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Recordati: Positive First Half 2012 Results (Revenue +4.7%, Net Income +1.5%)

July 26, 2012 - Milan, Italy


* Consolidated revenue EUR 419.9 million, + 4.7%.

* Operating income EUR 90.2 million, + 2.3%.

* Net income EUR 63.3 million, + 1.5%.

* Net financial position*: net debt of EUR 66.6 million.

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

* Six OTC products acquired in Germany.

The Board of Directors of Recordati S.p.A. approved theGroup's consolidated results for the first half 2012 prepared in accordancewithInternational Accounting Standards and International FinancialReportingStandards (IAS/IFRS) and in particular as per IAS 34 requirements forinterimreporting. These financial statements, together with the independentauditors'report on the condensed half-year financial statements, will beavailabletomorrow, or at the latest within the legal deadline, at the company'sofficesand on the company's website:,furthermore,will also be available on the website of Borsa Italiana S.p.A..

Financial highlights

* Consolidated revenue in the first half 2012 is EUR 419.9 million, up by4.7% compared to the same period of the preceding year. International salesgrow by 9.1%.

* Operating income, at 21.5% of sales, is EUR 90.2 million, an increase of2.3% over the same period of the preceding year.

* Net income at 15.1% of sales is EUR 63.3 million, an increase of 1.5% overthe first half 2011.

* Net financial position* at 30 June 2012 records a net debt of EUR 66.6 million. During the period EUR 21.0 million were paid for the acquisitionof six OTC products in Germany and dividends for a total of EUR 21.3 millionwere distributed. Shareholders' equity increases to EUR 646.8 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.

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 areJHP-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.

Management Comments

"The first half of 2012 was positive thanks to the continued development oftheGroup's international business. In particular, our presence in Turkeyhasincreased and our sales in Russia, where Recordati's original productshaverecently been launched, are growing significantly" declared GiovanniRecordati,Chairman and CEO. "The group's business performance was in linewithexpectations during July. For the full year 2012 we expect to achieverevenuesbetween EUR 810 and EUR 830 million, operating income between EUR 160and EUR 170million and net income between EUR 115 and EUR 120 million, in line with thetargetsalready announced".

Conference call

Recordati will be hosting a conference call today 26 July 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. HeadquarteredinMilan, Italy, Recordati has operations in the main European countries,inCentral and Eastern Europe, and in Turkey. A field force of around1,700medical representatives promotes a wide range of innovativepharmaceuticals,both proprietary and under license, in a number of therapeutic areas includingaspecialized business dedicated to treatments for rare diseases. Recordati isapartner of choice for new product licenses from companies which do not haveaEuropean presence. Recordati is committed to the research and developmentofnew drug entities within the cardiovascular and urogenital therapeutic areasandof treatments for rare diseases. Consolidated revenue for 2011 was EUR762.0million, operating income was EUR 163.5 million and net income was EUR116.4million.

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 oncurrentlyavailable 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 fromthoseexpressed or implied by such forward-looking statements. All mentionsanddescriptions of Recordati products are intended solely as information onthegeneral 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


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


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