Welcome to this investor presentation from Navamedic, and good morning to everyone listening in. We are very pleased to present the Q3 report for Navamedic today. I have with me Nils Ole and myself, who will present the numbers and the activities that we have been carrying out in Q3, and what we expect going forward. I should remember to say that there will be possibilities to ask questions, and there is a chat function that you can use for that purpose. Please use the chat function to raise your questions, and we will have a question and answer at the end of the presentation. Today's report will focus on three things, basically. The Q3 numbers and the report itself, which shows improvements in profitability. A deep dive on the very good news that we signed a prolongation on Mysimba, one of our key products.
Last but not least, having been with the company now for four months as the new CEO, we will take a look at the strategic review that we are doing and what you can expect in terms of communication, in terms of strategy and plans for next year. We will deep dive on that. Let's jump into the highlights for the quarter, and overarching, we are showing a profitability improvement driven by a continued focus on optimizing the product mix, as well as a very strict cost discipline to ensure that we drive profitability. Despite decreased revenue, primarily due to Mysimba, we show improvements in profitability. But also a reduction in turnover, primarily due to Mysimba and discontinued brands that we no longer are providing to the customers. We will take a deep dive on Mysimba and what's actually going on inside the dynamics of that market.
I would also like to highlight the very good news that we recently announced a five-year extension of the distribution agreement for Mysimba, which was an important milestone for us in terms of the importance of Mysimba, but also very good news for patients as such, which is an important product in the treatment of obesity. We show a revenue decline of 13%, and we will dive further into what that actually entails. More importantly, we show gross margin improvements of 2 percentage points, and we show a 17% improvement in EBITDA, despite the revenue drop that we have reported. Underlying profitability improvements and what's also important to mention is probably that the own products that we have represent 30%. The rest is distribution or licensing agreements. 30% of the portfolio is driven by own products, which are growing by 15%.
That also explains the improvements in gross margin, where we of course have better profitability on own products. That is certainly a key driver for us going forward as well. Let's take a look at the individual segments. Prescription drugs. Q3 was mainly impacted by wholesaler purchasing patterns from Mysimba sales. Yet overall, year-to-date, we actually show a 2.3% growth. Inside the quarter, we had a decline which mainly is related to Mysimba. You will see that Mysimba was 30% lower than last year, ex Navamedic. You will also see that the Mysimba sell-in volume, which is the reported sales to pharmacies in the Nordic countries, we only see a decline of 7.5%.
There's been an adjustment inside the wholesaler inventory levels, which actually is reassuring for me to see that despite a decline in the market, and we'll talk more about the market in a couple of slides, the decline of 30% is more related to inventory adjustments among the wholesalers. We also show growth for Imdur. Imdur is a product that is very volatile and very tender driven. Overarching, it's very nice to see a 7.7% growth in Q3 and -1.4% year- to- date, which is a flattish development. We have added the Addiction Portfolio, and we are seeing growth from the Addiction Portfolio as well as the Flexilev, which is the two main components of our own products that we have inside the prescription medicine segment. We are seeing strong growth, but still yet at a low level.
The Addiction Portfolio and Flexilev sales represent 25% of the turnover inside the prescription drug segment. Certainly of importance, but when Mysimba, which represent 39%, is having a challenge, it has an impact on the overall prescription drug segment. But we believe that we are set for a more regular growth in terms of Mysimba sales and more natural development, hopefully going forward. As you can see in the sell-in volume, we have a rather flat 2026, Q1, Q2, Q3, which actually is a testimony to the strategy that we have implemented in terms of stabilizing sales, and that is also something that we will talk more about in a couple of slides. The hospital business, which represent the antibiotics that we are selling and Medical Nutrition. We see strong growth here.
