1 | Consolidated financial statements 2022, Navamedic ASA
Annual report 2022
Navamedic ASA
2 | Annual report 2022, Navamedic ASA
03
Highlights for 2022
03
Key figures
04
Comment from the CEO
06
Navamedic – a Nordic pharma company with high growth ambitions
07
Directors’ report 2022
16
ESG report
22
Corporate governance
30
Consolidated financial statements 2022
37
Notes to the consolidated financial statements
75
Parent Company Navamedic ASA -financial statements 2022
81
Navamedic ASA - notes to the financial statements 2022
92
Statement from the Board and CEO
93
Auditor’s report
99
Alternative Performance Measures (APMs)
Table of contents
3 | Annual report 2022, Navamedic ASA
Highlights for 2022
• In 2022, Navamedic achieved growth across all of its portfolio categories and increased revenues by 37% to
NOK 382.1 million (NOK 278.4 million in 2021).
• EBITDA for 2022 amounted to NOK 51.7 million (NOK 18.2 million in 2021).
• The Company’s gross margin improved to 42.8% from 40.1% in 2021.
• Navamedic acquired Impolin AB in May 2022, strengthening its product portfolio and Navamedic’s position
in the obesity treatment landscape.
• Successful product launches of two over-the-counter gastro products, SmectaGo® and ForlaxGO®.
• In August, Navamedic acquired, from Vectans Pharma, the exclusive rights to market and sell Sitavig®,
muco-adhesive buccal tablet treatment for cold sores in the Nordic and Benelux.
• In November, Navamedic acquired the rights to market and sell ready-to-administer Clindamycin antibiotic
bags for use in hospitals from InfoRLife AS.
Key figures
(in NOK '1000)
2021
Total revenue
278,439
Gross profit *
111,744
Operating profit before Depreciation and Amortization (EBITDA)
18,171
Operating profit (EBIT)
11,455
Profit before tax continuing operations
2,358
Net profit / loss (-)
618
Total assets
330,179
Totall equity
151,237
Gross margin (%) *
40.1 %
EBITDA margin (%) *
6.5 %
Equity ratio (%) *
45.8 %
* Alternative performance measures (APMs)
4 | Annual report 2022, Navamedic ASA
Comment from the CEO
The year 2022 can be summarised by Navamedic having delivered
successful growth through acquisitions and new product launches,
which have supported continued top-line growth.
We started the year with the acquisition of Impolin AB, a Swedish-based
distributor of products benefitting the health and well-being of
consumers and patients. Along with a dedicated team of new
colleagues, we gained the rights to products that have significantly
strengthened our offering in the growing obesity area. As a result,
Navamedic is in a position where we can offer a support throughout
the entire weight loss journey, whatever the individual needs might be.
This transaction is also an excellent example of how we work to expand
on the product areas with the highest potential to deliver the most
value and demonstrates how we will move forward.
Halfway through the year, we also signed an agreement with the French pharmaceutical company, Vectans Pharma,
to gain the exclusive rights to market and sell Sitavig®, new and unique muco-adhesive buccal tablet treatment for
cold sores in the Nordic and Benelux.
During the year, we have worked to increase consumer awareness regarding treatment options for gastro-related
issues. Most consumers with gastro conditions are unaware of available treatment possibilities, and it remains an
underdeveloped area in the Nordics with a significant growth potential. To raise awareness and meet consumer
needs, we have launched several marketing campaigns to home in on the many available over-the-counter options
in our portfolio. We will continue to drive these efforts to support a shift in consumer awareness. The results of
these campaigns are seen in the successful market launches of
SmectaGo® and ForlaxGO®, which form part of our gastro portfolio.
In addition to optimising and balancing our portfolio in the obesity
and consumer health space, we added to our antibiotics portfolio
by acquiring the rights to ready-to-administer Clindamycin bags for
use in hospitals from InfoRLife AS.
These agreements all underpin the importance our partners place
on efficient market access and understanding of the markets where
we operate. We are confident that our local insight has been and
will continue to be vital in securing agreements and partnerships in
the future.
We have also experienced a lot of market activity in the treatment
landscape for obesity, especially at the beginning of 2023. There is
no doubt that obesity is an increasingly growing public health
challenge worldwide. It is also a disease that is significantly
undertreated. With the acquisition of Impolin AB, we proved our commitment to treating obesity and considering
patients' individual needs. We now have a portfolio of treatment options that can support patients seeking a
Kathrine Gamborg Andreassen
Chief Executive Officer
5 | Annual report 2022, Navamedic ASA
lifestyle intervention with Modifast, a range of low-calorie meal replacement products, and those needing
medication with Mysimba, a first-in-line treatment for obesity drugs in Norway.
Where it stands, our current portfolio of products is competitive, which is evident when looking at the progress we
achieved in 2022. With growth attained across the portfolio, we will continue strengthening the existing business
and explore opportunities within new and current areas of medicines and treatments. Our pipeline of opportunities
and acquisition targets is growing, and we have no intention of slowing down. We have the necessary means to
carry on the success of 2022, and I am confident we will secure new agreements and products that can seamlessly
become part of our scalable platform also in 2023.
Looking ahead to 2023, we are well underway to achieve our mid-term ambition of operating a NOK 1 billion
revenue company with a 15 per cent EBITDA margin. The achievements of 2022 would not have been possible
without the dedicated Navamedic team, who have worked incredibly hard to get us to where we are today. I also
extend my gratitude to our investors and stakeholders who have supported us along the way.
This is an incredibly exciting time for the Company, and I look forward to keeping you all updated on our
achievements as we go.
6 | Annual report 2022, Navamedic ASA
Navamedic a Nordic pharma company with high growth
ambitions
As a Nordic pharma company with a footprint in Northern
Europe, Navamedic is a reliable supplier of high-quality
consumer health, medical nutrition, specialty pharma and
branded generics products, delivered to hospitals and
through pharmacies. The product portfolio consists of
prescription and non-prescription pharmaceuticals, as well
as other healthcare registered products.
The Company has more than 30 highly qualified employees
with strong competence in regulatory affairs, quality
assurance, reimbursement, marketing and sales. Thus, the
Company is a full-service provider securing market access through its local
competence and hence is a preferred Nordic partner for many international players. Navamedic’s headquarter is
located in Oslo, Norway, and the Company has been listed on the Oslo Stock Exchange (ticker: NAVA) since 2006.
The ambition of becoming a leading Nordic pharma company will be achieved through three main pillars:
Navamedic seeks to strengthen the core by untapping the potential within existing products and territories.
Furthermore, the Company will secure and increase the value through ownership and develop new brands. Third,
Navamedic plans to grow through M&A, building on existing M&A capabilities and track record to broaden the
categories or geographical territory.
Financial targets:
•
20% Organic revnue growth
• Building a 1 billion NOK
revenue company mid-term
• EBITDA margin of 15%
7 | Annual report 2022, Navamedic ASA
Directors’
report 2022
8 | Consolidated financial statements 2022, Navamedic ASA
The Group’s result for the year
In 2022, the Group reported revenues of NOK 382.1 million, up from NOK 278.4 million in 2021, representing an
increase of 37.2%, mainly driven by growth in the specialty pharma and consumer health product categories, part
of which is due to the Impolin acquisition.
The EBITDA in 2022 was NOK 51.7 million, compared to NOK 18.2 million in 2021. The EBITDA development is mainly
driven by successful growth initiatives, reduction in cost of goods sold and prudent management of operational
expense.
The operating result (EBIT) in 2022 was NOK 44.4 million, compared to NOK 4.2 million in 2021. Net financials were
negative NOK 10.4 million in 2022, compared to negative NOK 5.9 million last year. The profit before tax was NOK
42.5 million in 2022, up from NOK 2.4 million in 2021 while the profit after tax was NOK 29.4 million in 2022,
compared to negative NOK 0.6 million last year.
The total comprehensive income was NOK 32.4 million in 2022, compared to negative NOK 1.0 million in 2021.
The Group’s cash flow 2022
The Group had a net cash flow from operating activities in 2022 of NOK 17.9 million, compared to negative NOK 1.3
million in 2021. The increase of NOK 19.3 million was driven by a significant increase in net operating income partly
offset by higher income taxes paid and net effects from the changes in working capital.
Net cash used in investing activities was NOK 25.4 million in 2022, compared to NOK 0.7 million in 2021. The
increase is primarily related to the purchase price paid for Impolin AB, net of cash acquired, as well as the payment
for Sitavig® licence.
The net cash flow from financing activities was NOK 10.1million in 2022, compared to NOK 15.9 million in 2021. Net
proceeds from loans equals to NOK 14.5 million and interest paid was NOK 3.3 million. Proceeds from share capital
issuance are related to the share options exercised.
The cash and cash equivalents were NOK 55.3 million at 31 December 2022, compared to NOK 52.6 million at 31
December 2021.
Financial position as of 31 December 2022
The Group’s consolidated total assets were NOK 382.8 million at 31 December 2022, up from NOK 330.2 million at
year-end 2021. Non-current assets were NOK 139.2 million, up from NOK 124.7 million. Current assets increased to
NOK 243.5 million from NOK 205.5 million at 31 December 2021. The increase in non-current assets is mainly driven
by the goodwill related to Impolin AB partly offset by the derecognition of the ownership in Observe Medical ASA as
an associated company. The increase in current assets is related to the recognition of the shares in Observe Medical
ASA as financial assets as well as due to the increases in inventory and receivables.
At the end of 2022, Navamedic had equity of NOK 209.7 million, compared to NOK 151.2 million per 31 December
2021, representing an equity ratio of 54.8%. Non-current liabilities are NOK 47.0 million per 31 December 2022
9 | Annual report 2022, Navamedic ASA
compared to NOK 43.2 million at 31 December 2021. The Group had current liabilities of NOK 126.0 million
compared to NOK 135.7 million at 31 December 2021.
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 2023, 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.
Risk factors
The operational and financial risks Navamedic is exposed to differ little from what could be considered as normal
risks in the distribution of pharmaceuticals in that the Company is not directly exposed to the risk of the
development and production of their products.
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.
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 market prices and on market terms and conditions and is therefore in
continuous dialogue with the 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.
As at 31 December 2022, 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. Thus far, the Group has not entered into any type of hedging arrangements. The
Company's interest rates on bank deposits and short-term liquidity investments are floating. Interest rates on
external loans as well as the loan to Observe Medical ASA are fixed.
10 | Annual report 2022, Navamedic ASA
In 2022, 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 deemed creditworthy third parties 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.
The increased energy and raw material prices over the last 12-18 months may put additional pressure on
Navamedic margins, however, early recognition of this and a proactive approach to mitigate the potential negative
impact has led to Navamedic experiencing very limited impact from this in 2022.
