Earnings call transcript: Rovi Q2 2025 highlights revenue decline

Laboratorios Farmaceuticos Rovi reported its financial results for the second quarter of 2025, revealing a decline in total operating revenue and net profit, despite growth in its specialty pharmaceutical business. The company’s stock rose by 3.49% following the release of the earnings report, reflecting investor optimism about its strategic initiatives and future growth prospects. According to InvestingPro analysis, Rovi maintains a GOOD financial health score and operates with notably low price volatility (Beta: 0.45), suggesting stable market performance. The stock currently appears undervalued based on InvestingPro’s Fair Value calculations.

Key Takeaways

• Total operating revenue decreased by 4% year-over-year to €314.6 million.
• Specialty pharmaceutical sales grew 13%, driven by Okedi’s strong performance.
• Rovi’s net profit fell by 10% to €39.7 million.
• The company is expanding its CDMO capabilities and international presence.

Company Performance

Rovi experienced a challenging quarter with a 4% decline in total operating revenue compared to the same period last year. However, its specialty pharmaceutical business demonstrated resilience, with sales increasing by 13% year-over-year. The company continues to strengthen its position in the low molecular weight heparin market, despite a 35% decline in CDMO sales. InvestingPro data reveals the company maintains strong liquidity with a current ratio of 3.7 and operates with moderate debt levels. For deeper insights into Rovi’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Financial Highlights

• Revenue: €314.6 million, down 4% YoY
• Specialty Pharmaceutical Sales: €237.4 million, up 13% YoY
• EBITDA: €65.6 million, down 6% YoY
• Net Profit: €39.7 million, down 10% YoY
• Gross Margin: 62.4%, an increase of 3 percentage points

Outlook & Guidance

Rovi expects its operating revenue to decrease by mid-single digits in 2025. The company anticipates announcing new CDMO contracts within the next 12 months and expects commercial activities from these contracts to commence in the second half of the next year. Continued investments in R&D are planned to support future growth.

Executive Commentary

CEO Juan Oto del Monte highlighted the company’s strategic focus, stating, "2025 is a transition year in which the company continues to invest, laying the foundation for sustainable growth and value creation in the years ahead." He also emphasized the booming CDMO landscape, noting, "The demand for injectable capacity is probably living through the most impressive days with a complete misalignment between supply and demand."

Risks and Challenges

• Declining CDMO sales: A significant drop in CDMO sales poses a challenge to revenue growth.
• Market competition: Intense competition in the pharmaceutical sector could impact market share.
• R&D expenses: Increased R&D spending may pressure short-term profitability.
• Supply chain disruptions: Potential disruptions could affect production and distribution.

Q&A

During the earnings call, analysts inquired about the company’s confidence in maintaining full-year guidance and the performance of Okedi sales, which are ahead of expectations. Rovi executives expressed optimism about securing new CDMO contracts and highlighted the strong interest in their CDMO offerings.

Full transcript - Laboratorios Farmaceuticos ROVI (ROVI) Q2 2025:

Javier Lopez Del Monte, Deputy Chairman and Chief Financial Officer, Rovi: Good morning to everybody. Thank you for joining us today for our conference on the Rovich First Half twenty twenty five Financial Results, which we’ll start in a moment. I am Javier Lopez Del Monte, Rovi’s deputy chairman and chief financial officer. Joining me on today’s call are Juan Oto del Monte, Rovist Chairman and CEO and Marta Campos, our Head of Finance. The presentation will be followed by a Q and A session.

Therefore, if you want to ask any questions during the presentation, please do not hesitate to send them through the question button on the platform. Before we begin, let me remind you that the information presented in this call contains forward looking statements based on our current beliefs and expectations. Actual results could materially differ due to known and unknown risks, uncertainties and other factors, and we undertake no obligation to update or revise any of these statements. With that, I thank you for your presence here today, and I will now hand the presentation over to Please, Juan, go ahead.

Thank

Juan Oto del Monte, Chairman and CEO, Rovi: you, Javier, and good morning to everyone in in the call. Since the pandemic, we’ve been steadily investing to build the foundations of our future. 2025 is a transition year for us. We believe it’s essential to continue investing, and that conviction has made us more resilient, more focused, and better positioned for sustainable growth. We’re at an inflection point.

