Low Prices And Red Tape Hit Recordati

Adrop of 28.1% in net profits for the first half of 1997, from 12.8billion lire ($7 million), at Italian pharmaceutical group Recordati was attributed by the company to lower extraordinary gains. Pharmaceutical sales, which rose by a modest 0.5%, were affected by price reduction and drug reclassification measures enacted by the Italian authorities in June 1996.

The company had hoped that the launch of new prescription specialities in the first half of 1997, notably Zanidip (lercanidipine) for the treatment of hypertension, would offset the impact of the measures mentioned above.

This did not materialize, due to what Recordati refers to as "unjustified delays" by Italian authorities. Arrigo Recordati, chairman, claimed that the company was worried about ever-changing regulations and drug prices 30% below the European average which were not favorable to R&D expansion in Italy.