SOURCE: Recordati

February 09, 2011 09:03 ET

PRELIMINARY FULL YEAR 2010 RESULTS: REVENUES EUR 728.1 M., NET INCOME EUR 108.6 M. PROFITABILITY MARGINS IN LINE WITH 2009

MILAN, ITALY--(Marketwire - February 9, 2011) -


-- Consolidated revenue EUR 728.1 million, -2.6%.
-- Pharmaceutical revenue EUR 702.3 million, -2.5%.
-- Operating income EUR 154.8 million, -4.6%, (21.3% of total revenue)
-- Net income EUR 108.6 million, -1.8%, (14.9% of total revenue)
-- Net financial position*:  net cash of EUR 46.0 million.
-- Urorec®/Silodyx™ (silodosin)  approved  for marketing in
   Europe and in Russia.
-- Carbaglu® (carglumic acid) approved by the FDA in the U.S..
-- Acquisition of ArtMed International S.r.l. in Romania.
-- Positive conclusion of the Decentralized Procedure for the approval
   of pitavastatin (Livazo®, Alipza®; and other brands) in Europe.
-- In-licensing agreement with Nymox  Pharmaceutical Corporation for
   the development and marketing  in Europe of  NX-1207, Nymox's
   experimental drug for the treatment of benign prostatic hyperplasia
   (BPH).
-- 2011 targets: Revenues of around EUR 750 million, operating income of
   around EUR 160 million and net income of around EUR 110 million.

Milan, 9 February 2011 - The Board of Directors of Recordati S.p.A. examined the preliminary consolidated results for 2010. The company's annual financial reports will be submitted to the Board for approval on 9 March 2011.

Full year 2010 financial highlights

-- Consolidated revenue  for the  full year  2010 is EUR 728.1 million,
   slightly down (-2.6%) compared to the preceding year. Pharmaceutical
   sales are EUR 702.3 million, a decrease of 2.5%. The expiry of the
   composition of matter patent  covering lercanidipine in  the main
   European countries in January 2010 involved  a 30.8% reduction of
   this product's sales  which was mostly offset by the good sales
   performance of the rest of the  pharmaceutical portfolio and by
   revenues generated by our  international licensing-out business.
   Pharmaceutical chemicals sales are EUR 25.9 million, down by 3.8%.

-- Operating income, at 21.3% of sales, is EUR 154.8 million, an decrease
   of 4.6% compared to the preceding year. The fourth quarter 2010 results
   include an up-front payment of EUR 10.0 million to Nymox Pharmaceutical
   Corporation for the acquisition of development and marketing rights to
   a new innovative product.

-- Net income at EUR 108.6 million, down by 1.8%, benefited from lower
   financial expenses.

-- Net financial position* at 31 December 2010 records net cash of EUR
   46.0 million, an increase of EUR 65.7 million as compared to 31
   December 2009. Dividends for an amount of EUR 54.4 million were paid
   during the year and new development initiatives were financed.

* Cash and short-term financial investments net of bank overdrafts and medium/long-term loans which include the measurement at fair value of hedging derivatives (fair value hedge).

Management comments

"We are very satisfied with the results obtained in 2010, a year in which we maintained our profitability levels despite the reduction of lercanidipine sales following the expiry of its patent at the beginning of the year. This was mainly thanks to the development of our presence in emerging markets, the growth of our drugs for the treatment of rare diseases and the revenues generated by our international licensing-out business" stated Giovanni Recordati, Chairman and CEO. "The year just ended was also characterized by important initiatives for the growth of our Group. Urorec® (silodosin) a new drug indicated for the treatment of the signs and symptoms of benign prostatic hyperplasia (BPH) was approved by the European Commission for medicinal products and has already been launched in a number of countries. The Food and Drug Administration (FDA) in the U.S. approved the use of Carbaglu® (carglumic acid), one of our orphan drugs, for the treatment of acute hyperammonaemia due to the deficiency of the hepatic enzyme NAGS. Furthermore, the Decentralized Procedure for the approval of Livazo® (pitavastatin) in Europe was concluded with a positive outcome. Recently an important license agreement was signed with Nymox Pharmaceutical Corporation for the development and marketing in Europe of NX-1207, Nymox's experimental drug currently in its development phase III in the U.S.A. for the treatment of benign prostatic hyperplasia (BPH). A number of co- marketing agreements for our new products silodosin and pitavastatin were entered into with leading pharmaceutical companies. Through the acquisition of ArtMed International Recordati is now present also in Romania. We intend to continue with our policy to acquire new products to be developed as well as new geographical coverage in order to enhance the growth of our revenues and profits," continued Giovanni Recordati. "Our targets for 2011 are to achieve sales of around EUR 750 million, operating income of around EUR 160 million and net income of around EUR 110 million, higher than those announced in May 2010."

