Almirall first-half sales and earnings fall, but aclidinium milestones set to roll in

Almirall (ALM: MC), Spain’s largest drugmaker, posted results for the first half of 2012, showing that net sales fell 12.3% to 374.0 million euros ($462.6 million), but were in line with guidance mainly due to Spanish reforms and generic competition for some products. International sales continued their good evolution with growth of 3% and accounted for 57% of total sales (versus 48% in the first half of 2011), the company noted.

Gross Profit reached 230.5 million euros and a 61.6% margin was very similar to the same period of 2011 and mainly driven by Almirall’s international expansion. Other Income was 47.5 million euros (-7.4%) but will grow significantly in the third quarter with the booking of the milestones associated with aclidinium’s approval in the USA under the trade name Tudorza Pressair and EU as Eklira/Bretaris Genuair (The Pharma Letters July 24 and 25). The product is partnered with companies such as Forest Labs for the USA, Menarini for Europe, Kyorin in Japan and Daewoong in Korea. Additionally, agreements have been signed with Quintiles in the UK and Germany.

R&D expenses were up temporarily up to 77.7 million euros, due to the phasing of ongoing studies but it is expected that at the end of the year these will be similar to 2011 figures in absolute terms. As anticipated, SG&A (selling, general and administrative) expenses continued to increase, up 4.1% to 184.5 million euros, due to commercial investments linked to Aclidinium and Linaclotide. This growth rate is expected to increase in the next quarters.