We reported a 10.6% growth inside this segment, strongly driven by the antibiotics, where we have seen good uptake and good order flow for the antibiotics in Q3, and are showing an overarching 3.3% year-to-date growth for the antibiotics. Medical Nutrition also had a strong quarter with 2.7% growth, picking up some of the lack from first half of the year, and is now at 0.6% year- to- date, so a flattish development. A strong part of the business as well, and is nicely growing and is a segment that is also represented by fluctuations due to tender mechanisms and purchasing patterns. But this quarter, a strong quarter. Overall year- to- date, 1.5% growth, close to 100 million Norwegian kroner year- to- date.
Consumer Health, we see pockets of growth, but two brands drive the decline in Q3, and those two brands is Modifast, which we have been talking about before. Modifast is declining by 25% in this quarter. Overall 19% year- to- date, which is what we call reflecting increased competition. It is inside the obesity market, and there's a lot of dynamics, movements inside that market that we are responding to. But we also see mainly the decline from Modifast coming and stemming from one single retailer in Sweden, where they have chosen another brand on their online store. That also reflects our strategy to focus on pockets of growth where we believe Modifast is better positioned going forward. We believe that we are fixing Modifast going forward to drive profitability, not necessarily top-line growth, but profitability.
The other products that we are working with inside the consumer brand, we also focus on improving profitability. We see this quarter ThermaCare declining 17%, but overall year- to- date, a 5.3% growth, and that is mainly reflecting campaigns and purchasing patterns that we may see. I think the important part here is to say 5.3% growth year- to- date. Absolut Torr, one of our own products, is growing 15% in this quarter, is behind year- to- date with 15%, which is mainly due to lack of export orders or international sales orders to the Middle East. That is basically due to the geopolitical situation in the Middle East. Overarching, a gross margin improvement in quarter three, yet despite a decline in revenue.
With those entry remarks, I think I will hand over to Nils Ole, who will take us through some of the more deep dive on financial numbers, and then we will deep dive on Mysimba and the strategy process afterwards.
Thank you, Lars, and good morning, everyone. A closer look at the financials for the quarter. We have seen revenues decline 13.2% from the same quarter last year, due to the reasons mentioned by Lars already. But we see gross profit increasing by 2 percentage points year- over- year, and is the development that we are trying to achieve. We also see an improvement from the last quarter on the reported figures. But, as you might recall, we had some extraordinary provisions for inventory obsolescence in Q2. So the margin in Q2 was underlying 3.8 percentage points higher than what you see on this graph. But still, the gross margin in Q3 is moving in the direction that we wanted to. Operating expenses, 9.1% lower than the same quarter last year. Again, reflects the cost discipline that we diligently follow.
Adjusted EBITDA 8.8%, despite the decrease in revenues, and the reported EBITDA improved from NOK 9 million in the same quarter last year to NOK 10.6 million in Q3 2026. Q3 last year included transaction costs related to the dne acquisition, and that explains the difference between reported and adjusted EBITDA in Q3 last year. If you look at the segments, prescription drugs down 17.8%, driven by Mysimba, as Lars already mentioned. Hospital up 10.6%. Strong growth in antibiotics is the main reason for that. Consumer Health with a reduction of 23.3%, driven by the two largest brands, Modifast and ThermaCare. Cash flow, NOK 8.3 million in cash flow from operating activities. Very limited investing activities in the quarter. NOK 12 million in cash flow from financing activities, mainly related to repayment on the interest-bearing loans, and interest on those.
Arriving at a cash balance at the end of the quarter of NOK 48.6 million. If we take a look at the revenue year- to- date, first nine months, we start with the same period in 2025, where we ended up at NOK 408.2 million in revenues for the first three quarters, and ending up at the same period in 2026, where we have NOK 398.9 million in revenues. The development is mainly due to the factors that we have depicted here. We have added NOK 31.4 million from the acquired Addiction Portfolio, a transaction that we closed 15 July last year. We have phased out a portfolio of brands that we have also mentioned in the last two quarters, which contributed NOK 17.9 million in the same period last year.
We have had a decline in Mysimba revenues that we have already mentioned of NOK 15 million, and then a decline on Modifast of NOK 6.7 million. Those four factors are the most prominent contributors to the negative development in revenues year- to- date of roughly 2%. I'll leave the floor to Lars for a business update.
