Kvartalsrapport Q3 2024

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===== SIDA 1 =====

Interim ReportSales and operating profit growth, new products added to the pipelineApril – June 2024
Apr - Mar 2024Apr – Jun 2023Apr – Jun 2024(SEK million)264.256.282.8Net sales22247Sales growth %115.026.237.0Gross profit444745Gross margin %32.67.915.2Operating profit (EBIT)121418Operating margin (EBIT) %22.76.810.4Profit for the periodApril – June 2024•Consolidated sales during the first quarter, April to June amounted to SEK 82.8 (56.2) million, an increase of 47%. •Gross profit amounted to SEK 37.0 (26.2) million for the quarter, an increase of 41%.•EBIT amounted to SEK 15.2 (7.9) million, an increase of 92%. The operating margin was 18% (14%). •EBITDA margin was 19% (18%). •Costs related to preparations for uplisting to NASDAQ main list in the quarter of SEK 1.0 (0,2) million. Furthermore, extraordinary shipping costs linked to the situation in the Red Sea amounted to SEK 1.1 (0) million. •Earnings per share before dilution were SEK 0:36 (0:23) for the quarter. Earnings per share after dilution were 0:36 (0:23).•Cash flow from operating activities amounted to SEK -19.8 (12.0) million for the quarter.•Cash and cash equivalents were SEK 13.4 (24.8) million at the end of the quarter.

===== SIDA 2 =====

During the quarter, EQL delivered a sales growth of 47% and an operating profit (EBIT) growth of 92%. The increase was driven by product launches carried out during the previous financial year, four new launches during the quarter, and the sale of previously unavailable antibiotics. The operating result was negatively affected by costs totaling 2.1 MSEK due to uplisting costs and increased freight costs. For the full year 2024/25, we expect a growth rate of around 40%.Financial Overview for the First Quarter During the first quarter of 2024/25, sales rose to 82.8 MSEK, an increase of 47% from 56.2 MSEK the previous year. Operating profit (EBIT) increased by 92% to 15.2 MSEK compared to 7.9 MSEK the previous year, with an EBITDA margin of 19%. The operating margin was negatively affected by approximately 2.1 MSEK due to listing costs on NASDAQ and increased freight costs following disruptions in the Red Sea.Financial Objectives and Projections for the Fiscal YearFor the full year 2024/25, we project a sales growth of around 40%. Achieving this would align with our long-term sales goals outlined in our five-year plan. Our target is to reach an EBITDA margin of at least 25% at the end of the period. This means, that the EBITDA shall exceed 25% at least in the last quarter of 2024/25. We will also 
communicate our financial goals for the next five-year period during the year, which will reflect continuous growth and ambition.Product Launches and Market DynamicsDuring the quarter, four new pharmacy products were launched in the Nordic market, increasing the portfolio from 36 to 40 launched products. Our strategic key product Mellozzan was launched during the quarter in Germany and Austria and was shortly after the quarter's end also approved in Switzerland. Preparations for the launch in Switzerland and the United Kingdom are ongoing, and launches can occur towards the end of 2024/25. For Memprex, our second strategic key product, regulatory procedures are ongoing in Germany and France. These markets will form a base for future product expansion to more countries. During the quarter, four new niche generics were added to our pipeline, which remains at 31 as four products were launched.OtherFrom December 2023, our transport routes have been affected by ongoing conflicts in the Middle East, causing our transport partners to navigate via the longer route around the Cape of Good Hope. This extends lead times by 
2-3 weeks and increases costs, negatively affecting our gross margins. During the quarter, we received the news that EQL was approved for trading on NASDAQ Stockholm, and shortly after the quarter's end, on July 4th, our stock was listed for trading. The listing on the main list is another important milestone in our company's development as it provides a clear quality mark to suppliers, customers, and investors. It also simplifies for us, as a NASDAQ-listed company, to operate in the Swedish and international capital markets.CEO’s comments
INTERIM REPORT APRIL - JUNE 20242 Axel SchörlingVD & Koncernchef