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 thesee risks is going to continue in
the future.
The war in Ukraine does not directly affect Navamedic as the Company has no suppliers, customers nor other
business relations in Ukraine or Russia. However, the imbalances and instability in global markets may pose a risk
to our business in case our supply chains, production partners or logistics providers are significantly disrupted.
Potential consequences may be delayed transport and increased freight costs.
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 2023.
Organization
The Group had 34 employees at the end of 2022, compared to 28 at the end of 2021.
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 16.
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.
11 | Annual report 2022, Navamedic ASA
Corporate governance
Navamedic complies with the Norwegian Code of Practice for Corporate Governance (NUES), which was last revised
on 14 October 2021. Please see the separate section of the annual report 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 2022, the Company had 17.227.777 outstanding shares, each with a nominal value of NOK 0.74 per share,
and 876 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 subsidiary Navamedic AB. 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. 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.
The operating revenue in Navamedic ASA of NOK 46.3 million in 2022, compared to 45.3 million in 2021. Total
operating expenses increased to NOK 56.0 million in 2022 from NOK 52.0 million in 2021.
Net financial items amounted to NOK 59.0 million in 2022, compared NOK 3.5 million in 2021. The change mainly
relates to group contribution received from subsidiary.
Equity amounted to NOK 212.8 million, an increase from NOK 145.7 million in 2021.
Disposal of net result for the year and dividends
The parent company’s result after tax for 2022, after the receipt of group contribution, was positive NOK 41.0
million. The Board proposes that the net result for the year be transferred to retained earnings. The Board will
propose to the Annual General meeting that a dividend for 2022 may be distributed during 2023.
Subsequent events
On 30 January, Navamedic announced launch of Modifast, a range of low-calorie diet (LCD) meal replacement
products, in the Norwegian market. Modifast is part of Navamedic's growing portfolio of products and solutions
12 | Annual report 2022, Navamedic ASA
aimed at tackling obesity and consists of supplements, prescription medications, diet replacements and online
patient support portals.
On 16 February 2023, based on Navamedic ASA's annual general meeting's resolution to authorize the Board of
directors of the Company to issue new options to the executive management and other leaders in the Group under
the Company's long-term incentive program, the Board has resolved to issue 1.400.000 new options to the
Company's executive management. Each option will upon exercise give the option holder the right to acquire one
share in the Company. The options are granted without consideration. The exercise price of each option is NOK
33.0. Options that are not exercised within 12 months after the third anniversary of the date of grant, will subject
to certain limitations, lapse without any compensation to the holder.
On 29 March 2023 - Navamedic submitted a cash offer to acquire all shares in Sensidose AB, a Sweden-based
pharmaceutical company that sells medicines in combination with an innovative device for individual dosing,
targeting patients with advanced Parkinson's disease. The Sensidose AB shares are listed on Spotlight Stock Market
in Sweden. At the time of issuance of this report the transaction is not closed.
Outlook
Navamedic’s vision is to become a leading pharmaceutical company in Northern Europe in its chosen product
categories. Growth shall be achieved through developing the existing product portfolio, licensing new products and
through acquisitions. The Company has shown a strong ability to grow organically as well as through successful
acquisitions.
We see substantial potential to include more products in the existing distribution and market access platform in the
Nordic region, Baltic States 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 to.
Navamedichas 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 2023 and show solid growth in the coming years. Navamedic’s financial targets are 20% annual
organic 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%.
13 | Annual report 2022, Navamedic ASA
Responsibility Statement
We confirm, to the best of our knowledge, that the consolidated financial statements for 2022 give a true and fair
view of the Company’s assets, liabilities, financial position, and results of operation. Further 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, 27 April 2023
Chairman
Board member
Board member
Board member
Board member
CEO
14 | Annual report 2022, Navamedic ASA
The Management Team and Board
Management Team
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, Katrine 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.
Board of Directors
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).
15 | Annual report 2022, Navamedic ASA
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.
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. Currently, she is holding
the position of Senior Director, commercial affairs at Xellia
Pharmaceuticals.
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.
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.
16 | Annual report 2022, Navamedic ASA
ESG report
Contribution to the United Nations sustainable development goals
17 | Annual report 2022, Navamedic ASA
Contribution to the United Nations sustainable
development goals
Navamedic is committed to operate the business in a responsible and
sustainable manner over time, and in a way that contributes to a positive,
trust-based relationship between Navamedic, our stakeholders and society as
a whole. During 2022, we identified the areas of United Nations global
development goals where we see our contribution and structured the measures
and initiatives to support this contribution in the future. By assessing the whole
value chain and having a comprehensive view on our impact, Navamedic
sustainability team laid a good foundation for establishing concrete measures, initiatives
and focus areas. Together with our management and the Board, we lifted our focus on sustainability of our
operations at the top of our agenda for the future.
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
18 | Annual report 2022, Navamedic ASA
Environmental
Despite being a limited-size company with no production facilities, we still aim to minimize our environmental
footprint. During the year we identified environmental-related focus areas and the measures to be taken in a
short- and long-term period.
Packaging optimization
Navamedic is assessing the packaging of most of its products, both in terms of pallet/box packaging and single
unit packaging. Our goal is to reduce the size of packages where possible, as well as to remove unnecessary
plastic or excess materials used. Furthermore, our aim is to keep close dialog with our suppliers to ensure the
usage of renewable and “easy to recycle” materials that are also properly labeled. The goal set is to have at least
one product optimization per year.
Products transport
During 2022, Navamedic improved its order handling process in order to optimize the number of shipments and
these improvements are going to continue in years to come. Our goal is to ensure that our products are delivered
with a minimal number of kilometers driven both regarding shipments from our vendors to the warehouses and
from the warehouses to our customers. Further to this, Navamedic will perform an assessment of our logistics
partners in order to ensure that we work with the best-in-class companies when it comes to sustainable and
environmentally friendly transport.
Company cars and travel policy
Being the area where Navamedic can have more direct
impact, the Company initiated the new travel Policy that
focuses on defining when and how we travel. We believe
that our contribution to the global CO2 emission reduction
in this respect can be achieved by optimizing business trips
and choosing more environmentally friendly means of
transportation where possible. Furthermore, our new
Company Policy for company cars requires all new
company cars to be electric or hybrid where possible.
Through implementation of an Environmental
Management System program, Navamedic has
become ISO 14001 certified during 2021.
19 | Annual report 2022, Navamedic ASA
Social
Our success is not only driven by our high-
quality products, but also by our competent
employees. We believe that only skilled and
satisfied employees, who are proud to work in
Navamedic, can drive our organization
through the future and contribute to the well-
being of our customers. Therefore, we strive
to provide the best working environment for
all who are part of our organization and to
become an attractive employer also for those
who are going to join us in the future.
Navamedic supports flexibility of our employees and work-life balance is high on the agenda. All new employees
are going through a comprehensive onboarding program to meet all the departments and the top management.
This program is evaluated by new employees as a great start of the journey in Navamedic. We also support our
employees in their skills development plan, and we want our employees to grow their competence in desired
areas.
Equal employment opportunities and diversity are topics with increasing expectations for transparency and
corporate action. Navamedic aims to continue to be a responsible employer that does not discriminate and that
assesses all employees on an equal basis with respect to career opportunities and rights, regardless of gender,
ethnicity, disability, or sexual orientation. Navamedic wants to achieve a balance between the genders. Of total
34 employees in 2022, 19 are women and 15 are men. The Group's management team in 2022 consisted of 7
members, 3 of whom are women. The Board of directors consisted of 5 members during 2022, 2 of whom are
women.
Navamedic continuously seeks to improve health and safety at the offices in which it operates. There were no
serious incidents that resulted in personal injuries or absences during 2022. Nor was there any damage to
property or equipment reported. The sick leave rate was 2.0% in 2022 compared with 5.5% in 2021. The Group
continuously aims to protect and improve health and safety in its operations.
Our contribution in the social area goes beyond our organization and beyond our products. One example that we
are proud of is within the obesity treatment area where we are not only providing the products, but also other
tools to facilitate the users to lead healthier lives long term. Several times per year we run an activity with
Modifast (wide range of diet and meal replacement products) where we support, inspire and empower thousands
of consumers not only to lose weight short term but also to establish new habits, with healthy food and physical
activity. We create communities for the participants, leveraging the power of peer support, in addition to our own
competence and expertise.
20 | Annual report 2022, Navamedic ASA
Navamedic also contributes to obesity management by providing pharmaceutical treatment, Mysimba, that can
help patients lose and maintain a lower weight. With our website MyControl, we hope to increase knowledge
about obesity among the general public and healthcare professionals. 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 & Finnish. We are also providing patients with a PSP (Patient
Support Program) – MyControl Support – in Sweden and Norway that includes a broad spectrum of supporting
services to aid patients in lifestyle changes.
We feel proud of the fact that our products are only part of the support that we give to our patients and
consumers. With obesity recognized as a complex decease, a wide range of effective tools are needed to enable
everyone to find his or her own path to a healthier and more sustainable life, with great benefits also to society as
a whole.
Governance
Navamedic is committed to conducting its business keeping the highest ethical standards and ensuring
compliance with applicable laws and regulations. We have therefore structured our governance on transparent
principles that shall be followed by our suppliers, employees and management.
Code of conduct
The Company’s code of conduct (the “Code”) sets the standard for what is expected in terms of business and
personal conduct from each of the employees of Navamedic. The Code sets our expectations, commitments, and
requirements for ethical conduct. The Code applies to everyone working for or representing the Company in any
form, irrespective of the nature of the contract the relation is based on. This includes, but is not limited to,
employees, the management, Board of directors, or any hired contractors. The Code has been approved by
Navamedic’s Board of directors and covers key topics such as business ethics, anti-corruption, working
environment, and environment and climate. Navamedic is following the European Federation of Pharmaceutical
Industries and Associations (EFPIA) Disclosure Code. Collaboration between the industry, patient organizations,
healthcare professionals, and governments is critical to shaping the future of research and development, inform
regulatory decision-making and optimize the use of medicines in the patient pathway. Transparency is critical to
these relationships, and EFPIA and its member companies have continued to drive greater transparency through
support for the mandatory registration of lobbying organizations on the EU transparency register. Furthermore,
the members work with the implementation of the disclosure provisions in the EFPIA Code, which require public
disclosure of financial support to patient organizations across Europe.