Thank you, Nils Ole, and as Nils Ole rightly mentioned, basically you could say that the movements inside the business is basically due to the addition of the new products from the Addiction Portfolio, and then Mysimba, Modifast, and discontinued products. Not to forget also, of course, the impact of currency exchange rates, where we see an impact on top line. Let's dive a little bit more into Mysimba. We have recently announced the prolongation of Mysimba and thereby secure a position in a growing, yet competitive obesity market. It's very good news for Navamedic. It's very good news for patients that we have secured a prolongation for Mysimba. Mysimba is a product that we have had for a number of years and had a very good uptake in especially Norway, where we have seen strong penetration of the market prior to the GLP-1s coming to market.
You could say we built the market for obesity in Norway, and now we are facing the fact that a number of competitors are entering the market, especially the GLP-1 products, which of course, have taken a share of the market, but also expanded the market in terms of patients that actually are seeking treatment. So the developments that we have seen over the past couple of quarters is reflecting the increase in competition from GLP-1s and patients that have tried out or shifted over to GLP-1 treatments. It doesn't mean that Mysimba doesn't have its place and its position in the market. We believe that it is a growing market, and a market where Mysimba certainly deserves its place. So we have worked on Mysimba to ensure that we reflect the new competitive situation with a more patient-focused strategy where we are positioning Mysimba for specific patient groups.
We will focus more on scientific communication relating to obesity and Mysimba going forward. We believe that Mysimba tablets offer patients with obesity a treatment option beyond the GLP-1. We believe that it has its place in the market. We acknowledge that it is a competitive market. We acknowledge that we are up against very big muscles in terms of spending and presence in the market. However, in the obesity market, Mysimba has its position and is also recognized by prescribers as an alternative treatment in the obesity market. That also is reflected by the fact that Mysimba was recently acquired by Azurity Pharmaceuticals who acquired the global rights for Mysimba, and Azurity Pharmaceuticals have decided to extend and prolong our agreement for Mysimba, which we are very pleased with.
We have a strong collaboration with Azurity Pharmaceuticals, and what is positive for us is that Azurity Pharmaceuticals has acquired Mysimba with the ambition of growth, with the ambition of investing in the product on a global scale, and securing that we can continue focusing on adding value to patients, adding value to prescribers and HCPs in terms of the communication around Mysimba. We are focusing together with them on a patient-centric strategy to position Mysimba for the right patients in a competitive market. Then we will need to see how that market develops. It is a dynamic market, and we are cautiously building our forecast. With Mysimba, we have a very strong product in our basket, which is a good alternative for patients in the obesity market.
Overall, you can say that we have gone from being a market leader where we had a broad obesity treatment focus to a differentiated choice for specific patient needs. We are adapting to the competitive environment and finding our spot and our position in this market. Overall, we are very pleased with the prolongation of Mysimba and the collaboration with Azurity Pharmaceuticals. Now, I've been with the company now for close to four months. I took over in the summer and have used the initial period to understand the business, to work with the organization, and work with our partners in terms of understanding and shaping where we would like to go. That process is what I call a thorough process, where we focus on profitable growth, and that's also what we present today.
We focus on profitability, and we would like to focus our profitability growth in terms of each strategic segment: hospital, Consumer Health, prescription medicine. What we're doing right now is that we are building for the future. We are taking a strategic review of the business, looking at resource allocation in terms of making sure that we invest where it matters the most, invest in the right activities, but also making sure that we follow the cost discipline that we have implemented to make sure that we drive profitability. We're looking at the commercial direction, reshaping commercial strategy. Just talked about how we have reshaped the Mysimba go-to-market strategy and positioning, making sure that the products that we offer, the communication that we're doing to the market, is reflecting what actually is the competitive situation.
We're looking at operations and also our long-term ambition in terms of where we would like to go and how we secure growth from especially the own assets that we have in our pockets, and also being an attractive partner for in-licensing going forward. We're looking at international expansion, not with feet on the ground, but through partnerships, distribution agreements, licensing agreements for our own products that we have control over. We are also looking at how we can expand our own portfolio with business development initiatives and making sure that we build portfolio for the future. All of that sums up in execution and alliance management.