The progress we’ve made combined with improving market conditions put us in a strong position for long term success. In this context, our operating revenue reached EUR 3 and 14,600,000.0, a decrease of 4% in the first half of twenty twenty five, mainly due to the performance of contract development and manufacturing business. However, sales of the specialty pharma business increased 13% to €237,400,000 in the first half of twenty twenty five. Okedi, our monthly risk peridone ISM has continued to grow grossly with sales in the 2025 increasing by 115% to €26,900,000 compared to the same period of 2024. The heparin division continues to perform positively.

Its sales increased 12% to €135,200,000 mostly due to an increase in orders from partners. Enoxaparin was the main contributor to the growth of the division with sales rising 14% due to stronger international sales in the first six months of the year. Our gross margin was 62.4% in the first half of twenty twenty five, an increase of three percentage points. EBITDA decreased 6% in the first half of twenty twenty five, mainly due to higher R and D expenses. However, if we recognize the same amount of R and D expenses in the 2025 as in the same period of 2024, EBITDA would have increased 0.5% with EBITDA margin improving by 1.1 percentage points to 22.3 percentage in the first half of twenty twenty five.

For 2025, with the visibility that the company has at this moment, we reiterate our guidance. Rovi expects its operating revenue to decrease by a mid single digit percentage in comparison with 2024. Let’s begin by reviewing the key milestones achieved in the first six months of the year. First, it should be noted that on 07/09/2025, the technological development and innovation center published the final decision confirming the award of aid of €36,300,000 for Robby’s late solid project. This aid covers the period running from January 2023 to August 2026.

In the third quarter of twenty twenty five, the company plans to book the revenue relating to expenses incurred from January 2023 to September 2025 and collect the entire amount awarded once the administrative procedures required by the awarding body have been completed. And secondly, the company continues to advance in the artificial intelligence field, and in January 2025, Robby acquired a majority position in CELSSIA Technologies, a pioneering company in the development of artificial intelligence assisted diagnosis in the pathological anatomy area. Pathological anatomy, an essential medical specialty in diagnosis and staging of many diseases, is destined to become one of the disciplines with the greatest potential from for transformation as a result of the new digital technologies. This agreement with CELSIA represents an opportunity for Rovi in its goal to contribute to improving health care to the development of artificial intelligence solutions. And now let me give a quick overview of the first half twenty twenty five financials.

As I mentioned before, total operating revenue fell 4% to €314,600,000 versus the first six months of twenty twenty four, mainly due to the behavior of the contract development and manufacturing business. Notwithstanding, sales of the Specialty Pharmaceutical business rose 13% to 2 and €37,400,000 in the first half of the year, positively impacted by our low molecular weight heparin, Okeedi, Neparvis and the contrast agents and other hospital products division. I will touch upon their performance later in the presentation. EBITDA stood at EUR65.6 million, a decrease of 6% compared to the same period of last year, reflecting a 0.4 percentage point decrease in EBITDA margin, which was 20.9% in the first half of twenty twenty five. Likewise, profit stood at €39,700,000 a decrease of 10% in the 2025 compared to the first half of twenty twenty four.

Moving on to one of our main pillars of growth, our specialty pharma area. Sales of prescription based pharmaceutical products increased 14% to €208,100,000 in the first six months of the Heparin sales, low molecular weight heparin mainly and other heparanings, grew by 12% in the first half of twenty twenty five. And oxaparin was the main contributor to the growth of the division, with sales rising 14% to EUR79.8 million due to an increase in orders from international partners. Beniparin had a strong half in terms of revenue performance. In the first half of twenty twenty five, bemipering international sales grew 38% with a strong contribution from China, Greece and Turkey, and we continue to see momentum for the product.

We aspire to become a global leader in this field with veniparin and the nosaparin biosimilar. In this context, we’re investing to become self sufficient in obtaining crude heparin, and thus becoming a vertically integrated company in all the low molecular weight heparin manufacturing phases. Rovi as well continues with its internationalization plan. Sales outside Spain represented 55% of operating revenue in the first half of twenty twenty five. Regarding enoxaparin biosimilar, let me say it’s already present in 42 countries, and we continue to sign out licensing agreements to distribute the product in more countries.