Business ethics and anti-corruption
Navamedic is committed to ethical operations. The Company complies with the laws of the countries in which it
operates and runs its business operations in line with nationally and internationally recognized principles and
guidelines for human and labor rights. All employees and Board members shall refrain from corruption and
21 | Annual report 2022, Navamedic ASA
bribery in all forms, as described in the Company’s Code. Navamedic refuses to tolerate any form of corruption in
its day-to-day work or in relation to business contacts. The Company has guidelines for all employees on
accepting gifts, benefits, or other tokens of appreciation. All employees are responsible for understanding and
identifying possible conflicts of interest, and they have been informed about their responsibilities in such cases.
Navamedic’s CEO bears the ultimate responsibility for the enforcement of the guidelines of the Company
regarding business ethics.
The suppliers code of conduct and 360 analyses
Navamedic places great emphasis on cooperating with business partners that promote high standards of good
business practice. Before signing a contract with partners and suppliers, Navamedic carries out evaluations on
issues relating to anti-corruption and business ethics. During 2022, Navamedic performed an extensive evaluation
of all our suppliers covering different company and country specific risks. This analysis also supports our
compliance with relevant standards related to our ISO certification as well as the Transparency Act
(Åpenhetsloven) in Norway.
During 2023, Navamedic is launching the Supplier code of conduct, a comprehensive document covering the key
areas like human and labor rights, health & safety, sustainability, anti-bribery, child labor etc. We believe that
having this document signed by our partners further strengthens our goal to work with the suppliers whose
business is run according to the highest standards. We expect that all our partners sign the Code during 2023.
22 | Annual report 2022, Navamedic ASA
Corporate governance
23 | Annual report 2022, 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 12,748,555 divided into 17,227,777 shares, each with a
nominal value of NOK 0.74. As at 31 December 2022, equity amounted to NOK 209,720 thousand, which results in an
equity ratio of 54.8%.
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.
The Board will propose to the Annual General meeting that a dividend for 2022 may be distributed during 2023.
24 | Annual report 2022, Navamedic ASA
Board authorisations
The annual general meeting on 2 June 2022 gave an authorization to the Board to increase the share capital in
connection with share options and an investment program with up to lower of NOK 1,500,000 and 10% of
Company`s share capital. This authorization replaced the previous authorization from the annual general meeting
on 3 June 2021 to increase the share capital by up to NOK 1,000,000.
In the same meeting, the Board also granted authorization 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
3 June 2021.
The third authorization given on the annual general meeting on 2 June 2022 was the authorization to the Board to
acquire own shares with a maximum aggregate value of NOK 1,209,578.84. The highest amount that may be paid for
per share is NOK 100 and the lowest amount is NOK 1.
All authorizations are effective until the annual general meeting in 2023, but no longer than and including 1 June
2023.
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 2022.
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 2022, Navamedic ASA
General meetings
Navamedic held its annual general meeting on 2 June 2022.
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 at three days before the
general meetings, 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 2022. 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 meetings.
Nomination committee
The Company established a nomination committee at the annual general meeting on 8 June 2015. The nomination
committee consists of chairman Bernt Olav Røttingsnes, members Bård Brath Ingerø and Grete Hogstad. At the
annual general meeting on 2 June 2022, all members of the nomination committee were re-elected with term
ending on the annual general meeting in 2023.
The Board, composition and independence
The Board of Navamedic has five ordinary members, all of whom are elected by the shareholders. The Board
members and chairman of the Board are elected by the general meeting. No Board members are elected for terms
of more than two years at 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,
acquisitions and mergers, industry, and marketing. This experience was gained both in Norwegian and
international companies 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.
26 | Annual report 2022, Navamedic ASA
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.
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 2022, 12 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 of procedure 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 for the Audit
committee has increased its tasks and responsibilities over the last year. 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.
27 | Annual report 2022, Navamedic ASA
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.
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 and in 2021 the Company implemented a new
ERP system and processes which have resulted in improved internal control.
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 increase.
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 from and including the fourth quarter of 2017 in accordance with IAS 34, instead
it prepares and publishes a presentation for the quarter.
Accounting problems are analyzed immediately, and the 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 agreed each year by the general meeting. The Board's remuneration is independent of
the Company's results and Board members do not have options in the Company.
Information about the Board's remuneration for 2022 is included in note 17 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 remuneration committee.
28 | Annual report 2022, Navamedic ASA
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 and considered by the general meeting in
accordance with the Public Limited Liability Companies Act. No subsequent changes have been made to these
guidelines.
The Board's statement on executive pay was approved by the general meeting on 2 June 2022.
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 setting of the CEO's salary for 2023 was approved by the Board and information about the remuneration of the
CEO and other executive personnel in 2022 can be found in note 17 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.
As of 2022 there are new requirements for reporting remuneration of executive personnel. This report 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 2023, Navamedic will present interim
presentations, as well as publish a half-year report and an annual report.
29 | Annual report 2022, Navamedic ASA
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.
No take-over offers were presented to Navamedic or its shareholders in 2022.
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 or 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 2022, Navamedic ASA
Consolidated
financial
statements 2022
31 | Consolidated financial statements 2022, Navamedic ASA
Consolidated statement of comprehensive income
(in NOK '1000)
Note
2022
2021
Operating revenues
5
382,135
278,439
Total revenue
382,135
278,439
Cost of materials
-218,615
-166,695
Payroll expenses
17
-48,088
-44,455
Other operating expenses
16
-63,745
-49,118
Operating profit before depreciation and amortization (EBITDA)
51,686
18,171
Depreciation
8
-2,392
-2,169
Amortization
9
-4,850
-4,547
Operating profit (EBIT)
44,444
11,455
Income/(loss) from associated companies
19
-1,101
-3,185
Gain on disposal of associated companies
19
9,514
0
Financial income
19,464
4,035
Financial expenses
-3,416
-4,424
Net currency gains/(losses)
-9,242
-5,523
Net change in fair value of current financial assets
-17,158
0
Net financial income and expenses
18
-10,351
-5,912
Profit before tax
42,506
2,358
Income taxes
26
-13,074
-1,740
Net profit / (loss)
29,431
618
Other comprehensive income that may be reclassified subsequently to profit or loss:
Currency translation differences
2,982
348
Total other comprehensive income
2,982
348
Total comprehensive income
32,413
967
Attributable to:
Shareholders in the parent company
32,413
967
Earnings per share basic (NOK)
24
1.75
0.04
Earnings per share diluted (NOK)
24
1.73
0.04
32 | Consolidated financial statements 2022, Navamedic ASA
Consolidated statement of financial position
(in NOK '1000)
Note
31.12.2022
31.12.2021
Assets
Non-current assets
Intangible non-current assets
Goodwill
9
100,743
61,031
Deferred tax assets
26
835
9,168
Other intangible assets
9
30,537
27,342
Total intangible non-current assets
132,115
97,541
Other non-current assets
Property, plant & equipment
8
607
745
Right of use assets
10
6,511
7,567
Shares in associated companies
19
0
18,837
Total other non-current assets
7,118
27,149
Total non-current assets
139,233
124,690
Current assets
Prepaid tax and tax receivable
26
14,909
15,652
Inventories
11
79,642
61,882
Trade and other receivables
10
42,985
37,730
Current loans receivable
19
40,615
37,606
Other current financial assets
10,092
0
Cash and cash equivalents
20
55,296
52,620
Total current assets
243,539
205,489
Total assets
382,772
330,179
33 | Consolidated financial statements 2022, Navamedic ASA
Consolidated statement of financial position (cont.)
(in NOK '1000)
Note
31.12.2022
31.12.2021
Equity
Paid in equity
Share capital
12,749
12,096
Share premium reserve
190,408
165,830
Total paid in equity
14
203,157
177,926
Retained earnings
Retained earnings
6,563
-26,689
Total retained earnings
6,563
-26,689
Total equity
209,720
151,237
Liabilities
Non-current liabilities
Non-current license liabilities
22
3,762
8,171
Non-current liabilities to financial institutions
21
38,368
29,235
Non-current right of use liabilities
10
4,861
5,824
Total non-current liabilities
46,991
43,231
Current liabilities
Trade account payables
15
65,574
70,532
Current liabilities to financial institutions
21
13,623
9,745
Current right of use liabilities
10
1,865
1,839
Current license liabilities
22
221
13,158
Taxes payable
26
4,708
10,713
Other current liabilities
15
40,071
29,724
Total current liabilities
126,062
135,712
Total liabilities
173,053
178,943
Total equity and liabilities
382,772
330,179
34 | Consolidated financial statements 2022, Navamedic ASA
The Board of Directors and CEO of Navamedic ASA
Oslo, 27 April 2023
Chairman
Board member
Board member
Board member
Board member
CEO
35 | Consolidated financial statements 2022, Navamedic ASA
Consolidated statement of changes in equity
(in NOK '1000)
Share
capital
Share
premium
reserve
Retained
earnings
Total
Balance as at 1 January 2021
11,316
147,610
-29,441
129,486
Net profit / loss (-)
-
-
618
618
Currency translations differences
-
-
348
348
Share capital increase
780
18,220
-
19,000
Share options
-
-
1,784
1,784
Balance as at 31 December 2021
12,096
165,830
-26,689
151,237
Balance as at 1 January 2022
12,096
165,830
-26,689
151,237
-
-
-
-
Net profit / loss (-)
-
-
29,431
29,431
Currency translations differences
-
-
2,982
2,982
Share capital increase
653
24,578
-
25,230
Share options
-
-
839
839
Balance as at 31 December 2022
12,749
190,408
6,563
209,720
36 | Consolidated financial statements 2022, Navamedic ASA
Consolidated cash flow statement
(in NOK '1000)
Note
2022
2021
Cash flow from operating activities
Profit before tax
42,506
2,358
Taxes paid
-10,967
-2,700
Depreciation, amortization and impairment
7, 8, 9
7,242
6,716
Financial income/expenses without cash flow effect
6,878
1,353
Other income/expenses without cash effect
839
1,784
Income/loss and gain from the disposal of associated companies
-8,413
3,185
Payment of license liabilities
-112
-110
Changes in inventory
-17,761
-19,937
Changes in trade and other receivables
-5,255
-9,084
Changes in trade and other payables
-4,959
3,577
Changes in other current balance sheet items
7,944
11,556
Net cash flow from operating activities
17,941
-1,300
Cash flow from investing activities
Acquisition of tangible and intangible assets
7, 8
-2,251
-728
Interest received
70
2
Purchase of shares in other companies net of cash acquired
-23,264
0
Net cash flow from investing activties
-25,444
-727
Cash flow from financing activtities
Loans received
24,033
19,500
Payment of loans
-9,511
0
Interest paid
-3,272
-1,469
Share issues
1,198
0
Payment of lease liabilities
-2,373
-2,100
Net cash flow from financing activities
10,074
15,931
Effects of exchange rate changes on cash and cash equivalents
105
-868
Net change in cash
2,676
13,036
Cash and cash equivalents start period
52,620
39,584
Cash and cash equivalents end period
19
55,296
52,620
37 | Consolidated financial statements 2022, Navamedic ASA
Notes to the consolidated
financial statements
38 | Consolidated financial statements 2022, Navamedic ASA
Note 1 – General information
Navamedic ASA is a Nordic pharma company with a footprint in Northern Europe 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 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 European
market.