A lot of the work currently is ongoing in aligning and negotiating with our partners and suppliers in terms of making sure that we build the budgets and the plans for 2027 together with them. We are optimizing the existing product portfolio to make sure that we nurture the right products and make sure that our partnerships are getting the attention and the commitment that they deserve through strong execution. This is a strategic review. I don't expect a major change in strategy as such, but we need to make sure that we drive profitable growth. We will be working and finalizing this over the coming weeks and months. I expect to revert with more update on that when we have the next quarterly presentation in February.
Until then, we focus on sustainable growth through the products and partnerships we have and making sure that we focus on expansion internationally. We need to grow the core, realizing the potential of our existing products and recent acquisitions. I think the 30% of our portfolio that is growing by 15% this quarter is a testimony to our focus on making sure that we actually capture value from our own products. We need to unlock the international potential. We're working on where we can expand with our products internationally and making sure that we can find distributors and partners that will serve us well in those markets. We're building future portfolio. We would like to attract new products with growth potential, adding economies of scale and strategic fit and sustainable profits.
During this quarter, we have been to a large congress in Milan called CPHI, where we had a number of meetings with existing partners as well as future potential partners. We will also be going to the Jefferies Healthcare conference in November in London, where we will be meeting with more potential partners to discuss portfolio, strategic opportunities, collaboration. Business development is high on the agenda and making sure that we actually build portfolio for the future. While we're doing that, focus on execution and alliance management to make sure that we actually execute on our plans, that we drive the right initiatives and make sure that we follow up on those plans. We would like to be seen as a partner of choice in the territories where we operate for both existing and future partners with a platform that can manage multiple product categories.
We believe that we are in good shape for building the plans for 2027 and also making sure that we finish off on a strong quarter four. In terms of the outlook, we are expecting revenue to be somewhat lower in 2026 compared to 2025 on a constant currency basis. Basically reflecting that we are behind in Q3, and partly due to the currency exchange rate, but also partly due to Mysimba and Modifast. We focus on profitability, and that's basically also what you have been hearing during the presentation. We prioritize profits over revenue growth and see that the improved gross margins is what we expect to report at the end of the year. Improved gross margins driven by a more favorable product mix combined with a continued operational efficiency that is expected to result in improved EBITDA compared to 2025.
With those words I think we should go directly into a Q&A, and I invite Nils Ole to the stage as well.
Okay. The first one is, could you elaborate on the underlying development in Mysimba and Consumer Health, particularly Modifast, and how you see this business developing into Q4 and 2027?
Yes. So there was two products mentioned. I'm not sure whether we'll dive into both. Mysimba prescription medicine, as I mentioned, mainly an inventory change in terms of the Q3 numbers. We see a 7.5% decline in the quarter, but also a stabilization in Q1, Q2, Q3 this year in in-market sales. How the future will look depends very much on the competitive landscape, which is out of my control. But what we can control is how we go- to- market, how we communicate with HCPs, and we will be implementing the, let's say, more patient-focused strategy with a more scientific approach, making sure that we add value to HCPs. With that, we believe that we have our position inside the obesity market with Mysimba. For Modifast, we have seen, as I mentioned, a decline in sales, and that is overarching due to the dynamics in the obesity market.
The product as such is having its place in this market environment, but it is also becoming a competitive market where new entrants are coming in, and that is basically the reflections that we see. One retailer, which is basically driving a large part of the decline in the business, a retailer where we have been penetrating very well compared to the size of the retailer, who have decided to prioritize another product in their retail stores. We are reflecting that in our plans for 2027 and believe that Modifast still has its place in the market. We believe that there are still pockets of opportunities for Modifast in the market, and we are reflecting and building a profitable business based on those circumstances.
