Recordati's FY 2007 net income grows 14.6%

Italian drugmaker Recordati SpA says that its full-year 2007 net income totaled 84.9 million euros ($134.3 million), an increase of 14.6% on the previous year, due to an improved tax rate. Consolidated revenue totaled 628.4 million euros, up 9.1%, as drug sales rose 10.5% to 594.4 million euros; these include the Portuguese business acquired at the end of 2006.

Operating income, at 20.9% of sales, amounted to 131.5 million euros, an increase of 9.3%. Gross margin improved further due to a favorable product mix, reaching 67.2% of income. Sales, general and administrative expenses jumped 8.1%, less than revenue growth. R&D costs totaled 49.1 million euros, up 8.2%. The firm's international pharmaceutical business grew16.5%, while sales in Italy were substantially in line with the year before, despite price cuts imposed during the second half of 2006.