===== SIDA 3 =====

April 22nd, 2024 – Mellozzan® (melatonin) launched in Germany and Austria EQL's key product Mellozzan® has been launched in Germany and Austria, where it is provided to patients by EQL's license partner Medice Arzneimittel Pütter GmbH & Co. KG. In addition to Germany and Austria, Medice also has ongoing work with registrations in Finland and Switzerland and launch in the UK. In 2023, Medice launched Mellozzan® in Denmark and Norway.In parallel with the launch, work is ongoing to get Mellozzan® reimbursed in Germany, Austria and the UK. Until that happens, patients will have to pay for the medicine out of pocket which will limit sales initially. This is completely normal for launches in these countries and was planned for by EQL and Medice. EQL sees no reason why Mellozzan® will not become re-imbursed in the new markets in the same way as the product has already been in the Scandinavian countries.May 27th, 2024 – EQL Pharma's CEO increases his holding in the companyEQL Pharma's CEO, Axel Schörling, has increased his stake in the company. During the period 22-24 May, Axel Schörling has bought 53,903 shares in the Company at a volume-weighted average price of SEK 47.05, a transaction totalling SEK 2,536,010. The trades were made on Spotlight Stock Market. After the purchases, Schörling owns a total of 311,016 shares, which corresponds to 1.1% of the shares in the Company. This makes him EQL's 3rd largest physical owner and the 9th largest, institutions included.
Significant events 
INTERIM REPORT APRIL - JUNE 20243
During the quarter During the quarter, cont. June 12th, 2024 – EQL Pharma AB has been approved for listing on Nasdaq StockholmNasdaq Stockholm’s listing committee has announced that it considers that EQL Pharma AB ("EQL Pharma" or the "Company") meets the applicable listing requirements and that they will approve the application for admission to trading of the Company’s shares on Nasdaq Stockholm Main Market subject to customary conditions being met, including the approval and registration of a prospectus by the Swedish Financial Supervisory Authority (Sw. Finansinspektionen) and the fulfilment of the distribution requirement for the Company’s shares. The first day of trading on Nasdaq Stockholm is expected to be Thursday 4 July 2024 and the last day of trading on Spotlight Stock Market is expected to be Wednesday 3 July 2024.June 28th, 2024 – EQL Pharma AB publishes prospectus for list change to Nasdaq StockholmThe prospectus that has been prepared in connection with the list change has today been approved and registered by the Swedish Financial Supervisory Authority (Sw. Finansinspektionen) and is now available on EQL Pharma’s website, www.eqlpharma.com, and will be available on the Swedish Financial Supervisory Authority’s website, www.fi.se.

===== SIDA 4 =====

July 4th, 2024 – Trading in EQL Pharma’s shares on Nasdaq Stockholm commencesOn 4 July 2024, the trading in the Company’s share on Nasdaq Stockholm commences. EQL Pharma’s share will be traded in the Small Cap segment and will retain both its ticker (EQL) and ISIN code (SE0005497732). In connection with the list change, there will be no offering or issue of new shares and shareholders of EQL Pharma will not need to take any actions. July 5th, 2024 – Mellozzan® (melatonin) has gained marketing approval in SwitzerlandEQL's key product Mellozzan® has now gained marketing approval by the Health Authorities in Switzerland, where it is to be provided to patients by EQL's license partner MediceArzneimittel Pütter GmbH & Co. KG. Launch of Mellozzan in Switzerland is planned for the financial year 2024/25, subject to reimbursement approvals and manufacturing capabilities. In addition to Switzerland the licensee also has ongoing work for registrations and subsequent launches in Finland and the UK. In 2023, Medice launched Mellozzan® in Denmark and Norway and this year it was launched in Germany and Austria. 
Significant events 
INTERIM REPORT APRIL - JUNE 20244
After the quarter After the quarter, cont. July 16th, 2024 – Notice of annual general meeting in EQL Pharma ABThe shareholders of EQL Pharma AB, Reg. No. 556713-3425, are hereby invited to the annual general meeting to be held on Monday 19 August 2024 at 16.00 at the company’s premises at Stortorget 1 in Lund.