Gross margin improved materially in Q3 despite lower revenue. How sustainable is the 39.5% gross margin, and what are the main drivers of further margin expansion from the current product mix?
The overarching focus for the gross margin improvement has been on basically making sure that we drive our own assets, Flexilev, Addiction Portfolio, Absolut Torr. Making sure that those products which are where we do not need to share the pie with another distributor partner, we have a better profitability. The more we can sell of those, the more profitability we can also deliver and margin improvements thereby. Then, of course, we are looking at, and that is basically back to the Modifast discussion. We are looking at profitability and making sure that we adapt prices and rebates and discounts to make sure that we drive profitability. We also have been looking at discontinuing products where we believe the margins are not satisfactory and are diluting the overarching margin improvements.
Small, let us say, adjustments in the business, but the overarching margin improvement is coming from focus on own products and focusing on price optimization, portfolio optimization, strategic choices in terms of what we focus on.
If we compare the underlying gross margin in Q2 2026, it was 42%, and now it is 39.5%. Can you explain the drop and what we see as a normal level?
Can you remember?
I can start. As I mentioned during my walkthrough of the financials, we had the extraordinary provisions for inventory obsolescence in Q2, so the underlying gross margin was higher than the reported figures. This will fluctuate between the quarters, driven by product mix. If you see the two quarters, Q2, Q3, it is around 40%, and it is definitely a level that we are working hard to sustain. That was also part of the previous question, how sustainable is the gross margin? That is what we are working for to sustain the gross margin above 40%.
Yeah.
Thank you. For the Mysimba agreement. Following the five-year extension with Azurity, what has changed in the commercial terms or strategic scope of the Mysimba agreement, and how should we think about the product contribution to growth and profitability over an extension period?
Yes. The agreement we have made with Azurity is, besides the fact that Azurity is a new owner and is giving a new energy and life to Mysimba, is largely on the same terms and conditions that we have had in the past. I think the only change is a small change in price where we have gone from a mechanism where we adjust prices to a fixed price where we purchase the products. Overarching, it is the same conditions that we have seen in the past. What was the question? More in terms of?
What should we think about the product contributing to growth going forward?
Going forward. So what I believe is that we will see more or less the same contribution that we have seen in the past. We can be challenged on prices in the market. It is prescription medicine where we can be challenged on pricing in the market, but overall, we believe and forecast that it is more or less somewhat aligned, the same numbers that we have seen in the past. In terms of volume and uptake, we are cautious in terms of making commitments because it is such a dynamic market, and we do not know what competition is implementing in terms of products and activities, reimbursement level, and so on. But what we do believe in is that Mysimba has its place in the market.
We have a strong position with a tablet in the market, and there is certainly a patient group that deserve the access to Mysimba. It is a market that is growing, so there is more patients coming into the obesity market, where we should also, of course, profit from the noise that competition is doing, driving more patients to physicians.
One more question on the agreement. How big was the upfront payment? When is it payable, and how will it be accounted for?
Good. We haven't revealed the numbers in agreement with our partner. But it is, for the size of the business, a relatively marginal milestone payment or licensing fee that we have. The payment will take place in 2027, and you will see the numbers in that report. But I think how it will be accounted for, I'll leave that to you.
Yeah. No, this is of course an investment in a licensing right, which will be accounted for as an investment or a capital expenditure. Yeah.
And one more thing on the agreement is, it describes as you will have some increased support from Azurity. What do you mean by that?
The major change, I think I can say that previously, Mysimba was owned by an American company called Currax, and Currax was marketing the product in the U.S. themself. Azurity is also an American company, but with operations in Europe and a European-based marketing organization. In contrast to, if I should depicture a little bit, in contrast to previous years, we don't receive the U.S. brand plan as the European brand plan, but we get a European-focused brand plan with activities that is fitting the European market. Activities and congress activities in Europe will take place based on the market conditions in Europe. Europe and U.S. are two different markets.
