MILAN, ITALY--(Marketwire - December 19, 2008) -
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Recordati presents its 2009-2011 Business Plan, which was approved by the Board of Directors, to the financial community and specialized press today. The complete presentation can be found on the company’s website at the following address:
http://www.recordati.com/rec_en/investors/presentations/
The development of the Recordati group will be focused on the European pharmaceutical markets, both in Western and the emerging CEE countries, which together represent the second largest pharmaceutical market in the world. The group will develop its business through the growth of its product portfolio, which includes the launch of products filed for approval, the acquisition of new product licenses, the enhancement of its pipeline of products in development and by entering new markets.
Excluding the contribution of further acquisitions which may be completed within the period under analysis, our financial performance expectations for the 2009-2011 period are the following:
- For the full year 2008 revenues of around EUR 690 million, with operating income of around EUR 144 million and net income of around EUR 100 million, are expected. These forecasts are in line with our previous announcements.
- Our 2009 targets are as follows: revenues of around EUR 750 million, a significant increase in R&D expenses, operating income of around EUR 155 million and net income of around EUR 105 million. As from the beginning of the year our new medicine for the treatment of hypertension, the fixed combination of lercanidipine with enalapril, will be launched in the main European countries. The product has already been on the market in Germany, with growing success, for the past 18 months.
- Expectations for 2010: revenues of EUR 700 - 720 million, operating income of EUR 135 - 140 million and net income of EUR 95 - 98 million. In 2010, due to the expiry of the lercanidipine patent in the main European countries, a reduction in sales of the product is expected. During the second half of the year two new important products with interesting sales growth potential, pitavastatin (indicated for the treatment of hypercholesterolemia) and silodosin (indicated for the treatment of the symptoms of BPH), will be launched.
- In 2011, thanks to the growth of new corporate products and of the new businesses recently acquired by the group, revenues of EUR 780 - 800 million, operating income of EUR 145 - 150 million and net income of EUR 102 - 105 million, are expected.
- During the period further investments in R&D will be made for an amount of 9 to 10% of sales and will be allocated mainly to the clinical development of new drugs currently in our product pipeline.
- During the 2009-2011 period cash generation will continue to be positive and free cash flow could be around EUR 105 million in 2009, around EUR 90 million in 2010 and around EUR 100 million in 2011. Furthermore, our dividend policy is confirmed with a pay-out ratio of 50% of group net income, unchanged with respect to the last years.
Management comments
“The Business Plan that we have just presented confirms the potential of our product portfolio and the ability to maintain a good level of profitability also through the careful management of resources” declared Giovanni Recordati, Chairman and Chief Executive Officer. “The acquisitions made recently will generate sales growth and contribute to the group’s profitability over the next years. We will therefore continue with our acquisition policy to add impetus to both sales and profits growth.”
Conference Call
A simultaneous translation into English of the proceedings is available via conference call. Dial-in numbers and access ID are:
Italy +39 02 36005955
UK +44 (0) 1452587427
USA +18665516755
France +33 (0) 170751217
Germany +49 (0) 6922227071
ID to access the call in the English language: 76990843
Callers are invited to dial-in 10 minutes before conference time. A recording of the conference call will be subsequently placed on the website:
http://www.recordati.com/rec_en/investors/presentations/
Recordati, established in 1926, is a European pharmaceutical group, listed on the Italian Stock Exchange (Reuters RECI.MI, Bloomberg REC IM, ISIN IT 0003828271),with a total staff of over 2,400, dedicated to the research, development, manufacturing and marketing of pharmaceuticals. It has headquarters in Milan, Italy, operations in the main European countries, and a growing presence in the emerging markets of Eastern Europe. A European field force of over 1,300 medical representatives promotes a wide range of innovative pharmaceuticals, both proprietary and under license, in a number of therapeutic areas including a specialized business dedicated to treatments for rare diseases. Recordati’s current and growing coverage of the European pharmaceutical market makes it a partner of choice for new product licenses from companies which do not have European marketing organizations. Recordati is committed to the research of new drug entities within the cardiovascular and urogenital therapeutic areas in which its research team has proven scientific competence and a track record of discovery and development of original drugs, the most recent of which, lercanidipine, a latest generation calcium channel blocker for the treatment of hypertension, is the company’s leading product. Consolidated revenue for 2007 was EUR 628.4 million, operating income was EUR 131.5 million and net income was EUR 84.9 million.
For further information:
Recordati website: www.recordati.com
Investor Relations Media Relations
Marianne Tatschke Claudio Rossetti (Echo Comunicazione d’Impresa)
(39)0248787393 (39)02 62694736
e-mail: inver@recordati.it e-mail: crossetti@echocom.it
Statements contained in this release, other than historical facts, are “forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based on currently available information, on current best estimates, and on assumptions believed to be reasonable. This information, these estimates and assumptions may prove to be incomplete or erroneous, and involve numerous risks and uncertainties, beyond the Company’s control. Hence, actual results may differ materially from those expressed or implied by such forward-looking statements. All mentions and descriptions of Recordati products are intended solely as information on the general nature of the company’s activities and are not intended to indicate the advisability of administering any product in any particular instance.
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