===== SIDA 5 =====

PipelineEQL Pharma's reporting of the pipeline takes place at a general level and does not include, with the exception oflaunch phase products, the names of individual products or the products' current or expected market potential. Our goal is to provide better guidance to shareholders without disclosing information to competitors and without our pipeline being interpreted as a financial prospect. The information is updated in connection with the quarterly reports.Figure 1. Total pipeline of products and how many products are in Review phase and Launch phaserespectively.Products in different phasesDevelopment phase is used here as a general term. In this term all products we actually develop together with partners in, for example, India or the EU are included. But in addition to these products, the term also includes all products on which we have signed licensing or distribution 
agreements for one or more geographical markets, although we do not develop the product ourselves.When a product is fully developed, the application is submitted to the Medicines Agency in the markets where we intend to sell the product. The Agency’s then initiate an audit, which generally takes about one year from application to approval. We call this step Review phase. At the end of the quarter, we had seven products in the review phase.After approval, when we know that the product is approved, we can place orders for manufacturing and delivery. In parallel with this, we apply for government reimbursement and tenders to the extent that they are available. We call this step the launch phase and usually it takes about six to twelve months from approval until the first package is delivered to pharmacies.Products in the Launch phase At the end of the quarter, we have six products in the launch phase. Five of these are hospital products whose launches are dependent on outcomes in public tenders. The sixth, Testonur (testosterone) which is classified as a retail product, has an expected launch in the fourth quarter.During all stages from the development phase to the launch phase, situations can arise that risk delaying a 
launch or even making it impossible. Both ourselves and our carefully selected partners do everything we can to prevent these situations from occurring, but there are always risk factors beyond our control. This means that launches can take place both earlier and later than indicated. The chart below is intended to provide a best guess at any given time.Product development
INTERIM REPORT APRIL - JUNE 20245
Total pipeline
Review phase
Products under development
Launch phase
Expected launches
31
18
7
6
3
9
2026/27 2027/282024/25 2025/26
5
14
Figure 2. The company's product launches for the current fiscal year and expected product 
launches up to and including fiscal year 2027/28.

===== SIDA 6 =====

EQL Pharma has an aggressive growth strategy driven by the launch of new products combined with expansion into new markets. Our products are often generic to originals that have been around for a very long time.This means that the markets we enter are generally mature, but also that there are few, if any, generic competitors to our products and that it is unlikely that many new ones will be added.Marketed productsThe definition of "product" is a unique substance and / or formulation. So PenV tablets and oral suspension count as two products, not one. A product can be launched in several countries at the same time with different pack sizes but is still only counted as one product.During the quarter, four products were launched. Propranolol EQL Pharma, Nitrofurantoin EQL Pharma, Allopurinol EQL Pharma and Amitriptyline EQL Pharma. All were launched in Denmark and are classified as retail products which are covered by the Danish health insurance system.Geographic marketsToday, we operate directly under our own brand in Sweden, Denmark, Norway and Finland.In the rest of Europe our products are sold indirectly through partners.During 2024/25 and onwards, we will expand our geographical presence in Europe. Depending on the market, this is done through a direct or indirect sales model. Indirect sales of Mellozzan (melatonin tablets) started in Germany and Austria during the quarter.
Business areasWe currently develop and sell only prescription drugs, and tests, in our core business. In that category there are several interesting business areas. So far, we have mostly invested in (a) the field of interchangeable generics in outpatient care (Retail). The intention is to broaden the portfolio to include more (b) injection products for inpatient care (Hospital), (c) unique products/formulations for above all outpatient care (Brands) and d) tests to identify Covid and/or influenza infections (Tests ).Outpatient generics are mainly sold via various exchange systems such as the Swedish "PeriodensVara" system. The injection products are generally sold via public tendering. The unique products achieve sales only through prescription specifically of our product and the tests are sold direct to consumer with pharmacies as the primary sales channel.
Market
INTERIM REPORT APRIL - JUNE 20246 Figure 3.The company's product portfolio, i.e. marketed products, per quarter from fiscal year 2021/22 through the reporting period for the current fiscal year. The Y axis is the number of products marketed..21 2122 222325 252628 283640
0
5
10
15
20
25
30
35
40
45
Q2Q1 Q1Q4Q2 Q3 Q3Q4 Q1Q2 Q3 Q4
2021/22 2022/23 2023/24 2024/25