As I mentioned before, in the first six months of the year, enoxaparin biosimilar sales performed positively, increasing by 14% to €79,800,000 due to an increase in orders from international partners in the 2025 compared to the first half of last year. The growth drivers of the specialty pharmaceutical business were Ogedy, Nepalvis, and the contrast agents and other hospital products. Now taking each one of the brands in turn step by step. Sales of Ogedy, the first Rovi product based on its leading edge drug delivery technology, ISM, for the treatment of schizophrenia in adults reached €26,900,000 in the first June of twenty twenty five, an increase of 115% compared to the same period in 2024 and fourteen percent rise compared to the first quarter of twenty twenty five. Sales of Leparvis, a specialty product from Novartis, indicated for the treatment of other patients with symptomatic chronic heart failure and reduced injection fraction, increased eleven percent in the first half of twenty twenty five.

Finally, sales of contrast imaging agents and other hospital products increased by 9% in the first half of the year. Regarding CDMO, sales fell 35% to €77,200,000 in the 2025 compared to the same period in 2024. Despite the decline in sales, we remain excited about the near and long term potential of our globally leading CDMO business. We’re in a phase characterized by a highly dynamic market in which Robbie is soundly positioned. In order to capitalize our competitive edge, we’re making significant investments aimed to consolidate global leadership in sterile fill and finish capacity and service.

This will allow the company to continue to capitalize on the significant imbalance between the growing demand for injectable products and the capacity currently on offer. With the recent investments and the expansion expansions underway in the contract manufacturing business, Rovi will become one of the largest and most experienced pharmaceutical groups in Spain with eight fully integrated plans, three of which are fully engaged in contract development manufacturing operations. Moving to research and development, we are developing two innovative formulations based on our ISM technology platform. LETROSAL SEA, a quarterly prolonged release LETROSAL injection superior to Femana in estrogen suppression to treat hormone dependent breast cancer and risperidone core, a quarterly prolonged release risperidone injection to treat schizophrenia in others, which allows adequate plasma levels to be obtained as of the injection date. Both products seeks to improve clinical efficacy, increase treatment adherence, and provide an enhanced tolerability profile.

In the first quarter of twenty twenty five, we obtained positive results in two previous phase one trials enabling us to progress towards phase three clinical trials. These developments reflect our commitment to innovation and enhancement of the patient’s quality of life. And finally, I will provide an overview of the 2025 outlook. As I mentioned, 2025 guidance remains unchanged, and we expect operating revenue to decrease by a mid single digit percentage in comparison with 2024. Notwithstanding, this guidance is calculated using certain factors that, although they could be relevant to the estimates, are difficult to specify at the present time, such as how the demand and production might evolve for the vaccination campaign that will take place in 2025.

2025 is a transition year in which the company continues to invest, laying the foundation for sustainable growth and value creation in the years ahead. We are at an inflection point with several growth opportunities on the horizon and a clear focus driven by our established European footprint, which will continue delivering growth within our low molecular weight heparin platform and the successful launch of Okeedi. And second, potential growth avenues with our recent investments in the CDMO business, as well as in the clinical development of a three month formulation of letrozole and a three month formulation of risperidone. And with that, I would like to turn it back over to Javier, who will run you through financials in more detail. Thank you very much for your attention and for taking the time to participate in this meeting.

Javier Lopez Del Monte, Deputy Chairman and Chief Financial Officer, Rovi: Thanks, Juan. As Juan mentioned earlier, since the pandemic, we have been undergoing a period of transition focused on building long term value. Within this framework, operating revenue for the first half of this year totaled EUR 314,600,000.0, a decrease of 4% in the first six months of twenty twenty five, mainly driven by the performance of the CDMO business. CDMO sales fell 35% to EUR77.2 million in the first half of the year in comparison to the same period of 2024, mainly due to the booking of negligible revenue related to the activities carried out to prepare the plant for production of the vaccine under the agreement with Moderna in the first half of twenty twenty five, and lower revenues from the production for Moderna in the first half of twenty twenty five, and finally, lower revenues from existing customer, excluding Moderna, as a result of the closure of the Madrid facility to upgrade SOMA NX1 GMP aspects for sterile manufacturing. As a result of disclosure, some production for existing clients was brought forward from the first half twenty twenty five to the last half of last year, and other production has been postponed to the remainder of 2025.