We believe that with Azurity being based in Europe, Azurity being invested in making sure that we have activities supporting the brand on a pan-European basis will, of course, also benefit us in our communication with KOLs, key opinion leaders, and with activities that we can use in the markets. I think very much that that collaboration is a strong testimony to how two partners can actually make sure that we serve patients very well in the market.
Thank you. The Mysimba revenue declined by 30% in Q3. How much reflects wholesaler ordering patterns versus weaker underlying demand and GLP-1 competition? What do you see for October and in Q4, and when do you expect the ordering patterns to normalize?
Yeah. 30% decline in terms of ex Navamedic, 7.5% decline in in-market sales. Without being able to make that comparison fully right, you could say that 2/3 Of the decline, ex Navamedic, was inventory fluctuations, and 7.5%, or let's say 10%, 1/3, was market decline. What's also important to mention is that we see Q1, Q2, Q3 in the in-market sales more or less around the same level. I can't predict about Q4, but what I can see is that Q4 has typically been a stronger quarter. But I cannot predict about how Q4 will be, and I won't make any statements in terms of how it will be, but what I can say is that we believe that the inventory leveling will take place in Q4. But there's also a December where we don't know how ordering patterns will take place.
But in-market sales, I believe that Q4 will be higher, because that is typically what we see. How ordering patterns will take place remains to be seen. But let's see.
Thank you. When it comes to the discontinuation of products, can you be more specific on why these are discontinued? Is it Navamedic's choice or the supplier?
Yeah. I don't think we would discuss specific decisions around specific products. The relationship with distributors is, of course, a bilateral relationship, and in respect of that, I don't think we would comment specifically on who makes what decisions in those relationships.
No. I can say I was not part of that decision. I don't have history, but it is part of the game that when you have distribution agreements, we do look at priorities and profitability. They do look at uptake and volumes. And that discussion, of course, sometimes ends in a discussion about is this the right fit or should we separate in good faith? That is nature of the business. That's why we have contracts that secures how we collaborate on those terms. And it can also happen in the future that we will add products and say goodbye to other products because we are thereby building a portfolio that is more strategically focused. But of course, alliance management is an important part of how we drive our business.
We make sure that we nurture our partners, make sure that we give the right attention to the products that they deserve, and make sure that we also balance investments to make sure that we drive profitability and thereby shareholder value.
Employee benefits increased by 10%. What is the driver and is there any plans for the organization?
You take the numbers.
Yes. We have strengthened the team in some areas. We have also moved certain resources from consultants to employees. It partly also in conjunction with the acquisition of dne pharma, where we for a transition period, had more hired personnel, where the plan was, of course, to replace those with permanent employees. That is the main reason.
Yeah. In terms of, I think the question was plans for organization. We are building our plans and our strategic review. What that entails in terms of adjustments is too early to say, but there are no plans as such in terms of major reshuffling of our organization or anything. But of course, we are looking at how we deploy our resources to make sure that we are fit for future growth. But I would like to acknowledge the team for having done a fantastic job, not only in Q3, but throughout the year in terms of executing on the many priorities and the many plans that we have had during the year. I think we have a strong organization that is fit to grow Navamedic going forward.
Thereby, I am full of confidence in our plans for 2027 and going forward. I believe that we can execute on driving a profitable business going forward.
How much of the ThermaCare decline is timing of campaigns that will be moved to Q4? What is the Virono sales in the quarter?
ThermaCare was declining, if I remember right, 17% in Q3, but overall 5.3% year- to- date, if I remember right.
Correct.
That is reflecting purchasing patterns and campaigns, how we do those. We believe that we will see a normal trend for ThermaCare going forward. So it will fluctuate quarter- by- quarter, depending on large campaigns and where we are selling the products. But overall, we believe it will be in line with the year- to- date numbers. Virono, we are very pleased with the responses and the feedback we are getting from the market in terms of Virono. We have done a large pipeline filling in Sweden. We do see pickup of sales, but we also need to make sure that we replenish the pipeline fill that we have done in Sweden.
