Spain's Almirall reiterates full-year guidance, but sees 1st-qtr 2010 sales dip

Spain's leading pharmaceutical company Almirall post a flat set of results for the first quarter of 2010, with a year-on-year sales decline of 1% to 242.6 million ($306.9 million), largely due to lower sales from partners. Normalized net income rose 3% to 51 million, helped by a 12.2% reduction in SG&A.

The company reiterated 2010 guidance but noted that, "despite the erosion in the health care sector for pharma companies' it is still awaiting assessment of the news released by the Spanish government.' The firm expects flat to slightly declining sales and a continuation of the ongoing cost containment efforts (except for R&D, which will keep growth) and sustaining the company's normalized profits during a year of anticipated significant R&D newsflow.

Eduardo Sanchiz, chief executive financial officer, commented: "Almirall has made a good start in 2010. Our base business is on track and in line with guidance, driven by a steady sales evolution and significant cost discipline achievements. Cash flow generation remains solid and net debt reduction anticipates a net cash position during 2010."