However, sales of the specialty pharmaceutical business increased 13% to EUR237.4 million compared to EUR210.5 million in the first half of the previous year. In addition to the increase in the low molecular Wey heparin sales, enoxaparin and beviparine stand out with a 12% growth, reaching 131,300,000 in the first half of twenty twenty five. And Opsaparin was the main contributor to the growth of the division, with sales rising 14% to EUR 79,800,000.0 due to an increase in orders from international partners. Rovi expects full year sales of enoxaparin biosimilar to increase by a mid single digit percentage in this year compared to 2024. In addition, Meliparin sales also increased by 9% to EUR 51,500,000.0 in the 2025 compared to the first half of twenty twenty four.

This rise was driven by many partner international sales, which increased by 38% in the period linked to higher orders from partners in China, Greece and Turkey. Rovi expects full year sales of vemiparin to increase by a low single digit percentage in 2025 compared to 2024. Gross profit increased 0.3% to EUR196.2 million in the first half of this year compared to the same period of last year. Gross margin was up three point zero percentage points to 62.4% in the first six of twenty twenty five. This increase was mainly due to the increased contribution of Okedi sales, which added high margins, a decrease in low molecular weight heparin raw material prices, which had a positive impact on gross margin too.

And finally, the residual contribution to the CDMO business of revenue related to the activities carried out to prepare the plant for production of the vaccine and their agreement with Moderna in the 2025 compared to the first half of twenty twenty four, which added lower margins to group sales. In the 2025 raw material prices for low molecular weight heparins fell 33% compared to the first half of twenty twenty four. Likewise, a positive impact on gross margin is expected over the year as a result of the drop in heparin raw material prices. Rovi continues to be committed to innovation. R and D expenses increased 38% to EUR 16,800,000.0 in the 2025 due to the completion of the Phase I clinical trials for Letrozole, SIE and quarterly Risperidone, ISM, and the preparation for the development of Letrozole, SIE’s Phase III clinical trial.

Selling, general and administrative expenses remained stable at €113,700,000 in the 2025 compared to the same period of the previous year. Within SG and A expenses, employee benefit expenses, excluding R and D, increased by 9% in the 2025 compared to the same period of 2024, mainly due to a 3% wage increase due to the entry into force of the collective agreement along with the hiring of additional CDMO personnel. However, this increase was offset by a 10% decrease in other operating expenses, excluding R and D, driven by an efficient cost containment policies. EBITDA totaled €65,600,000 in the first half of twenty twenty five, a decrease of 6% compared to the same period of 2024, reflecting a 0.4 percentage point decrease in the EBITDA margin, which decreased to 20.9% in the first half of the year. EBIT decreased 10% to €50,900,000 in the first six months of this year, reflecting a one percentage point decrease in the EBIT margin, which decreased to 16.2% in the first six months of twenty twenty five.

Net profit decreased 10% to EUR39.7 million in the first half of twenty twenty five. EBITDA pre R and D calculated excluding R and D expenses in the first six months of this year, increased by 0.4%, reflecting a 1.3 percentage point decrease in the EBITDA margin to 26.2% in the first six months of twenty twenty four. Again, EBIT pre R and D, in this case, decreased by 1% reflecting a 0.7 percentage point decrease in the EBIT margin to 21.5% in the first six months of the year. Net profit per R and D decreased by 2% in the first six months of the year. We now move to CapEx and cash flow.

So we have been saying we are on the track to becoming a key leading player within the CDMO industry in terms of injectable capabilities. In this context, Rovi invested EUR20.8 million in the first half of the year, and of this amount EUR15.7 million relates to investment CapEx regarding our facilities, including important projects such as the new filling lines and the operations expansions, the Glycopecton joint venture for the construction of a plant dedicated to the production of compounds of high biological value from the intestinal mucosa of pigs, and finally the ISM industrialization. Lastly, we invested EUR5.2 million in maintenance and other CapEx. Cash flow from operating activities decreased 6% to EUR28 million mainly due to the decrease of EUR6.5 million in profit before income tax and the increase of €86,000,000 in the trade and other receivables item in this 2025 compared to an increase of €27,000,000 in the same period of last year. Regarding our debt, now as of June 30, Rovi’s total debt increased to €129,300,000 EUR105 million is debt with banks, representing 81% of total debt, while we have EUR13.7 million correspond to financial liabilities for leases, representing this 11% of total debt, and €10,500,000 correspond to debt with public administration related to the development of R and D projects, which is 0% interest rate debt, representing 8% of our total debt.

