All company cars to be electric
- Continue with packaging optimization (removing unnecessary material, support recycling and use of
recyclable materials
- Continue developing and maintain a robust methodology and system for CO2 emission monitoring
Governance
Social
Environmental
22 | Annual report 2023, Navamedic ASA
Corporate governance
23 | Annual report 2023, Navamedic ASA
Implementation and reporting on corporate governance
The Board of Navamedic has adopted guidelines for corporate governance in Navamedic ASA and the Group.
The Board has stipulated guidelines for ethics and corporate social responsibility that apply to all companies in the
Navamedic Group. The guidelines clarify the ethical values and standards for corporate social responsibility upon
which the Group's and the employees' work shall be based.
Business
Navamedic's business and purpose are described in article 3 of the articles of association, which reads:
"The Company's business is to develop, produce, market, and sell pharmaceuticals and related products, perform
consultancy services in connection with this, and invest in related activities."
The Company’s goals and main strategies are described on the Company's website. Its vision, goals, and core
values are set out in the Company's guidelines for corporate governance and guidelines for ethics and corporate
social responsibility.
Navamedic also has active risk management to ensure value creation for shareholders and safeguard societal
interests in general.
The Company's vision is that the business, as it is described in the articles of association, shall be run in a
sustainable manner.
Equity and dividends
Capital structure
Navamedic's registered share capital amounts to NOK 12,841,054,98 divided into 17,352,777 shares, each with a
nominal value of NOK 0.74. As at 31 December 2023, equity amounted to NOK 222,900 thousand, which results in an
equity ratio of 43%.
Dividends
Navamedic's dividend policy is established by the Board through the guidelines for corporate governance. Each
year, in connection with the preparation of the annual financial statements, the Board assesses the Company's
need for capital in the coming period. Based on this assessment, the Board issues its recommendation concerning
dividends to the general meeting with the explicit goals of ensuring the Company's strategy is implemented and
providing optimal value creation for the Company's shareholders.
24 | Annual report 2023, Navamedic ASA
Board authorisations
The annual general meeting on 1 June 2023 gave authorization to the Board to increase the share capital by up to
NOK 2,420,000 to finance further growth. This authorization replaced the previous authorization from the annual
general meeting on 2 June 2022.
The second authorization given on the annual general meeting on 1June 2023 was the authorization to the Board to
acquire own shares with a maximum aggregate value of NOK 1,274,855,49. The highest amount that may be paid
per share is NOK 100 and the lowest amount is NOK 1.
The third authorization given to the Board in the annual general meeting, was the granting of the right to approve
dividend payouts based on the 2022 financial numbers. As of the publishing of this report, no dividend has been
approved by the Board.
All authorizations are effective until the annual general meeting in 2024, but no longer than and including 30 June
2024.
Equal treatment of shareholders and transactions with close
associates
The Company has one class of share and each share in the Company has one vote. The Company owned none of its
own shares as at 31 December 2023.
Pursuant to the Norwegian Code of Practice for Corporate Governance, companies should have guidelines that
ensure that Board members and executive personnel report to the Board if they have, direct or indirect, significant
interests in an agreement entered into by the Company.
In the case of members of the Board of Navamedic, this is explicitly set out in the rules of procedure for the Board.
The Company's guidelines for ethics and corporate social responsibility, which apply to all employees and Board
members in the Group, contain guidelines for handling potential conflicts of interest.
The guidelines also stipulate that Navamedic's employees and the Board members should avoid having ownership
interests or Board positions in other enterprises if these could be deemed likely to weaken the loyalty to
Navamedic. Pursuant to the guidelines, questions concerning Board members' and executive personnel's Board
positions in companies that compete with Navamedic or that are business contacts of Navamedic, must always be
clarified with the Board of Navamedic.
Shares and negotiability
Pursuant to the Norwegian Code of Practice for Corporate Governance, the articles of association should not
stipulate any restrictions on ownership.
The articles of association contain no restrictions on the negotiability of shares. Navamedic ASA is listed on the Oslo
Stock Exchange. Navamedic also actively strives to increase the interest in the Company to attract new investors.
25 | Annual report 2023, Navamedic ASA
General meetings
Navamedic held its annual general meeting on 1 June 2023.
The notice was sent prior to the 21 days deadline and contained descriptions of the items on the agenda and the
Board's proposed resolutions. The supporting documentation was prepared with the aim of enabling shareholders
to arrive at a view concerning the items on the agenda. The registration deadline was set in accordance with the
provision in the Company's articles of association. The notices described the procedures for taking part in and
casting votes at the general meetings, as well as attendance by proxy.
The proxy forms were designed such that votes could, to the extent possible, be cast concerning each item on the
agenda. In the proxy form a person was also proposed to act as a proxy for the shareholders.
The chairman of the Board attended the annual general meeting in 2023. The Company's external auditor was also
present at the meeting.
Minutes of general meetings were published and made available under the Company's ticker on Newsweb and on
the Company's website www.navamedic.com shortly after the meeting.
Nomination committee
The nomination committee consists of chairman Bård Brath Ingerø and member Grete Hogstad. The tasks and
responsibilities of the Nomination Committee are defined as part of Navamedic’s corporate governance regime.
The Board, composition and independence
The Board of Navamedic has five ordinary members in addition to the chairman, all of whom are elected by the
shareholders. The Board members and chairman of the Board are elected in the general meeting. No Board
members are elected for terms of more than two years at a time. None of the Company's Board members have any
special interests that prevent them from acting independently.
The Company's annual report contains information about the Board members' relevant experience and current
position. The Board members have varied experience from industries such as pharmaceuticals, finance, merger and
acquisitions, industry, and marketing. This experience was gained both in Norwegian and international companies,
both in private and public enterprises.
It is Navamedic's opinion that, as a corporate body, the Board safeguards the best interests of the shareholders as a
group. This is based on the Board's qualifications, capacity and diversity in relation to the business Navamedic
operates.
In the opinion of the Board, it is desirable for Board members to own shares in the Company, but no formalized
encouragement to own shares in the Company exists. Chairman of the Board Terje Bakken and Board member
Narve Reiten have significant ownership in Ingerø Reiten Investment Company, Navamedic’s largest shareholder as
of 31.12.2023.
26 | Annual report 2023, Navamedic ASA
No Navamedic executive personnel sits on the Company's Board of directors.
The work of the Board of directors
The Board bears overarching responsibility for the management of the Company and supervision of the day- to-day
management and the Company's operations. Its main duties consist of formulating the Company's strategy and
following up the implementation of this strategy. The Board also performs control functions that ensure the
Company's asset management is prudent. The Board appoints the CEO.
Pursuant to the provisions of Norwegian company law, the Board has stipulated rules of procedure for the Board
that provide detailed rules for the Board's functions, duties, and responsibilities.
The Board has an annual plan for its work that particularly focuses on goals, strategy, and implementation. The
chairman of the Board is responsible for ensuring that the Board's work is executed effectively and correctly in
accordance with the law. For matters in which the chairman of the Board is, or has been, actively involved, another
Board member is nominated to chair the discussion such that the Company is assured an independent process.
A clear division of work between the Board and executive personnel has been established. The CEO is responsible
for the Company's operational management.
The Board holds a minimum of six Board meetings a year, one of which is a strategy meeting. Extraordinary Board
meetings are held as required to consider matters that cannot wait until the next ordinary Board meeting.
During 2023, 15 formal Board meetings were held, and the duties of the Board were also addressed through
updates via phone conferences, with and without the management team present.
The Board has established an audit committee as a sub-committee to the Board. Special rules and procedures have
been set out for this committee. The audit committee consists of two Board members who are independent of the
Company's day-to-day management team. The authorities governing the role and responsibilities of the Audit
committee has increased its tasks and responsibilities over the last years. The audit committee has taken steps to
ensure it can uphold compliance with its requirements.
The Board has also established an M&A committee as a sub-committee to the Board. The M&A committee consists
of two Board members, both of whom are independent of the Company’s daily operations.
The Board has the objective of conducting an annual evaluation of its work, working methods, and qualifications. A
similar evaluation is also conducted of the CEO.
Risk management and internal control
The Board's supervision must ensure that the Company has good internal control routines and appropriate systems
for risk management which corresponds with the scope and nature of the business being operated, including the
Company's values and guidelines for ethics and corporate social responsibility. The audit committee has particular
responsibility for monitoring risk management and internal control.
27 | Annual report 2023, Navamedic ASA
Navamedic is a relatively small company with a small management team, and with limited capacity. However, while
the Company's size and operations are not especially extensive, there are several aspects of operating in the
pharmaceutical industry that require robust routines related to internal control. The Company has established
routines to ensure satisfactory internal control and risk management.
The Board will ensure that routines for internal control and risk management are developed on an ongoing basis as
the scope of the Company's operations increases.
As part of its auditing services, the external auditor assesses whether there are any material weaknesses in the
internal control for financial reporting. The auditor takes part in the audit committee meetings as well as Board
meetings in connection with the annual accounts.
The management team emphasizes establishing good control routines in those areas that are of material
importance for financial reporting. The control routines are based on an authorization structure that defines roles
and responsibilities for each level of management, as well as guidelines for how one should ensure good internal
control, including satisfactory routines related to division of duties.
The Board receives regular financial reports in which the Company's economic and financial status is commented
on. The Company complies with the Oslo Stock Exchange's deadlines for interim reporting. The Company has
chosen not to issue interim reports in accordance with IAS 34, instead it prepares and publishes a presentation for
the quarter.
Accounting issues, should there be any, are analyzed immediately, and the external auditor is consulted if required.
An overview of relevant questions is presented to the Board in connection with the publication of interim
presentations and half-year and annual reports.
Remuneration of the Board of directors
The Board's remuneration is decided each year by the shareholders in the general meeting. The Board's
remuneration is independent of the Company's results and Board members do not have stock options in the
Company.
Information about the Board's remuneration for 2023 is included in note 16 to the financial statements. No Board
members have special duties in relation to the Company beyond their Board position and participation in the audit
committee, M&A committee and/or the remuneration committee.
Remuneration of executive personnel
In 2022, the Board set out guidelines for the remuneration of executive personnel in accordance with the provisions
of the Norwegian Public Limited Liability Companies Act.
The Board's statement on executive pay is included in the annual report as well as in the separate management
compensation report and considered by the general meeting in accordance with the Public Limited Liability
Companies Act. No subsequent changes have been made to these guidelines.
28 | Annual report 2023, Navamedic ASA
The Board's statement on executive pay was approved by the general meeting on 1 June 2023.
Procedures and authorizations for determining the remuneration of the corporate management team are governed
by the Company's rules of procedure for the Board.
The rules of procedure for the Board and the Board's statement on executive pay stipulate that all schemes that
include the awarding of shares, subscription rights, options, and other forms of remuneration linked to shares or
the development of the share price, must be established by the Company's general meeting.
The determination of the CEO's salary was approved by the Board and information about the remuneration of the
CEO and other executive personnel in 2023 can be found in note 16 to the consolidated annual financial statements.
Before determining the pay of the management team, a comparison is made with equivalent positions in
companies outside the Group. Additionally, the separate report for remuneration of executive personnel, as
required, can be found on the Company’s web page Navamedic.com.
Information and communication
Navamedic's information and communication policies are presented in the Company's guidelines for corporate
governance. The guidelines are based on the principle of the equal treatment of market actors and cover financial
reporting and investor relations.
