Recordati's first-half net income jumps 16.7%

Italian drugmaker Recordati's first-half 2008 international sales jumped 13.3% year-on-year to 241.5 million euros ($377.1 million), as operating income grew 8.9% to 75.8 million euros, while gross margin improved to 68.1% of sales due to a favorable product mix.

Expenses net of other income include a 8.3 million euros capital gain realized on the sale of Jaba Recordati's production facility in Portugal and the write-down of the residual value of two products following the termination of its license agreements, for a total of 6.4 million euros. Net income increased 16.7% to 52.4 million euros, thanks to a lower tax rate due in part to the tax exemption applied to the Jaba capital gain.

Consolidated revenue totaled 348.2 million euros, up 8.6%, while pharmaceutical sales rose 10% to 31.5 million euros, boosted by income from the Orphan Europe group of companies acquired at the end of 2007. Despite the strong growth in overseas sales, turnover from the domestic market fell 2.4% due to a negative price effect. Pharmaceutical chemical revenues fell 13.3% to 16.6 million euros.