At the end of the first half of this year, Rovi had a gross cash position of EUR49.6 million, and therefore, our net debt is €79,700,000 Regarding our dividend, Roby’s General Shareholders Meeting held on June 18 this year approved the payment of a dividend equivalent to €0.9351 per share entitled to receive it and charged to the 2024 profit. This would entail distribution to an amount equivalent to approximately 35 percent of the consolidated net profit for last year attributed to the parent company. By the way, this dividend was already paid on July 16 year. So regarding the news flows for 2025, we will continue to monitor on the manufacturing developments of Moderna’s products. We also expect to announce the launch of Risperidone ISM in other countries.

Please remember that the product is currently being marketed in Germany, UK, Spain, Portugal, Italy, Austria, Greece, Serbia, and the Nordic countries, Australia, Taiwan, and The Netherlands. We also look forward to hearing about new licensing of new products. And regarding our R and D, we are making good progress with the next steps of the clinical trial of letrozole SIA and risperidone four, you know, the new formulation of risperidone for a three monthly injection. And that’s all regarding our financial results for this first six months of twenty twenty five. We can now start the q and a session.

So remember, if you want to ask any questions, please do not hesitate to send them through the question button on the platform.

Marta Campos, Head of Finance, Rovi: Thanks, Javier. The first question is from Pablo Deventeria from Kepler. Javier, it’s for you. The cat sales seem to be performing better than initially expected as reflected in your upgraded expectations from a low single digit decline to a mid single digit increase. Should we understand that this stronger than expected performance is helping to offset somewhat weaker than expected evolution in CDMO, and that is why you are maintaining your overall guidance?

Or, alternatively, does the improved outlook for the low molecular weight heparin franchise give you greater confidence in achieving your full year targets?

Javier Lopez Del Monte, Deputy Chairman and Chief Financial Officer, Rovi: Well, thank you. Thank you, Martha. Thank you, Pablo, for your question. You’re right. No.

We have mentioned in the presentation that the enoxaparin sales have increased 14% semester over semester. This increase, as we said, came from higher orders from our international partners, especially, say, Canada, South African France. And we are very happy, you know, how the division, especially this division, you is progressing so far throughout the year, and this is what why we have updated the the guidance for the product. Also, on the on the CDMO side, as you know, we expect to have declining revenues since we expect to have also residual revenues, not from the tech transfer, what we call tech transfer activities, this preparation for for the plant and the CapEx from Moderna. And remember that we recognized between 40 and €45,000,000 last year from these services.

And having said that, I think we right now, we remain very confident around the guidance. You know, the guidance was also ample. So we do not we do not believe that at this moment of time is we need to change the guidance. And I would say that this first semester reinforce the the the you know, how we positive we are about achieving the guidance at least.

Marta Campos, Head of Finance, Rovi: Thanks, Javier. The next question comes from Alvaro Lente from Alantra Equities. Javier, it’s for you. You spent €17,000,000 in R and D in H1, which annualized is below the $4,060,000,000 euro r and d budget you provided? I lost I I I missed the the question.

Sorry. So are you going to are you going to meant to sorry. Could you provide some guidance on whether you will be in the lower or upper end of the range in 2025 and in 2026?

Javier Lopez Del Monte, Deputy Chairman and Chief Financial Officer, Rovi: Yeah. Well, thank you, Alvaro, for your question. I guess it’s regarding the evolution of r and d. We try to explain and to be very, very transparent in our Capital Market Day about the evolution of our r and d expenditure. As we explained today, we are preparing and about to start probably in the next coming months our phase three clinical trial of letrozole SIA.

