DERMAPHARM HOLDING SE

Recommendation history

• H1 2026HoldHold: Dermapharm delivered solid H1 execution, with Q2 revenue up approximately 5%, adjusted EBITDA up approximately 14%, and margin expanding by 2 percentage points; operating cash flow rose by EUR35 million and cash conversion reached 65% of EBITDA. However, management explicitly does not currently expect to exceed FY26 guidance, while leverage increased to 3.0x after the EUR181 million buyback and the unresolved BaFin investigation and EUR30 million FYTA receivable impairment keep the risk/reward from being a clean buy.
• Q3 2025HoldHold: Dermapharm maintained FY2025 guidance of €1.16–1.20 billion revenue and €322–332 million adjusted EBITDA, while Q3 branded pharmaceuticals grew 4% and group adjusted EBITDA rose only 1%. The key tension is execution: analysts indicated Q4 requires roughly 7% growth to reach the guidance midpoint and about 10% to meet consensus, while axicorp volumes were down 60% and Arkopharma remains in transformation.
• FY 2024HoldHOLD: Dermapharm delivered 2024 revenue of approximately €1.2bn and adjusted EBITDA of €350.6m, but 2025 guidance is only €1.16–1.20bn revenue and €322–332m EBITDA as axicorp exits roughly €50m of low-margin sales. The branded-pharma engine remains attractive, with mid-single-digit growth expected, and leverage fell to 2.8x net debt/EBITDA, but the Arkopharma turnaround is unproven and the call did not convincingly reconcile portfolio growth claims with a broadly flat group top line.
• Q3 2023HoldDermapharm delivered strong reported growth, with year-to-date revenue up approximately 18% to €870 million and EBITDA up 2% to €244 million, while reaffirming FY2023 revenue guidance of €1.08–1.11 billion and EBITDA guidance of €300–310 million, expected near the high end. However, vaccine production is phasing out, parallel-import EBITDA was only €1 million year to date, and higher financing costs are weighing heavily on earnings; the challenged Q4 outlook and limited margin visibility make this a hold rather than a clean buy.
• Q3 2022HoldHold: Dermapharm delivered 9M revenue of EUR734m (+nearly double-digit) and adjusted EBITDA of EUR239m, but EBITDA margin fell 1.4pp to 32.6% as lower-margin herbal extracts and parallel imports diluted mix. Core branded pharmaceuticals remain strong, yet materially lower BioNTech vaccine revenue, Arkopharma integration and higher leverage leave insufficient visibility for a clean buy despite confirmed FY22 guidance of 10–13% revenue growth and 3–7% adjusted EBITDA growth.
• H1 2025HoldHold: Dermapharm maintained FY2025 revenue guidance of €1.16–1.20bn and adjusted EBITDA guidance of €322–332m, while branded pharmaceuticals delivered strong growth and Q2 adjusted EBITDA rose 4% (€2.5m). However, the investment case still depends on turning around Arkopharma and proving that Axicorp’s 30% PI revenue decline is genuinely margin-accretive rather than simply shrinking the business; leverage remains 2.8x.