Almirall's first-half sales boosted by acquisitions

Leading Spanish drugmaker Almirall continued its recent growth trend with first-half 2008 results showing a strong boost to its base business thanks to last year's acquisition of eight products from the UK's Shire, for $213.0 million (Marketletter October 15, 2007), as well as the European prescription dermatology business, Hermal, for $518.4 million (Marketletter July 23, 2007).

The company saw net sales of 467.9 million euros ($688.0 million), up 13.3% year-on-year, as the added products allowed it to open new affiliates in Austria, the UK and Ireland and, more recently, Poland and Switzerland. This expansion into new territories saw total revenues reach 546.8 million euros, a 15% increase. Company chief executive Jorge Gallardo said: "during the rest of 2008 we will be continuing to strengthen our presence in key European markets, maintaining our leadership position in Spain and developing the potential of our R&D pipeline."

Earnings before interest, tax and amortization totalled 138.1 million euros, a 16.9% increase thanks to the incorporation of new businesses and an increase in other income. Despite this rise, net income fell 8% to 85.5 million euros, reflecting a 32.5% hike in R&D expenditure to 64.2 million euros, as well as the increase in financial expenses and amortizations linked to last year's acquisitions.