Laboratorios Farmaceuticos Rovi reports Q2 results, reiterates outlook

Investing.com -- Spanish pharmaceutical company Laboratorios Farmaceuticos Rovi on Thursday reported first-half 2025 results in line with sales consensus and 4% above consensus at the EBITDA level.

The company posted a 4.5% sales decline in the first half of the year to €314.6 million, aligning with its guidance of a "low-single-digit decline."

This decrease was primarily driven by a contraction in the Contract Development and Manufacturing Organization (CDMO) business, which fell 35.1% to €77.2 million compared to €118.9 million in the same period last year.

The CDMO revenue decline was attributed to lower contributions from mRNA products and a temporary closure of the Madrid facility for regulatory upgrades, which resulted in revenue shifting from the first quarter of 2025 to the fourth quarter of 2024.

Despite the overall sales decline, Rovi’s specialty pharmaceutical business grew by 12.8% to €237.4 million, with particularly strong performance from its low-molecular-weight heparin (LMWH) products, which increased by 12% in the first half.

The company’s gross margin improved to 62.4% from 59.4% in the first half of 2024, exceeding the consensus estimate of 61.0%.

This improvement was driven by increased contribution from Okedi, which has high margins, and a 33% decrease in LMWH raw material prices.

EBITDA decreased 6.2% to €65.6 million, though this was still above the consensus estimate of €63.1 million. The EBITDA margin contracted to 20.9% from 21.2% in the same period last year, primarily due to increased R&D spending.

Rovi reiterated its full-year 2025 guidance, expecting a mid-single-digit percentage decline in operating revenue compared to 2024.

However, the company raised its outlook for enoxaparin, now projecting a mid-single-digit increase for the year, an improvement from its previous forecast of a low-single-digit decrease.

The company also confirmed it remains on track with its clinical programs, with Phase III trials for Letrozole SIE and clinical programs for Risperidone QUAR both set to begin in the fourth quarter of 2025.

Despite near-term challenges in its CDMO business, Rovi maintained its medium-term guidance to double CDMO sales to approximately €700 million by 2030.

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