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Laboratorios Farmaceuticos ROVI reported its second-quarter 2025 earnings, revealing mixed financial results amid ongoing strategic investments. The company’s stock price experienced a slight decline of 0.43%, closing at €58.45, as investors digested the news. According to InvestingPro analysis, ROVI maintains a "GOOD" financial health score and appears slightly undervalued based on its Fair Value estimate. Despite a dip in overall revenue and earnings, ROVI’s specialty pharmaceutical business showed strong growth, and the company remains optimistic about future developments.
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Key Takeaways
- Total operating revenue decreased by 4% year-over-year to €314.6 million.
- Specialty pharmaceutical sales rose 13% year-over-year, driven by Okedi.
- EBITDA fell by 6%, while net profit declined by 10%.
- ROVI is expanding its sterile fill-finish manufacturing capacity.
- The company anticipates mid-single-digit revenue decreases for 2025.
Company Performance
ROVI’s overall performance in Q2 2025 highlighted a challenging yet promising landscape. While total operating revenue saw a decline, the company’s specialty pharmaceuticals division, including Okedi, showed significant growth. The positive momentum in this segment underscores ROVI’s strategic focus on innovation and international expansion, particularly in emerging markets like China.
Financial Highlights
- Total operating revenue: €314.6 million (-4% YoY)
- Specialty pharmaceutical sales: €237.4 million (+13% YoY)
- EBITDA: €65.6 million (-6% YoY)
- Net profit: €39.7 million (-10% YoY)
- Gross margin: 62.4% (+3 percentage points)
Outlook & Guidance
ROVI projects a mid-single-digit decrease in operating revenue for 2025, as the company continues to invest in R&D and manufacturing capabilities. The launch of Risperidone ISM in additional markets and ongoing R&D efforts are expected to drive future growth. The company remains confident in its full-year guidance and anticipates increased R&D spending in the second half of 2025.
Executive Commentary
CEO Juan López-Belmonte Encina remarked, "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." This sentiment reflects ROVI’s strategic direction towards long-term growth despite short-term financial challenges.
Risks and Challenges
- Revenue Decline: The anticipated mid-single-digit revenue decrease poses a challenge to short-term financial stability.
- R&D Expenses: Increased R&D spending may pressure margins if new products do not launch as planned.
- Market Competition: Intense competition in the pharmaceutical sector could impact market share and profitability.
- Regulatory Hurdles: Navigating regulatory environments in new markets may delay product launches.
- Supply Chain Disruptions: Potential disruptions could affect production and delivery timelines.
In summary, ROVI’s Q2 2025 results reflect a company in transition, balancing current financial pressures with strategic investments aimed at future growth. With a moderate debt-to-equity ratio of 0.23 and strong liquidity position, the company appears well-positioned to execute its growth strategy. Investors will be keenly watching how these efforts translate into performance in the coming quarters.
Full transcript - Laboratorios Farmaceuticos ROVI (ROVI) Q2 2025:
Javier López-Belmonte Encina, Deputy Chairman and CFO, ROVI: Good morning to everybody. Thank you for joining us today for our conference on the ROVI’s first half 2025 financial results, which we’ll start in a moment. I am Javier López-Belmonte Encina, ROVI’s Deputy Chairman and Chief Financial Officer. Joining me on today’s call are Juan López-Belmonte Encina, ROVI’s Chairman and CEO, and Marta Campos Martínez, 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 Juan López-Belmonte Encina. Please, Juan, go ahead.
Juan López-Belmonte Encina, Chairman and CEO, ROVI: Thank you, Javier, and good morning to everyone 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 €314.6 million, a decrease of 4% in the first half of 2025, mainly due to the performance of the CDMO business. However, sales of the specialty pharma business increased 13% to €237.4 million in the first half of 2025.
Okedi, our monthly Risperidone ISM, has continued to grow robustly, with sales in the first half of 2025 increasing by 115% to €26.9 million compared to the same period of 2024. The Heparin division continues to perform positively. Its sales increased 12% to €135.2 million, 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 2025, an increase of 3 percentage points. EBITDA decreased 6% in the first half of 2025, mainly due to higher R&D expenses.
However, if we recognize the same amount of R&D expenses in the first half of 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% in the first half of 2025. 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 July 9, 2025, the Technological Development and Innovation Center published the final decision confirming the award of aid of €36.3 million for ROVI’s LAISOLID project. This aid covers the period running from January 2023 to August 2026.
In the third quarter of 2025, the company plans to book the revenue relating to the 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. Secondly, the company continues to advance in the artificial intelligence field and in January 2025 ROVI acquired a majority position in Cells IA Technologies, a pioneering company in the development of AI-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 for transformation as a result of the new digital technologies. This agreement with Cells IA Technologies represents an opportunity for ROVI in its goal to contribute to improving healthcare through the development of artificial intelligence solutions.