It is too early to say how the uptake and how the patients have responded to repurchasing, but we are confident that we have done a fantastic job in launching Virono, and we are looking at how we can further learn from those activities and make sure that we enroll that in our execution of future plans for Virono. We are also looking at the patterns in terms of consumer behavior to understand what will be the next level of repurchasing and when, and so on. But feedback from the market is positive. Feedback from retailers is positive. Feedback from the team is positive. So I hope we will get back on future quarters with more numbers on how Virono uptake is progressing.
Which debt ratio does Nordea measure? How is EBITDA defined?
The covenants on the Nordea loans are, of course, net debt to EBITDA. The covenant is 2.75, and it is measured on an adjusted EBITDA basis. Yeah.
Can you say something about Flexilev and OraFID? What is the progress, and can you say something about the U.S. licensing discussion as well?
We haven't shown numbers on Flexilev, but what we can see is that we have transitioned Flexilev in Scandinavia from the MyFID to the OraFID. MyFID was the digital solution. OraFID is the analog solution, which we focus on going forward. We have seen a shift there, and we have seen an uptake in terms of patients. There's been basically two mechanisms: shifting existing patients from MyFID to OraFID and driving new patients on treatment with OraFID. What we see is a steep uptake in terms of patients that is on OraFID, and we believe that we are winning physicians over, patients over month by month and are getting traction with the product across Scandinavia. It is a product that is long-term treatment, and therefore every patient count in terms of uptake and future revenue. We do see that we are winning patients month- by- month.
It is also a product where patients are seldomly coming to a neurology. There is a lack of capacity in terms of access to a neurologist across all markets. It's not a product where the patients are coming every quarter to the neurologist. They maybe get one or twice a year access to the neurologist. It's very much about also making sure that we're top of mind when the neurologist is seeing the right patients for OraFID and Flexilev in OraFID, and making sure that we are present there. But we do see uptake in terms of patients, and we believe that with that focus, we will drive business going forward, and hopefully, during next year, we can present more numbers on how that goes. In terms of U.S. activity, we are looking at what it takes to register the product.
We are having dialogues and making sure that we understand what's needed for U.S. application. Parallel with that, we are scouting and discussing with potential partners. First, we need to make sure that we understand the regulatory pathway. Secondly, we will look at the right partner for Flexilev in the U.S. So no news as such on that front, but certainly an opportunity that we are working on and hopefully something that we can revert to at a later stage. Certainly also discussions that we will have when we go to Jefferies Healthcare conference in London, where we will meet potential licensing partners. But too early to say anything about access and entry into the U.S.
On the guiding, what does somewhat lower revenue mean? Is somewhat lower a low or a high one or a percentage fall in constant currency?
Yeah. We don't want to be more specific than what we've stated in the report. Somewhat lower means somewhat lower revenue on a constant currency basis. I don't think we will elaborate on that further. Lars?
No, I think that. Yes.
On the guiding as well, increased EBITDA. Do you mean reported or adjusted?
We mean definitely adjusted, but in this case, both, I would say.
On the currency impact, how big was the impact on gross profit and EBITDA in Q3?
It was NOK 6 million, roughly, on revenue. It is, of course, less on the gross profit and EBITDA due to costs in the same currency. I do not have a specific number for that effect, but it is significantly lower than the effect on revenue since we have also a lot of costs in the same currencies.
Okay. Can you say something about the Addiction Portfolio you bought last year? Can we expect any growth going forward?
So maybe just to pick up on last one, what we will see is partly that the currency effect is having an impact on top line. But of course, there are underlying cost in the same currency. What in between is, of course, cost of goods, which is not in the same currency. So there are many mechanisms that we need to account for in that calculation. In terms of the Addiction Portfolio, we have acquired basically three products: methadone, Levopidon, and Ventizolve. And we do see a strong business. We see good uptake in all markets where we operate. We focus very much on Ventizolve to make sure that we can offer this emergency treatment for opioid overdose.