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. Its head office is at Solli Plass in Oslo. Its visiting address is
Henrik Ibsens gate 100, 0255 Oslo, Norway. Public limited liability company
Note 2 – Summary of signficant accounting policies
The most important accounting policies used in the preparation of the consolidated financial
statements are described below. These policies are applied consistently in all of the periods
presented unless the description states otherwise.
2.1 Framework for preparation of the financial statements
Navamedic's consolidated financial statements have been prepared in accordance with international accounting
standards (IFRS) and interpretations from the IFRS Interpretations Committee (IFRIC), as established by the EU.
The consolidated financial statements have been prepared on the basis of historical cost.
The consolidated financial statements have been prepared by applying the same accounting policies to
transactions and events that would be similar under otherwise equal conditions.
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 2021.
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
39 | Consolidated financial statements 2022, Navamedic ASA
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.
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.
Contingent consideration is measured at fair value on the acquisition date. Subsequent changes in the fair value of
contingent consideration classified as an asset or liability and that are not adjustments during the measurement
period must be recognized through profit or loss.
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. If the sum is lower
than the Company's net assets, the difference is recognized through profit or loss.
Intra-group revenue, expenses, and balances are eliminated. The gain and loss elements in a capitalized asset that
arose due to an intra-group transaction are also eliminated. The accounts of subsidiaries are, if necessary, restated
so they correspond with the Group's accounting policies.
2.3 Segment information
Navamedic identifies its segments according to the organization and reporting structure as decided and followed
up by the chief operating decision maker. Operating segments are components of a business that are evaluated
regularly by the chief operating decision maker, defined as the CEO, for the purpose of assessing performance and
allocating resources. Navamedic operating segments represent separately managed business areas with unique
products serving different markets. Navamedic currently has only one business segment which is the Pharma and
healthcare division.
2.4 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.
40 | Consolidated financial statements 2022, Navamedic ASA
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.
2.5 Intangible assets
All intangible assets are recognized at cost less accumulated amortization and impairments. Cost includes
expenditure that is directly attributable to the acquisition of the assets. Subsequent costs are included in the assets
carrying amount or recognized as a separate asset.
The Group’s intangible assets consist of the following:
a) 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.
b) 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.
2.6 Impairment of non-financial assets
At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories,
contract assets and deferred tax assets) to determine whether there is any indication of impairment. If any such
indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually for impairment.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows
from continuing use that are largely independent of the cash inflows of other assets or cash generating units
41 | Consolidated financial statements 2022, Navamedic ASA
(CGUs). Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to
benefit from the synergies of the combination.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value
in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.
An impairment is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.
Impairment is recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill
allocated to the CGU, and then to reduce the carrying value of the other assets in the CGU on a pro rata basis.
An impairment in respect of goodwill is not reversed. For other assets, an impairment is reversed only to the extent
that the asset’s carrying value does not exceed the carrying value that would have been determined, net of
depreciation or amortization, if no impairment had been recognized.
2.7 Inventories
Inventories are measured at the lowest of acquisition cost and net realizable value. Acquisition cost is calculated
using the first-in, first-out method (FIFO). Net realizable value is the estimated selling price less cost of sale.
2.8 Financial assets
Financial assets are recognized in accordance with IFRS 9 Financial instruments. The Group currently has financial
assets within the following categories:
a) Financial assets at amortized cost
Financial assets at amortized cost are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. They are included in current assets, except for maturities greater
than 12 months after the end of the reporting period. These are classified as non-current assets. The
Group’s financial assets at amortized cost primarily consist of trade receivables and other receivables, loan
receivables and bank deposits. Financial assets at amortized cost are initially recognized at fair value,
transaction costs are added to the carrying amount. Financial assets at amortized cost are subsequently
carried at amortized cost.
b) Financial assets at fair value through profit and loss
Long term investments in other entities, which do not qualify to be recorded under equity method or to be
consolidated, are recognized at fair value through profit and loss. Initial recognition is based on the fair
value at recognition date and further changes in the fair value are recorded in the statement of profit and
loss under financial items.
2.9 Trade 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.
42 | Consolidated financial statements 2022, Navamedic ASA
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 entered into a trade receivable financing agreement with Avida Finans AB.
2.10 Cash and cash equivalents
Cash and cash equivalents consist of cash and bank deposits which are readily convertible into cash within a 3-
month period.
2.11 Financial liabilities
The Group currently has financial liabilities within the following category:
a) Financial liabilities at amortized cost
Financial liabilities at amortized cost are liabilities that represent a contractual obligation to deliver cash
and are classified as current or non-current based on whether the estimated settlement date is less than or
more than 12 months in the future. The Group’s financial liabilities at amortized cost consist of interest-
bearing liabilities in the form of overdraft facilities and instalment loans, licensing liabilities, trade account
payables and other non-interest-bearing liabilities. Financial liabilities at amortized cost are initially
recognized at fair value net of directly attributable transaction costs, and subsequently measured at
amortized costs applying the effective interest method.
2.12 Income Tax
Income tax expense comprises current and deferred tax. It is recognized in profit or loss except to the extent that it
relates to a business combination, or items recognized directly in equity or in other comprehensive income. The
Group has determined that interest and penalties related to income taxes, including uncertain tax treatments, do
not meet the definition of income taxes, and therefore accounted for them under IAS 37 Provisions, Contingent
Liabilities and Contingent Assets.
a) Current 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. Current tax also includes any tax arising from dividends. Current tax assets and
liabilities are offset only if certain criteria are met.
b) Deferred tax
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:
43 | Consolidated financial statements 2022, Navamedic ASA
– 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.
Deferred tax assets and liabilities are offset only if certain criteria are met.
2.13 Employee benefits
a) Pensions
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, see note 15.
b) Severance pay
Severance payments are recognized when the employment relationship is terminated by the Group before
the normal retirement date or when an employee accepts voluntary redundancy in return for such
remuneration. The Group recognizes severance pay when it is demonstrably obliged to either end the
44 | Consolidated financial statements 2022, Navamedic ASA
employment relationship of today's employees in accordance with a formal, detailed plan that the Group
cannot withdraw, or to provide severance pay due to an offer made to encourage voluntary redundancies.
2.14 Provisions
Provisions for product warranties, onerous contracts, restructuring costs, termination benefits and legal claims are
recognized when the Group has a present or constructive obligation as a result of past events; it is probable that an
outflow of resources will be required to settle the obligation; and the amount has been reliably estimated.
Provisions are discounted only when the effect is material and the distribution in time can be reliably estimated.
2.15 Revenue recognition
a) Revenue from contracts with customers
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.
Invoices are issued upon delivery of the goods or based on accumulated monthly sales through a wholesaler.
Payment terms for revenue are typically 30 days.
b) Interest income
Interest income is recognized through profit or loss proportionally over time in accordance with the effective
interest rate method.
c) Revenue from dividends
Dividend revenues are recognized through profit or loss when the right to receive payment arises.
2.16 Leases
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.
Group as a lessee
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.
Right of use 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. If ownership of the leased asset transfers to the Group at the end of the lease term or the cost
45 | Consolidated financial statements 2022, Navamedic ASA
reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The
right of use assets is also subject to impairment.
Lease liabilities
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.
Short-term leases and leases of low-value assets
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.
2.17 Dividends
Dividend payments to the Company's shareholders are classified as liabilities from and including the moment the
dividend is determined by the general meeting and until it is distributed.
Note 3 – Financial risk management and capital management
The Group's operations expose it to various types of financial risk: 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 that unforeseeable movements in the capital markets can have on the Group's financial results. The Group
does not use financial derivatives to protect itself from specific risks.
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 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.
46 | Consolidated financial statements 2022, 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 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 some Consumer Health products, is less
likely to be affected since the end users typically use the products based on needs and can not 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 would 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.
Variable interest rate risk
The Group is exposed to interest rate risk related to bank deposits. The interest rate on the Group’s loans is
fixed. The calculated interest income and expenses, as well as actual interest payments, are affected by rate
changes. The Group has not entered into any hedging arrangements to cover fluctuations in the general level of
interest rates.
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 11, which shows when the Group's receivables fall due.
b) Liquidity risk
The Group’s liquidity risk is considered moderate as at 31 December, and the Group’s liquidity situation as at 31
December 2022 is considered to be satisfactory. As at 31 December 2022, the Group had NOK 55.3 million in
cash and cash equivalents (NOK 52.6 million as at 31 December 2021). The Group has outstanding loans of SEK
55 million. The Group continually monitors the liquidity risk associated with the due dates for financial
liabilities.
The table below illustrates the maturity structure of liabilities:
47 | Consolidated financial statements 2022, Navamedic ASA
Maturity structure of liabilities 2022
Expected cash flows
(in NOK '1000)
Note
Carrying
amount
Undiscounted
amount
Year 1
Year 2
Year 3
Year 3-5
Total
License liabilities
22
3,982
4,971
221
-
4,750
-
4,971
Liabilities to financial institutions
21
51,992
51,992
13,623
24,467
5,561
8,341
51,992
Interest on liabilities to fin. institutions
21
-
6,087
2,851
1,986
773
477
6,087
Right of use liabilities
10
6,726
7,401
2,195
3,471
1,735
-
7,401
Trade account payables
14
65,574
65,574
65,574
-
-
-
65,574
Taxes payable
27
4,708
4,708
4,708
-
-
-
4,708
Other current liabilities
15
40,071
40,071
40,071
-
-
-
40,071
Total
173,053
180,803
129,242
29,924
12,819
8,818
180,803
Maturity structure of liabilities 2021
Expected cash flows
(in NOK '1000)
Note
Carrying
amount
Undiscounted
amount
Year 1
Year 2
Year 3
Year 3-5
Total
License liabilities
22
21,329
22,883
13,292
2,643
6,948
-
22,883
Liabilities to financial institutions
21
38,980
38,980
9,745
9,745
9,745
9,745
38,980
Interest on liabilities to fin. institutions
21
-
5,360
2,144
1,608
1,072
536
5,360
Right of use liabilities
10
7,664
8,432
2,142
4,193
2,097
-
8,432
Trade account payables
14
70,532
70,532
70,532
-
-
-
70,532
Taxes payable
27
10,713
10,713
10,713
-
-
-
10,713
Other current liabilities
15
29,724
29,724
29,724
-
-
-
29,724
Total
178,943
186,624
138,293
18,189
19,861
10,281
186,624
Capital structure and capital management goals
The Group's goal in relation to capital management is to ensure continued operations to secure returns for its
owners, and to maintain an optimal capital structure. The Group continuously strives to have a leverage ratio and
an equity ratio adapted to the business’ risk profile. The Group's main financing agreements are between
Navamedic AB and Avida Finans AB and consist of i) an accounts receivable financing agreement which carries a
fixed interest rate; ii) a loan of SEK 30 million with a fixed interest rate of 5.5% p.a.; iii) a loan for SEK 25 million with
a fixed interest rate of 6.5%. Both loan agreements have a covenant that net interest-bearing debt should not
exceed 2 times consolidated EBITDA.