===== SIDA 7 =====

RetailWe have launched four products in Denmark during the quarter.•Propranolol EQL Pharma is a so-called beta blocker which is primarily used in the heart/vasculature treatments, but also as a treatment for migraines, involuntary tremors, among others.•Nitrofurantoin EQL Pharma is an antibiotic used to treat acute urinary tract infections caused by bacteria.•Allopurinol EQL Pharma is a so-called enzyme inhibitor and is a cornerstone in the treatment of gout.•Amitriptyline EQL Pharma belongs to the group of tricyclic antidepressants and is mainly used in the treatment of depression, but also for the treatment of nerve-related pain and migraine.HospitalDuring the quarter, EQL won tenders in Denmark and Iceland and received extended contracts for products in several Swedish regions as well as in Denmark.
BrandsDuring the first quarter, our partner Medice launched Mellozzan (melatonin tablets) in Germany and Austria. The reception from healthcare and patients has been good.After the end of the quarter, Medice Mellozzan was approved in Switzerland and, just like in the UK, preparations for launch are now in full swing.TestsIn the quarter, there was a smaller wave of Covid infections in all Nordic countries, which we noticed with a certain increase in sales compared to the previous quarter.
Market
DELÅRSRAPPORT APRIL - JUNI 20247
Answer: Propranolol 1965, Nitrofurantoin 1958, Amitriptylin 1963 and Allopurinol 1967.
We at EQL have a preference (strategy) for generics to older drugs where competition is limited and the establishment in healthcare is deeply rooted.So, when were the originators of our new niche generics launched?Propranolol NitrofurantoinAmitriptylin Allopurinol
Golden Oldies

===== SIDA 8 =====

Financial information
INTERIM REPORT APRIL - JUNE 20248

===== SIDA 9 =====

Sales and operating profit
INTERIM REPORT APRIL - JUNE 20249Quarterly Net sales in SEK million
Net sales R12 SEK million
Figure 4. Net sales trend fiscal year 2020/21 through reporting period for the current fiscal year. Left Y-axis quarterly turnover in SEK million. Right Y-axis rolling 12-months sales expressed in SEK million. * Excluding non-recurring sales
Quarterly EBIT In SEK million
EBIT R12 SEK millionFigure 5. Operating profit trend (EBIT) for fiscal year 2020/21 through the reporting period for the current fiscal year, the bars are EBIT and the line is rolling 12-month EBIT. The left Y-axis EBIT per quarter expressed in SEK million and the right Y-axis is rolling 12-month EBIT expressed in SEK million.
In the first quarter of the financial year 2024/2025, our net sales amounted to SEK 82.8 (56.2) million, which corresponds to a growth of 47%. Operating profit for the first quarter amounted to SEK 15.2 (7.9) million. The operating margin (EBIT) was 18% (14%). All business areas contributed positively to the result. Cost increases linked to increased staff strength as well as one-off costs linked to the stock market change and extra shipping costs have a negative impact on the result in the quarter.Sales development Profit performanceQuarterly net sales and Rolling 12 months (R12)*Quarterly operating profit (EBIT) and EBIT Rolling 12 months (R12)
0102030405060708005010015020025030090Q3 Q4 Q1 Q2 Q3 Q1Q2 Q3 Q433,136,143,0Q156,153,556,259,651,282,8Q478,1Q270,247%2021/222022/232023/2405101520-20-1001020304050Q221,0Q338,8Q443,7Q149,7Q247,2Q341,4Q441,4Q136,1Q230,4Q340,0Q15,918,011,47,911,915,56,17,911,99,815,2Q432,68,46,62021/222022/232023/242024/252024/25

===== SIDA 10 =====

Gross profitGross profit increased by 41 percent to SEK 37.0 (26.2) million during the quarter, which corresponds to a gross margin of 45 percent (47). The gross margin was affected by shipping costs, the product mix, depreciation of capitalized development expenses, inventory adjustments and currency effects.Cash flowPositive cash flow from operations before changes in working capital of SEK 14.1 (10.8) million for the quarter. Change in working capital during the quarter amounted to SEK -33.8 (-22.8) million. The change can primarily be explained by an increased capital tie-up in inventory.The total cash flow from current operations amounted to SEK -19.8 (-12.0) million for the quarter.
InvestmentsEQL Pharma continues to invest in new products. During the quarter, SEK 7.7 (7.5) million was invested in both ongoing and new projects. FinancingCash flow from financing operations totaled SEK 20.4 (-0.1) million during April to June.Financial costsThe quarter's interest expenses attributable to loans amounted to SEK -2.1 (-0.9) million. In addition to interest costs for loans, financial costs are attributable to interest on leasing debt according to IFRS 16. Other financial income for the period amounted to SEK 0.0 (1.5) million. 
Financial positionCash and cash equivalents amounted to SEK 13.4 (24.8) million at the end of the quarter and unutilised workingcapital credit amounted to SEK 17.3 (20.0) million. Pledged invoice and inventory limits amounted to SEK 140 (110) million.Cash flow, investments and financing
INTERIM REPORT APRIL - JUNE 202410