So that means that for sure, and and and this will be good news for the company that we expect in the second part of the year to spend more money on compared to the first half. So probably, we’ll be in the range that we provided for R and D for the next years. And for this twenty twenty five year, I guess that the the r and d expenditure will be, I would say, somehow in the middle of the range towards the high part of the range, but probably in the average. And I guess that ’26 will be a more expansive year with regards to to R and D.

Marta Campos, Head of Finance, Rovi: Thanks, Javier. Juan, the next question is from Guilherme Sampaio from Caixabank. Are you seeing any slowdown in conversations regarding new term manufacturing contracts based on the volatility induced by The US tariff announcements?

Juan Oto del Monte, Chairman and CEO, Rovi: Any any any signal at all? As we mentioned in our presentation, the CDMO landscape is is booming. Really, the demand for injectable capacity is is is they’re probably living to to the most impressive days with a complete disalignment between supply and demand. And we we are really overwhelmed by the the number of proposals, contacts, tech transfer that we we are we are involved. As Javier has mentioned before, we believe that the news flow on CDMO is going to be reached in the next twelve months.

And and and it’s logical as well that I if I may expand on the answer that that that that the CMO is not affected by all this geopolitical environment because we are really working on on on timings that goes beyond a quarter or two quarters or a year. At the end of the day, conversations for for CMO contracts takes at least a year and a half, then you have to do the tech transfer, the regulatory submissions with their approvals. So we’re always talking about a period of time between two to four years. So, again, it it really goes beyond any short term volatility. So we are extremely confident, as Javier has mentioned before, and I have stressed myself that this CMO is going to be one of lighting stars in the in the next coming quarters and years.

Marta Campos, Head of Finance, Rovi: Thanks, Juan. Javier Guillermo has another question. This is for you. On SG and A, it is reasonable to project an year over year development in the second 2025 in line with the first part of the year.

Javier Lopez Del Monte, Deputy Chairman and Chief Financial Officer, Rovi: Thanks, Martha. Thanks, Guillermo, for your question. I mean, we we are very happy with the evolution of SG and A during the first semester of the year. I think we are, you know, we are having very restricted cost containment policies. And probably for the pending for the remaining part of the year, we don’t expect a higher increase, maybe a moderate, a very small increase, very modest anyway.

So that’s why we are quite excited about the how we are managing the company now. So we are trying to to maintain cost under control, and we are very happy about it.

Marta Campos, Head of Finance, Rovi: Thanks, Javier. Juan Alvaro Lente from Alantra Equities asks the the following question. Can you provide some color on whether you are signing new CDMO contracts even if these are not as large as the one announced in April 2024? How long are the production lead times for new smaller clients?

Juan Oto del Monte, Chairman and CEO, Rovi: Thank you a lot of your question. I mean, I mean, as I as I mentioned before, we we are probably I mean, we are overwhelmed by the number of contacts, tech transfer discussions that we are holding in the last two, three quarters. Really, I mean, in terms of leading times between small, let’s say, contracts or small and and and large contracts, there really have not much differentiation. We we we might, I mean, we might gain sometimes regarding contract discussions or contract execution. But when it comes to tech transfer, when it comes to filling a stability data, when it comes to to registration submissions and and registration approvals, it takes usually 90% of the same time of any any large contract.

Again, as I mentioned before, we are trying to balance. I mean, not everything can be large, huge contracts extremely material. But on on the other hand, I think something that we are working extremely hard right now in the CMO activities is really to try to expand our customer base. So I believe in that sense, as I mentioned before, we are going to have a very a very rich news flow in the in the next probably year ahead of us with many different announcements of small, large contracts. Always, as we mentioned before, in many cases, always related to the confidentiality clauses.

And in many cases, it doesn’t allow us to provide that much detail and information regarding the the intrinsics of the different agreements.

Marta Campos, Head of Finance, Rovi: Thanks, Juan. Javier, Alvaro also wants to know how are the preparation works for the 2,024 announced CDMO client going, And when do you expect to start producing test batches and when commercial batches?

