Full Year 2020 Results

February 24th, 2021

Laboratorios Farmacéuticos Rovi, S.A. and Subsidiaries

Investor Relations

ROVI - Full Year 2020 Financial Results

ROVI reports operating revenue growth of 10% and net profit growth of 55%

Operating revenue increased by 10% to 420.0 million euros in 2020, driven by (i)

the strength of (i) the toll manufacturing business, which grew by 39%, and (ii) the specialty pharmaceutical business, where sales rose 4%. Total revenue increased by 10% to 421.1 million euros in 2020.

  • For 2021, ROVI expects the operating revenue to increase between 20% and 30%, including the production of the Moderna's COVID-19 vaccine. Notwithstanding, given the uncertainties associated to the development of the COVID-19 pandemic (which ROVI will continue to monitor closely), it is not yet possible to make a precise assessment of the impact that the pandemic will have on this year.

  • Sales of the heparin franchise (Low Molecular Weight Heparins (LMWH) and other heparins) increased by 14% to 209.3 million euros in 2020. Heparin sales represented 50% of operating revenue in 2020 compared to 48% in 2019. Sales of LMWH (Enoxaparin biosimilar and Bemiparin) increased by 14% to 202.8 million euros in 2020. Sales of the enoxaparin biosimilar increased 25% to 101.4 million euros in 2020 and sales of Bemiparin increased 5% to 101.4 million euros.

  • Sales of Neparvis®, launched in December 2016, increased by 34% to 29.6 million euros in 2020.

  • EBITDA increased by 55%, from 60.9 million euros in 2019 to 94.2 million euros in 2020, reflecting a 6.5 percentage point rise in the EBITDA margin to 22.4% in 2020.

  • Net profit increased by 55%, from 39.3 million euros in 2019 to 61.1 million euros in 2020.

  • ROVI filed the application to obtain marketing authorisation for Doria® with the United States authority, the FDA (U.S. Food and Drug Administration), on 24 November, 2020.

  • ROVI will propose to the Shareholders General Meeting a dividend of 0.3812 euros per share with dividend rights on 2020 earnings. This proposed dividend would mean an increase of 118% compared to the dividend on 2019 earnings (€0.1751/share) and represents a 35% pay out (vs 25% pay out last year).

Madrid (Spain), 24th February 2021, 8:00 AM CET - ROVI released today its financial results for 2020.

Juan López-Belmonte Encina, Chief Executive Officer of ROVI, said "first of all, I would like to thank health professionals around the world for their efforts in the face of this health crisis and express our condolences for the human losses it is causing. I would also like to thank all ROVI employees for their response to COVID-19. As a pharmaceutical company we are an essential company and the commitment of our staff has allowed us to operate normally. Regarding the 2020 results, we reached 10% operating revenue growth, mainly driven by the strength of the toll manufacturing business, which grew by 39% and by the specialty pharmaceutical business, where sales rose 4%. We forecast continued growth thanks to, among other factors, our flagship product, Bemiparin, which grew by 5%. Likewise, we are already marketing our enoxaparin biosimilar in 19 countries and sales increased by 25% in 2020. We are in a phase of international expansion and hope that our enoxaparin biosimilar will enable us to be present in more than 120 countries in the long term. We are very excited about the potential of our LMHW franchise and aspire to become a benchmark player in this field worldwide. Furthermore, we expect our specialty business in Spain, supported by the good performance of products such as Neparvis®, from Novartis, and Volutsa®, from Astellas, to provide us with a sustainable and profitable growth opportunity in the future. Furthermore, (i) the redirection of the toll manufacturing activities strategy towards high value-added products, backed by the high degree of technological specialisation of our plants in differentiated niches, and (ii) the agreement signed with Moderna, which makes us very proud to be part of the supply chain of its finished vaccine against COVID-19 and help address a solution for this pandemic that affects us all, enabled our toll manufacturing business to increase 39% in 2020. At the same time, we are confident of the potential of our current pipeline of R&D projects, making important investment efforts, since we trust they will be the company's growth engine in the future. We have high hopes of the potential of our long-acting injectable technology (ISM®). We concluded a Phase III trial with our ISM® technology (Risperidone ISM®) and we are currently undergoing a regulatory process in Europe and the United States in order to obtain the marketing authorisation for Doria® (Risperidone ISM®) in both territories. We are also conducting a Phase I study for another candidate, Letrozole, for which preliminary data also show positive results, reflecting our clear commitment to our ISM® technology".

1. Financial highlights

€ million

2020

2019

Growth

% Growth

Operating revenue

420.0

381.3

38.6

10%

Other income

1.2

1.2

0.0

1%

Total revenue

421.1

382.5

38.7

10%

Cost of sales

-178.7

-166.6

-12.0

7%

Gross profit

242.5

215.9

26.6

12%

% margin

57.7%

56.6%

1.1pp

R&D expenses

-23.8

-29.3

5.5

-19%

SG&A

-124.4

-125.5

1.1

-1%

Share of profit/loss of a joint

venture

0.0

-0.2

0.2

-84%

EBITDA

94.2

60.9

33.4

55%

% margin

22.4%

16.0%

6.5pp

EBIT

74.7

42.6

32.0

75%

% margin

17.8%

11.2%

6.6pp

Net profit

61.1

39.3

21.8

55%

Note: certain numerical figures included in this document have been rounded. Therefore, discrepancies in tables between totals and the sums of the amounts listed may occur due to such rounding.

The consolidated financial statements of Grupo ROVI for 2020 and the comparative information for 2019 are attached to this report (see Appendix 1).

2. Performance of the Group

Operating revenue increased by 10% to 420.0 million euros in 2020, driven by the strength of the toll manufacturing business, which grew by 39%, and by the specialty pharmaceutical business, where sales rose 4%. Total revenue increased by 10% to 421.1 million euros in 2020.

€ million

2020

2019

% Growth

Specialty pharmaceutical business

328.4

315.7

4%

Toll manufacturing business

91.6

65.6

39%

Operating revenue

420.0

381.3

10%

3

ROVI - Full Year 2020, Financial Results

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Laboratorios Farmacéuticos ROVI SA published this content on 24 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2021 07:05:01 UTC.