NattoPharma, the maker of the MENAQ7 vitamin K2 as MK-7, has reported a 10% revenue increase in the second quarter of 2019, and 22% increase for the first half of the year. Adjusted EBITA in the quarter came in at NOK 0,9 million (US$0.9 million), yet another profitable quarter for the company.
Commenting on the business, CEO Kjetil Ramsøy said: “We continue to deliver growth with first half-year revenues of NOK 58 million (US$6.3m), representing an increase of more than 22% on the same period in 2018, and another quarter with a positive EBITDA line."
Ramsøy said the nutraceutical company has made progress with its new ingredient (MenaQ7) with positive results from the studies that have been completed to date, and with further studies underway.
He continued: "The relentless effort over the past 15 to 18 months to improve our supply capabilities have helped us to build a solid supply platform for both our Synthetic and Natural products. The company is now well-positioned to meet the anticipated increased demand for vitamin K2 MK-7 in the coming years."
The relentless effort over the past 15 to 18 months to improve our supply capabilities has helped us to build a solid supply platform for both our Synthetic and Natural products
Ramsøy said while the growth achieved versus the previous year is encouraging, NattoPharma has faced challenges that have suppressed the anticipated revenue increase during the first half.
"In particular, the complexities involved in the scale-up of our natural production capacity resulted in [fewer] deliveries than planned in the quarter. Coupled with this two of our more significant customer accounts, one in Europe and one in the US, have revised their forecasts as a result of strategic changes to the timing of their product launches. Both these factors have impacted the growth in this quarter, but demand on these accounts is expected to increase again later this year or in early 2020," he explained.
NattoPharma has invested millions of dollars in in-vitro, in-vivo, and clinical studies to document the effects of MenaQ7 vitamin K2 as MK-7. The company says this commitment has created the only patented and clinically validated K2 on the market.