48 | Consolidated financial statements 2022, Navamedic ASA
Note 4 – Critical accounting estimates and discretionary
assessments
Estimates and discretionary assessments are evaluated on an ongoing basis and are based on past experience and
other factors, including expectations concerning future events regarded as probable under current circumstances.
Important accounting estimates and assumptions
The Group prepares estimates and makes assumptions about the future. The accounting estimates that follow from
these will, by definition, seldom be fully in line with the final outcomes. Estimates and assumptions that represent a
risk of material changes to the carrying values for assets and liabilities during the next accounting year are
discussed below.
a) Measurement of goodwill and intangible assets
The most important estimates and assumptions that carry a risk that they will materially affect the carrying
values for assets and liabilities during the next accounting year relate to the measurement of goodwill and
intangible assets, see note 9. The management uses estimates and assumptions in the determination of
the accounting depreciation period and impairment assessments of intangible assets.
Capitalization of identifiable intangible assets is based on expectations of future financial benefits.
Measurements of future financial benefits are based on the management team's judgment and estimates
on balance sheet dates.
b) Tax
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 31.12.2022. the Group has no deferred tax assets recognized for tax losses carry forward as all tax
losses were utilized in 2022. There is, however, loss in the Swedish entity for which deferred tax is not
recognized. The management performs assessment of deferred tax asset for tax losses carry forward in
accordance with the requirements in IAS 12.35 and 12.36, and also taking into consideration the ESMA
considerations on recognition of deferred tax assets arising from the carry forward of unused tax losses.
49 | Consolidated financial statements 2022, Navamedic ASA
Note 5 – 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 classifies its products into four product categories:
• Medical nutrition, including a broad portfolio of medical nutrition products. Navamedic is a Nordic
distributor of products purchased from the UK based company Vitaflo International ltd, a subsidiary of
Nestle. The product range also includes products within carbohydrate metabolism, fat metabolism
(MCT products) and renal disease.
• Consumer health, including gastro, oral, dermatology and pain products such as Alflorex®, ForlaxGo®,
Thermacare®, Gelorevoice®, Aftamed®, Modifast® and Nyda®.
• Branded generics, including cardiology products and generics such as Imdur® (used to prevent angina
attacks) and Nitrolingual® (treatment for angina pectoris).
• Specialty pharma, including obesity and urology products such as Mysimba® (prescription
pharmaceutical for treatment of obesity) and Gepan® (a product for the treatment of painful bladder
syndrome).
Operating revenues by major markets*
(in NOK '1000)
2022
2021
Norway
198,886
138,050
Sweden
96,742
59,876
Denmark
28,145
27,610
Finland
17,950
13,846
Other countries
40,412
39,057
Total revenue
382,135
278,439
* Markets are defined as the countries in which the products are sold
50 | Consolidated financial statements 2022, Navamedic ASA
Operating revenues by product categories
(in NOK '1000)
2022
2021
Branded generics
89,528
70,605
Specialty pharma
159,136
112,254
Medical nutrition
53,855
51,929
Consumer health
79,616
43,181
Other
0
470
Total revenue
382,135
278,439
Non-current assets by country *
(in NOK '1000)
2022
2021
Sweden
96,447
50,612
Norway
41,950
64,910
Total
138,398
115,522
* Other than financial instruments and deferred tax assets
The four largest external customers in the Pharma and Healthcare segment contributed to total revenues by 20.6%,
13.6%, 13.0% and 10.2% respectively.
The Group has different kinds of rebates. The rebates are mainly standard supplier rebates on OTC products in the
Danish and Dutch markets. The supplier rebates are subject to yearly negotiation and typically correspond to 10-
15%.
Also see note 11 regarding trade receivables.
Note 6 – Business combinations
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.
51 | Consolidated financial statements 2022, Navamedic ASA
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 remaining portion of the purchase price was settled in cash by drawing up a new
loan facility of SEK 25 million. The milestone consideration of SEK 5 million will be paid in 2023 and is currently
classified as other current liability.
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
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
52 | Consolidated financial statements 2022, Navamedic ASA
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 7 – Investments in subsidiaries
Office location
Ownership
share 31.12
Navamedic AS*
Oslo, Norway
100%
Navamedic AB**
Gothenburg, Sweden
100%
Impolin 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.
53 | Consolidated financial statements 2022, Navamedic ASA
Note 8 – Property, plant & equipment
(in NOK '1000)
Office
equipment
Total
Accumulated cost
Balance at 1 January 2021
432
432
Additions
718
718
Currency translation differences
-15
-15
Accumulated cost at 31 December 2021
1,135
1,135
Balance at 1 January 2022
1,135
1,135
Additions
191
191
Disposals
-146
-146
Currency translation differences
-2
-2
Accumulated cost at 31 December 2022
1,178
1,178
Accumulated depreciation
Balance at 1 January 2021
-258
-258
Depreciation
-146
-146
Currency translation differences
13
13
Balance as at 31 December 2021
-390
-390
Balance at 1 January 2022
-390
-390
Depreciation
-328
-328
Disposals
146
146
Currency translation differences
1
1
Balance as at 31 December 2022
-571
-571
Expected useful economic life
3-5 years
Carrying amounts
At 1 January 2021
174
174
At 31 December 2021
745
745
At 31 December 2022
607
607
Property, plant & equipment is located in Norway and Sweden.
54 | Consolidated financial statements 2022, Navamedic ASA
Note 9 – Goodwill and Intangible assets
Intangible assets
(in NOK '1000)
Goodwill
Licenses
Other
intangible
assets
Total
intangible
assets
Accumulated cost
Balance at 1 January 2021
64,472
31,552
5,243
36,795
Reclassification
0
-863
-963
-1,827
Additions
0
22,358
10
22,368
Currency translation differences
-3,441
-483
0
-483
Accumulated cost at 31 December 2021
61,031
52,563
4,289
56,853
Derecognition
0
0
-870
-870
Additions
42,128
8,999
0
8,999
Currency translation differences
-2,416
-247
0
-247
Accumulated cost at 31 December 2022
100,743
61,316
3,419
64,735
Accumulated amortization
Balance at 1 January 2021
-
-27,041
-65
-27,106
Reclassification
-
1,827
0
1,827
Amortization
-
-4,010
-537
-4,547
Currency translation differences
-
316
0
316
Balance as at 31 December 2021
-
-28,909
-602
-29,511
Reclassification
-
0
0
0
Amortization
-
-3,831
-1,019
-4,850
Currency translation differences
-
163
0
163
Balance as at 31 December 2022
-
-32,578
-1,621
-34,199
Expected useful economic life
5-10 years
5-10 years
Carrying amounts
At 31 December 2021
61,031
23,654
3,688
27,342
At 31 December 2022
100,743
28,738
1,799
30,537
55 | Consolidated financial statements 2022, Navamedic ASA
Test for impairment losses for cash generating units that contain goodwill
Goodwill originates from the purchase of Vitaflo AB, Impolin AB and other minor acquisitions, including Novicus
Pharma AS. For the purpose of impairment testing, goodwill, excluding Impolin, 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 31.12.2022 compared to
the estimated value calculated on the basis of discounted future cash flows. The 2023-2027 budget is used, with an
average revenue growth of 15%, 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, 15%. The estimated value of the CGU
exceeded the book value at 31.12.2022, 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.
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 2023-2027 budget assumes the average revenue growth of 13%. It is
assumed that by 2027 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, 18% while in the terminal value it is set to 21%. 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.
Note 10 – Right of use assets and liabilities
Right of use assets
(in NOK '1000)
2022
2021
Right of use assets
6,511
7,567
Total Right of use assets
6,511
7,567
56 | Consolidated financial statements 2022, Navamedic ASA
(in NOK '1000)
Land and
buildings
Motor
vehicles
Office
equipment
Total
Balance at 1 January 2021
766
1,121
15
1,903
Depreciation
-1,596
-409
-18
-2,023
Additions
8,100
32
25
8,158
Adjustments
0
-373
0
-373
Currency translation differences
-52
-46
0
-98
Balance at 31 December 2021
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
Right of use liabilities
(in NOK '1000)
2022
2021
Non-current right of use liabilities
4,861
5,824
Current right of use liabilities
1,865
1,839
Total right of use liabilities
6,726
7,664
Maturity analysis contractual undiscounted cash flows
(in NOK '1000)
2022
2021
Less than one year
2,195
2,142
Between one and five years
5,206
6,290
Total undiscounted lease liabilities at 31 December
7,401
8,432
57 | Consolidated financial statements 2022, Navamedic ASA
Changes in right of use liabilities
(in NOK '1000)
2022
2021
At 1 January
7,664
1,920
Payments
-2,373
-2,100
Interest
324
157
Additions and adjustments
1,126
7,759
Currency translation
-15
-72
At 31 December
6,726
7,664
Amounts recognised in profit or loss
(in NOK '1000)
2022
2021
Interest on lease liabilities
324
157
Depreciation right of use assets
2,064
2,023
Other information
(in NOK '1000)
2022
2021
Lease payments for short-term leases and low value assets leases
526
412
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 %.
58 | Consolidated financial statements 2022, Navamedic ASA
Note 11 – Trade and other receivables
(in NOK '1000)
2022
2021
Trade receivables
39,464
31,355
Other receivables and prepaid expenses
3,521
6,374
Total trade and other receivables
42,985
37,730
(in NOK '1000)
2022
2021
Gross trade receivables
39,554
31,801
Provision for loss on trade receivables
-90
-446
Total trade receivables
39,464
31,355
(in NOK '1000)
2022
2021
Provision for loss on trade receivables at 1 January
-446
-42
Net change in provision for loss on trade receivables
-45
-403
Loss on trade receivables
401
0
Total provision for loss on trade receivables at 31 December
-90
-446
Due date profile trade receivables
(in NOK '1000)
2022
2021
Not due
31,625
25,896
0-3 months
4,002
4,653
> 3 months
3,927
1,252
Total trade receivables
39,554
31,801
The Group has had low losses on trade receivables, and considers the risk associated with trade receivables as low.