We are having a strong focus on collaboration with authorities, with stakeholders in terms of offering this product to potential patients across, and making sure that it is available at the point of the overdose taking place. So we do see penetration well in a number of markets. We are working with other authorities and prescribers in terms of making sure that we drive the awareness. We actually also get interest from authorities who are calling us for when we will launch the product. So we have our obligation to make sure that we launch the product, but also, of course, make sure that we get the right price and reimbursement level for the products. So we are in that dialogue on the international expansion.
Inside our own markets, we focus on driving more growth in that segment, and we have seen growth in that segment, and believe that we can continue to grow the business because we focus on that business. So we are very pleased with the acquisition we have done. We believe that we have a good foundation for growth, and we need to look at the international expansion with especially Ventizolve going forward. We have seen also new orders coming in from the existing partnerships we have in the U.K., so we are pleased to see that recurring orders now are coming, and they have replenished a very high volume that they had on inventory. So replenishment stock is coming in, orders are coming in, which is a positive sign that we are normalizing the inventory levels in U.K.
Thank you. On your first presentation in Q2, you stated that the company has an exciting, bright and positive future and an excellent platform. In order for investors to have faith in this statement, could you be specific on why you said this? For example, where is the earning growth going to come from, and why should an investor have faith in that growth from new and existing products?
Yeah. As I said, we are doing a strategic review. We are not announcing new targets today or ambitions. What we are working on and what the focus will be is to make sure that we drive stakeholder shareholder value and make sure that we drive a profitable business. I have strong confidence still in the business. I think we have excellent products, we have excellent partnerships, we have an excellent organization, and we have a number of opportunities ahead of us with growth in our own markets directly. We have expansion possibilities internationally, and we have expansion possibilities with getting access to new products, new partnerships, and making sure that we drive growth. Then we have some big bets like the U.S., but let's not put that on the table right now.
We are certainly working on a number of future opportunities that will pay shareholder value and profitability. So I do believe that we are in a very good position to execute on those plans. We will make sure that we do our utmost to drive and build a sustainable, strong Navamedic for the future, with a strong portfolio, with a strong organization, and returning also shareholder value through profitability and profitable growth.
Thank you. It has previously been communicated an ambition to reach the NOK 1 billion in annual revenue. Is this still the ambition, and if so, what's the timeframe, and would it come from organic growth or acquisition?
I'm aware that there has been a communication of a NOK 1 billion ambition. I would like to say we no longer work with that ambition. I think it has to be rooted in fixed plans, in fixed projects and right ambitions in terms of how we reach a NOK 1 billion. Do we have growth ambitions? Yes. Do we want to grow the business? Yes. But we're not coming out with an ambition level in terms of turnover. We would rather like to show it than say it. With that, I think we will be focusing on making sure that we drive profitability.
It of course requires that we also drive sales growth, and for that reason we focus on driving the right products and right products to drive the growth and profitable growth, and also are looking to expand with new products and new possibilities in our own markets, in licensing and distribution agreements, as well as looking to grow the business that we have internationally. What I think overarching we can say that the NOK 1 billion ambition is not what we're working towards. Whether we can reach 800 or 1.2 billion, it's not the important part. The important part is that we have the right portfolio for the future and drive a sustainable business which is rooted in right plans to make sure that we execute on those plans and drive profitability and shareholder value.
One more question. The stock is now down around 20% today. Is there any comments on this and the confidence in the market?
I haven't seen the reactions today, but we are fully aware that the stock has had a challenging ride over the past couple of quarters. We are taking that very seriously. We're working on returning shareholder value. We are returning and would like to make sure that we drive a profitable business and make sure that we return that faith that investors have in Navamedic going forward. For that reason, I do believe personally that we will see improvements, but I don't comment on share price. That is out of my control. What we can control is how we execute on the business and how we communicate with the market. I do believe that we are set up for a strong future, and I believe that we have a good foundation and a good platform for continuing executing on those plans.
Thank you.
Thank you so much for all the questions. Thank you for listening in. Thank you for the trust in Navamedic as investors and stakeholders. Also a thank you to the Navamedic team for having executed on the plans in Q3 and for building the future for Navamedic going forward. Thank you so much