Recordati, revenues expected to be 3.2 billion by 2027
The three-year business plan also predicts an Ebitda of between EUR 1.1 and 1.2 billion and an adjusted net profit of between EUR 770 and 820 million. New drugs in the US and Chinese markets, diversification between primary care and rare disease products, and growth for M&A lead to optimism despite the international situation
2' min read
2' min read
The Board of Directors of Recordati Spa approved the plan for the three-year period 2025-2027, which aims at continuing organic growth of the current product portfolio in the Specialty & Primary Care and Rare Diseases segments, complemented by valuable business development and M&A operations.
Net revenues are expected to be between EUR 3 and 3.2 billion, with organic growth expected to be underpinned by mid-single digit rate increases in the Specialty & Primary Care segment (Cagr at constant exchange rates of ~3.5-4.5% from 2024 to 2027) and double-digit growth in the Rare Diseases segment (Cagr at constant exchange rates of ~17-20% from 2024 to 2027). The negative exchange rate impact over the plan period is expected to result in an average annual change of between -1% and -2%.
In addition, thanks to the recent approval of the extension of Isturisa's indication by the Fda in the U.S., the group has further increased itspeak year sales target for the product in the current year to between € 550 million and € 650 million (as compared to the previous range of € 500-600 million). Recordati also recently received approval of Signifor LAR in China, thus expanding its portfolio of drugs in the rare disease segment in China following the previous approvals of Isturisa and Carbaglu. Ebitda is expected to be between EUR 1.1 billion and EUR 1.3 billion, with a margin of 38% driven by operating leverage and product mix, but also reflecting continued investment in key growth drivers. Adjusted net profit is expected to be between € 770 million and € 820 million. Net debt remains between 1.7-2.0x Ebitda, with the flexibility to temporarily reach a maximum of almost 3x for high quality scale acquisition opportunities. No changes are planned to the Group's capital allocation policy and progressive dividend policy.
"Thanks to the high diversification of our Groupv," said Rob Koremans, Recordati's CEO, "we are well positioned to address the uncertainty of the current environment and to take advantage of the excellent business momentum and solid performance that both business units are currently experiencing. Our strategy remains unchanged, with the objective of continuing to drive profitable organic growth in our current portfolio, complemented by M&A and business development, and investing in relatively low-risk opportunities within our pipeline".