Now let me give a quick overview of the first half 2025 financials. As I mentioned before, total operating revenue fell 4% to €314.6 million versus the first six months of 2024, mainly due to the behavior of the CDMO business. Notwithstanding, sales of the specialty pharmaceutical business rose 13% to €237.4 million in the first half of the year, positively impacted by our low molecular weight heparins, Okedi, Neparvis, and the contrast agents, another hospital products division. I will touch upon their performance later in the presentation. EBITDA stood at €65.6 million, a decrease of 6% compared to the same period of last year, reflecting a 0.4 percentage point decrease in the EBITDA margin, which was 20.9% in the first half of 2025. Likewise, net profit stood at €39.7 million, a decrease of 10% in the first half of 2025 compared to the first half of 2024.
Moving on to one of our main pillars of growth, our specialty pharma area. Sales of prescription-based pharmaceutical products increased 14% to €208.1 million in the first six months of the year. Heparin sales, low molecular weight heparin mainly and other heparins, grew by 12% in the first half of 2025. Enoxaparin was the main contributor to the growth of the division with sales rising 14% to €79.8 million due to an increase in orders from international partners. Bemiparin had a strong half in terms of revenue performance in the first half of 2025. Bemiparin 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 Bemiparin and the enoxaparin 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 2025. 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 €79.8 million due to an increase in orders from international partners in the first half of 2025 compared to the first half of last year. The growth drivers of the specialty pharmaceutical business were Okedi, Neparvis, and the contrast agents and other hospital products.
Now, taking each one of the brands in turn, step by step. Sales of Okedi, the first ROVI product based on its leading-edge drug delivery technology ISM for the treatment of schizophrenia in adults, reached €26.9 million in the first six months of 2025, an increase of 115% compared to the same period in 2024 and a 14% rise compared to the first quarter of 2025. Sales of Neparvis, a specialty product from Novartis indicated for the treatment of adult patients with symptomatic chronic heart failure and reduced ejection fraction, increased 11% in the first half of 2025. 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 €77.2 million in the first half of 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 are in a phase characterized by a highly dynamic market in which ROVI is soundly positioned. In order to capitalize on our competitive edge, we are making significant investments aimed to consolidate global leadership in sterile fill-finish capacity and services. This will allow the company to continue to capitalize on a significant imbalance between the growing demand for injectable products and the capacity currently on offer. With the recent investments and 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 plants, 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: Letrozole SIE, a quarterly prolonged release letrozole injection superior to Femara in estrogen suppression to treat hormone dependent breast cancer, and Risperidone QUAR, 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 seek to improve clinical efficacy, increase treatment adherence, and provide an enhanced tolerability profile. In the first quarter of 2025, we obtained positive results in two previous phase 1 trials, enabling us to progress towards phase 3 clinical trials. These developments reflect our commitment to innovation and enhancement of the patient’s quality of life. 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 % 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 Okedi.
Second, potential growth avenues with recent investments in the CDMO business as well as in the clinical development of a three-month formulation of Letrozole SIE and a three-month formulation of Risperidone QUAR. With that, I would like to turn it back over to Javier López-Belmonte Encina, 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 López-Belmonte Encina, Deputy Chairman and CFO, 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 €314.6 million, a decrease of 4% in the first six months of 2025, mainly driven by the performance of the CDMO business.
CDMO sales fell 35% to €77.2 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 plan for production of the vaccine under the agreement with Moderna in the first half of 2025, lower revenues from the production for Moderna in the first half of 2025, and finally lower revenues from existing customers including Moderna as a result of the closure of the Madrid facility to upgrade some Annex 1 GMP aspects for sterile fill-finish manufacturing. As a result of this closure, some production for existing clients was brought forward from the first half of 2025 to the last half of last year and all the production has been postponed to the remainder of 2025.
However, sales of the specialty pharmaceutical business increased 13% to €237.4 million compared to €210.5 million in the first half of the previous year. In addition to the increase in the low molecular weight heparin sales, enoxaparin and bemiparin stand out with a 12% growth, reaching €131.3 million in the first half of 2025. Enoxaparin was the main contributor to the growth of the division, with sales rising 14% to €79.8 million 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 this year compared to 2024. In addition, bemiparin sales increased by 9% to €51.5 million in the first half of 2025 compared to the first half of 2024. This rise was driven by bemiparin 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 bemiparin to increase by a low single-digit percentage in 2025 compared to 2024. Gross profit increased 0.3% to €196.2 million in the first half of this year compared to the same period of last year. Gross margin was up 3.0 percentage points to 62.4% in 1H 2025. This increase was mainly due to the increased contribution of Okedi sales, which added high margins, the 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 1H25 compared to 1H24, which added lower margins to group sales in the first half of 2025.
