Italy's Recordati sees Russia as land of opportunity

Italy's Recordati has reported financials for the first half of 2008 which show that revenues rose 8.6% to 348.2 million euros, while net income climbed 16.7% to 52.4 million euros, helped by an 8.3 million euro capital gain from the sale of a facility in Portugal.

Pharmaceutical turnover was up 10.0% to 331.5 million euros, with international sales climbing 13.3% to 241.5 million euros, boosted by the contribution of French group Orphan Europe, which was acquired at the end of 2007. The main driver of growth once again was the blood pressure drug Zanidip/Lercadip (lercanidipine), sales of which rose 11.1% to 103.5 million euros.

Zanidip enjoyed strong growth in France (+20.9%), Spain (+19.0%) and Germany (+31.8%), and also fared well at home in Italy (+9.3%). However, domestic sales as a whole were down 2.4% due to a negative price effect.

Recordati is looking to reduce its reliance on Zanidip and hopes that Carbaglu (carglumic acid) will help in the future. In April, it filed a New Drug Application for the treatment, which was developed by Orphan for hyperammonaemia due to an autosomal genetic disorder resulting in the deficiency of the liver enzyme N-acetylglutamate synthase. Recordati also has a European licence to Watson Pharmaceuticals’ Kentera, a bi-weekly oxybutynin transdermal patch indicated for the treatment of urge incontinence.

Chief executive Giovanni Recordati noted that the firm now has a direct presence in Russia and other countries of the ex-Soviet Union, following its March acquisition of FIC Medical, a French pharmaceutical company. The Russian market is rife for selling Recordati’s products, he said, confirming that full-year earnings and revenues should grow by 10%.