59 | Consolidated financial statements 2022, Navamedic ASA
Note 12 – Inventories
(in NOK '1000)
2021
Inventory
81,110
61,933
Provisions for inventory obsolescence
-1,468
-51
Total inventory
79,642
61,882
Note 13 – Financial assets and liabilities
(in NOK '1000)
Carrying
amount as at
31.12.2022
Fair value as
at 31.12.2022
Carrying
amount as at
31.12.2021
Fair value
as at
31.12.2021
Current financial assets
Tax receivables
14,909
14,909
15,652
15,652
Trade and other receivables
42,985
42,985
37,730
37,730
Current loans receivable
55,296
55,296
37,606
37,606
Other current financial assets
10,092
10,092
0
0
Cash and cash equivalents
40,615
40,615
52,620
52,620
Total current financial assets
163,897
163,897
143,608
143,608
Total financial assets
163,897
163,897
143,608
143,608
Non-current financial liabilities
Non-current license liabilities
3,762
3,762
8,171
8,171
Non-current lilabilities to financial institutions
38,368
38,368
29,235
29,235
Total non-current financial liabilities
42,130
42,130
37,406
37,406
Current financial liabilities
Trade and other payables
65,574
65,574
70,532
70,532
Current liabilities to financial institutions
13,623
13,623
9,745
9,745
Current license liabilities
221
221
13,158
13,158
Total current financial liabilities
79,418
79,418
93,435
93,435
Total financial liabilities
121,547
121,547
130,842
130,842
60 | Consolidated financial statements 2022, Navamedic ASA
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.
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 2022, 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 2022, and as such the carrying amount is
considered not to be significantly different from the fair value.
See notes 10 and 21 for information regarding non-cash transactions related to financial liabilities.
Note 14 – 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 2021
15,291,885
11,316
147,610
158,926
Share capital issues
1,053,775
780
18,220
19,000
As of 31 December 2021
16,345,660
12,096
165,830
177,926
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
Each share has a nominal value of NOK 0,74 kr.
61 | Consolidated financial statements 2022, Navamedic ASA
Largest shareholders as of 31 December 2022
Shareholder
Number of
shares
Share of
capital
Share of
votes
INGERØ REITEN INVESTMENT COMPANY AS
3,563,042
20.7 %
20.7 %
UBS Switzerland AG*
2,472,301
14.4 %
14.4 %
J.P. Morgan SE*
1,456,000
8.5 %
8.5 %
Avanza Bank AB*
865,639
5.0 %
5.0 %
SOLEGLAD INVEST AS
666,668
3.9 %
3.9 %
J.P. Morgan SE*
594,069
3.4 %
3.4 %
Carnegie Investment Bank AB
567,757
3.3 %
3.3 %
TRANBERGKOLLEN INVEST AS
525,000
3.0 %
3.0 %
LEIKERANE AS
500,000
2.9 %
2.9 %
SVENSKA HANDELSBANKEN AB
468,045
2.7 %
2.7 %
GINKO AS
400,000
2.3 %
2.3 %
J.P. Morgan SE*
266,651
1.5 %
1.5 %
LARS HJARRAND
260,882
1.5 %
1.5 %
SNIPTIND INVEST AS
250,757
1.5 %
1.5 %
VPF FIRST OPPORTUNITIES
245,000
1.4 %
1.4 %
EIVIND BJØRNTVEDT
241,100
1.4 %
1.4 %
OMA INVEST AS
220,000
1.3 %
1.3 %
KRAEBER Verwaltung GMBH
214,850
1.2 %
1.2 %
ARTAL AS
160,289
0.9 %
0.9 %
Total
17,227,777
81%
81%
* Nominee accounts which may include multiple shareholders. See also note 25 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 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
62 | Consolidated financial statements 2022, Navamedic ASA
Shares owned by the Board and executive personnel in Navamedic ASA as at 31 December 2021
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
185,882
Ole Henrik Eriksen
COO
500,000
Through Leikerane AS
Astrid T Bratvedt
CSO
525,000
Through Tranbergkollen Invest AS
Astrid T Bratvedt
CSO
2,000
Alexander Lidmejer
Commercial Director Specialty Pharma
2,400
Bernt Olav Røttingsnes
Chairman of the Nomination Committee
50,000
Grete Hogstad
Member of the Nomination Committee
1,493
Note 15 – Trade accounts payable and other current liabilities
(in NOK '1000)
2022
2021
Total trade accounts payable
65,574
70,532
Accrued salaries and public duties
31,503
25,824
Accrued expenses and other current liabilities
8,568
3,900
Total other current liabilities
40,071
29,724
63 | Consolidated financial statements 2022, Navamedic ASA
Note 16 – Other operating expenses
(in NOK '1000)
2022
2021
Consulting, legal and audit fees
8,691
9,695
Travel expenses
2,338
1,010
Insurance
971
580
IR expenses
1,357
1,201
Marketing, freight and commissions
38,798
26,031
Regulatory fees
6,054
5,310
Other expenses
5,536
5,291
Total other operating expenses
63,745
49,118
Auditor expense recognised
(in NOK '1000)
2022
2021
Statutory audit
1,110
1,014
Tax consultancy
105
0
Other assurance services
173
24
Due diligence
69
0
Total auditor expense recognised
1,457
1,038
Auditor expense amounts are excluding VAT.
Note 17 – Payroll expenses
(in NOK '1000)
2022
2021
Salaries
34,436
30,447
Employer's National insurance contributions
6,198
5,761
Share options for employees
839
1,784
Pension expenses – defined-contribution scheme
3,306
2,670
Other payroll expenses
3,309
3,792
Total payroll expenses
48,088
44,455
Number of FTEs
34
28
64 | Consolidated financial statements 2022, Navamedic ASA
Remuneration executive personell 2022
(in NOK '1000)
Salary
Bonus
Pension
expenses
Other
remuneration
Total
Kathrine Gamborg Andreassen, CEO
2,711
1,874
110
433
5,128
Lars Hjarrand, CFO
1,910
463
110
808
3,291
Total remuneration executive personnell
4,621
2,337
220
1,241
8,419
Remuneration executive personell 2021
(in NOK '1000)
Salary
Bonus
Pension
expenses
Other
remuneration
Total
Kathrine Gamborg Andreassen, CEO
2,478
1,785
112
610
4,985
Lars Hjarrand, CFO
1,814
447
112
462
2,835
Total remuneration executive personnell
4,292
2,232
224
1,072
7,820
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 2022 or 2021.
.
Board fees paid
(in NOK '1000)
2022
2021
Terje Bakken
415
400
Narve Reiten
240
205
Jostein Davidsen
200
175
Cheng Lu (until 03.06.2021)
0
175
Annika Maria Kollen (from 03.06.2021)
200
0
Inger Johanne Solhaug (until 03.06.2022)
230
195
Edmèe Steenken (from 03.06.2022)
0
0
Total Board fees paid
1,285
1,150
c
65 | Consolidated financial statements 2022, Navamedic ASA
Share-based remuneration
Key management personnel in Navamedic ASA receive parts of their salary as share-based remuneration.
Quantity at
31.12.2022
Quantity at
31.12.2021
Kathrine Gamborg Andreassen, CEO
105,000
105,000
Lars Hjarrand, CFO
75,000
150,000
Total
180,000
255,000
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.
The Company offers defined contribution-based pensions to all employees. Some executive personnel have been
awarded share options. See note 23.
The CEO and CFO are subject to notice periods of 6 months. The CEO has a termination payment agreement of 12
months.
66 | Consolidated financial statements 2022, Navamedic ASA
Note 18 – Financial income and expenses
Financial income
(in NOK '1000)
2022
2021
Interest income
3,079
2,787
Other financial income
16,385
1,248
Total financial income
19,464
4,035
Interest expenses
-612
-2,501
Other financial expenses
-2,804
-1,923
Total financial expenses
-3,416
-4,424
Currency gains
37,278
26,497
Currency losses
-46,519
-32,020
Total net currency gain/losses
-9,242
-5,523
Net change in fair value of financial instruments at FVTPL
-17,158
0
Net financial income and expenses
-10,351
-5,912
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.
67 | Consolidated financial statements 2022, Navamedic ASA
Note 19– Shares in associated companies
(in NOK '1000)
Observe
Medical
ASA
Carrying amount as of 1 January 2021
22,022
Share of net income (loss)
-3,185
Carrying amount as of 31 December 2021
18,837
Share of net income (loss)
-1,101
Disposal
-17,736
Carrying amount as of 31 December 2022
0
Fair value of recognized financial investment
27,250
Carrying amount as of disposal date
-17,736
Gain on disposal of associated companies
9,514
At 31 December 2021 Navamedic ASA held 21,54% of the shares in Observe Medical ASA. During 2022, following the
decision not to participate in the share capital issue in Observe Medical ASA, Navamedic ownership share reduced
to 7.9%. Based on the new ownership share and since significant influence over Observe medical was lost, the
investment was reclassified to other current financial assets.
Loan to Observe Medical ASA
The Group has an outstanding loan of NOK 40.6 million at 31 December 2022 (NOK 37.6 million at 31 December
2021).
Subsequent to the demerger of Observe Medical ASA in 2019, Navamedic ASA (as lender) entered into a loan
agreement with Observe Medical ASA (as the borrower) for a loan of an aggregate amount of NOK 32 million. The
loan was structured as a bullet loan, with repayment of the entire loan at the maturity date.
The loan agreement consists of the two following facilities:
• A subordinated convertible term loan facility in the amount of NOK 19 million; and
• A subordinated convertible term loan facility in the maximum amount of NOK 13 million.
The facilities given under the loan agreement constitute direct, unsecured and fully subordinated obligations of
Observe Medical ASA, and rank at least pari passu with all other existing and future unsecured and subordinated
obligations of Observe Medical ASA (other than in respect of any obligations preferred by mandatory provisions of
applicable law) and rank ahead of all amounts payable in respect of the share capital. Each loan given under the
facilities accrue interest at a fixed interest rate of 8.00% per annum.
The subscription price in a conversion shall be equal to the volume weighted average share price of Observe
Medical ASA's shares on the Oslo Axess for the last ten days prior to the conversion date, but in no event be less
68 | Consolidated financial statements 2022, Navamedic ASA
than the nominal value of each share. The conversion right attached to the loan to Observe Medical ASA is
considered to be an embedded derivative within the scope of IFRS 9. However, since the subscription price in the
conversion right is linked to the observed share price, this embedded derivative is considered to be of little or no
value.
