Burgdorf – Ypsomed is recording weaker growth in the insulin pump business and is adjusting its approval strategy with the American FDA. In addition, Ypsomed is reducing its EBIT outlook for the current financial year 2019/20 to CHF 9 million due to one-time and temporary effects. Ypsomed confirms its mid-term EBIT target of CHF 100 million.
Ypsomed is recording weaker growth in the insulin pump business in the current 2019/20 financial year than predicted in November 2019 and expects around 15,000 patients by the end of the financial year. This is mainly due to the delayed market entry in Canada and a slight decline in demand from the French market. This will have a negative impact of around CHF 6 million on EBIT. In addition, Ypsomed is adapting its insulin pump approval strategy with the US Food and Drug Administration (FDA). Ypsomed will submit YpsoPump® 2021 via a new, more flexible approval path in the USA. In the current financial year 2019/20, this will result in a one-time impairment of around CHF 4 million.
Additionally, for the full financial year there will be a foreign currency effect of around CHF 6 million. Furthermore, the subsidiary Ypsotec is suffering from the current negative economic development in the metal processing industry and expects a loss of around CHF 4 million for the financial year.
The business with Pharma and Biotech customers continues to develop positively with a better result than expected in November 2019. From today's perspective, Ypsomed still commits to its mid-term EBIT target of CHF 100 million.