===== SIDA 11 =====

Parent companyEQL Pharma AB is the parent company of the EQL Pharma group. Net sales for the Parent Company during the first quarter amounted to SEK 82.8 (55.1) million. Operating profit amounted to SEK 15.5 (8.1) million for the quarter.PersonnelThe number of full-time employees in the group is 22 (18), out of whom 15 (12) are women, at the Swedish parent company.In addition to the permanent staff, there are long-term consultants with expertise in GMP, pharmacovigilance, regulatory affairs, business development and wholesale operations tied to the group.Risk factorsThis financial report includes statements that are forward looking but actual future results may differ materially from those anticipated. In addition to the factors discussed, the earnings can be affected by delays and difficulties in the various phases of development, such as formulation, stability, preclinical and clinical trials, but also potentially competition, economic conditions, patent protection and the exchange rate and interest rate fluctuations, and political risks. 
Several risk factors may have a negative impact on the operations of EQL Pharma. It is therefore important to consider the relevant risks alongside the Company's growth opportunities. The following text describes risk factors in no particular order and with no claim to be exhaustive.Delays in launching new products can mean deterioration in earnings for the company and it cannot be excluded that the EQL Pharma in the future may need to raise additional capital. An aggressive investment strategy from competition could pose risks in the form of slower sales and weaker profitability. Increased competition could lead to negative sales and earnings effects for the Company in the future.External factors such as inflation, currency and interest rate fluctuations, supply and demand as well as booms and recessions may have an impact on operating costs, selling prices and equity valuations. EQL Pharma's future revenues and valuation of shares may be adversely affected by these factors, which are beyond the Company's control. A large part of the purchases is made in euro whose value can change significantly.EQL Pharma will continue to develop new products in its field. Time and cost aspects of product development can be difficult to pre-determine with accuracy. This entails the risk that a 
proposed product is more costly than planned or takes longer  than planned.Additional risks and uncertainties that are not currently known to EQL Pharma may be developed into important factors that affect the Company's operations, results and financial position. For a more detailed list of risks, we refer to EQL’s Annual Report 2023/24, pages 42-43 and 58-60.Upcoming reportsFuture reports for 2024/2025 will be published:
Additional information
INTERIM REPORT APRIL - JUNE 202411
Current financial period:2024-08-19Annual General Meeting2024-11-06Interim Report July – September (Q2)2025-02-05Interim Report October – December (Q3)2025-05-08Interim Report January – March (Q4)

===== SIDA 12 =====

Accounting policiesEQL Pharma’s consolidated accounts are prepared in accordance with International Financial Reporting Standards (IFRS). EQL Pharma’s interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. For the Group, the same accounting policies as those adopted for this report are described on pages 51-57 of the company’s Annual Report for 2023/2024.Reporting for the Parent follows the Swedish Annual Accounts Act and recommendation RFR 2 of the Swedish Financial Accounting Standards Council (‘Reporting for Legal Entities’).Our financial goalsFor the current four-year period, spanning from 2020/21 to 2024/25, we aim to grow by an average of 40 percent per year. The growth pertains to sales of a recurring nature. Furthermore, we aim for the EBITDA margin to be more than 25 percent at the end of the period. This means, that the EBITDA shall exceed 25% at least in the last quarter of 2024/25. For the upcoming fiscal year 2024/25, we expect a growth of around 40 percent. If achieved, this would mean that the average sales target over the four-year period is met.
The auditors' reviewThis interim report has not been audited by the auditor.Questions regarding year end reportFor further information or questions, please contact: Axel Schörling,President & CEO axel.schorling@eqlpharma.com+46 763 179 060EQL Pharma is listed on Nasdaq Stockholm, Small Cap list. The company is traded under the ticker symbol EQL and ISIN code SE0005497732.
Board of Directors EQL PharmaLund, August 8th, 2024.Christer Fåhraeus, Anders Månsson, Chairman MemberPer Ollermark, Linda Neckmar, Member MemberPer Svangren, Rajiv I Modi, Member Member 
Additional information
INTERIM REPORT APRIL - JUNE 202412