Note 20 – Cash
(in NOK '1000)
2022
2021
Cash and cash equivalents
54,298
51,698
Restricted cash
997
922
Total cash
55,296
52,620
Restricted cash consists of tax deduction and other restricted deposit accounts.
Note 21 – Interest-bearing liabilities to financial institutions
Non-current interest-bearing liabilities to financial institutions
2022
2021
Total non-current interest-bearing liabilities, nominal value (in NOK '1000)
38,368
29,235
Average interest rate, including margin
6.0 %
5.5 %
Average remaining duration
2.3 years
2.4 years
Current interest-bearing liabilities to financial institutions
2022
2021
Total current interest-bearing liabilities, nominal value (in NOK '1000)
13,623
9,745
Average interest rate, including margin
6.0 %
5.5 %
Average remaining duration
1 year
1 year
Interest-bearing liabilities in 2021 consisted of SEK 40 million loan with Avida Finance AB from 2020, refinanced in
2021. During 2022, an additional loan of SEK 25 million was taken and the first tranche of 2020 loan of SEK 10
million was paid. Both loans have a covenant that net interest-bearing debt should not exceed 2 times consolidated
EBITDA. Net interest-bearing debt is defined as interest-bearing debt adjusted for cash.
69 | Consolidated financial statements 2022, Navamedic ASA
Changes in total interest-bearing liabilities to financial institutions
(in NOK '1000)
2022
2021
At 1 January
38,980
20,870
Cash flow
14,522
19,500
Non-cash changes
-1,510
-1,390
At 31 December
51,992
38,980
Note 22 – License liabilities
(in NOK '1000)
2022
2021
Total carrying amount non-current license liabilities
3,762
8,171
Total carrying amount current license liabilities
221
13,158
Total carrying amount license liabilities
3,982
21,329
Total undiscounted amount non-current license liabilities
4,971
22,883
Average discount rate amortized cost calculation
6.0 %
3.0 %
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.
Expected undiscounted cash flows from license liabilities
(in NOK '1000)
2022
2021
Year 1
221
13,292
Year 2
0
2,643
Year 3-5
4,750
6,948
Total expected undiscounted cash flows from license liabilities
4,971
22,883
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.
70 | Consolidated financial statements 2022, Navamedic ASA
Note 23 – Options
Total costs related to options
(in NOK '1000)
2022
2021
Total option cost
839
1,784
Total social security provision
131
1,007
Total costs related to options
971
2,791
Reconciliation outstanding options
Number of
instrumets
Weighted
average strike
price
Outstanding options 1 January 2022
585,000
18.42
Exercised
-75,000
15.97
Total outstanding options 31 December 2022
510,000
18.78
There was no change in the number of outstanding options during 2021.
Outstanding options 31 December 2021
Number of
options
Of which
vested
Weighted Average
remaining contractual
life (years)
Strike price 14,46
75,000
50,000
1.50
Strike price 19,00
510,000
170,000
2.46
Total outstanding options 31 December 2021
585,000
220,000
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
71 | Consolidated financial statements 2022, Navamedic ASA
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.
Note 24 – Earnings per share
(in NOK '1000)
2022
2021
Net profit / loss (-)
29,431
618
Weighted average shares issued
16,806,720
16,296,580
Dilutive potential ordinary shares
215,693
133,910
Basic earnings per share
1.75
0.0380
Diluted earnings per share
1.73
0.0376
Note 25 – Transactions with related parties
TopRidge Pharma Limited, which owns 1 420 522 shares in Navamedic ASA, is also a supplier to Navamedic. The
Group purchased goods from TopRidge worth SEK 18 710 thousand in 2022 and SEK 57 634 thousand in 2021. 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 1 904 thousand in 2022 and EUR 638 thousand in 2021. ACS Dobfar
became a shareholder in Navamedic in 2021.
Note 26 – Tax expense and deferred tax
Tax expense
(in NOK '1000)
2022
2021
Profit before tax continuing operations
42,506
2,358
Tax expense
Tax payable
15,672
1,740
Corrections related to previous years
-124
0
Change in deferred tax for previously not recognized deferred tax asset
-2,474
0
Total tax expense
13,074
1,740
Effective tax rate
30.76%
73.77%
72 | Consolidated financial statements 2022, Navamedic ASA
The effective tax rate in 2022 is higher than the corporate tax rates in the markets where the Group operates (20% -
22%). This is primarily due to non-capitalized deferred tax asset related to the losses in the Swedish branch.
Tax payable 2022
Navamedic AB
Norwegian
entities
Danish branch
Impolin
Profit before tax
61,541
372
1,836
Permanent differences
7,234
-
-
Changes in temporary differences
312
-
-
Total basis for tax payable
69,087
372
1,836
Total
Tax payable Norway, 22%
15,199
-
-
15,199
Tax payable Sweden, 20.6%
-
-
393
393
Tax payable Denmark, 22%
-
80
-
80
Total tax payable
15,199
80
393
15,672
Applied tax losses carry forward
-10,807
Tax payable
4,865
During 2022, Norwegian branch of Navamedic AB was demerged and merged with Novicus Pharma AS (which
became Navamedic AS after the merger). For the tax year 2022, consolidated Navamedic AS and Navamedic ASA are
included under “Norwegian entities” in the table above. In 2022, Navamedic ASA and Navamedic AS utilized the full
amount of tax losses carry forward. Reclaimable tax in Sweden incurred in 2022 is limited to the taxes paid for its
Danish branch.
For the tax year 2021, Norwegian branch was part of Navamedic AB whereby Navamedic AB calculated tax payable
in Sweden based on consolidated profit before tax. In addition, tax was paid in Norway and Denmark for the
respective branches and these taxes paid were reclaimable in Sweden. The table below summarizes these effects.
Tax payable 2021
Navamedic AB
Norwegian
entities
Norwegian
branch
Swedish
entity*
Danish
branch
Profit before tax
-3,306
40,223
8,449
302
Permanent differences / Currency exchange
differences
544
-
-320
-
Changes in temporary differences
4,314
-
-
-
Deficit carried forward applied
-1,575
-
-
-
Total basis for tax payable
-23
40,223
8,129
302
Total
Tax payable Norway, 22%
-
8,849
-
-
8,849
Tax payable Sweden, 21.4%
-
-
1,740
-
1,740
Tax payable branches reclaimable Sweden
-
-
-8,916
-
-8,916
Tax payable Denmark, 22%
-
-
-
66
66
Total tax payable
-
8,849
-7,176
66
1,740
* consolidated
73 | Consolidated financial statements 2022, Navamedic ASA
Deferred tax reconciliation
(in NOK '1000)
2022
2021
Property, plant & equipment
35
-64
Provisions for liabilities
3,762
20,816
Tax losses carried forward
0
49,122
Total temporary differences
3,797
69,873
Temporary differences not capitalised
0
-28,199
Total net temporary differences
3,797
41,674
Tax rate
22%
22%
Net deferred tax assets (-)/ defererred tax (+)
835
9,168
Total temporary difference is significantly reduced in 2022 following the derecognition of cancelled licence liability
and utilization of tax losses carry forward. Since recognized deferred tax asset was limited as of 2021, for the year
2022 additional deferred tax is recognized in the income statement to match the amount of deferred tax asset
utilized for the tax losses carry forward.
Tax payable
(in NOK '1000)
2022
2021
Carrying amount tax payable 1 January
10,713
2,795
Gross income tax payable excluding reclaimable tax
4,805
10,655
Taxes paid during the period
-10,967
-2,700
Translation differences
157
-38
Carrying amount tax payable 31 December
4,708
10,713
In addition, tax receivables related to prepaid taxes and reclaimable tax within Navamedic AB amounting to NOK 14
909 thousand (NOK 15 652 thousand in 2021) is recognized on the balance sheet.
Note 27 – Subsequent events
On 30 January, Navamedic announced launch of Modifast, a range of low-calorie diet (LCD) meal replacement
products, in the Norwegian market. Modifast is part of Navamedic's growing portfolio of products and solutions
aimed at tackling obesity and consists of supplements, prescription medications, diet replacements and online
patient support portals.
On 16 February 2023, based on Navamedic ASA's annual general meeting's resolution to authorize the Board of
directors of the Company to issue new options to the executive management and other leaders in the Group under
the Company's long-term incentive program, the Board has resolved to issue 1.400.000 new options to the
74 | Consolidated financial statements 2022, Navamedic ASA
Company's executive management. Each option will upon exercise give the option holder the right to acquire one
share in the Company. The options are granted without consideration. The exercise price of each option is NOK
33.0. Options that are not exercised within 12 months after the third anniversary of the date of grant, will subject
to certain limitations, lapse without any compensation to the holder.
On 29 March 2023 - Navamedic submitted a cash offer to acquire all shares in Sensidose AB, a Sweden-based
pharmaceutical company that sells medicines in combination with an innovative device for individual dosing,
targeting patients with advanced Parkinson's disease. The Sensidose AB shares are listed on Spotlight Stock Market
in Sweden. At the time of issuance of this report the transaction is not closed.
