milan : REC

October 16, 2012 03:27 ET

Recordati : Acquires a Portfolio of Products in Russia

MILANO, ITALY--(Marketwire - Oct 16, 2012) - Recordati announces the signature of the agreements covering the acquisition of all rights to five product lines on the Russian and CIS market: Alfavit, Qudesan, Vetoron, Focus and Carnitone. The value of the transaction, which will be funded from existing liquidity, is of RUB 2.7 billion. The closing of the operation, expected to take place before year-end, is subject to certain conditions.

The brands of the products acquired, which are OTC pharmaceuticals and dietary supplements, are very well known in Russia. The Alfavit product line in particular comprises a wide range of formulations containing vitamins and minerals and holds a leading position on the market. Qudesan is based on coenzyme Q(10), an adjuvant for cardiac function, promoted for the prevention and treatment of chronic fatigue and metabolic dysfunction. The key ingredient in Vetoron is beta-carotene, Focus contains bilberry anthocyanins and lutein for eye health and Carnitone is a source of L-carnitine. Total annual sales of the five product lines are of around RUB 1.0 billion. Recordati will also enter into cooperation agreements with Akvion group to continue manufacturing the acquired products and for commercial development.

"The acquisition of these well-known brands will strengthen our business in Russia and the other CIS countries, the largest market in Central and Eastern Europe. This segment of the Russian pharmaceutical market has been growing on average by 12% over the last five years" declared Giovanni Recordati, Chairman and CEO. "The acquisition of these products will enable us to add 50 people to our exclusive pharmacy dedicated sales organization, thus completing our current 150 strong field force which is dedicated to the promotion of our prescription products to physicians".

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 3,200, dedicated to the research, development, manufacturing and marketing of pharmaceuticals. Headquartered in Milan, Italy, Recordati has operations in the main European countries, in Central and Eastern Europe, and in Turkey. A field force of around 1,700 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 is a partner of choice for new product licenses from companies which do not have a European presence. 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 2011 was EUR 762.0 million, operating income was EUR 163.5 million and net income was EUR 116.4 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.


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Source: RECORDATI via Thomson Reuters ONE


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