Navamedic will provide the market with accurate, consistent, and relevant information. Half-year reports and
interim presentations for the Oslo Stock Exchange are published in English only.
According to the Company's guidelines for corporate governance, the Board must ensure that interim presentations
issued by the Company provide a true and complete picture of the Group's financial and business positions, as well
as the extent to which the Company's operational and strategic goals are achieved.
Navamedic's communication with shareholders is based on the principle that all owners should have equal access
to the information. Navamedic arranges public investor presentations in connection with the publication of half-
year reports and interim presentations. In these, the results are reviewed, and the development of the market and
the Company's outlook are commented on.
As a minimum, the CEO and CFO take part in the presentations. For 2024, Navamedic will present interim
presentations, as well as publish a half-year report and an annual report.
Take-overs
The Company's guidelines for corporate governance stipulate that in the event of potential take-overs or
restructuring situations, the Board shall exercise particular care such that the assets and interests of all
shareholders are safeguarded.
The guidelines for corporate governance at Navamedic also stipulate that the Norwegian Code of Practice for
Corporate Governance must be followed, and the Board will follow the more detailed recommendations in this
document if a potential take-over situation arises.
29 | Annual report 2023, Navamedic ASA
No take-over offers were presented to Navamedic nor its shareholders in 2023.
Auditor
The Company’s external auditor is EY. The auditor attends Board meetings in connection with the annual financial
statements and most audit committee meetings. At least one meeting a year is held between the auditor and Board
without the CEO nor other member of the Company’s executive management present.
The auditor presents an audit plan for the audit committee each year. According to the Company's guidelines for
corporate governance, the auditor shall each year provide the Board with written confirmation that they comply
with the requirements for independence and objectivity. The guidelines also stipulate that services from the auditor
beyond the mandatory audit and closely related advice must only be provided following a decision by the Board or
audit committee.
30 | Annual report 2023, Navamedic ASA
Consolidated financial
statements 2023
31 | Annual report 2023, Navamedic ASA
Consolidated statement of comprehensive income
(in NOK '1000)
Note
2023
2022
Operating revenues
4
511,997
382,135
Total revenue
511,997
382,135
Cost of materials
312,944
218,615
Payroll expenses
16
63,673
48,088
Other operating expenses
15
99,876
63,745
Operating profit before depreciation and amortization (EBITDA)
35,504
51,687
Depreciation
7
3,315
2,392
Amortization
8
8,610
4,850
Operating profit (EBIT)
23,579
44,445
Income/(loss) from associated companies
0
-1,101
Gain on disposal of associated companies
0
9,514
Financial income
4,351
19,464
Financial expenses
-14,337
-3,416
Net currency gains/(losses)
5,939
-9,242
Net change in fair value of current financial assets
-8,699
-17,158
Net financial income and expenses
17
-12,746
-10,352
Profit before tax
10,833
42,506
Income taxes
26
7,529
13,074
Net profit / (loss)
3,304
29,432
Other comprehensive income that may be reclassified subsequently to profit or loss:
Currency translation differences
502
2,982
Total other comprehensive income
502
2,982
Total comprehensive income
3,806
32,414
Attributable to:
Shareholders in the parent company
3,806
32,414
Earnings per share basic (NOK)
23
0.191
1.751
Earnings per share diluted (NOK)
23
0.188
1.729
32 | Annual report 2023, Navamedic ASA
Consolidated statement of financial position
(in NOK '1000)
Note
31.12.2023
31.12.2022
Assets
Non-current assets
Intangible non-current assets
Goodwill
8
156,729
100,743
Deferred tax assets
26
930
835
Other intangible assets
8
97,627
30,537
Total intangible non-current assets
255,286
132,115
Other non-current assets
Property, plant & equipment
7
3,692
607
Right of use assets
9
6,060
6,511
Non-current loans receivable
18
49,149
0
Total other non-current assets
58,901
7,118
Total non-current assets
314,187
139,233
Current assets
Tax receivables
26
14,858
14,909
Inventories
11
105,200
79,642
Trade and other receivables
10
50,631
42,985
Current loans receivable
18
0
40,616
Other current financial assets
1,393
10,092
Cash and cash equivalents
19
38,036
55,296
Total current assets
210,118
243,540
Total assets
524,305
382,773
33 | Annual report 2023, Navamedic ASA
Consolidated statement of financial position (cont.)
(in NOK '1000)
Note
31.12.2023
31.12.2022
Equity
Paid in equity
Share capital
12,842
12,749
Share premium reserve
192,577
190,408
Total paid in equity
13
205,419
203,157
Retained earnings
Retained earnings
16,973
6,564
Total retained earnings
16,973
6,564
Total equity
222,392
209,721
Liabilities
Non-current liabilities
Non-current interest-bearing borrowings
20
95,479
38,368
Non-current license liabilities
21
3,988
3,762
Non-current right of use liabilities
9
3,892
4,861
Deferred tax liabilities
26
9,271
0
Total non-current liabilities
112,630
46,991
Current liabilities
Current interest-bearing borrowings
20
51,067
13,623
Trade account payables
14
68,300
65,573
Current right of use liabilities
9
2,453
1,865
Current license liabilities
21
16,861
221
Taxes payable
26
8,149
4,708
Other current liabilities
14
42,453
40,071
Total current liabilities
189,283
126,061
Total liabilities
301,913
173,052
Total equity and liabilities
524,305
382,773
34 | Annual report 2023, Navamedic ASA
The Board of Directors and CEO of Navamedic ASA
Oslo, 29 April 2024
Chairman
Board member
Board member
Board member
CEO
Board member
Board member
35 | Annual report 2023, Navamedic ASA
Consolidated statement of changes in equity
(in NOK '1000)
Share
capital
Share
premium
reserve
Retained
earnings
Total
Balance as at 1 January 2022
12,096
165,830
-26,689
151,237
Net profit / loss (-)
29,432
29,432
Currency translations differences
2,982
2,982
Capital increase
653
24,578
25,231
Share options
839
839
Balance as at 31 December 2022
12,749
190,408
6,564
209,721
Balance as at 1 January 2023
12,749
190,408
6,564
209,721
Net profit / loss (-)
3,304
3,304
Currency translations differences
502
502
Capital increase
93
2,169
2,262
Share options
6,603
6,603
Balance as at 31 December 2023
12,842
192,577
16,973
222,392
36 | Annual report 2023, Navamedic ASA
Consolidated cash flow statement
(in NOK '1000)
Note
2023
2022
Cash flow from operating activities
Profit before tax
10,833
42,506
Taxes paid
-5,129
-10,967
Depreciation, amortization and impairment
7,8,9
11,926
7,242
Financial income/expenses without cash flow effect
6,180
6,878
Other income/expenses without cash effect
6,603
839
Income/loss and gain from the disposal of associated
companies
0
-8,413
Payment of license liabilities
-120
-112
Changes in inventory
-23,754
-17,761
Changes in trade and other receivables
-4,985
-5,255
Changes in trade and other payables
765
-4,959
Changes in other current balance sheet items
-140
7,944
Net cash flow from operating activities
2,179
17,942
Cash flow from investing activities
Acquisition of tangible and intangible assets
7,8
-2,198
-2,251
Loans granted
18
-5,000
0
Interest received
614
70
Purchase of shares in other companies
-97,999
-23,264
Net cash flow from investing activties
-104,583
-25,445
Cash flow from financing activtities
Loans received
145,110
24,033
Payment of loans
-54,268
-9,511
Interest paid
-7,228
-3,272
Share issues
2,262
1,198
Payment of lease liabilities
-2,641
-2,373
Net cash flow from financing activities
83,235
10,075
Changes in currency
1,909
105
Net change in cash
-17,260
2,677
Cash and cash equivalents start period
55,296
52,619
Cash and cash equivalents end period
19
38,036
55,296
37 | Annual report 2023, Navamedic ASA
Notes to the consolidated
financial statements
38 | Annual report 2023, Navamedic ASA
Note 1 – General information
Navamedic ASA is a Nordic pharma company listed on the Oslo
Stock Exchange. The Company is a reliable supplier of high-quality products, delivered to hospitals
and through pharmacies, meeting the specific medical needs of patients and consumers.
The product portfolio consists of prescription and non-prescription pharmaceuticals as well as other healthcare
products registered as medical nutrition, medical devices, food supplements or cosmetics.
Navamedic ASA is present in all Nordic countries, the Baltics and Benelux and has sales of specific products in other
European countries like the UK and Greece.
Through its subsidiaries Navamedic AB in Sweden and Navamedic AS in Norway, the Group distributes more than
40 different product brands from over 20 international partners/brand owners and manufacturers in the Europe.
Navamedic’s ambition is to grow by expanding its product portfolio and launching existing products in new
markets.
Navamedic ASA is registered and based in Norway and is listed on the Oslo Stock Exchange. Its head office is at Solli
Plass in Oslo. Its visiting address is Henrik Ibsens gate 100, 0255 Oslo, Norway.
Note 2 – Signficant accounting policies
In order to provide users of financial statements with better clarity over important accounting
policies and basis for preparation or judgement, Navamedic has included the necessary information
about material policies and estimates in the respective notes. This section outlines the significant
policies that are not included in the respective notes.
2.1 Framework for preparation of the financial statements
Navamedic's consolidated financial statements have been prepared in accordance with IFRS® Accounting
Standards as adopted by the EU.
The consolidated financial statements have been prepared on the basis of historical cost.
The accounting policies applied, and the presentation of the consolidated financial information are consistent with
the previous annual financial statements for the year that ended 31 December 2022.
Navamedic monitors changes in the IFRS and adopt the changes when and if relevant. For 2023, Navamedic
implemented the changes in IFRS 1 to disclose material accounting policies, instead of its significant accounting
policies. Amendments to accounting policies Amendments to IAS 1, Presentation of financial statements, and IFRS
Practice Statement 2, making materiality Judgements, came into force on 1 January 2023. These amendments are
intended to help entities to prepare more valuable disclosures on accounting policies. Information on use of
accounting policies shall be regarded as material if the information can reasonably be expected to influence users’
decisions and thus is necessary in order to understand other information provided on material transactions, events
or conditions in the consolidated financial statements. As a result, the description of Navamedic’s accounting
policies is somewhat shorter, as emphasis has been placed on disclosing important policy choices made by
39 | Annual report 2023, Navamedic ASA
Navamedic. General or generic information has been deleted from the disclosure of policies in the notes. The Group
has otherwise made no changes in presentation or accounting policies nor applied any new standards that
materially affect its financial reporting or comparisons with previous periods.
The consolidated financial statements have been prepared on the assumption that the Group is a going concern.
2.2 Consolidation policies
A subsidiary is a company over which Navamedic ASA (directly or indirectly) has control. Control is attained when
Navamedic is exposed to, or has rights to, variable returns from its engagement in a company in which it has
invested and is able to influence this return by exercising power over the Company. Power means existing rights
that currently provide Navamedic with the ability to steer relevant activities, i.e. the activities that affect, to a
significant degree, the return from the Company that has been invested in. All subsidiaries are owned 100% and
there are no minority interests.
Subsidiaries are consolidated from the date when the Group attains control and consolidation ceases when control
of the subsidiary ceases.
