Industry in brief | Recordati, BioGaia, Probi

Industry in brief | Recordati, BioGaia, Probi

29 October 2021 - Deborah Wilkes

Recordati, BioGaia and Probi have released financial results.

Recordati releases nine-month results

Recordati’s OTC business generated 17.3% of its worldwide sales in the first nine months of 2021, which were up by 8.6% at constant currencies to EUR1.16 billion (USD1.34 billion). Sales as reported were up by 5.7%.

The Italian pharmaceutical company said key products in the OTC portfolio had recorded double-digit growth.

Commenting on the overall performance of the company, Recordati noted the prescription drug Eligard, which was acquired under licence from Tolmar International in January 2021, had contributed sales of EUR59.4 million. Excluding Eligard, Recordati’s sales increased by 3.2% at constant currencies.

Recordati said growth reflected the impact of the COVID-19 pandemic, especially on seasonal flu medications in the first part of 2021, as well as the loss of exclusivity in 2020 for silodosin and pitavastatin.

Around 82.6% of the Italian pharmaceutical company's sales were generated outside of its home market. International sales were up by 7.8% as reported to EUR954 million.

The company’s Specialty & Primary Care segment, which includes the OTC business, generated 75.8% of sales, with the remaining 24.2% coming from the Rare Diseases segment.

Recordati's operating income was up by 2.4% to EUR373 million, representing 32.3% of sales.

Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) were up by 2.1% to EUR448 million, representing 38.7% 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.

BioGaia’s sales up by a third

BioGaia’s worldwide sales reached SEK174 million (USD20 million) in the third quarter of 2021, representing a rise of 32% compared to the same period a year earlier. At constant currencies, sales were up by 35%.

Operating profit at the Swedish probiotics specialist was up by 148% to SEK67.2 million, giving an operating margin of 39%.

Noting the profit had “exceeded market expectations”, BioGaia said certain customers at risk of running out of stock had asked it to bring orders forward.

Full-year sales, said BioGaia, were “largely expected to be in line with expectations”.

Commenting on the results, president and chief executive officer Isabelle Ducellier said there had been “increased demand from consumers ahead of the winter season, with a focus on the immune system”. “The lifting of pandemic restrictions has led to a rise in visits to doctors and pharmacies,” she added, “and several markets, particularly in Europe, the Middle East and Africa (EMEA), have needed to replenish their inventories and requested that deliveries be moved forward from the fourth to the third quarter.”

BioGaia’s Paediatrics business reported sales up by 28% to SEK131 million, while sales at the Adult Health business were up by 43% to SEK42.1 million. Other sales were up by 20% to SEK0.9 million.

Looking at geographic regions, the EMEA was the largest with sales up by 51% to SEK87.0 million. Sales in the Asia-Pacific region were up by 53% to SEK44.0 million, but sales in the Americas fell by 6% to SEK42.9 million.

Probi reports sales decline

Swedish probiotics specialist Probi reported worldwide sales down by 18.4% to SEK159 million (USD18.5 million) in the third quarter of 2021.

On a constant-currency basis, sales decreased by 17.0% compared to the same period a year earlier.

The fall followed a decline of 3.1% on a constant-currency basis in the second quarter of 2021 (click here to read the News story) and a rise of 20.3% in the first quarter (click here to read the News story).

Chief executive officer Tom Rönnlund said Probi had seen “strong underlying customer activity even though the third quarter did not meet our expectations”.

Rönnlund noted that the comparison was with a strong third quarter in 2020.

Probi’s sales in its largest region, the Americas, dropped by 23.8% as reported to SEK127 million. Around 80% of Probi’s sales were generated in the Americas.

The company said the comparison was with a period that had been boosted by build-up at certain customers and changes in a larger customer’s product portfolio.

Probi added that “underlying demand remains good in the region”.

By contrast, sales in Europe, the Middle East and Africa (EMEA) increased by 19.7% as reported to SEK23.1 million. Rönnlund said growth had been driven by new launches.

Sales in the Asia-Pacific region were up by 2.3% as reported to SEK8.8 million.

Probi’s Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) decreased by almost a third to SEK42.3 million, giving an EBITDA margin of 26.6%.

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