Spain's Almirall sees 1st half 2010 sales dip, hit by domestic austerity plan and economic environment

Spain's largest drugmaker Almirall reported that, as expected, net sales for the first half of 2010 were down 4.0% to 469.0 million euros ($601.2 million), with steady growth of the international affiliates (+0.8%), with lower domestic performance (-4.4% to 262.9 million euros) and from partners (-10.7%). International sales accounted for 44% of the total. The adverse economic environment, generic competition as well as health care reforms and austerity plans have hindered the overall performance, the company said.

Gross margin came in at 292.4 million euros (62.3% of sales versus 64.4% in first half 2009) reflecting the unfavourable impact of the mandatory discount of 7.5% on patented products in Spain following the legislative reforms. The mix of sales also contributed to margin dilution during the first half of the year. Other Income reached 61.1 million euros (+12.5%) driven by the higher co-development revenues from the Eklira (aclidinium bromide) for chronic obstructive pulmonary disease (COPD) franchise (both mono and combo) and LAS100977 (OD LABA) and increased amortization of the down payments received from Forest in both projects.

The top 15 products continue to represent around 73% of net sales reflecting a well balanced portfolio with no overexposure to a single product. Notable performances were seen with Almogran (amotriptam, 11.2% to 28.6 million euros, Solaraze (diclofenac sodium) (+9.8% to 11.8 million euros) and two new launches from 2009, Tesavel (sitagliptin) and Efficib (sitagliptin plus metformin), sales of which ramped up 205.4% to 10.8 million euros. Almirall's leading product, Ebastel (ebastine) saw sales fall 10.1% to 69.9 million euros, and Prevencor (atorvastatin), which is subject to generic competition, slumped 29.2% to 41.9 million euros.