2.3 Translation of foreign currency
a) Functional currency and presentation currency
The accounts of the individual units in the Group are measured in the currency that is mainly used in the
economic area in which the unit operates (functional currency). The consolidated financial statements are
presented in NOK, which is both the parent company's functional currency and its presentation currency.
b) Transactions and balance sheet items
Transactions in foreign currency are translated to the functional currency using the transaction's exchange
rate. Realized currency gains and losses that arise during the settlement and translation of monetary items
in foreign currency at the exchange rate on the balance sheet date are recognized through profit or loss.
Currency gains and losses are presented (net) as financial income or financial expenses.
c) Group companies
The income statements and balance sheets of group companies with functional currencies different from
the presentation currency are translated in the following way:
a) balance sheets are translated using the exchange rate on the balance sheet date.
b) income statements are translated using the average exchange rate for the year.
c) translation differences are recognized in other comprehensive income and specified in equity as a
separate item.
Goodwill and excess values upon the acquisition of a foreign unit are treated as assets and liabilities in the acquired
unit and translated at the exchange rate on the balance sheet date. Translation differences that arise are
recognized in other comprehensive income.
40 | Annual report 2023, Navamedic ASA
Note 3 – Financial risk management and capital management
The Group's operations expose it to various types of financial risk, including, but not limited to market risk
(including currency risk, variable interest risk, and price risk), credit risk, and liquidity risk. The Group focuses on
minimizing the potential negative effects unforeseeable movements in the capital markets can have on the Group's
financial results.
The Group's risk management is performed by the management team in accordance with company risk policy
approved by the Board.
a) Market risk
Operational risk
The Group is exposed to operational risk. The Group believes that such a risk will primarily arise in relation to
the development of future sales of the Company's products, measured in terms of both price and volume.
Factors that can influence market risk include increased competition, instructions to reduce prices from the
authorities, and competition from existing and future pharmaceuticals within the Company's range of
therapies.
The Company depends on supply and distribution from suppliers. The Company has supply and distribution
agreements with suppliers in which the term of the agreement varies from three to eight years. The Company is
dependent on renewing these agreements at market prices and on market terms and conditions and is
therefore in continuous dialogue with the suppliers to ensure they are renewed.
The Group is exposed to risk related to pandemic outbreaks like Covid-19. However, based on the existing
portfolio of products, the Company is probably less prone to be affected to the same extent as many other
companies. The demand for most of the Company’s products, except for some Consumer Health products, is
less likely to be affected since the end users typically use the products based on needs and cannot easily stop
using them. There is a risk that some products’ production and delivery could be affected in the event of long
term shut down.
Navamedic is exposed to risk related to outbreak of war, like the current war in Ukraine. Navamedic has no
direct business relation with neither Ukraine nor Russia, however, if the war has negative effect on prices of raw
material or transportation costs, this will likely have an effect on Navamedic, although it is difficult to assess to
what extent.
Currency risk
The Group is exposed to currency risk. A significant proportion of the Group's revenue and expenses are in
currencies other than the functional currency in the individual entities (mostly NOK, SEK, DKK and EUR).
Materials are generally paid for in EUR, SEK, GBP, USD, DKK and NOK. Most of the sales in Navamedic AB take
place in Nordic currencies and EUR. Payroll and operating expenses are generally incurred in the currency of
the country in which the individual company is registered. The Group has not adopted specific currency
hedging strategies in relation to operations.
41 | Annual report 2023, Navamedic ASA
Variable interest rate risk
The interest rate on the Group’s loans is variable. The Group manages the variable interest rates risk by
entering into the interest rate hedge agreement with Nordea. Please refer to note 20 for more details about the
loan terms and interest rate hedging.
b) Credit risk
The Group is exposed to no significant concentrations of credit risk. Routines have been introduced to ensure
products are sold to customers with satisfactory creditworthiness. The Company's customers are largely public
enterprises and larger pharmacy chains that represent a low credit risk. The level of consumer sales is relatively
low. See also note 10, which shows when the Group's receivables fall due.
c) Liquidity risk
The Group’s liquidity risk is considered moderate as at 31 December, and the Group’s liquidity situation as at 31
December 2023 is considered to be satisfactory. As at 31 December 2023, the Group had NOK 38 million in cash
and cash equivalents (NOK 55 million as at 31 December 2022). The Group has outstanding loans of NOK 110
million as well as an overdraft facility of NOK 35 million as of 31.12.2023. The Group continually monitors the
liquidity risk associated with the due dates for financial liabilities.
The table below illustrates the maturity structure of liabilities:
Maturity structure of liabilities 2023 Expected cash flows (in NOK '1000) Note Carrying amount Undiscounted amount Year 1 Year 2 Year 3 Year 4-5 Total License liabilities 21 20,848 21,611 16,861 0 4,750 0 21,611 Liabilities to financial institutions 20 146,546 146,546 51,067 16,907 15,714 62,857 146,546 Interest on liabilities to fin. institutions 20 0 23,365 7,266 6,160 4,970 4,970 23,365 Right of use liabilities 9 6,345 6,694 2,672 2,681 1,341 0 6,694 Trade account payables 14 68,300 68,300 68,300 0 0 0 68,300 Taxes payable 26 8,149 8,149 8,149 0 0 0 8,149 Other current liabilities 14 42,454 42,454 42,454 0 0 0 42,454 Total 292,641 317,118 196,769 25,748 26,775 67,827 317,118 Maturity structure of liabilities 2022 Expected cash flows (in NOK '1000) Note Carrying amount Undiscounted amount Year 1 Year 2 Year 3 Year 4-5 Total License liabilities 21 3,982 4,971 221 0 4,750 0 4,971 Liabilities to financial institutions 20 51,992 51,992 13,623 24,467 5,561 8,341 51,992 Interest on liabilities to fin. institutions 20 0 6,087 2,851 1,986 773 477 6,087 Right of use liabilities 9 6,726 7,401 2,195 3,471 1,735 0 7,401 Trade account payables 14 65,574 65,574 65,574 0 0 0 65,574 Taxes payable 26 4,708 4,708 4,708 0 0 0 4,708 Other current liabilities 14 40,071 40,071 40,071 0 0 0 40,071 Total 173,053 180,803 129,242 29,924 12,819 8,818 180,803
42 | Annual report 2023, Navamedic ASA
Note 4 – Segment information and revenue from contracts
with customers
Operating segments are identified based on the reporting the management team uses to evaluate performance
and profitability at a strategic level. Navamedic has only one segment, the Pharma and healthcare division. The
reporting structure reflects the Company’s business and product composition. The Pharma and healthcare
division consists of pharmaceuticals and medical nutrition products that Navamedic markets, sells and
distributes to hospitals, pharmacies and patients, bought from product suppliers and manufacturers in Europe
and other places. Navamedic’s chief operating decision maker is the CEO.
Navamedic distributes and delivers pharmaceuticals and other products to hospitals and pharmacies, mainly
in the Nordic region, but also in a number of other countries in Europe. Revenues are measured based on the
transaction price specified in a contract with a customer. The Group’s revenues are generated from the sale of
goods, and revenue is recognized at the point in time when control of the goods transfers to the customer,
typically when the Group has delivered the goods to the customer.
Navamedic classifies its products into three product categories:
• The RX area comprises Navamedic’s prescription products and categories, including obesity, urology,
neurology, and cardiology products such as Mysimba® (prescription pharmaceutical for treatment of
obesity), Elmiron®/Gepan® (products for the treatment of painful bladder syndrome), Flexilev (microtablets
for the treatment of Parkinson’s disease) and cardiology products such as Imdur® (used to prevent angina
pectoris), Nitrolingual (acute relief of angina pectoris).
• The Consumer Health area comprises Navamedic’s over-the-counter products, available to patients
without a prescription in the pharmacies or drugstore (NL only), the area includes obesity (Modifast –
products for meal replacement), gastro (brands such as Alflorex, SmectaGo and Forlax), pain
(ThermaCare), cough&cold and intimate (female) health.
• Hospital products included in tenders such as a broad portfolio of niched medical nutrition products for
rare diseases such as Phenylketonuria, and intravenous antibiotics for hospital use.
Operating revenues by major markets
(in NOK '1000) 2023 2022 Norway 214,123 198,886 Sweden 158,916 96,742 Denmark 38,065 28,145 Finland 27,706 17,950 The Netherlands 54,009 26,365 Other countries 19,178 14,047 Total revenue 511,997 382,135
43 | Annual report 2023, Navamedic ASA
Operating revenues by product categories (in NOK '1000) 2023 2022 Precription drugs (Rx) 300,304 211,667 Hospital 102,824 90,852 Consumer health 108,869 79,616 Total revenue 511,997 382,135 Non-current assets by country * (in NOK '1000) 2023 2022 Sweden 224,501 96,447 Norway 89,686 41,950 Total 314,186 138,398 * Other than financial instruments and deferred tax assets.
Note 5 – Business combinations
The acquisition method is used for acquisitions of business. The consideration is measured at the fair value of the
assets transferred, liabilities assumed, and equity instruments issued. The fair value of all assets or liabilities
according to the agreement on contingent consideration is also included in the remuneration. Identifiable assets,
liabilities, and contingent liabilities are recognized at their fair value on the acquisition date. Acquisitions-related
costs linked business combinations are recognized as expenses when they are incurred. If the sum of the
remuneration, fair value of earlier assets, and any fair value of minority interests exceeds the fair value of
identifiable net assets in the acquired company, the difference is capitalized as goodwill.
Business combinations in 2023
On 29 March 2023, Navamedic submitted a cash offer to acquire all shares in Sensidose AB, a Sweden-based
pharmaceutical company that sells drugs in combination with an innovative device for individual dosing, targeting
patients with advanced Parkinson's disease. By 22 April, Navamedic acquired 57.2% of the shares and launched a
mandatory public tender offer (MTO) for the remaining outstanding shares. Following the expiry of MTO on 26 May,
Navamedic acquired 96.33% of the shares in Sensidose AB as well as 93.16% of the series T01 warrants. By the end
of 2023, Navamedic owns 100% of the shares in Sensidose AB.
IFRS is not specifically addressing the accounting for an acquisition where, in the first transaction, the acquirer
gains control over another entity, and which is followed by acquisition of an additional ownership interest shortly
after. Since the MTO was part of the same transactions in which Navamedic gained control over Sensidose AB, and
Navamedic had no discretion to reject acceptances of the offer, Navamedic considered the initial acquisition of
57.8% and the acquisition of the additional 38.53% under the MTO as one transaction as of the acquisition date 22
April 2023. The total transaction price for 100% of the shares was NOK 102.5 million. Acquisition-related cost
(transaction cost) of NOK 16.1 million is reported as other operating expense.
44 | Annual report 2023, Navamedic ASA
For the period between the date of acquisition and 31 December 2023, Sensidose AB contributed NOK 5.7 million to
the Group’s revenues and negative NOK 6.8 million to profit before tax. If the business combination had taken place
at the beginning of the year, the Group’s revenues would have been NOK 514 million and profit before tax would
have been NOK 3.4 million.
Following the final purchase price allocation (PPA), the fair value of other intangible assets is measured to NOK 48.6
million established and is based on estimated royalty relief incurred by owning the intellectual property rights
related to the patents Sensidose owns. Correlated deferred tax liability recognized is measured at NOK 10 million.
The residual amount of NOK 49.8 million is allocated to goodwill which is primarily related to the expected benefits
from geographical expansion and future sale as well as expected economic benefits from the further products
development. The fair value of the identifiable assets and liabilities of the business as of acquisition date is
presented in the table below.