Extraordinary and Ordinary Meeting of Shareholders

The Board of Directors resolved to convene an Extraordinary and Ordinary Meeting of Shareholders to be held on first call on 13 April 2011, at 10.00 a.m., and on second call on 14 April 2010, at 10.00 a.m., at the company's registered offices.

Shareholders will be called upon to resolve, in the Extraordinary part, on amendments to the company's by-laws pursuant to Legislative Decree 27 dated 27 January 2010 and, in the Ordinary part, on the approval of the 2010 financial statements, on the appointment of the Board of Directors and the Internal Auditors, on the appointment of External Auditors, on the proposal to renew the authorization to buy back and dispose of Recordati shares and on the proposal to modify the current Stock Option Plan.

The Board of Directors mandated the Chairman and Chief Executive Officer to finalize the call to the meeting and to execute all subsequent requirements in accordance with the law.

Stock options granted

As per article 84-bis of Consob Regulation 11971/99 ("Issuers' Regulations") we furthermore inform that today the Board of Directors, as proposed by the Remuneration Committee in its meeting of 8 February 2011, resolved to grant 4,330,000 stock options under the 2010-2013 Stock Option Plan approved by the Shareholders' Meeting of 13 April 2010, to 96 group managers (see table attached). The options may be exercised only if certain consolidated net income objectives are reached. The strike price, calculated by averaging the market price of the share over the period between the date of grant and the same day of the preceding month, is fixed at EUR 6.7505. The characteristics of the plan are described in the information document issued on 5 March 2010 (the object of the third point of the Board's explanatory report on the 13 April 2010 Meeting's Agenda) and available on the company's website:

http://www.recordati.com/rec_en/investors/releases/2007/2007-09-17/2007-09-17.pdf.

Declaration by the Manager responsible for preparing the company's financial reports

The manager responsible for preparing the company's financial reports, Fritz Squindo, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records.

Conference call

Recordati will be hosting a conference call today 9 February 2011 at 4.00 pm Italian time (3.00 pm London time, 10.00 am New York time). The conference ID is 41857077 and dial-in numbers are:

Italy                +39 02 36005955
UK                   +44 (0) 1452 587 427
USA                   18665516755
France               +33 (0) 170751217
Germany              +49 (0) 6922227071

A set of slides which will be referred to during the call will be available on our website www.recordati.com under Investors/Company Presentations.

Callers are invited to dial-in 10 minutes before conference time and state the ID number 41857077. If conference operator assistance is required during the connection please digit * followed by 0 or call +44 1452 569 034. A recording of the conference call will be placed on the website www.recordati.com.

Recordati, established in 1926, is a European pharmaceutical group, listed on the Italian Stock Exchange (Reuters RECI.MI, Bloomberg REC IM, ISIN IT 0003828271),with a total staff of over 2,800, dedicated to the research, development, manufacturing and marketing of pharmaceuticals. It has headquarters in Milan, Italy, operations in the main European countries, and a growing presence in the new markets of Central and Eastern Europe. A European field force of around 1,400 medical representatives promotes a wide range of innovative pharmaceuticals, both proprietary and under license, in a number of therapeutic areas including a specialized business dedicated to treatments for rare diseases. Recordati's current and growing coverage of the European pharmaceutical market makes it a partner of choice for new product licenses from companies which do not have European marketing organizations. Recordati is committed to the research and development of new drug entities within the cardiovascular and urogenital therapeutic areas and of treatments for rare diseases. Consolidated revenue for 2009 was EUR 747.5 million, operating income was EUR 162.2 million and net income was EUR 110.6 million.

Statements contained in this release, other than historical facts, are "forward- looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based on currently available information, on current best estimates, and on assumptions believed to be reasonable. This information, these estimates and assumptions may prove to be incomplete or erroneous, and involve numerous risks and uncertainties, beyond the Company's control. Hence, actual results may differ materially from those expressed or implied by such forward-looking statements. All mentions and descriptions of Recordati products are intended solely as information on the general nature of the company's activities and are not intended to indicate the advisability of administering any product in any particular instance

PRELIMINARY FULL YEAR 2010 RESULTS: http://hugin.info/143644/R/1487169/422575.pdf

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Source: RECORDATI via Thomson Reuters ONE

[HUG#1487169]

Contact Information

  • For further information:

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