===== SIDA 13 =====

The Group
INTERIM REPORT APRIL - JUNE 202413
Consolidated profit and loss statementApr 2023 – Mar 2024Apr – Jun 2023Apr – Jun 2024NoteAll amounts in ’000264 16856 20682 7893Net sales-149 123-30 016-45 808Cost of goods sold115 04526 19036 981Gross profit44%47%45%Gross margin-48 976-11 393-12 826Sales and marketing expenses -21 826-4 801-6 436Administration expenses-12 090-2 137-3 201R&D expenses46372715Other operating income32 6157 93015 232Operating profit (EBIT)1 7211 5270Other financial items-5 732-860-2 119Interest paid28 6048 59713 113Result before tax-5 899-1 772-2 701Tax 22 7056 82510 412Net profit for the period Other comprehensive income:4 6-5Translation difference in the group46-5Sum of Components to be reclassified to net profit:46-5Sum of other comprehensive income:22 7096 83210 407Comprehensive result for the period

===== SIDA 14 =====

The Group
INTERIM REPORT APRIL - JUNE 202414
Apr 2023 – Mar 2024Apr – Jun 2023Apr – Jun 2024Per share data0.780.230.36Earnings per share, before dilution, SEK */0.760.230.36Earnings per share, after dilution, SEK */6.125.566.47Equity per share, SEK29 063 61029 063 61029 063 610Number of shares outstanding29 063 61029 063 61029 063 610Average number of shares outstanding, before dilution29 795 61029 625 61029 063 610Average number of shares outstanding, after dilution42.3029.7056.20Stock exchange rate, SEK---Dividend per sharePer share dataQuarterly earnings trendApr 2023 – Mar 2024Jul – Sep 2023Oct – Dec 2023Jan – Mar 2024Apr – Jun 2024All amounts in ’000264 16859 61770 21178 13482 789Net sales2%-19%-12%30%47%Sales growth115 04523 90533 49931 45236 981Gross profit44%40%48%40%45%Gross margin, %32 6156 5579 7548 37315 232Operating profit (EBIT)12%11%14%11%18%Operating margin, %22 7054 6806 5074 69310 412Net profit for the period-23 958-3 954-10 43010 054-7 097Cash flow for the period* Based on the profit/loss for the period divided by the average number of shares in issue

===== SIDA 15 =====

The Group
INTERIM REPORT APRIL - JUNE 202415
Consolidated balance sheet2024-03-312023-06-302024-06-30NoteAll amounts in ’000173 309121 034180 387Intangible assets2 6742 7812 3294Tangible fixed assets111Financial assets105 62788 805137 284Inventory58 34245 12256 673Trade receivables13 3375 99516 546Other receivables20 46824 79813 371Cash and bank373 759288 536406 591Total assets177 726161 585188 134Equity17 51013 82320 211Deferred Tax liability16 7001 83616 607Long-term debt, interest-bearing103 39364 662123 847Short-term debt, interest-bearing8 6058 77611 235Short-term debt, non interest-bearing49 82537 85446 557Trade payables373 759288 536406 591Total equity and liabilitiesConsolidated changes in equityApr 2023 – Mar 2024Apr – Jun 2023Apr – Jun 2024All amounts in ’000154 753154 753177 726Balance at beginning of period26600Warrants22 7056 82510 412Profit for the period16-4Other comprehensive income177 726161 585188 134Balance at end of period

===== SIDA 16 =====

The Group
INTERIM REPORT APRIL - JUNE 202416
Cash flowApr 2023 - Mar 2024Apr - Jun 2023Apr - Jun 2024All amounts in ’00032 6157 93015 232Operating profit (EBIT)-4 011667-2 119Interest paid2 9212 158958Adjustment for items not included in cash flow000Taxes31 52510 75514 071Cash flow from operations before changes in working capital-40 259-23 431-31 662Changes in inventory-14 2456 318-1 539Changes in current receivables11 542-5 645-637Changes in current liabilites-42 962-22 758-33 838Sum changes in working capital-11 437-12 003-19 767Cash flow from operations-65 336-7 505-7 653Acquisitions of intangible non-current assets-9260-37Acquisitions of tangible non-current assets-66 262-7 505-7 691Cash flow from investment activities53 97021320 722Amortization, raising of loans26600Warrants program91000Leasing debts-1 404-332-361Amortization of leasing debts53 741-11920 361Cash flow from financing activities-23 958-19 628-7 097Total cash flow during period44 42644 42620 468Cash / cash equivalents at beginning of period20 46824 79813 371Cash / cash equivalents at end of period