(in NOK '1000) Sensidose AB Assets Non-current assets Other intangible assets 56,757 Property, plant and equipment 2,648 Total non-current assets 59,405 Current assets Inventories 1,803 Trade and other receivables 2,661 Cash 9,467 Total current assets 13,931 Total assets 73,336 Liabilities Non-current liabilities Loans and borrowings 1,810 Total non-current liabilities 1,810 Current liabilities Loans and borrowings 602 Trade and other payables 1,961 Other current liabilities 6,251 Deferred tax liability 10,007 Total current liabilities 18,821 Total liabilities 20,632 Net identifiable assets 52,705 Goodwill 49,840 Total consideration for the shares 102,544
45 | Annual report 2023, Navamedic ASA
Business combinations in 2022
On 5 May 2022, Navamedic entered into a share purchase agreement with Agnvicen AB to acquire 100% of the
shares in Impolin AB. Impolin AB (Impolin), a Swedish-based, independent distributor of products that benefit the
health and wellbeing of consumers and patients. Impolin's portfolio includes Modifast, a range of diet and meal
replacement products, and MedMade, a multivitamin and minerals tablet for post-bariatric surgery
supplementation, which are products aimed at supporting patients during weight loss or obesity treatment,
including bariatric surgery. Impolin's third product is Absolut Torr/Absolute Dry, extra effective antiperspirants
primarily for hyperhidrosis, excessive sweating. The addition of Modifast and MedMade is set to broaden
Navamedic's current product offering within the area of obesity treatment and enables Navamedic to support
patients throughout the entire weight loss journey. This agreement supports Navamedic's ambition to become a
leading Nordic provider of specialized, high-quality products to hospitals and pharmacies.
The closing date for the transaction was 1 June 2022. The final purchase price is SEK 55 million and includes the
pre-agreed milestone payment of SEK 5 million. Navamedic settled SEK 25 million of the purchase price by issuing
new shares to the seller. The milestone consideration of SEK 5 million was paid out in 2023. The fair values of the
identifiable assets and liabilities of the business as at the acquisition date are as follows.
(in NOK '1000) Impolin AB Assets Non-current assets Other intangible assets 7,014 Total non-current assets 7,014 Current assets Inventories 6,515 Trade and other receivables 6,023 Cash 3,865 Total current assets 16,404 Total assets 23,418 Liabilities Non-current liabilities Loans and borrowings 3,845 Total non-current liabilities 3,845 Current liabilities Trade and other payables 7,778 Taxes payable 743 Other current liabilities 1,076 Total current liabilities 9,598
46 | Annual report 2023, Navamedic ASA
Total liabilities 13,443 Net identifiable assets 9,975 Goodwill 42,128 Total consideration for the shares 52,103 Of which cash 28,070 Of which new shares 24,032
Other intangible assets acquired are related to the estimated brand value of the products MedMade and Absolut
Torr. Goodwill is mainly related to expected synergies with Navamedic`s complementary products from consumer
health and medical nutrition portfolio, non-contractual customer relationship as well as income from expected
expansion to the other markets where Navamedic operates.
For the period between the date of acquisition and 31 December 2022, Impolin AB contributed NOK 28 million to
the Group’s revenues and NOK 1.9 million to profit before tax. If the business combination had taken place at the
beginning of the year, the Group’s revenues would have been NOK 409.8 million and profit before tax for the Group
would have been NOK 46.1 million.
Note 6 – Investments in subsidiaries
Ownership Office location share 31.12 Navamedic AS* Oslo, Norway 100% Navamedic AB** Gothenburg, Sweden 100% Impolin AB*** Stockholm, Sweden 100% Sensidose AB Stockholm, Sweden 100%
* Following the merger between Novicus Pharma AS and the Norwegian branch of Navamedic AB in 2022.
** The subsidiary Navamedic AB has branches in Denmark and Finland.
*** Merged with Navamedic AB from 2024
47 | Annual report 2023, Navamedic ASA
Note 7 – Property, plant & equipment
(in NOK '1000) Office equipment Medical devices Total Accumulated cost Balance at 1 January 2022 1,135 0 1,135 Additions 191 0 191 Disposals -1460 -146Currency translation differences -20 -2Accumulated cost at 31 December 2022 1,178 0 1,178 Balance at 1 January 2023 1,178 1,178 Additions 198 1,193 1,391 Acquisition 0 2,648 2,648 Disposals 0 0 0 Currency translation differences 5 -38-33Accumulated cost at 31 December 2023 1,381 3,803 5,184 Accumulated depreciation Balance at 1 January 2022 -3900 -390Depreciation -3280 -328Disposals 1460 146Currency translation differences 1 0 1 Balance as at 31 December 2022 -5710 -571Balance at 1 January 2023 -571-571Depreciation -388-520-909Disposals 0 0 0 Currency translation differences -4-9-13Balance as at 31 December 2023 -963-529-1,492Expected useful economic life 3-5 years5 years Carrying amounts At 1 January 2022 745 0 745 At 31 December 2022 607 0 607 At 31 December 2023 418 3,274 3,692
48 | Annual report 2023, Navamedic ASA
Note 8 – Goodwill and Intangible assets
The Group’s intangible assets consist of the following:
Licenses (product rights) and marketing authorizations
Navamedic holds rights to market and sell specific products in defined geographical areas. Investments related to
such licenses are amortized on a straight-line basis over their expected useful economic life, which typically range
between five to ten years. Navamedic further distributes a number of products through wholesalers on behalf of
rights holders. Investments related to obtaining such marketing authorizations are amortized on a straight-line
basis over their expected useful economic life, which typically range between five to ten years. For products that are
under registration, the amortization of the cost of acquisition commences upon launch and is amortized over the
period of the agreement.
Other intangible assets
Majority of Group`s other intangible assets relate to the patents for the products that Sensidose AB owns and
develops. The costs are capitalized when they meet the requirements to be considered as the development costs
and amortization is commenced once the product is ready for market and necessary regulatory approvals are
obtained.
Intangible assets Other Total intangible intangible (in NOK '1000) Goodwill Licenses assets assets Accumulated cost Balance at 1 January 2022 61,031 52,563 4,289 56,853 Derecognition 0 0 -870-870Additions 42,128 8,999 0 8,999Currency translation differences -2,416-247 0 -247Accumulated cost at 31 December 2022 100,743 61,316 3,419 64,735 Balance at 1 January 2023 100,743 61,316 3,419 64,735 Acquisition 49,840 0 56,757 56,757 Additions 0 18,927 558 19,486 Currency translation differences 6,147 1,311 -1,402-90Accumulated cost at 31 December 2023 156,729 81,554 59,333 140,887
49 | Annual report 2023, Navamedic ASA
Accumulated amortization Balance at 1 January 2022 0 -28,909-602-29,511Amortization 0 -3,831-1,019-4,850Currency translation differences 0 163163Balance as at 31 December 2022 0 -32,578-1,621-34,199Balance at 1 January 2023 0 -32,578-1,621-34,199Amortization 0 -3,954-4,657-8,610Currency translation differences 0 -48735 -451Balance as at 31 December 2023 0 -37,018-6,242-43,260Expected useful economic life 5-10 years 5-10 yearsCarrying amounts At 31 December 2022 100,743 28,738 1,799 30,537 At 31 December 2023 156,729 44,537 53,091 97,627
Test for impairment losses for cash generating units that contain goodwill
Goodwill originates from the purchase of Vitaflo AB, Impolin AB, Sensidose AB and other minor acquisitions,
including Novicus Pharma AS. For the purpose of impairment testing, goodwill, excluding Impolin and Sensidose
that are tested separately, has been allocated to the Group's single cash generating unit ('CGU'), being the Pharma
and healthcare division.
Impairment test – Pharma division
Impairment testing is based on value-in-use calculations, determined by discounting the estimated future cash
flows to be generated by the CGU. The test is based on the book value of the goodwill at 31.12.2023 compared to
the estimated value calculated on the basis of discounted future cash flows. The 2024-2028 business plan is used,
with an average revenue growth of 13%, after which it is assumed a 1.0% growth. A discount rate pre-tax of 9.5%
was used to discount future cash flows. The resulting EBITDA margin is, on average, 18%. The estimated value of
the CGU exceeded the book value at 31.12.2023, therefore resulting in no write-down of goodwill. In addition to the
discounted cash flow estimation, sensitivity analysis showed that even with a significantly more conservative view,
the estimated value would still not result in a write-down. Key assumptions include moderate growth in the
revenue according to the above-mentioned during the period, together with the estimated EBITDA margin and the
level of the discount rate. Additionally, neither reasonably possible negative changes in the growth assumption,
nor reasonably possible negative changes in the EBITDA margin would lead to an impairment. Also, a reasonably
possible increase in the discount rate after tax would not give rise to impairment.
50 | Annual report 2023, Navamedic ASA
Impairment test – Impolin
Impairment test for Impolin AB is performed based on discounted estimated future cash flows to be generated by
this CGU. Cash flows are including planned expansion to the other markets where Navamedic intends to sell the
products from Impolin`s portfolio. The 2024-2028 budget assumes an average revenue growth of 6%. It is assumed
that by 2028 the steady state will be reached after which the terminal value growth of 2% is estimated. EBITDA
margin during the explicit period is, on average, 13% while in the terminal value it is set to 19%. A discount rate of
9.5% is applied to discount the cash flows. The calculated value in use is significantly higher than the book value of
Impolin AB. Sensitivity analysis shows that no reasonably possible change in any of the key inputs to the valuation
would, in isolation, lead to the impairment of goodwill. From 2024, Impolin AB is merged into Navamedic AB.
Impairment test – Sensidose
Impairment testing for Sensidose was based on the value in use calculation that was used during the acquisition
process. Updated inputs as of 31.12.2023. show no changes in the value and no impairment indicators.
Note 9 – Right of use assets and liabilities
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys
the right to control the use of an identified asset for a period of time in exchange for consideration. The Group
applies a single recognition and measurement approach for all leases, except for short-term leases and leases of
low-value assets. The Group recognizes lease liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.
The Group recognizes right-of-use assets at the commencement date of the lease. Right of use assets are measured
at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease
liabilities. The cost of right of use assets includes the amount of lease liabilities recognized, initial direct costs
incurred, and lease payments made at or before the commencement date less any lease incentives received. Right
of use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful
lives of the assets.
At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments less any lease
incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid
under residual value guarantees. In calculating the present value of lease payments, the Group uses its estimated
incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not
readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the
accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change in the lease term, a change in the lease payments or a change in
the assessment of an option to purchase the underlying asset.
The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment
(i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a
purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment
that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are
recognized as expense on a straight-line basis over the lease term.
