An International Specialty Pharmaceutical Group
November 2021
Recordati Today - Summary Overview
Business Overview | Recordati Snapshot - FY 2020 |
International specialty pharmaceutical group:
- Well diversified footprint
- Strong vertical integration
Specialty and Primary Care Division (78% sales):
- Prescription products: well-established, branded portfolio of prescription drugs focused on core therapeutic areas across cardiovascular, urology, gastrointestinal and central nervous system (57% sales)
- OTC: marketing of branded OTC products primarily in Europe (18% sales)
- Chemicals: production of active pharmaceutical ingredients ("API") sold to third party pharmaceutical companies (3% sales)
- Direct operations in all European markets, in Russia and C.I.S., Turkey and North Africa
€1.45bn | €569m | €355m | ~150 | > 4,300 |
Net | ||||
EBITDA(1) | Net Income | Markets | Employees | |
Revenue | ||||
Specialty & Primary Care | Rare Disease | |||
• | €1,129.5m Revenue | • | €319.4m Revenue | |
• | EBITDA margin 37.3% | • | EBITDA margin 46.4% | |
• | EBIT margin 30.9% | • | EBIT margin 37.5% |
Rare Diseases Division (22% sales):
- Treatments for rare diseases, particularly metabolic deficiencies and rare endocrine conditions of a genetic origin
- Active product development pipeline
- Worldwide business (US, EMEA and RoW)
8 manufacturing facilities (of which 2 API production sites) and a specialised packaging and distribution facility dedicated to rare diseases
- Pharma Production in Italy, Turkey, France, Tunisia, Spain, and Czech Republic
- API Manufacturing in Ireland and Italy
By Geography (2) | By Therapeutic Area (2) | ||||
Other | |||||
North | international | Cardiovascular | |||
sales 14.4% | 31.3% | ||||
Africa | Italy 19.0% | Gastro & metabolism | |||
2.9% | |||||
Other W. | 23.2% | ||||
Europe 6.5% | France | ||||
CEE 6.5% | 10.3% | ||||
Portugal | Germany | Other 13.3% | Genito-urinary | ||
11.2% | |||||
3.1% | 9.7% | ||||
Central nervous | |||||
Turkey | |||||
Russia, other CIS | system 4.2% | Respiratory 6.2% | |||
5.7% | |||||
Spain | U.S.A. | and Ukraine | Endo * | Musculoskeletal | |
6.0% | 7.2% | 6.2% | |||
8.7% | 4.4% | ||||
(1) Net income before income taxes, financial income and expenses, depreciation, amortization and write-downs of property, plant and equipment, intangible assets and goodwill,
2 and non-recurring items. (2) Breakdown based on pharmaceutical sales; * Endo 2020 includes direct Recordati sales only (net margin transfer from Novartis excluded) Based on FY 2020 reported financials
A proven and sustainable Business Model…
Pursue Accretive and Growth Deals
- Strong M&A track record of product and corporate acquisitions as well as licensing to complement portfolio
- Disciplined approach, with focus on long term value creation (mix of growth and accretive deals)
Minimize development risk
- Selective R&D investments with majority of net revenue coming from mature products and products sourced externally via licensing and BD
Well Diversified Revenue Base
- Very broad portfolio and diversified footprint minimizes exposure to single product/ market combination
- Limited exposure to single reimbursement systems
Focus on Volume-Led Growth
• Organic growth primarily fueled by volume-
driven growth rather than price
• Good exposure to markets with positive growth outlook (Turkey, Russia, North Africa)
Carefully manage LOEs
• Proven successful strategy of stabilising key products post LOE, through active promotion
• No major LOE exposure over the next 5 years
Control Supply | |
• Fully vertical integrated platform from API | |
to sale for key products, driving margin and | |
protecting the supply chain | |
3 | • c.60% of volumes manufactured by |
Recordati plants | |
…that has delivered consistent growth and margin improvement
Sales and profitability driven by organic growth and successful BD
(million Euro)
CAGR (10-20): +7% | 1,482 | 1,449 | ||||||
1,352 | ||||||||
1,288 | ||||||||
1,154 | ||||||||
1,048 | ||||||||
942 | 987 | 39% | ||||||
37% | 37% | |||||||
828 | 35% | |||||||
762 | ||||||||
728 | 30% | 32% | ||||||
28% | ||||||||
25% | 25% | 23% | 24% | |||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |
Net revenue | EBITDA % | ||||||||||
4
Company Strategy
Group Objectives
Continuation of successful strategy
Steady organic growth from well diversified portfolio
Enhanced by accretive or strategic acquisitions in both SPC & Rare Diseases
Specialty & Primary Care
- Preserve the value of established brands with steady volume- led organic growth from core products
- Reinforce current geographical footprint to remain a partner of choice
- Leverage additional new products on the current organisation
- Reinvest cash flow in accretive acquisitions
Rare Diseases
- Continue developing the existing portfolio of global brands
- Consolidation of Latin American and Asia/Pacific presence
- Drive growth of recent launches - Signifor®, Signifor® LAR, Isturisa®, Cystadrops®, Ledaga® & Juxtapid®
- Progress current R&D pipeline
- Invest in targeted BD and M&A to reinforce global portfolio
Enablers
- High SoV in key Primary and Specialty Care markets
- Locally empowered know- how
- Omnichannel approach
Capabilities
- ~1,900 sales FTEs in 30+ countries
- Fully integrated Pharma Co
- Proven track record of acquisitions integration
Enablers
- 80+ new hires on board to support Endo franchise
- Numerous patient advocacy partnerships
- Global branding
Capabilities
- Direct presence in US, Europe and Asia
- Patient access
- Disease awareness programs
Exposure to Positive Macro Trends
Aging populations fuelling higher healthcare expenditure and greater prevalence of chronic disease
Recordati portfolio weighted towards age-related diseases: cardiology, urology, gastrointestinal…
Emerging market exposure driving long term local currency growth: Turkey, Russia, CEE and CIS
Significant unmet need remaining in Rare Diseases, with c.500 approved drugs to date vs. > 7,000 designated rare diseases
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Recordati S.p.A. published this content on 09 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 November 2021 08:42:09 UTC.