Industry in brief | Abbott, Genomma, Recordati

Industry in brief | Abbott, Genomma, Recordati

2 August 2021 - Deborah Wilkes

Abbott, Genomma Lab and Recordati have released financial results.

COVID-19 testing lifts Abbott

Abbott reported worldwide sales up by 35.0% on an organic basis to USD10.2 billion in the second quarter of 2021, driven by worldwide demand for COVID-19 testing.

Sales as reported, including the impact of currency changes, were up by 39.5%.

US-based Abbott said worldwide sales related to COVID-19 testing were USD1.3 billion in the second quarter of 2021, led by combined sales of USD1.0 billion for the BinaxNOW, Panbio and ID NOW rapid-testing platforms.

Medical Devices was the largest of Abbott’s four businesses in the second quarter of 2021, with sales up by 45.1% on an organic basis to USD3.67 billion.

The second-largest business was Diagnostics with sales up by 57.2% on an organic basis to USD3.25 billion.

The Nutrition business reported worldwide sales up by 9.5% on an organic basis to USD2.11 billion.

Within the Nutrition business, worldwide sales of Pediatric Nutrition products increased by 4.4% to USD1.09 billion. Abbott highlighted strong performances by its Pedialyte rehydration products and PediaSure drinks.

Worldwide sales of Adult Nutrition products increased by 15.6% on an organic basis to USD1.02 billion, following “strong” performances by the Ensure nutrition brand and Glucerna diabetes nutrition brand.

Robert Ford, Abbott’s president and chief executive officer, said two factors had positively impacted demand for adult nutrition products since the start of the COVID-19 pandemic: new users had entered the category and existing customers had increased their usage.

Worldwide sales by the fourth business, Established Pharmaceuticals, increased by 14.5% on an organic basis to USD1.18 billion.

Ford commented that all four major businesses had achieved “strong growth”.

Genomma reports large sales drop in the US

Mexico’s Genomma Lab reported OTC sales down by 0.5% in the second quarter of 2021, following a big decline in the US.

Commenting on the US, Genomma said the fall was compared with the second quarter of 2020 when there had been high demand for hand sanitisers due to the COVID-19 pandemic. The company added that social distancing measures had reduced sales of cold, cough and flu products in 2021.

Furthermore, Genomma noted that “traditional pharmacy chain consumer foot traffic declined during the quarter due to increased e-commerce competition”.

Genomma's worldwide OTC sales were MXN1.95 billion (USD2.29 billion) in the quarter, representing a fall of 0.5% compared to the same period a year earlier.

The OTC business generated 50.3% of the company's total sales. The rest came from sales of personal care products, which were up by 14.2%.

Looking at countries/regions, Genomma’s OTC sales in Mexico increased by 4.8% to MXN770 million and OTC sales in Latin America were up by 21.6% to MXN1.00 billion. By contrast, OTC sales in the US fell by 56.2% to MXN174 million.

Genomma’s total sales – including personal care products as well as OTC – were up by 6.3% to MXN3.87 billion.

Chief executive officer Jorge Luis Brake said the company had delivered consistent growth despite the COVID-19 pandemic’s ongoing economic and social impact.

Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) were up by 2.9% to MXN777 million in the second quarter of 2021, giving an EBITDA margin of 20.1%.

Genomma is present in 18 countries including Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and the US.

Recordati releases first-half results

Recordati’s OTC business generated 17.3% of its worldwide sales in the first half of 2021, which were up by 4.9% at constant currencies to EUR771 million (USD905 million).

The Italian pharmaceutical company noted the prescription drug Eligard, which was acquired under licence from Tolmar International in January 2021, had contributed sales of EUR36.8 million. Excluding Eligard, Recordati’s sales increased by just 0.1% at constant currencies.

Commenting on the 0.1% growth, Recordati said it reflected the impact of the COVID-19 pandemic, especially on seasonal flu medications, as well as the loss of exclusivity in 2020 for silodosin and pitavastatin. The company noted that sales of seasonal flu products had been around EUR20 million lower in the first half of 2021.

Recordati’s total sales as reported were up by 1.4%.

Around 81.8% of the Italian pharmaceutical company's sales were generated outside of its home market. International sales were up by 3.1% as reported to EUR631 million.

The company’s Specialty & Primary Care segment, which includes the OTC business, generated 76.5% of sales, with the remaining 23.5% coming from the Rare Diseases segment.

Recordati's operating income fell by 4.3% to EUR250 million, representing 32.5% of sales.

Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) were down by 3.4% to EUR301 million, representing 39.0% of sales.

Recordati recently announced that former Teva executive Rob Koremans will be its new chief executive officer with effect from 1 December 2021 (click here to read the News story).

Koremans will replace Andrea Recordati who will become chairman of the Italian pharmaceutical company. The current chairman, Alfredo Altavilla, is stepping down.

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