51 | Annual report 2023, Navamedic ASA
Right of use assets
(in NOK '1000) 2023 2022 Right of use assets 6,060 6,511 Total Right of use assets 6,060 6,511
(in NOK '1000) Land and buildings Motor vehicles Office equipment Total Balance at 1 January 2022 7,219 326 23 7,567 Depreciation -1,691 -364 -8-2,064 Additions 0 1,126 0 1,126 Adjustments 0 0 0 0 Currency translation differences 21 -140 0 -119 Balance at 31 December 2022 5,549 948 14 6,511 Depreciation -1,698 -700 -8-2,407 Additions 0 305 0 305 Adjustments 547 891 0 1,439 Currency translation differences 2 209 0 211 Balance at 31 December 2023 4,400 1,654 6 6,060
Right of use liabilities
(in NOK '1000) 2023 2022 Non-current right of use liabilities 3,892 4,861 Current right of use liabilities 2,453 1,865 Total right of use liabilities 6,345 6,726 Maturity analysis contractual undiscounted cash flows (in NOK '1000) 2023 2022 Less than one year 2,672 2,195 Between one and five years 4,022 5,206 Total undiscounted lease liabilities at 31 December 6,694 7,401
52 | Annual report 2023, Navamedic ASA
Changes in right of use liabilities
(in NOK '1000) 2023 2022 At 1 January 6,726 7,664 Payments -2,641-2,373Interest 303324Additions and adjustments 1,7441,126Currency translation 213 -15At 31 December 6,345 6,726
Amounts recognised in profit or loss
(in NOK '1000) 2023 2022 Interest on lease liabilities 303 324 Depreciation right of use assets 2,407 2,064
Other information
(in NOK '1000) 2023 2022 Lease payments for short-term leases and low value assets leases 606 526
The weighted average lessee’s incremental borrowing rate applied to lease liabilities recognized in the statement of
financial position at the date of initial application is 4,6 %.
Note 10 – Trade and other receivables
Trade receivables arise from sales of goods or services within the ordinary business cycle. If settlement is expected
within one year or less (or in the ordinary business cycle if this is longer), the receivables are classified as current
assets. If this is not the case, the receivables are classified as non-current receivables.
Trade receivables are measured at the transaction price upon initial recognition. In subsequent measurements,
trade receivables are measured at amortized cost, less provisions for expected credit losses. For trade receivables
and contract assets, the Group applies a simplified approach in calculating expected credit losses (ECLs). Therefore,
the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at
each reporting date. The Group has established a provision matrix that is based on its historical credit loss
experience, adjusted for forward-looking factors specific to the debtors and the economic environment.
The Group has a trade receivable financing agreement with Avida Finans AB.
53 | Annual report 2023, Navamedic ASA
(in NOK '1000) 2023 2022 Trade receivables 38,043 39,464 Other receivables and prepaid expenses 12,587 3,521 Total trade and other receivables 50,631 42,985
(in NOK '1000) 2023 2022 Gross trade receivables 38,156 39,554 Provision for loss on trade receivables -112-90Total trade receivables 38,043 39,464
(in NOK '1000) 2023 2022 Provision for loss on trade receivables at 1 January -90-446Net change in provision for loss on trade receivables -97-45Loss on trade receivables 75401Total provision for loss on trade receivables at 31 December -112-90
Due date profile trade receivables
(in NOK '1000) 2023 2022 Not due 24,455 31,625 0-3 months8,930 4,002 > 3 months4,771 3,927 Total trade receivables 38,156 39,554 The Group has had low losses on trade receivables, and considers the risk associated with trade receivables as low.
Note 11 – Inventories
(in NOK '1000) 2023 2022 Inventory 104,661 81,110 Work in progress 539 0 Provisions for inventory obsolescence 0 -1,468Total inventory 105,200 79,642
54 | Annual report 2023, Navamedic ASA
Note 12 – Financial assets and liabilities
(in NOK '1000) Carrying amount as at 31.12.2023 Fair value as at 31.12.2023 Carrying amount as at 31.12.2022 Fair value as at 31.12.2022 Non-current financial assets Non-current loans receivable 49,149 49,149 0 0 Total non-current financial assets 49,149 49,149 0 0 Current financial assets Tax receivables 14,858 14,858 14,909 14,909 Trade and other receivables 50,631 50,631 42,985 42,985 Current loans receivable 0 0 40,615 40,615 Other current financial assets 1,393 1,393 10,092 10,092 Cash and cash equivalents 38,036 38,036 55,296 55,296 Total current financial assets 104,918 104,918 163,897 163,897 Total financial assets 154,067 154,067 163,897 163,897 Non-current financial liabilities Non-current license liabilities 3,988 3,988 3,762 3,762 Non-current interest-bearing borrowings 95,479 95,479 38,368 38,368 Total non-current financial liabilities 99,466 99,466 42,130 42,130 Current financial liabilities Trade and other payables 68,300 68,300 65,574 65,574 Current interest-bearing borrowings 51,067 51,067 13,623 13,623 Current license liabilities 16,861 16,861 221 221 Other current liabilities 42,454 42,454 40,071 40,071 Total current financial liabilities 178,682 178,682 119,489 119,489 Total financial liabilities 278,148 278,148 161,619 161,619
Fair value hierarchy for financial instruments recognized at fair value
With an exception of other current financial assets that are valued based on level 1 of inputs in accordance with
IFRS 13:81, all the other financial assets are valued based on level 2 inputs. Other current financial assets are
representing the fair value of Navamedic`s investment in Observe medical ASA that is measuer at fair value through
profit and loss.
55 | Annual report 2023, Navamedic ASA
Fair value of financial instruments recognized at amortised cost
Due to their short term nature, the carrying value of current financial assets and liabilities is deemed a reasonable
approximation to the fair value of these financial assets and liabilities. The interest rate on non-current liabilities to
financial institutions is considered not to be significantly different from what the Group could achieve as of 31
December 2023, and as such the carrying amount is considered not to be significantly different from the fair value.
The discount rate applied to the calculation of amortized cost for non-current license liabilities is considered not to
be significantly different from the market cost of capital as of 31 December 2023, and as such the carrying amount is
considered not to be significantly different from the fair value. See note 20 for information regarding non-cash
transactions related to financial liabilities.
Note 13 – Paid in equity and shareholders
(in NOK '1000, number of shares in actual figures) Number of shares Share capital Share premium reserve Total paid in equity As of 1 January 2022 16,345,660 12,096 165,830 177,926 Share capital issues 882,117 653 24,578 25,230 As of 31 December 2022 17,227,777 12,749 190,408 203,156 As of 1 January 2023 17,227,777 12,749 190,408 203,156 Share capital issues 125,000 93 2,169 2,262 As of 31 December 2023 17,352,777 12,841 192,577 205,418
Each share has a nominal value of NOK 0,74 kr.
Largest shareholders as of 31 December 2023
Shareholder Number of shares Share of capital Share of votes INGERØ REITEN INVESTMENT COMPANY A 3,563,042 20.5 % 20.5 % UBS Switzerland AG* 1,972,306 11.4 % 11.4 % J.P. Morgan SE* 1,456,000 8.4 % 8.4 % Avanza Bank AB* 937,778 5.4 % 5.4 % HAUSTA INVESTOR AS 782,913 4.5 % 4.5 % SOLEGLAD INVEST AS 691,668 4.0 % 4.0 % J.P. Morgan SE* 405,152 2.3 % 2.3 % TRANBERGKOLLEN INVEST AS 600,000 3.5 % 3.5 % LEIKERANE AS 500,000 2.9 % 2.9 % SKANDINAVISKA ENSKILDA BANKEN AB 500,000 2.9 % 2.9 % GINKO AS 500,000 2.9 % 2.9 % VI ØNSKER STYREPLASS AS 455,400 2.6 % 2.6 % J.P. Morgan SE* 200,000 1.2 % 1.2 % LARS HJARRAND 285,882 1.6 % 1.6 %
56 | Annual report 2023, Navamedic ASA
VPF FIRST OPPORTUNITIES 230,165 1.3 % 1.3 % EIVIND BJØRNTVEDT 245,000 1.4 % 1.4 % OMA INVEST AS 250,000 1.4 % 1.4 % KRAEBER Verwaltung GMBH 214,850 1.2 % 1.2 % CMDC AS 200,000 1.2 % 1.2 % Other shareholders 3,362,621 19.4 % 19.4 % Total 17,352,777 100% 100% * Nominee accounts which may include multiple shareholders. See also note 24 for related parties shareholdings.
Ingerø Reiten Inv. Company AS is represented on the Board by Terje Bakken and Narve Reiten.
Shares owned by the Board and executive personnel in Navamedic ASA as at 31 December 2023
Name Role Number of shares Comment Terje Bakken Chairman 3,563,042 Through Ingerø Reiten Inv. Company AS Narve Reiten Board member 3,563,042 Through Ingerø Reiten Inv. Company AS Kathrine Gamborg Andreassen CEO 691,668 Through Soleglad Invest AS Lars Hjarrand CFO 285,882 Ole Henrik Eriksen CBDO 500,000 Through Leikerane AS Astrid T Bratvedt CSO 600,000 Through Tranbergkollen Invest AS Tony Brejke COO 807,117 Through 50% ownership in Agnvicen AB Astrid T Bratvedt CSO 2,000 Alexander Lidmejer Commercial Director Rx 2,400 Grete Hogstad Member of the Nomination Committee 1,493
Shares owned by the Board and executive personnel in Navamedic ASA as at 31 December 2022
Name Role Number of shares Comment Terje Bakken Chairman 3,563,042 Through Ingerø Reiten Inv. Company AS Narve Reiten Board member 3,563,042 Through Ingerø Reiten Inv. Company AS Kathrine Gamborg Andreassen CEO 666,668 Through Soleglad Invest AS Lars Hjarrand CFO 260,882 Ole Henrik Eriksen CBDO 500,000 Through Leikerane AS Astrid T Bratvedt CSO 525,000 Through Tranbergkollen Invest AS Tony Brejke COO 807,117 Through 50% ownership in Agnvicen AB Astrid T Bratvedt CSO 2,000 Alexander Lidmejer Commercial Director Rx 2,400 Grete Hogstad Member of the Nomination Committee 1,493 Bernt Olav Røttingsnes Chairman of the Nomination Committee 489 Through BOR Utvikling AS
57 | Annual report 2023, Navamedic ASA
Note 14 – Trade accounts payable and other current liabilities
(in NOK '1000) 2023 2022 Total trade accounts payable 68,300 65,574 Accrued VAT and public duties 14,018 17,108 Accrued salaries and holiday pay 12,768 14,395 Accrued expenses and other current liabilities 15,668 8,568 Total other current liabilities 42,453 40,071
Note 15 – Other operating expenses
(in NOK '1000) 2023 2022 Consulting, legal and audit fees 9,023 8,691 Transaction cost 16,061 0 Maintenance of PP&E 683 0 Travel expenses 2,816 2,338 Insurance 1,759 971 IR expenses 1,292 1,357 Marketing, freight, and commissions 47,101 38,798 Regulatory fees 9,592 6,054 Other expenses 11,549 5,536 Total other operating expenses 99,876 63,745
Auditor expense recognised
(in NOK '1000) 2023 2022 Statutory audit 1,591 1,110 Tax consultancy 102 105 Other assurance services 202 242 Total auditor expense recognised 1,895 1,457
Auditor expense amounts are excluding VAT.
58 | Annual report 2023, Navamedic ASA
Note 16 – Payroll expenses
The Company has entered into a mandatory defined contribution pension scheme for employees in Norway and
Sweden. Under defined contribution plans, the Group pays contributions to public or private organized insurance
plans for pensions on a compulsory, contractual, or voluntary basis. The Group has no further payment obligations
once the contributions have been paid. The plan in Norway complies with the requirements of the Norwegian
Mandatory Occupational Pension Act. The contributions are recognized as payroll expenses as incurred.