===== SIDA 17 =====

Parent company
INTERIM REPORT APRIL - JUNE 202417
Profit and loss statementApr 2023 - Mar 2024Apr – Jun 2023Apr – Jun 2024All amounts in i ’000258 16755 12182 790Net sales-145 846-29 146-45 670Cost of goods sold112 32125 97637 120Gross profit44%47%45%Gross margin-48 164-11 099-12 736Sales and marketing expenses -21 685-4 735-6 391Administration expenses-12 090-2 142-3 208R&D expenses46372715Other operating income30 8448 07215 500Operating profit (EBIT)1 7211 5270Other financial and interest income-5 669-844-2 108Interest expenses and similar expenses26 8968 75513 392Profit before tax -24 95000Appropriations-438-1 772-2 701Tax 1 5086 98310 691Net profit for the period

===== SIDA 18 =====

Parent company
INTERIM REPORT APRIL - JUNE 202418
Balance sheet2024-03-312023-06-302024-06-30All amounts in ’000173 024120 749180 102Intangible assets300359315Tangible fixed assets391391391Financial assets105 62787 884136 667Inventory55 97644 87756 682Trade receivables14 7628 10817 949Other receivables20 20322 87411 981Cash and bank370 283285 242404 088Total assets109 652114 861120 343Equity15 453015 671Long-term debt, interest-bearing102 21863 914122 723Short-term debt, interest-bearing8 20310 35913 941Short-term debt, non interest-bearing85 00058 50085 000Appropriations49 75837 60746 411Trade payables370 283285 242404 088Total equity and liabilities

===== SIDA 19 =====

Note 1 Accounting policiesThe Group applies International Financial Reporting Standards (IFRS), as adopted by the EU. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Annual Accounts Act and the Nasdaq Stockholm Rule Book for Issuers. Disclosures in accordance with IAS 34 p. 16A appear not only in the financial statements and their accompanying notes but also in other parts of the interim report. The parent company applies the Annual Accounts Act and the Swedish Financial Reporting Board recommendation RFR 2 Accounting for Legal Entities.Note 2 Segment reportingEQL Pharma’s operations only comprise one operating segment; generics for prescription pharmacy sales and hospital sales, and therefore reference is made to the income statement and balance sheet regarding operating segment reporting.Note 3 Allocation of salesNet sales divided in geographical markets.
Note 4 Tangible fixed assets
The tangible fixed assets amounted to SEK 2.3 milion on the balance sheet date. The majorityof the right of use assets consists of leases for office premises. For all leases for which the Groupis lessee (which are not short-term leases or low value assets), the Group recognizes a right ofuse asset and a corresponding lease liability.When valuating the right of use asset, the acquisition method is used, i.e the right of use asset iscalculated at acquisition cost, adjusted for any revaluation of the lease liability less depreciation.The right of use asset is reported as a tangible fixed asset, while leasing liability is reportedseparately in the Group's statement of financial position as long-term debt, interest-bearing andshort-term debt, interest-bearing.
Notes
INTERIM REPORT APRIL - JUNE 202419
Apr – Jun 2023Apr – Jun 2024All amounts in ’00025 58431 329Sweden17 18032 831Other Scandinavia13 44218 629Other Europé56 20682 789TotalApr 2023 – Mar 2024All amounts in ’000145 284Sweden84 097Other Scandinavia34 786Other Europe264 168Total
2024-03-312023-06-302024-06-30All amounts in ’000Right of use assets1 2021 772902Land and buildings1 1716521 112Inventories2 3742 4232 014Total right of use assetsTangible fixed assets that are not right of use assets000Land and buildings300359315Inventories300359315Total tangible fixed assets that are not right of use assets2 6742 7812 329Total tangible fixed assets

