Home » Business News » 2012 » May » May 8, 2012

Recordati: Good First Quarter 2012 Results (Revenue +11.0%, Net Income +7.5%)

May 8, 2012 - Milan, Italy

-- Consolidated revenue EUR 219.6 million, + 11.0%.

-- Operating income EUR 47.6 million, + 7.5%.

-- Net income EUR 33.8 million, + 7.5%.

-- Net financial position*: net debt of EUR 54.1 million.

-- Start of phase III clinical trials concerning REC 0482 (NX-1207), aninnovative BPH treatment.

-- Subsequent events: six OTC products acquired in Germany.

The Board of Directors of Recordati S.p.A. approved theGroup's consolidated results for the first quarter 2012 prepared inaccordancewith International Accounting Standards and International FinancialReportingStandards (IAS/IFRS) and in particular as per IAS 34 requirements forinterimreporting. These financial statements will be available today at thecompany'soffices, at Borsa Italiana S.p.A. and on the company's website:

Financial highlights

-- Consolidated revenue in the first quarter 2012 is EUR 219.6 million, up by 11.0% compared to the same period of the preceding year. Internationalsales grow by 14.5%.

-- Operating income, at 21.7% of sales, is EUR 47.6 million, an increase of7.5% over the same period of the preceding year.

-- Net income at 15.4% of sales is EUR 33.8 million, an increase of 7.5% overthe first quarter 2011.

-- Net financial position* at 31 March 2012 records a net debt of EUR 54.1 million. Shareholders' equity increases to EUR 630.2 million.

* Cash and short-term financial investments net of bank overdrafts andmedium/long-term loans which include the measurement at fair value of hedgingderivatives (fair value hedge).

Business development news

In February the activities for the preparation of a European Phase IIIclinicaltrial for REC 0482 (NX-1207), following the successful completion ofaScientific Advice meeting with the European Medicines Agency (EMA)wereinitiated. The pivotal controlled clinical trial will assess the efficacyandsafety of a single TRUS-guided intraprostatic injection of the drug inpatientswith lower urinary tract symptoms (LUTS) associated with BPH notadequatelycontrolled by medical therapy. A European licensing agreement forthedevelopment and commercialization of NX-1207 was signed in 2010 by RecordatiandNymox Pharmaceutical Corporation. Under the terms of the agreementRecordatireceived exclusive rights to develop and subsequently market and sell thedrugin Europe including Russia and the CIS, the Middle East, South Africa andtheMaghreb area of North Africa.

NX-1207 is a novel patented drug developed by Nymox which is currently inPhaseIII trials in the U.S.A.. The drug is injected by a urologist in anofficesetting directly into the zone of the prostate where the enlargement occursandinvolves little or no pain or discomfort. In clinical trials a single doseofNX-1207 has been found to significantly improve the signs and symptoms ofBPH,and showed evidence of long lasting benefit. Benign prostatic hyperplasia(BPH),or growth in prostate size associated with ageing, can seriously impactthehealth and quality of life of older men. It can lead to acute urinaryretention,incontinence, and other serious consequences.

Subsequent events and business outlook

During April the marketing authorizations, the trademarks and additionalassetsconcerning six OTC pharmaceuticals for Germany were acquired from CilagGmbHInternational 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®(bisacodylfor constipation) and Xitix® (vitamin C lozenges to treat vitamin Cdeficiency).Estimated 2012 sales for the six products are of around EUR 6 million.

The group's business performance was in line with expectations during April.Forthe full year 2012 we expect to achieve revenues between EUR 810 andEUR 830million, operating income between EUR 160 and EUR 170 million and net incomebetweenEUR 115 and EUR 120 million.

Stock options granted

As per article 84-bis of Consob Regulation 11971/99 ("Issuers' Regulations")wefurthermore inform that today the Board of Directors, as proposed bytheRemuneration Committee in its meeting of today, resolved to grant4,650,000stock options under the 2010-2013 Stock Option Plan approved bytheShareholders' Meeting of 13 April 2010, to 99 group managers (seetableattached). The options may be exercised only if certain consolidated netincomeobjectives are reached. The strike price, calculated by averaging themarketprice of the share over the period between the date of grant and the same dayofthe preceding month, is fixed at EUR 5.307 The characteristics of the planaredescribed in the information document issued on 5 March 2010 (the object ofthethird point of the Board's explanatory report on the 13 April 2010Meeting'sAgenda) and available on the company's website:

Change of Company bylaws to incorporate rules regarding the so-called"pinkquotas"

Furthermore, the Board of Directors modified the company bylaws to bring theminline with rules contained in Law 120 dated 12 July 2011, and in particularthecriteria which guarantee an equilibrium between the sexes in thegoverningbodies of listed companies as prescribed by the T.U.F. (Consolidated lawonfinancial intermediation) and the Issuers' Regulations, modified byConsob'sresolution number 18098 dated 8 Feburary 2012-

Conference call

Recordati will be hosting a conference call today 8 May 2012 at 4.00 pmItaliantime (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. Ifconferenceoperator assistance is required during the connection please digit * followedby0 or call +39 02 8061371. A recording of the conference call will be placedonthe website

A set of slides which will be referred to during the call will be availableonour website under Investors/Company Presentations.

Recordati, established in 1926, is a European pharmaceutical group, listedonthe Italian Stock Exchange (Reuters RECI.MI, Bloomberg REC IM, ISINIT0003828271), with a total staff of over 3,200, dedicated to theresearch,development, manufacturing and marketing of pharmaceuticals. It hasheadquartersin Milan, Italy, operations in the main European countries, and agrowingpresence in the new markets of Central and Eastern Europe. A Europeanfieldforce of around 1,700 medical representatives promotes a wide rangeofinnovative pharmaceuticals, both proprietary and under license, in a numberoftherapeutic areas including a specialized business dedicated to treatmentsforrare diseases. Recordati's current and growing coverage of theEuropeanpharmaceutical market makes it a partner of choice for new product licensesfromcompanies which do not have European marketing organizations. Recordatiiscommitted to the research and development of new drug entities withinthecardiovascular and urogenital therapeutic areas and of treatments forrarediseases. Consolidated revenue for 2011 was EUR 762.0 million, operatingincomewas EUR 163.5 million and net income was EUR 116.4 million.

Statements contained in this release, other than historical facts, are"forward-looking statements" (as such term is defined in the PrivateSecuritiesLitigation Reform Act of 1995). These statements are based on currentlyavailable information, on current best estimates, and on assumptions believedtobe reasonable. This information, these estimates and assumptions may prove tobeincomplete or erroneous, and involve numerous risks and uncertainties, beyondthe Company's control. Hence, actual results may differ materially from thoseexpressed or implied by such forward-looking statements. All mentions anddescriptions of Recordati products are intended solely as information on thegeneral nature of the company's activities and are not intended to indicatetheadvisability of administering any product in any particular instance.


This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: RECORDATI via Thomson Reuters ONE[HUG#1609788]

For further information:

Recordati website:

Investor Relations

Marianne Tatschke
e-mail: Email Contact

Media Relations

Ketchum Pleon

Cristina Risciotti
Email Contact

Marzia Ongaretti
Email Contact


Comment on this story