75 | Consolidated financial statements 2022, Navamedic ASA
Parent Company
Navamedic ASA, financial
statements 2022
76 | Consolidated financial statements 2022, Navamedic ASA
Income statement
(in NOK '1000) Note 2022 2021
Operating revenues 8 46,250 45,261
Total revenue 46,250 45,261
Payroll expenses 6 -30,523 -30,730
Depreciation and impairment 3 -4,156 -3,428
Other operating expenses 9 -21,306 -17,875
Total operating expenses -55,985 -52,034
Operating profit -9,735 -6,772
Financial income 12 19,278 2,786
Net change in fair value current financial assets -17,158 0
Group contribution 56,941 0
Financial expenses 12 -599 -3,856
Impairment of non-current financial assets 6 -540
Net currency gain/losses 572 5,099
Net financial income and expenses 59,040 3,489
Profit before tax 49,304 -3,283
Tax expense 5 -8,333 0
Net profit after tax 40,972 -3,283
77 | Consolidated financial statements 2022, Navamedic ASA
Balance sheet
(in NOK '1000) Note 31.12.2022 31.12.2021
Non-current assets
Intangible assets 3 23,142 25,787
Deferred tax asset 5 835 9,168
Total intangible assets 23,977 34,955
Property, plant & equipment 3 603 733
Total tangible assets 603 733
Investments in group companies 2 149,660 102,364
Investments in associated companies 2 0 27,250
Total financial assets 149,660 129,614
Total non-current assets 174,240 165,303
Current assets
Trade receivables 682 138
Other short-term loans group companies 6,825 9,052
Group contribution receivable 56,941 0
Other receivables 1,904 1,777
Other current financial assets 10,092 0
Current loans to associated companies 40,615 37,606
Total receivables 117,059 48,574
Bank deposits 4 6,007 2,765
Total current assets 123,066 51,338
Total assets 297,307 216,641
78 | Consolidated financial statements 2022, Navamedic ASA
Balance sheet continued
(in NOK '1000) Note 31.12.2022 31.12.2021
Equity
Share capital 1, 7 12,749 12,096
Share premium reserve 1 190,408 165,830
Total paid in equity 203,157 177,926
Retained earnings 9,613 -32,199
Total retained earnings 9,613 -32,199
Total equity 212,770 145,728
Non-current liabilities
Liabilities to group companies 41,031 36,429
Non-current licensing liabilities 3,762 7,765
Non-current liabilities to financial institutions 23,633 0
Total non-current liabilities 68,426 44,194
Current liabilities
Trade account payables 3,018 1,235
Unpaid public dues 2,676 2,387
Current licensing liabilities 0 13,051
Other current liabilities 10,418 10,047
Total current liabilities 16,112 26,720
Total liabilities 84,538 70,913
Total equity and liabilities 297,307 216,641
79 | Consolidated financial statements 2022, Navamedic ASA
Statement of cash flows
(in NOK '1000) 2022 2021
Cash flow from operating activities
Profit before tax 49,304 -3,283
Depreciation, amortization and impairment 4,156 3,428
Changes in options 839 1,784
Net financial items and items with no cash effect -57,071 -3,924
Change in trade receivables -543 -21,399
Change trade account payables 1,784 -979
Changes other current liabilities and receivables 6,704 6,303
Net cash flow from operating activities 5,173 -18,070
Cash flow from investing activities
Purchase of tangible and intangible assets -2,251 -728
Investments in shares -28,200 0
Net cash flow from investing activties -30,451 -728
Cash flow from financing activtities
Loans received 28,235 16,000
Share issues 1,198 0
Interest paid -914 -3
Loans issued 0 0
Net cash flow from financing activities 28,519 15,997
Net change in cash 3,241 -2,801
Cash and cash equivalents start period 2,765 5,566
Cash and cash equivalents end period 6,007 2,765
80 | Consolidated financial statements 2022, Navamedic ASA
The Board of Directors and CEO of Navamedic ASA
Oslo, 27 April 2023
Chairman
Board member
Board member
Board member
Board member
CEO
81 | Consolidated financial statements 2022, Navamedic ASA
Navemedic ASA - Notes to
the financial statements
2022
82 | Consolidated financial statements 2022, 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 subsidiary Navamedic AB. 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. 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.
Financial risk management
For further information about financial risk management please refer to note 3 to the consolidated financial
statements.
83 | Consolidated financial statements 2022, Navamedic ASA
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 2022 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
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.
84 | Consolidated financial statements 2022, Navamedic ASA
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 NOK '1000)
Share capital
Share premium
reserve
Retained
earnings
Total
Balance as at 31 December 2021 12,096 165,831 -32,199 145,728
Share issues 653 24,578 25,230
Options 839 839
Net profit for the year 40,972 40,972
Balance as at 31 December 2022 12,749 190,409 9,612 212,770
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%
Book value
Navamedic AS 12,900
Navamedic AB 89,464
Impolin AB 47,296
Total investments in group companies 149,660
85 | Consolidated financial statements 2022, Navamedic ASA
Note 3 – Intangible assets and tangible assets
(in NOK '1000)
Licenses
Other
intangible
assets
Total
Accumulated cost
Balance at 1 January 2021 34,061 5,243 39,303
Reclassification -15,924 -963 -16,887
Additions 22,358 10 22,368
Accumulated cost 31 Dec 2021 40,494 4,290 44,784
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
Accumulated amortisation
Balance at 1 January 2021 -32,529 -65 -32,594
Reclassification 16,887 16,887
Amortization -2,754 -537 -3,290
Accumulated depreciation 31 Dec 2021 -18,395 -602 -18,997
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
Expected useful economic life 5-10 years 5-10 years
Carrying amounts
At 31 December 2021 22,099 3,688 25,787
At 31 December 2022 21,343 1,799 23,142
86 | Consolidated financial statements 2022, Navamedic ASA
(in NOK '1000)
Tangible assets Total
Accumulated cost
Balance at 1 January 2021 294 294
Reclassification 0 0
Additions 635 635
Accumulated cost 31 Dec 2021 929 929
Balance at 1 January 2022 929 929
Reclassification 0 0
Additions 191 191
Accumulated cost 31 Dec 2022 1,120 1,120
Accumulated amortisation
Balance at 1 January 2021 -141 -141
Depreciation -138 -138
Accumulated depreciation 31 Dec 2021 -196 -196
Balance at 1 January 2022 -196 -196
Depreciation -321 -321
Accumulated depreciation 31 Dec 2022 -517 -517
Expected useful economic life 3 years 3 years
Carrying amounts
At 31 December 2021 733 733
At 31 December 2022 603 603
87 | Consolidated financial statements 2022, Navamedic ASA
Note 4 – Bank deposits, overdrafts etc.
Note 5 – Income tax
(in NOK '1000)
2022 2021
Bank deposits 5,010 1,843
Restricted funds 997 922
Total 6,007 2,765
(in NOK '1000)
2022 2021
Total tax expense is divided into
Changes in deferred tax assets 8,333 0
Total taxes 8,333 0
(in NOK '1000)
2022 2021
Calculation of this year's tax base;
Net profit for the year including group contribution 49,304 -3,283
Permanent differences -1,099 544
Changes in temporary differences 312 4,314
Deficit carried forward -48,518 -1,575
This year's tax base 0 0
Tax payable, 22% 0 0
(in NOK '1000)
2022 2021
Overview of temporary differences;
Tangible assets 35 -64
Outstanding receivables 0 0
Allowances for liabilities 3,762 20,816
Deficit carried forward 0 48,518
Total temporary differences 3,797 69,269
Capitalised deferred tax asset (22%) 835 15,239
Deferred tax not capitalised 0 -6,071
Deferred tax asset 835 9,168
The company expects to be able to utilize this tax asset in the future.
88 | Consolidated financial statements 2022, 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)
2022 2021
Salaries 22,086 22,974
Remuneration of board members 1,285 1,150
Employer's NI contributions 3,377 3,789
Pension expenses 1,400 1,245
Other payroll expenses* 2,375 1,572
Total 30,523 30,730
Number of FTEs
16 18
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 1 245 030.
Remuneration for auditor specified as follows:
(in NOK '1000)
2022 2021
Statutory audit 736 584
Tax advice 0 0
Certification services 0 24
Assistance other than auditing 121 0
Due Dilligence 69 0
Total 925 608
89 | Consolidated financial statements 2022, Navamedic ASA
Note 7 – Share capital and shareholder information
Note 8 – Sales revenue
Note 9 – Other operating expenses
Note 10 – Claims and contingent liabilites
Navamedic ASA is not a party to any ongoing legal proceedings or disputes.
Share capital
Quantity Nominal Book value
A-shares 17,227,777 0.74 12,748,555
Overview of the largest shareholders as of 31.12.2022 and shares owned by the Board of Directors and senior executives in Navamedic ASA
see note 13 in the consolidated financial statements.
(in NOK '1000)
2022 2021
Nordic countries 46,250 44,942
Other EU/EEC 0 319
Total 46,250 45,261
(in NOK '1000)
2022 2021
Rent, etc. 2,166 1,743
Other cost of premises, vehicles, office equipment etc 366 181
Misc. fees 5,868 5,521
Travel expenses 883 421
Insurance 951 580
IR expenses 1,357 1,201
Regulatory 5,629 4,724
Other expenses 4,087 3,505
Total other operating expenses 21,306 17,875
90 | Consolidated financial statements 2022, Navamedic ASA
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):
Note 12 – Financial items
Note 13 – Subsequent events
On 30 January, Navamedic announced launch of Modifast, a range of low-calorie diet (LCD) meal replacement
products, in the Norwegian market. Modifast is part of Navamedic's growing portfolio of products and solutions
aimed at tackling obesity and consists of supplements, prescription medications, diet replacements and online
patient support portals.
On 16 February 2023, based on Navamedic ASA's annual general meeting's resolution to authorize the Board of
directors of the Company to issue new options to the executive management and other leaders in the Group under
the Company's long-term incentive program, the Board has resolved to issue 1.400.000 new options to the
Company's executive management. Each option will upon exercise give the option holder the right to acquire one
Company: Transaction: Nature:
2022 2021
Navamedic ASA Charges from parent to subsidiary Royalty 7,271 7,019
Navamedic ASA Charges from parent to subsidiary Service fee 38,961 37,937
Navamedic ASA Charges from parent to subsidiary Interest on loan 124 0
Navamedic AB Charges from subsidiary to parent Interest on loan 2,565 3,022
Financial income
(in NOK '1000)
2022 2021
Interest income 3,009 2,786
Other financial income 16,269 0
Total financial income 19,278 2,786
Financial expenses
(in NOK '1000)
2022 2021
Interest expenses 4,338 3,827
Corrections for previous years -3,881
Other financial expenses 142 29
Total financial expenses 599 3,856
91 | Consolidated financial statements 2022, Navamedic ASA
share in the Company. The options are granted without consideration. The exercise price of each option is NOK
33.0. Options that are not exercised within 12 months after the third anniversary of the date of grant, will subject
to certain limitations, lapse without any compensation to the holder.
On 29 March 2023 - Navamedic submitted a cash offer to acquire all shares in Sensidose AB, a Sweden-based
pharmaceutical company that sells medicines in combination with an innovative device for individual dosing,
targeting patients with advanced Parkinson's disease. The Sensidose AB shares are listed on Spotlight Stock Market
in Sweden. At the time of issuance of this report the transaction is not closed.
92 | Consolidated financial statements 2022, 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 2021. 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 2022 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 2022 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 2022.
That the director’s 2021 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, 27 April 2023
Chair
Board member
Board member
Board member
Board member
CEO
93 | Consolidated financial statements 2022, Navamedic ASA
Auditor’s report
94 | Consolidated financial statements 2022, Navamedic ASA
95 | Consolidated financial statements 2022, Navamedic ASA
96 | Consolidated financial statements 2022, Navamedic ASA
97 | Consolidated financial statements 2022, Navamedic ASA
98 | Consolidated financial statements 2022, Navamedic ASA
99 | Consolidated financial statements 2022, 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
• EBITDA margin is EBITDA as a percentage of operating revenue.
• Equity ratio is the total equity as a percentage of total assets.
100 | Consolidated financial statements 2022, 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
Telephone: +47 67 11 25 40
E-mail: firma@navamedic.com
www.navamedic.com
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