In This Article:
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Net Revenue: EUR 1.185 billion, up 30.5% year-over-year, or 10.2% on a like-for-like constant exchange rate basis.
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EBITDA Margin: 38.2% for the first half of 2024.
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Adjusted Net Income: EUR 301 million, up 4.7% year-over-year.
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Leverage: Just below 1.8 times EBITDA pro forma.
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Specialty and Primary Care Growth: 7.6% on a like-for-like constant exchange rate basis.
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Rare Disease Growth: 15.9% on a like-for-like constant exchange rate basis.
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Isturisa Revenue: Just under EUR 100 million for the first six months.
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SG&A Expenses: Down to 27.1% of revenue.
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R&D Expenses: Remained below 7% of revenue, excluding amortization.
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Operating Cash Flow: Continued strong performance offsetting higher interest and tax payments.
Release Date: July 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Recordati SpA (RICFY) reported a strong net revenue of EUR1.185 billion for the first half of 2024, marking a 30.5% increase compared to the previous year.
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The company achieved sector-leading EBITDA margins of 38.2% for the first half, reflecting strong revenue and operating leverage.
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Recordati SpA (RICFY) successfully submitted the Isturisa sNDA for the Cushing's syndrome label extension in the US ahead of schedule.
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The rare disease unit showed robust growth, with endocrinology and oncology franchises posting significant gains.
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The company adjusted its full-year 2024 financial targets upwards, indicating confidence in continued growth and success.
Negative Points
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The gross profit margin was slightly impacted in the second quarter due to the consolidation of Avodart and Combodart.
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The REC-0559 study did not meet its primary endpoint, leading to a small impairment of just above EUR2 million.
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The first half of 2024 saw an increase in financial expenses, partly due to unrealized FX losses.
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The rare disease unit's EBITDA margin has been declining, partly due to the consolidation of the oncology portfolio.
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The company faced a milder flu season compared to 2023, affecting sales in the cough and cold segment.
Q & A Highlights
Q: Can you provide more detail on what the FDA wants to see for Qarziba's progress and how the REC-0559 failure affects R&D capital allocation? A: The FDA recognizes the unmet need for dinutuximab beta and has requested additional analysis based on existing data. We plan to meet with the FDA in mid-2025 to discuss this. Despite the REC-0559 trial not meeting its primary endpoint, our commitment to R&D remains strong, and we are excited about the sNDA submission for Isturisa in Cushing's syndrome. (Robert Koremans, CEO; Milan Zdravkovic, EVP of R&D)