(in NOK '1000) 2022 2023 34,436 Salaries 6,198 40,065 839 Employer's National insurance contributions 3,306 9,254 3,309 Share options for employees 48,088 6,603 28 Pension expenses – defined-contribution scheme 4,603 Other payroll expenses 3,147 Total payroll expenses 63,673 Number of FTEs 44
Executive personnell is defined as being chief executive officer (CEO) and chief financial officer (CFO). No loans were
issued and no assets were pledged to the benefit of employees, shareholders or Board members in 2023 or 2022.
Kathrine Kathrine Gamborg Lars Gamborg Lars Andreassen Hjarrand Total Andreassen Hjarrand Total (in NOK '1000) CEO CFO 2023 CEO CFO 2022* Salary and holiday pay paid 3,068 2,111 5,179 2,611 1,871 4,482 Variable remuneration paid 1,874 463 2,337 1,784 557 2,341 Benefits in kind and other 436 434 870 273 646 919 benefits 220 Pension expenses 131 131 262 110 110 Total paid salary and 5,509 3,139 8,648 4,778 3,074 7,852 remuneration Variable remuneration 2,250 531 2,781 1,874 463 2,337 earned in 2023/2022 *Figures for 2022 are restated
59 | Annual report 2023, Navamedic ASA
Board fees paid
(in NOK '1000) 2023 2022 Terje Bakken 495 415 Narve Reiten 250 240 Jostein Davidsen 235 200 Annika Maria Kollen (from 03.06.2021) 210 200 Inger Johanne Solhaug (until 03.06.2022) 0 230 Edmèe Steenken (from 03.06.2022) 210 0 Total Board fees paid 1,400 1,285
Share-based remuneration
Key management personnel in Navamedic ASA receive parts of their salary as share-based remuneration.
Quantity at Quantity at31.12.2023 31.12.2022Kathrine Gamborg Andreassen, CEO 280,000 105,000 Lars Hjarrand, CFO 250,000 75,000 Total 530,000 180,000
Statement on the stipulation of salaries and other remuneration for the CEO and other executive
personnel
Pursuant to Section 6-16a of the Norwegian Public Limited Liability Companies Act, the Board of Navamedic has
prepared a statement on the stipulation of salaries and other remuneration for the CEO and executive personnel.
All pay and remuneration in the Group are based on the gross pay principle, meaning that any tax consequences of
remuneration individuals receive are not the concern of the Group.
The main principle in Navamedic's executive pay policy is that executive personnel will be offered competitive
terms and conditions. The Group aims to offer a level of pay that reflects an average pay level in small
pharmaceutical companies in the Nordic region.
As a guideline, executive personnel can be awarded remuneration in addition to their basic salary (bonus), but this
is limited to 75% of the annual salary and linked to the achievement of specific targets, and at the same time such
that total compensation is within the average. Any bonuses to the CEO must be determined by the Board.
Executive personnel can only be awarded options for the acquisition of/subscription to shares in the Company.
60 | Annual report 2023, Navamedic ASA
The Company offers defined contribution-based pensions to all employees. Some executive personnel have been
awarded share options. See note 22.
The CEO and CFO are subject to notice periods of 6 months. The CEO has a termination payment agreement of 12
months.
Note 17 – Financial income and expenses
Financial income
(in NOK '1000) 2023 2022 Interest income 4,214 3,079 Other financial income 137 16,385 Total financial income 4,351 19,464 Interest expenses -7,771-612Other financial expenses -6,566-2,804Total financial expenses -14,337-3,416Currency gains 43,736 37,278 Currency losses -37,797-46,519Total net currency gain/losses 5,939 -9,242Net change in fair value of financial instruments at FVTPL -8,699-17,158 Net financial income and expenses -12,746-10,351
Other financial income in 2022 contains the effects from the derecognition of cancelled license liability. The effects
from the derecognition of correlated interest accrued in the previous years are included within interest expense.
61 | Annual report 2023, Navamedic ASA
Note 18– Loan to Observe Medical ASA
The Group has an outstanding loan to Observe Medical ASA of NOK 49.1 million (of which NOK 5.3 million related to
the new loan from 2023) at 31 December 2023 (NOK 40.6 million at 31 December 2022).
In addition to the original loan from 2019, during 2023 Navamedic lent Observe Medical an additional NOK 5 million
as Observe Medical was in an urgent liquidity crisis. Navamedic decided to do this to not risk the entire loan being
defaulted on and with the expectation that Observe Medical would be able to get other short-/mid-term financing in
place over the next few months. Observe Medical ASA subsequently succeeded with a rights issue to raise capital. As
part of this issue, all creditors, including Navamedic, were asked to convert or renegotiate the current loan terms.
As a result, the due dates for the Navamedic loans were extended to 31 January 2025. There were no other changes
to the terms. Based on new capital structure in place and the assessment of future prospects of Observe Medical
ASA business, Navamedic concluded that the recoverable amount of the loan is the same as the book value.
Note 19 – Cash
(in NOK '1000) 2023 2022 Cash and cash equivalents 36,901 54,298 Restricted cash 1,135 997 Total cash 38,036 55,296 Restricted cash consists of tax deduction and other restricted deposit accounts.
Note 20 – Interest-bearing liabilities to financial institutions
Non-current interest-bearing liabilities to financial institutions
2023 2022 Total non-current interest-bearing liabilities, nominal value (in NOK '1000) 95,479 38,368 Average interest rate, including margin 6.8 % 6.0 % Average remaining duration 3.45 years 2.34 years
Current interest-bearing liabilities to financial institutions
2023 2022 Current interest-bearing borrowings, nominal value (in NOK '1000) 16,068 13,623 Average interest rate, including margin 6.8 % 6.0 % Average remaining duration 0.58 years 1.0 year Revolving credit facility, nominal value (in NOK '1000) 35,000 0 Average interest rate, including margin 6.9 % -
62 | Annual report 2023, Navamedic ASA
Interest-bearing liabilities in 2022 consisted of SEK 55 million loan with Avida Finance AB which was fully repaid in
2023. In April 2023, Navamedic received a loan of NOK 110 million from Nordea. Nordea loan has a covenant that
net interest-bearing debt should not exceed 2.75 x LTM consolidated EBITDA. Net interest-bearing debt is defined
as interest-bearing debt adjusted for cash. The loan is to be partly repaid through 8 half-yearly installments of NOK
7.9 million each, starting in April 2024, with the remaining amount of NOK 47.1 million due in April 2028. In addition,
Navamedic secured a revolving credit facility of up to NOK 35 million.
Changes in total interest-bearing liabilities to financial institutions
(in NOK '1000) 2023 2022 At 1 January 51,992 38,980 Cash flow 90,842 14,522 Acquisition 2,413 0 Currency and other changes 1,300 -1,510At 31 December 146,546 51,992
Note 21 – License liabilities
(in NOK '1000) 2023 2022 Total carrying amount non-current license liabilities 3,988 3,762 Total carrying amount current license liabilities 16,861 221 Total carrying amount license liabilities 20,848 3,982 Total undiscounted amount non-current license liabilities 21,611 4,971 Average discount rate amortized cost calculation 6.0 % 6.0 %
Non-current license liabilities consist of the discounted cash flows from product licensing agreements with long-
term payment plans. Current license liabilities consist of the short-term part (due in less than 1 year) of the
discounted cash flows from product licensing agreements.
63 | Annual report 2023, Navamedic ASA
Expected undiscounted cash flows from license liabilities
(in NOK '1000) 2023 2022 Year 1 16,861 221 Year 2 0 0 Year 3-5 4,750 4,750 Total expected undiscounted cash flows from license liabilities 21,611 4,971
The discount rate applied to the amortized cost calculations equals the effective interest rate for each agreement.
For interest free agreements the estimated cost of debt that the Group could achieve on loans with similar maturity
and security is applied.
Note 22 – Options
Total costs related to options
(in NOK '1000) 2023 2022 Total option cost 6,603 839 Total social security provision 274 131 Total costs related to options 6,878 971
Reconciliation outstanding options
Number of instrumets Weighted average strike price Outstanding options 1 January 2022 585,000 18.42 Exercised -75,00015.97 Total outstanding options 31 December 2022 510,000 18.78 Outstanding options 1 January 2023 510,000 18.78 Exercised -25,00014.46 Exercised -100,00019.00 Granted 1,400,00033.00 Total outstanding options 31 December 2023 1,785,000 29.98
64 | Annual report 2023, Navamedic ASA
Granted options
2023 Number of options granted 1,400,000 Weighted average strike price 33.00 Weighted average share price at grant time 32.70 Estimated weighted average fair value at grant time 9.29 Simulation model Monte carlo Estimated volatility 37.1 % Interest rate 3.27 % Expected dividend 0
Outstanding options 31 December 2022 Number of options Of which vested Weighted Average remaining contractual life (years) Strike price 14,46 25,000 25,000 0.50 Strike price 19,00 485,000 315,000 1.46 Total outstanding options 31 December 2022 510,000 340,000
Outstanding options 31 December 2023
Number of options Of which vested Weighted Average remaining contractual life (years) Strike price 19,00 385,000 385,000 0.46 Strike price 33,00 1,400,000 0 3.13 Total outstanding options 31 December 2023 1,785,000 385,000
Shares received from exercised options are subject to a lock-up period of 12 months. The lock-up obligations
shall not prevent the option holders from selling an amount of the option shares necessary to finance the
exercise price, as well as the tax payable as a consequence of the exercise of options.
65 | Annual report 2023, Navamedic ASA
Note 23 – Earnings per share
(in NOK '1000) 2023 2022 Net profit / loss (-) 3,304 29,432 Weighted average shares issued 17,274,352 16,806,720 Dilutive potential ordinary shares 338,536 215,693 Basic earnings per share 0.1913 1.7511 Diluted earnings per share 0.1876 1.7290
Note 24 –Transaction with related parties
TopRidge Pharma Limited, which owns 917 522 shares in Navamedic ASA, is also a supplier to Navamedic. The
Group purchased goods from TopRidge worth SEK 55 465 thousand in 2023 and SEK 18 579 thousand in 2022. ACS
Dobfar S.p.A., which owns 1 053 775 shares in Navamedic ASA, is also a supplier to Navamedic. The Group
purchased goods from ACS Dobfar worth EUR 1 821 thousand in 2023 and EUR 1 904 thousand in 2022. ACS Dobfar
became a shareholder in Navamedic in 2021.
Note 25 – Subsequent events
In February of 2024, Navamedic launched Eroxon, a breakthrough treatment of erectile dysfunction disorder in
Norway. The product will be launched successively in the other Nordic countries during 2024.
66 | Annual report 2023, Navamedic ASA
Note 26 – Tax expense and deferred tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or
receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to
income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognized for:
– temporary differences on the initial recognition of assets or liabilities in a transaction that is not a
business combination and that affects neither accounting nor taxable profit or loss;
– temporary differences related to investments in subsidiaries, associates and joint arrangements to
the extent that the Group is able to control the timing of the reversal of the temporary differences
and it is probable that they will not reverse in the foreseeable future; and
– taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences
to the extent that convincing evidence exists that future taxable profits will be available against which they can be
used. Future taxable profits are determined based on the reversal of relevant taxable temporary differences. If the
amount of taxable temporary differences is insufficient to recognize a deferred tax asset in full, then future taxable
profits, adjusted for reversals of existing temporary differences, are considered, based on the business plans for
individual subsidiaries in the Group. Deferred tax assets are reviewed at each reporting date and are reduced to the
extent that convincing evidence no longer that the related tax benefit will be realized; such reductions are reversed
when the probability of future taxable profits improves.
Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent convincing
evidence that future taxable profits will be available against which they can be used. Deferred tax is measured at
the tax rates expected to be applied to temporary differences when they reverse, using tax rates enacted or
substantively enacted at the reporting date, and reflects uncertainty related to income taxes, if any.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the
Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Assessment of whether a deferred tax asset is recognizable involves a significant degree of judgment in determining
the likelihood of utilization against future taxable results within the various tax jurisdictions in which the Group
operates.
As of 31.12.2023. the Group has no deferred tax assets recognized for tax losses carry forward. There are, however
tax losses carry forward in Sensidose AB of SEK 135 million for which no deferred tax losses are recognized since, as
of 31.12.2023, there is no convincing evidence as to what extent these losses can be utilized.
67 | Annual report 2023, Navamedic ASA
Tax expense
(in NOK '1000) 2023 2022 Profit before tax continuing operations 10,833 42,506 Tax expense Tax payable 7,858 15,672 Corrections related to previous years 261 -124Change in deferred tax -590-2,474Total tax expense 7,529 13,074 Effective tax rate 69.49% 30.76%
The effective tax rate in 2023 is higer than the corporate income tax rate in the markets where the Group operates
(20%-22%) primarily due to the non-deductible transaction cost, expense related to the change in fair value of
financial investment and the reported loss in Sensidose AB. The effective tax rate in 2022 is higher primarily due to
non-capitalized deferred tax asset related to the losses in the Swedish branch.
Tax payable 2023 Navamedic AB Navamedic Navamedic (in NOK '1000) ASA AS Sweden Denmark Finland Impolin Profit before tax (not consolidated) -61,67154,133 22,919 -341,531 1,314 Group contribution 41,567-41,567 0 0 0 0 Permanent differences / Currency translation 21,685 0 -1,494431-62134 Changes in temporary differences 0 0 0 0 0 0 Total basis for tax payable 1,579 12,566 21,426 396 1,469 1,448 Total Tax payable Norway, 22% 347 2,765 0 0 0 0 2,765 Utilized tax losses carry forward -347 0 0 0 0 0 0 Tax payable Finland, 20% 0 0 0 0 294 0 294 Tax payable Sweden, 20.6% 0 0 4,414 0 0 298 4,712 Tax payable Denmark, 22% 0 0 0 87 0 0 87 Total tax payable 0 2,765 4,414 87 294 298 7,858
68 | Annual report 2023, Navamedic ASA
Tax payable 2022 Navamedic AB (in NOK '1000) Norwegian entities Danish branch Impolin Profit before tax (not consolidated) 61,541 372 1,836 Permanent differences / Currency exchange differences 7,234 0 0 Changes in temporary differences 312 0 0 Total basis for tax payable 69,087 372 1,836 Total Tax payable Norway, 22% 15,199 0 0 15,199 Tax payable Sweden, 20.6% 0 0 393 393 Tax payable Denmark, 22% 0 80 0 80 Total tax payable 15,199 80 393 15,672 Applied tax losses carry forward -10,807Tax payable 4,865
Deferred tax reconciliation
(in NOK '1000) 2023 2023 2022 Deferred tax asset Deferred tax liability Deferred tax asset Property, plant & equipment 239 0 35 Intangible assets (Sensidose) 0 45,006 0 Provisions for liabilities 3,988 0 3,762 Tax losses carried forward 0 0 0 Total temporary differences 4,226 45,006 3,797 Tax rate 22% 20.6% 22% Deferred tax assets/ defererred tax liability 930 9,271 835
(in NOK '1000) 2023 2022 Carrying amount of net DTA/(DTL) 1 January 835 9,168 Acquisition (DTL) -10,0070 Utilized tax losses carry forward 0 -10,807Recognized in income statement 590 2,474Translation difference 240 0 Carrying amount of net deferred tax asset/liability (-) at 31 December -8,342835
69 | Annual report 2023, Navamedic ASA
Tax payable
(in NOK '1000) 2023 2022 Carrying amount tax payable 1 January 4,708 10,713 Income tax payable excl. reclaimable tax 7,858 4,865 Taxes paid during the period -5,129 -10,967Translation differences and other efects 712 97 Carrying amount tax payable 31 December 8,149 4,708
In addition, tax receivables related to prepaid taxes and reclaimable tax (for the tax paid abroad) within Navamedic
AB amounting to NOK 14 909 thousand (NOK 14 858 thousand in 2022) is recognized on the balance sheet.
70 | Annual report 2023, Navamedic ASA
Parent Company
Navamedic ASA, financial
statements 2023
71 | Annual report 2023, Navamedic ASA
Income statement
(in NOK '1000) Note 2023 2022
Operating revenues 8 47,632 46,250
Total revenue 47,632 46,250
Payroll expenses 6 -36,830 -30,523
Depreciation and impairment 3 -4,351 -4,156
Other operating expenses 9 -40,065 -21,306
Total operating expenses -81,246 -55,985
Operating profit -33,614 -9,735
Financial income 12 3,820 19,278
Net change in fair value current financial assets -8,699 -17,158
Group contribution 41,567 56,941
Financial expenses 12 -17,720 -599
Impairment of non-current financial assets 0 6
Net currency gain/losses -5,460 572
Net financial income and expenses 13,508 59,040
Profit before tax -20,105 49,304
Tax expense 5 94 -8,333
Net profit after tax -20,011 40,972
72 | Annual report 2023, Navamedic ASA
Balance sheet
(in NOK '1000) Note 31.12.2023 31.12.2022
Non-current assets
Intangible assets 3 21,515 23,142
Deferred tax asset 5 930 835
Total intangible assets 22,444 23,977
Property, plant & equipment 3 383 603
Total tangible assets 383 603
Investments in group companies 2 415,666 149,660
Non-current loans receivable 49,149 0
Total financial assets 464,815 149,660
Total non-current assets 487,643 174,240
Current assets
Trade receivables 750 682
Other short-term loans group companies 6,666 6,825
Group contribution receivable 41,567 56,941
Other receivables 6,824 1,904
Other current financial assets 1,393 10,092
Current loans receivable 0 40,615
Total receivables 57,200 117,059
Bank deposits 4 7,811 6,007
Total current assets 65,010 123,066
Total assets 552,652 297,307
73 | Annual report 2023, Navamedic ASA
Balance sheet continued
(in NOK '1000) Note 31.12.2023 31.12.2022
Equity
Share capital 1, 7 12,841 12,749
Share premium reserve 1 192,577 190,408
Total paid in equity 205,418 203,157
Retained earnings -3,796 9,613
Total retained earnings -3,796 9,613
Total equity 201,622 212,770
Non-current liabilities
Liabilities to group companies 50,419 41,031
Non-current licensing liabilities 3,988 3,762
Non-current interest-bearing liabilities 94,286 23,633
Total non-current liabilities 148,693 68,426
Current liabilities
Current interest-bearing liabilities 15,714 0
Trade account payables 4,309 3,018
Liabilities to group companies 136,122 0
Other current liabilities 46,192 13,094
Total current liabilities 202,338 16,112
Total liabilities 351,030 84,538
Total equity and liabilities 552,652 297,307
74 | Annual report 2023, Navamedic ASA
Statement of cash flows
(in NOK '1000) 2023 2022
Cash flow from operating activities
Profit before tax -20,105 49,304
Depreciation, amortization and impairment 4,351 4,156
Changes in options 6,603 839
Net financial items and items with no cash effect -13,508 -57,071
Change in trade receivables -68 -543
Change trade account payables 1,291 1,784
Changes other current liabilities and receivables 12,605 6,704
Net cash flow from operating activities -8,831 5,173
Cash flow from investing activities
Purchase of tangible and intangible assets -1,929 -2,251
Investments in shares -107,381 -28,200
Loans given -5,000 0
Net cash flow from investing activties -114,310 -30,451
Cash flow from financing activtities
Loans received 154,498 28,235
Share issues 2,262 1,198
Interest paid -6,563 -914
Loans paid -25,252
Loans issued 0 0
Net cash flow from financing activities 124,945 28,519
Net change in cash 1,804 3,241
Cash and cash equivalents start period 6,007 2,765
Cash and cash equivalents end period 7,810 6,007
75 | Annual report 2023, Navamedic ASA
The Board of Directors and CEO of Navamedic ASA
Oslo, 29 April 2024
Chairman
Board member
Board member
Board member
CEO
Board member
Board member
76 | Annual report 2023, Navamedic ASA
Navemedic ASA - Notes to
the financial statements
2023
77 | Annual report 2023, Navamedic ASA
Summary of significant accounting policies
The annual financial statements have been prepared in accordance with the Accounting Act and good accounting
practice.
Sales revenue
Revenue is measured at the fair value of the remuneration, net after deductions for discounts, returns, and VAT.
Revenue is recognized through profit or loss when it can be reliably measured, and it is likely that the financial
benefits will flow to the Company. Estimates related to revenue recognition are based on history and assessments
of the type of customer and transaction, as well as the specific circumstances surrounding each transaction.
The Company has an agreement on royalties from its subsidiaries Navamedic AB and Navamedic AS. The Company
holds the rights to various products that are resold by the subsidiary and thereby earns royalties. The royalties are
based on actual sales in Navamedic AB and Navamedic AS. The Company also charges subsidiaries for services
relating to sales management, marketing and regulatory management, as well as financial and accounting
management.
Subsidiaries
In Navamedic ASA’s annual financial statements, subsidiaries are measured using the cost method less any
impairment.
Classification and measurement of balance sheet items
Current assets and current liabilities include balance sheet items that fall due for payment within one year of the
balance sheet date and are associated with the with the daily business operations. Other items are classified as
tangible and intangible fixed assets or non-current liabilities. Current assets are measured at the lower of
acquisition cost and fair value. Current liabilities are recognized at nominal amount at the time of initial
recognition. Fixed assets are measured at acquisition cost but are written down to fair value if the impairment is not
expected to be temporary. Non-current liabilities are initially recognized at nominal amount.
Receivables
Trade receivables are recorded on the balance sheet at their nominal amount less deductions for provisions for
expected losses. Provisions for expected losses are made on the basis of an individual assessment of each
receivable.
Other receivables are subject to a corresponding assessment.
Currency
Monetary items in foreign currency are measured using the exchange rate at the end of the accounting year.
Pension scheme
The Company has a defined-contribution pension plan. The cost of the plan is recognized through profit or loss
when the liability occurs.
78 | Annual report 2023, Navamedic ASA
Financial risk management
For further information about financial risk management please refer to note 3 to the consolidated financial
statements.
Share-based remuneration
The Company has the option of awarding share-based remuneration to some executive personnel. The total
amount that must be recognized as an expense over the qualifying period is calculated on the basis of the fair value
of the awarded options.
Intangible assets
Licenses (product rights) and marketing authorizations
Navamedic holds rights to market and sell specific products in defined geographical areas. Investments related to
such licenses are amortized on a straight-line basis over their expected useful economic life, which typically range
between five to ten years.
Navamedic further distributes a number of products through wholesalers on behalf of rights holders. Investments
related to obtaining such marketing authorizations are amortized on a straight-line basis over their expected useful
economic life, which typically range between five to ten years. For products that are under registration, the
amortization of the cost of acquisition commences upon launch and is amortized over the period of the agreement.