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Note 5 Transactions with related partiesThe nature and extent of related party transactions are described in the group's annual report for 2023/24.Transactions with related parties arise in the day-to-day operations and are based on commercial terms and market prices. In addition to customary transactions between group companies and remuneration to management and the board, the following transactions with related parties have taken place during the period: Transactions with Cadila Pharmaceuticals Ltd regarding goods purchases and development costs have taken place with SEK 14.4 (9.5) million during the period April – June 2024.Note 6 Incentive ProgrammesOptions Scheme– During the period April – June 2024, the company has not allocated any new warrants.There are previously outstanding incentive programs in the company in the form of four warrant programs through which a maximum of 732,000 new shares may be issued. If all warrants that have been issued and held by participants are fully utilized for the subscription of shares, a total of 732,000 new shares will be issued, which corresponds to a combined dilution of approximately 2.46 percent of the company's share capital and votes after full dilution.The earnings conditions mean that the individuals annually for 3.5 years earn the right to the warrants and where it exists a requirement for employment during the respective period. As the warrants in the Warrants Programs will be issued to the participant at their fair market value, it is the company’s assessment that no social costs will occur for the company as a result of the Warrants Programs.Description of the full terms and conditions for incentive programs can be found on the company's website under Investor Relations.
Note 7 Events after accounting periodJuly 4th, 2024 –Trading in EQL Pharma’s shares on Nasdaq Stockholm commences todayOn 4 July 2024, the trading in the Company’s share on Nasdaq Stockholm commences. EQL Pharma’s share will be traded in the Small Cap segment and will retain both its ticker (EQL) and ISIN code (SE0005497732). July 5th, 2024 – Mellozzan® (melatonin) has gained marketing approval in SwitzerlandEQL's key product Mellozzan® has now gained marketing approval by the Health Authorities in Switzerland, where it is to be provided to patients by EQL's license partner Medice ArzneimittelPütter GmbH & Co. KG.
Notes
INTERIM REPORT APRIL - JUNE 202420

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The company presents certain financial measures in the interim report which are not defined according to IFRS. The company considers these measures to provide valuable supplementary information for investors and the company’s management as they enable the assessment of relevant trends. EQL Pharma’s definitions of these measures may differ from other companies’ definitions of the same terms. These financial measures should therefore be seen as a supplement rather than as a replacement for measures defined according to IFRS. Definitions of measures which are not defined according to IFRS and which are not mentioned elsewhere in the interim report are presented below. Reconciliation of these measures is shown in the tables below. 
Reconciliation tables KPIs, non-IFRS measures
INTERIM REPORT APRIL - JUNE 202421
DefinitionKey performance indicatorsNet sales divided by net sales corresponding to the period last year.Sales growthNet sales less cost of goods sold.Gross profitGross profit as a percentage of net sales.Gross marginEarnings before interest and taxOperating profit (EBIT).Operating profit (EBIT) as a percentage of net sales for the period.Operating margin (EBIT), %.Operating profit (EBIT) adjusted for write-downs and amortization divided by net sales.EBITDA margin %Shareholders’ equity attributable to Parent Company shareholders divided by the number of outstanding shares at the end of the period.Shareholders’ equity per shareShareholders’ equity including non-controlling interests as a percentage of total assets.Equity/assets ratio
Key performance indicators not defined according to IFRS
Apr - mar 2024Apr – Jun 2023Apr – Jun 2024Sales growth264 16856 20682 789Net sales current period, KSEKA 259 91346 09856 206Net sales last period, KSEKB 2%22%47%Sales growth, %(A-B)/B Apr - mar 2024Apr – Jun 2023Apr – Jun 2024Gross profit / Gross margin264 16856 20682 789Net sales, KSEKA -149 123-30 016-45 808Cost of goods sold, KSEKB 115 04526 19036 981Gross profit, KSEKA-B 44%47%45%Gross margin, %(A-B)/A

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Reconciliation tables KPIs, non-IFRS measures, cont.
INTERIM REPORT APRIL - JUNE 202422
Apr - mar 2024Apr – Jun 2023Apr – Jun 2024Operating profit (EBIT)/ Operating margin32 6157 93015 232Operating profit (EBIT), KSEKA 264 16856 20682 789Net sales, KSEK B 12%14%18%Operating margin (EBIT), %A/B Apr - mar 2024Apr – Jun 2023Apr – Jun 2024EBITDA margin%42 15710 30815 860Operating profit (EBIT) adjusted for write-downs and amortization , KSEKA 264 16856 20682 789Net sales, KSEKB 16%18%19%EBITDA margin, %A/B Apr - mar 2024Apr – Jun 2023Apr – Jun 2024Shareholders’ equity per share22 7056 82510 412Profit/loss for the period, KSEKA 166 240158 169114 997Number of sharesB 14%4%9%Net earnings per share, %A/B Apr - mar 2024Apr – Jun 2023Apr – Jun 2024Equity-asset ratio177 726161 585188 134Equity, KSEKA 373 759288 536406 591Balance sheet total, KSEKB 48%56%46%Equity ratio, %A/B