Recordati expects to report 8% sales growth for 2013

Italian drugmaker Recordati (RC: MI) revealed that its revenues for full-year 2013 are expected to be more than 1 billion euros ($1.37 billion), growing by around 8%, thanks mainly to the consolidation of Opalia Pharma and Laboratorios Casen Fleet acquired last year.

Organic growth will be impacted by the termination of the license agreement for Entact (escitalopram) in Italy as a result of the product’s patent expiry, and of the license agreement for Adagen (pegademase bovine) in the major markets.

The operating margin is expected to increase thanks mainly to an improvement in gross margin as a result of the high margin associated with the newly acquired products and the low margin generated by the terminated products. Sales, general and administration (SG&A) expenses are expected to remain stable as percent of sales while R&D expenditure is expected to grow to around 9% of sales. Therefore, operating income is expected to be more than 220 million euros, with a margin on sales of 22%, and net Income to be more than 150 million euros with a margin on sales of 15%. No new acquisitions are included in the 2014 objectives.