Other intangible assets
Navamedic invests in information technology assets intended to products and marketing. Furthermore,
investments in licenses and marketing authorizations where the products in question have not yet been launched
due to regulatory or other reasons, are classified as other intangible assets until launch.
Contingent liabilities
Contingent liabilities are recognized if it is more than 50% likely that a settlement will be forthcoming. The value of
the settlement is based on a best estimate. Contingent consideration linked to future settlement clauses in the
Observe Medical acquisition is deemed to be an uncertain liability and not a conditional liability. The best estimate
of the settlement amount is updated on each balance sheet date and the change is recognized through profit or
loss.
Use of estimates
Preparing financial statements in accordance with good accounting practice requires the management team to
produce estimates and assumptions that affect the recorded assets, liabilities, revenue and expenses, as well as
explanatory notes concerning contingent assets and liabilities. The actual results may differ from these estimates
and assumptions.
Tax
The parent company’s tax expense for 2023 is calculated on the basis of 22%. The tax expense in the income
statement covers both the period’s tax payable and the change in deferred tax. Deferred tax is calculated on the
basis of the temporary differences that exist between accounting values and tax values, as well as the tax loss
carried forward at the end of the accounting year. Tax increasing and tax reducing temporary differences that are
79 | Annual report 2023, Navamedic ASA
reversed or may be reversed in the same period are offset and recorded net. The deferred tax assets are recorded
after taking into account future revenue in the Company.
Cash flow statement
The cash flow statement is prepared using the indirect method. Cash and cash equivalents consist of bank
deposits.
Note 1 – Equity
Note 2 – Shares in other companies
(in NOK '1000)
Share capital
Share premium
reserve
Retained
earnings
Total
Balance as at 31 December 2022 12,749 190,409 9,612 212,770
Share issues 93 2,169 2,262
Options 6,603 6,603
Net profit for the year -20,011 -20,011
Balance as at 31 December 2023 12,841 192,578 -3,796 201,622
Note 2 - Investments in group companies
Investments in group companies:
Acquired
Ownership/voting
rights
Navamedic AB - Sweden 04.10.2007 100%
Navamedic AS 27.02.2019 100%
Impolin AB* 01.06.2022 100%
Sensidose AB 01.05.2023 100%
Book value
Navamedic AS 12,900
Navamedic AB 248,088
Impolin AB* 52,134
Sensidose AB 102,544
Total investments in group companies 415,666
* Merged with Navamedic AB from 2024
80 | Annual report 2023, Navamedic ASA
Note 3 – Intangible assets and tangible assets
(in NOK '1000)
Licenses
Other
intangible
assets
Total
Accumulated cost
Balance at 1 January 2022 40,494 4,290 44,784
Disposals -870 -870
Additions 2,060 2,060
Accumulated cost 31 Dec 2022 42,554 3,420 45,974
Balance at 1 January 2023 42,554 3,420 45,974
Disposals
Additions 2,349 2,349
Accumulated cost 31 Dec 2023 44,902 3,420 48,322
Accumulated amortisation
Balance at 1 January 2022 -18,395 -602 -18,997
Reclassification
Amortization -2,815 -1,019 -3,834
Accumulated depreciation 31 Dec 2022 -21,210 -1,621 -22,831
Balance at 1 January 2023 -21,210 -1,621 -22,831
Amortization -3,022 -954 -3,977
Accumulated depreciation 31 Dec 2023 -24,233 -2,575 -26,808
Expected useful economic life 5-10 years 5-10 years
Carrying amounts
At 31 December 2022 21,343 1,799 23,142
At 31 December 2023 20,669 845 21,514
81 | Annual report 2023, Navamedic ASA
(in NOK '1000)
Tangible assets Total
Accumulated cost
Balance at 1 January 2022 929 929
Reclassification 0 0
Additions 191 191
Accumulated cost 31 Dec 2022 1,120 1,120
Balance at 1 January 2023 1,120 1,120
Reclassification
Additions 155 155
Accumulated cost 31 Dec 2023 1,275 1,275
Accumulated amortisation
Balance at 1 January 2022 -196 -196
Depreciation -321 -321
Accumulated depreciation 31 Dec 2022 -517 -517
Balance at 1 January 2023 -517 -517
Depreciation -375 -375
Accumulated depreciation 31 Dec 2023 -891 -891
Expected useful economic life 3 years 3 years
Carrying amounts
At 31 December 2022 603 603
At 31 December 2023 383 383
82 | Annual report 2023, Navamedic ASA
Note 4 – Bank deposits, overdrafts etc.
Note 5 – Income tax
(in NOK '1000)
2023 2022
Bank deposits 7,811 5,010
Restricted funds 0 997
Total 7,811 6,007
(in NOK '1000)
2023 2022
Total tax expense is divided into
Changes in deferred tax assets -94 8,333
Total taxes -94 8,333
(in NOK '1000)
2023 2022
Calculation of this year's tax base
Net profit for the year including group contribution -20,105 49,304
Permanent differences 21,685 -1,099
Changes in temporary differences 0 312
Deficit carried forward -1,579 -48,518
This year's tax base 0 0
Tax payable, 22% 0 0
83 | Annual report 2023, Navamedic ASA
Note 6 – Employee benefits
The Managing Director and Board of Navamedic ASA correspond to the CEO and the corporate Executive
committee. Information about remuneration for the Board and executive personnel can be found in note 16 to the
consolidated financial statements.
(in NOK '1000)
2023 2022
Overview of temporary differences
Tangible assets 238 35
Allowances for liabilities 3,988 3,762
Total temporary differences 4,226 3,797
Capitalised deferred tax asset (22%) 930 835
Deferred tax asset 930 835
(in NOK '1000)
2023 2022
Salaries 26,797 22,086
Remuneration of board members 1,400 1,285
Employer's NI contributions 4,817 3,377
Pension expenses 1,713 1,400
Other payroll expenses* 2,103 2,375
Total 36,830 30,523
Number of FTEs
19 16
The company is obliged to have an occupational pension scheme for the company's employees.
The company has established an occupational pension scheme that satisfies the requirements of the law.
The scheme comprises all employees and an annual premium is expensed with NOK 1 712 997
Remuneration for auditor specified as follows:
(in NOK '1000)
2023 2022
Statutory audit 1,008 736
Assistance other than auditing 161 121
Due Dilligence 0 69
Total 1,169 925
84 | Annual report 2023, Navamedic ASA
Note 7 – Share capital and shareholder information
Note 8 – Sales revenue
Share capital
Quantity Nominal Book value
A-shares 17,352,777 0.74 12,841,055
Overview of the largest shareholders as of 31.12.2023 and shares owned by the Board of Directors and senior
executives in Navamedic ASA. See note 14 in the consolidated financial statements.
Geographical distribution:
(in NOK '1000)
2023 2022
Nordic countries 47,632 46,250
Total 47,632 46,250
85 | Annual report 2023, Navamedic ASA
Note 9 – Other operating expenses
Note 10 – Claims and contingent liabilites
Navamedic ASA is not a party to any ongoing legal proceedings or disputes.
Note 11 – Transactions with related parties
The following internal transactions between the parent company and subsidiaries took place in the accounting year
(figures in NOK thousands):
Other operating expenses consist of:
(in NOK '1000)
2023 2022
Rent, etc. 2,463 2,166
Other cost of premises, vehicles, office equipment etc 565 366
Consulting and audit (including transaction cost) 19,592 5,868
Travel expenses 1,033 883
Insurance 1,429 951
IR expenses 830 1,357
Regulatory 7,946 5,629
Other expenses 6,206 4,087
Total other operating expenses 40,065 21,306
Audit fees:
(in NOK '1000)
2023 2022
Statutory audit 1,008 736
Assistance other than auditing 161 189
Total 1,169 925
86 | Annual report 2023, Navamedic ASA
Note 12 – Financial items
Company: Transaction: Nature:
2023 2022
Navamedic ASA Charges from parent to subsidiary Royalty 11,536 7,271
Navamedic ASA Charges from parent to subsidiary Service fee 36,096 38,961
Navamedic ASA Charges from parent to subsidiary Interest on loan 220 124
Navamedic AB Charges from subsidiary to parent Interest on loan 8,567 2,565
Financial income
(in NOK '1000)
2023 2022
Interest income 3,820 3,009
Other financial income 0 16,269
Total financial income 3,820 19,278
Financial expenses
(in NOK '1000)
2023 2022
Interest expenses 15,355 4,338
Corrections for previous years 0 -3,881
Other financial expenses 2,365 142
Total financial expenses 17,720 599
87 | Annual report 2023, Navamedic ASA
Note 13 – Subsequent events
In February of 2024, Navamedic launched Eroxon, a breakthrough treatment of erectile dysfunction disorder in
Norway. The product will be launched successively in the other Nordic countries during 2024.
88 | Annual report 2023, Navamedic ASA
Statement from the Board and CEO
The Board and CEO have on this date considered and approved the director’s report and financial statements for
the Navamedic Group and its parent company Navamedic ASA for 2023. The Board has based this statement on
reports and statements from the chair of the Board and CEO, the results of the Group’s operations and on other
information that is material in assessing the Group’s position and was provided to the Board of the parent
company. To the best of our knowledge, confirm:
That the consolidated financial statements for 2023 have been prepared in compliance with the IFRS as established
by the EU, with the requirements for additional disclosures stipulated in the Norwegian Accounting Act.
That the annual financial statements for the parent company for 2023 have been prepared in compliance with the
Accounting Act and with good accounting practice in Norway.
The information in the financial statements provides a true and fair representation of the assets, liabilities, results
and overall financial positions of the Navamedic Group and Navamedic ASA as at 31 December 2023.
That the director’s 2023 report provides a true and fair overview of the performance, operating results and financial
positions of the Group and the Company, as well as the key factors regarding risk and uncertainty currently facing
the Group and the Company.
The Board of Directors and CEO of Navamedic ASA
Oslo, 29 April 2024
89 | Annual report 2023, Navamedic ASA
Auditor’s report
90 | Annual report 2023, Navamedic ASA
91 | Annual report 2023, Navamedic ASA
92 | Annual report 2023, Navamedic ASA
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94 | Annual report 2023, Navamedic ASA
95 | Annual report 2023, Navamedic ASA
Alternative Performance Measures (APMs)
The following alternative performance measures are used in this report:
• Gross profit is equal to operating revenues minus cost of materials.
• Gross margin is gross profit as a percentage of operating revenue.
• EBITDA is gross profit less operating expenses, or Earnings Before Interest, Taxes, Depreciation and
Amortization
• Adjusted EBITDA is EBITDA adjusted for transaction cost
• EBITDA margin is EBITDA as a percentage of operating revenue.
• Equity ratio is the total equity as a percentage of total assets.
96 | Annual report 2023, Navamedic ASA
•
ESEF Mandatory concepts
Name of reporting entity or other means of identification: Navamedic ASA
Domicile of entity: Norway
Legal form of entity: Public limited liability company
Country of incorporation: Norway
Address of entity's registered office: Henrik Ibsens gate 100, 0255 Oslo
Principal place of business: Norway
Name of parent entity: Navamedic ASA
Name of ultimate parent of group: Navamedic ASA
Navamedic ASA
Henrik Ibsensgate 100
0255 Oslo
www.navamedic.com
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