Javier Lopez Del Monte, Deputy Chairman and Chief Financial Officer, Rovi: Thank you, overall. For sure, this agreement, know, that we announced on 2024, I think this is game changer for us and a milestone for the next for the coming future of the CDMO business. So that’s why we are so was optimistic for the evolution of the business. We have been working we are working with the customer, you know, with the validation process and and trying to make sure that we progress in the right direction. As we always guided the market, we expect next year, no, to have the initial impact on on sales from from this agreement or the initial commercial sales, no, at least impact from this agreement on on on Robby’s revenue.

You know, we have explained several times that the starting or kicking off commercial activities normally depend or always depend on on regulatory approvals. And regulatory approvals are something that is difficult to to plan very well ahead or at least to, you know, to highlight that this is gonna be for sure in a quarter or in another quarter. No? What we are planning is that, for sure, second part of next year, we’ll have already commercial activities. So that’s, I think, a good message.

And both companies, our customer ourselves, we are trying, you know, to advance and trying to materialize the approvals and the tech transfer activities to advance the production as soon as possible. But for sure, I think we are quite quite confident that the second part of the year of next year, we’ll see sales coming from this contract, which for sure, it will change the dynamic of of the CDMO business.

Marta Campos, Head of Finance, Rovi: Yep. The next question is for you. It comes, sorry, from Jaime Skibano. Okay. €27,000,000 in h one two thousand and twenty five.

2025 guidance is €50,000,000. Could this be conservative? How do you see the second part of the year?

Javier Lopez Del Monte, Deputy Chairman and Chief Financial Officer, Rovi: Yeah. Thanks, Helga, for for the questions around OKD sales. I think we are quite we’re way we are very optimistic about the evolution of OKD sales as we try to deliver today. We have already launched the product in many countries. And that’s why we we always try to be cautious around guidance because we can control very well the sales of the product in the countries where we market the product in a direct way.

However, in the countries that we have partners, as it happened also with the North American, sales and the orders coming from partners sometimes are not even or are not split it evenly in the during the year. No? And somehow we have different peaks and valleys during the year. No? So that’s why that take into account that, okay, this has been launched very recently in some of these countries.

We prefer to maintain the guidance even though that the first year the first part of the year has been tremendous. Think very positive. And for sure, in the countries that we are marketing ourselves the product in a direct way, we will expect an increase of sales of direct sales in the second part of the year. As I said before, we cannot control stocks of our partners. That’s why we prefer to keep and maintain the guidance for the whole year.

Marta Campos, Head of Finance, Rovi: Thanks, Javier. And the last question comes from Chris Richardson from Jefferies. Juan, it’s for you. What changed in the Nexaparin guidance? What caused the initial negativity?

Is there a possible pull forward of revenues from the rest of the year to avoid tariff tariffs, for example?

Juan Oto del Monte, Chairman and CEO, Rovi: I mean, thank you, Chris, for for for your question. I hope I have got it right. I mean, first, let me say that we, as a company, we don’t export. I mean, we don’t commercialize products in The US, so we shouldn’t be impacted by by tariffs. On the CDMO operations, likewise, most of our customers are European based customers, and most of our product manufacturing CDMO are related to to European countries as well.

And so far, to the best of our knowledge regarding tariffs, it seems that so far and and, again, this is we have as much information as you may have. It seems that it’s more related to starting materials and API, and finished product seems to be, at least so far, avoided any sort of measures from the from the Trump administration. On Iraq’s suffering, as Javier has mentioned, really, the evolution is pretty good. We see momentum from the international markets, France, Israel, South Africa, Canada. We’re investing heavily really on the supply chain as we have mentioned many different times in different occasions, trying to be self sufficient in having a vertical integration from the really raw material.

That means the the peak new cost to the finished product. So that definitely should allow us to improve our cost of goods, improve our margins, and definitely to give us further competitiveness on the on the market.

Marta Campos, Head of Finance, Rovi: Thank you very much, Juan. So thank you very much for your participation. Let me now hand the floor over to our vice president and CFO, mister Javier Lopez Del Monte, for the closure of the presentation.

Javier Lopez Del Monte, Deputy Chairman and Chief Financial Officer, Rovi: Thanks, Marta, for your help. As Marta was pointing out, there is no more questions at this moment, so we are finishing this call. Thank you very much again for attending this first half results call, and have a good day a good day and a good summer break. Thank you. Bye bye.

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