- Consolidated revenue € 219.6 million, + 11.0%.
- Operating income € 47.6 million, + 7.5%.
- Net income € 33.8 million, + 7.5%.
- Net financial position*: net debt of € 54.1 million.
- Start of phase III clinical trials concerning REC 0482 (NX-1207), an innovative BPH treatment.
- Subsequent events: six OTC products acquired in Germany.
Milan, 8 May 2012 - The Board of Directors of Recordati S.p.A. approved the Group's consolidated results for the first quarter 2012 prepared in accordance with International Accounting Standards and International Financial Reporting Standards (IAS/IFRS) and in particular as per IAS 34 requirements for interim reporting. These financial statements will be available today at the company's offices, at Borsa Italiana S.p.A. and on the company's website:
http://www.recordati.com/rec_en/investors/reports/
Financial highlights
- Consolidated revenue in the first quarter 2012 is € 219.6 million, up by 11.0% compared to the same period of the preceding year. International sales grow by 14.5%.
- Operating income, at 21.7% of sales, is € 47.6 million, an increase of 7.5% over the same period of the preceding year.
- Net income at 15.4% of sales is € 33.8 million, an increase of 7.5% over the first quarter 2011.
- Net financial position* at 31 March 2012 records a net debt of € 54.1 million. Shareholders' equity increases to € 630.2 million.
* Cash and short-term financial investments net of bank overdrafts and medium/long-term loans which include the measurement at fair value of hedging derivatives (fair value hedge).
Business development news
In February the activities for the preparation of a European Phase III clinical trial for REC 0482 (NX-1207), following the successful completion of a Scientific Advice meeting with the European Medicines Agency (EMA) were initiated. The pivotal controlled clinical trial will assess the efficacy and safety of a single TRUS-guided intraprostatic injection of the drug in patients with lower urinary tract symptoms (LUTS) associated with BPH not adequately controlled by medical therapy. A European licensing agreement for the development and commercialization of NX-1207 was signed in 2010 by Recordati and Nymox Pharmaceutical Corporation. Under the terms of the agreement Recordati received exclusive rights to develop and subsequently market and sell the drug in Europe including Russia and the CIS, the Middle East, South Africa and the Maghreb area of North Africa.
NX-1207 is a novel patented drug developed by Nymox which is currently in Phase III trials in the U.S.A.. The drug is injected by a urologist in an office setting directly into the zone of the prostate where the enlargement occurs and involves little or no pain or discomfort. In clinical trials a single dose of NX-1207 has been found to significantly improve the signs and symptoms of BPH, and showed evidence of long lasting benefit. Benign prostatic hyperplasia (BPH), or growth in prostate size associated with ageing, can seriously impact the health and quality of life of older men. It can lead to acute urinary retention, incontinence, and other serious consequences.
Subsequent events and business outlook
During April the marketing authorizations, the trademarks and additional assets concerning six OTC pharmaceuticals for Germany were acquired from Cilag GmbH International and McNeil GmbH & Co. oHG. The products acquired are JHP-Rödler® (mint oil indicated for digestive disorder, headache, cough and cold), Betadorm® D (Diphenhydramine HCl indicated for sleep disorders), Rhinopront® (pseudoephedrine+triprolidine indicated for rhinitis and head colds), Collomack® Topical (salicylic acid solution, an anti-corn preparation), Tirgon® (bisacodyl for constipation) and Xitix® (vitamin C lozenges to treat vitamin C deficiency). Estimated 2012 sales for the six products are of around € 6 million.
The group's business performance was in line with expectations during April. For the full year 2012 we expect to achieve revenues between € 810 and € 830 million, operating income between € 160 and € 170 million and net income between € 115 and € 120 million.
Stock options granted
As per article 84-bis of Consob Regulation 11971/99 ("Issuers' Regulations") we furthermore inform that today the Board of Directors, as proposed by the Remuneration Committee in its meeting of today, resolved to grant 4,650,000 stock options under the 2010-2013 Stock Option Plan approved by the Shareholders' Meeting of 13 April 2010, to 99 group managers (see table attached). The options may be exercised only if certain consolidated net income objectives are reached. The strike price, calculated by averaging the market price of the share over the period between the date of grant and the same day of the preceding month, is fixed at € 5.307 The characteristics of the plan are described in the information document issued on 5 March 2010 (the object of the third point of the Board's explanatory report on the 13 April 2010 Meeting's Agenda) and available on the company's website:
http://www.recordati.it/rec_en/investors/regulated_information/stock_options/
Change of Company bylaws to incorporate rules regarding the so-called "pink quotas"
Furthermore, the Board of Directors modified the company bylaws to bring them in line with rules contained in Law 120 dated 12 July 2011, and in particular the criteria which guarantee an equilibrium between the sexes in the governing bodies of listed companies as prescribed by the T.U.F. (Consolidated law on financial intermediation) and the Issuers' Regulations, modified by Consob's resolution number 18098 dated 8 Feburary 2012-
Conference call
Recordati will be hosting a conference call today 8 May 2012 at 4.00 pm Italian time (3.00 pm London time, 10.00 am New York time). The dial-in numbers are:
Italy +39 02 8058811, toll free 800 213 858
UK +44 1 212818003, toll free 800 0156384
USA +1 718 7058794, toll free 855 2656959
France +33 170918703
Germany +49 65 255114451
Callers are invited to dial-in 10 minutes before conference time. If conference operator assistance is required during the connection please digit * followed by 0 or call +39 02 8061371. A recording of the conference call will be placed on the website www.recordati.com.
A set of slides which will be referred to during the call will be available on our website www.recordati.com under Investors/Company 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 3,200, 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 new markets of Central and Eastern Europe. A European field force of around 1,700 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 and development of new drug entities within the cardiovascular and urogenital therapeutic areas and of treatments for rare diseases. Consolidated revenue for 2011 was € 762.0 million, operating income was € 163.5 million and net income was € 116.4 million.
For further information:
Recordati website: www.recordati.com
Investor Relations Media Relations
Marianne Tatschke Ketchum Pleon
(39)0248787393 Cristina Risciotti, (39)0262411919, cristina.risciotti@ketchum.it
e-mail: inver@recordati.it Marzia Ongaretti, (39)0262411915, marzia.ongaretti@ketchum.it
