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ROVI reports operating revenue growth of 31% and net profit growth of 58%

  • Operating revenue increased by 31% to 380.4 million euros driven by (i) the strength of the contract manufacturing organization (“CMO”) business, which grew by 76%, and (ii) the specialty pharmaceutical business, where sales rose 9%. 
  • Sales of the heparin franchise (Low Molecular Weight Heparins (LMWH) and other heparins) increased by 8% to 141.6 million euros. Sales of the enoxaparin biosimilar increased 31% to 82.1 million euros and sales of Bemiparin decreased 14% to 55.8 million euros.
  • EBITDA increased by 56% to 115.8 million euros.
  • Net profit increased by 58% to 80.6 million euros.
  • ROVI General Shareholders Meeting, on 14 June 2022, approved the payment of a gross dividend of 0.9556 euros per share on 2021 earnings; it means an increase of 151% compared to the dividend on 2020 earnings (€0.3812/share) and represents a 35% pay out. This dividend was paid on 7 July 2022.

END OF THE SHARE BUY-BACK PROGRAMMES AND CAPITAL REDUCTION THROUGH CANCELLATION OF SHARES

ROVI reported that, at its meeting of 22 February, 2022, the Board of Directors decided to end the first share buy-back programme, launched by the Company as of 3 November, 2021, having acquired a total of 1,492,108 ROVI shares, i.e. 89% of the maximum number of shares it had been initially planned to acquire under the buy-back programme.

Likewise, on 29 March, 2022, ROVI reported the end of the second buy-back programme, which had commenced on 23 February, 2022. A total of 560,700 treasury shares had been acquired, i.e. 100% of the maximum number it had been initially planned to acquire under the buy-back programme.

The purpose of the two buy-back programmes was to cancel treasury shares held by ROVI (by reducing the capital). The reduction of the capital through cancellation of 2,052,808 shares repurchased within the framework of the aforementioned buy-back programmes was approved at the General Shareholders’ Meeting of 14 June, 2022 and executed by entering the pertinent deed of capital reduction into public record. The deed is currently undergoing the registration process at the Madrid Companies Registry and the new amount of the share capital, after the shares mentioned have been cancelled and excluded from trading will appear in the registers of the National Securities Market Commission and Iberclear a few days after registration of the deed of capital reduction. The Company will provide further information in due course.

OUTLOOK

For 2022, ROVI expects its operating revenue to increase between 15% and 20%.

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The European Investment Bank and ROVI spur innovation in the Spanish pharmaceutical sector

The European Investment Bank (EIB) is providing Laboratorios Farmacéuticos Rovi (ROVI) with a new EUR 50 million loan to finance its RDI activities for new developments in the ISM® prolonged drug-release technology, patented by ROVI, in fields such as oncology and the central nervous system, as well as the development and expansion of product applications in the glycomics field.

The agreement was signed in Madrid by Ricardo Mourinho Félix, European Investment Bank Vice-President, and the Chairman and CEO of ROVI, Juan López-Belmonte.

ROVI is a Spanish company specialised in researching, developing and marketing proprietary pharmaceuticals. It is currently participating in the manufacture of the active substance, as well as the fill & finish for the Moderna Covid-19 vaccine. ROVI is specialised in the manufacture of low-molecular-weight heparins (LMWHs), which the WHO recommends as essential medicines for patients hospitalised in intensive care units due to Covid-19.

The EIB loan helps to accelerate ROVI’s RDI strategy by supporting the investments of this highly innovative company. 

The financing will generate considerable positive externalities for the European pharmaceutical industry, contributing to the EU efforts to cover unmet health needs and secure qualified jobs.

Ricardo Mourinho Félix, European Investment Bank Vice-President said: “The EIB is committed to promoting RDI investment in Spain whilst helping preserve skilled employment. A European company that can significantly contribute to the solution of the current and future pandemics provides a significant strategic advantage for Europe and Spain. I am pleased that this loan will help ROVI to contribute to the competitive search to enhance pharmaceutical knowledge in Europe in areas that are important for the improvement of the health of its citizens”.

Juan López-Belmonte Encina, chairman and chief executive officer of ROVI, said: “Innovation and research form part of our identity as a pharmaceutical company, given that we bet on solutions that improve people’s health. At ROVI, we have a sound R&D strategy that makes us optimistic, since we hope that, as a result of the new launches, R&D will become one of the group’s strategic drivers in coming years. Therefore, the fact that the BEI has again placed its confidence in us so that we can continue to progress with our R&D projects represents a great opportunity for our company”.

Finance for research and development activities

The EIB’s loan will finance ROVI’s R&D activities in various drug delivery technologies with a particular focus on psychiatry and oncology, and the development and improvement of products in the glycomic area. It will also support pre-clinical and clinical development (clinical trials, regulatory approvals) research and development, market access and international roll-out of the company’s pipeline of in-house developed products.

Second EIB loan to ROVI

ROVI has been working with the EIB since 2017. Prior to this newly signed loan, the EIB had granted a EUR 45m loan to ROVI to finance its RDI programme focusing on technologies for the administration and extended release of medication related to treatments to fight cancer and nervous system diseases.