Raw material prices for low molecular weight heparins fell 33% compared to the first half of 2024. 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&D expenses increased 38% to €16.8 million in the first half of 2025 due to the completion of the Phase 1 clinical trials for Letrozole SIE and quarterly risperidone and the preparation for the development of Letrozole SIE’s Phase 3 clinical trial. Selling, general, and administrative expenses remained stable at €113.7 million in the first half of 2025 compared to the same period of the previous year.
Within SG&A expenses, employee benefit expenses excluding R&D increased by 9% in the first half of 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&D, driven by efficient cost containment policies. EBITDA totaled €65.6 million in the first half of 2025, 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 increased 10% to €50.9 million in the first six months of this year, reflecting a 1 percentage point decrease in the EBIT margin, which decreased to 16.2% in the first six months of 2025.
Net profit decreased 10% to €39.7 million in the first half of 2025. EBITDA pre-R&D, calculated excluding R&D expenses in the first six months of this year, increased by 0.4%, reflecting a 1.3 percentage point increase in the EBITDA margin to 26.2% in the first six months of 2024. Again, EBIT pre R&D in this case decreased by 1%, reflecting a 0.7 percentage point increase in the EBIT margin to 21.5% in the first six months of the year. Net profit pre R&D decreased by 2% in the first six months of the year. We now move to CapEx and cash flow. 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 €20.8 million in the first half of the year, and of this amount, €15.7 million relates to investment CapEx regarding our facilities, including important projects such as the new filling lines and the operations expansions, the glycopectin 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 €5.2 million in maintenance and other CapEx. Cash flow from operating activities decreased 6% to €28 million, mainly due to the decrease of €6.5 million in profit before income tax and the increase of €86 million in the trade and other receivables item in this first half of 2025 compared to an increase of €27 million in the same period of last year.
Regarding our debt now, as of 30th of June this year, ROVI’s total debt increased to €129.3 million. €105 million is debt with banks, representing 81% of total debt, while €13.7 million corresponds to financial liabilities for leases, representing 11% of total debt, and €10.5 million corresponds to debt with public administration related to the development of R&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 €49.6 million, and therefore our net debt is €79.7 million. Regarding our dividend, ROVI’s General Shareholders Meeting held on the 18th of June 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% of the consolidated net profit for last year attributed to the parent company. By the way, this dividend was already paid on the 16th of July this year. Regarding the news flows for 2025, we will continue to monitor 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, the Nordic countries, Australia, Taiwan, and the Netherlands. We also look forward to hearing about new licensing of new products. Regarding our R&D, we are making good progress with the next steps of the clinical trial of Letrozole SIE and Risperidone QUAR, you know, the new formulation of risperidone for a three-monthly injection.
That’s all regarding our financial results for these first six months of 2025. We can now start the Q&A session. Please remember, if you want to ask any questions, do not hesitate to send them through the question button on the platform.
Marta Campos Martínez, Head of Finance, ROVI: Thanks, Javier. The first question is from Pablo Derenteria from Kepler. Javier, it’s for you. The Heparin sales seem to be performing better than initially expected, as reflected in your upgraded expectations from a low single-digit 1% 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? Alternatively, does the improved outlook for the low molecular weight heparin franchise give you greater confidence in achieving your full year targets?
Javier López-Belmonte Encina, Deputy Chairman and CFO, ROVI: Thank you, Marta. 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 Africa, and France. We are very happy how the division, especially this division, is progressing so far throughout the year. This is why we have updated the guidance for the product. Also, on the CDMO side, as you know, we expect to have declining revenue since we expect to have also residual revenues not from the tech transfer, what we call tech transfer activities, this preparation for the plant and the CapEx from Moderna. Remember that we recognize between €40 million and €45 million last year from these services. Having said that, I think right now we remain very confident around the guidance.
You know, the guidance was also ample. We don’t know. We do not believe that at this moment of time we need to change the guidance. I would say that this first semester reinforces how positive we are about achieving the guidance, at least.
Marta Campos Martínez, Head of Finance, ROVI: Thanks, Javier. The next question comes from Alvaro Lente from Alantra Equities. Javier, this is for you. You spent €17 million in R&D in H1, which annualized is below the €40-60 million R&D budget you provided. 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 López-Belmonte Encina, Deputy Chairman and CFO, ROVI: Thank you, Alvaro, for your question. I guess it’s regarding the evolution of R&D. We try to explain and to be very, very transparent in our Capital Market Day about the evolution of our R&D expenditure. As we explained today, we are preparing and about to start probably in the next coming months our phase 3 clinical trial of Letrozole SIE. That means that for sure, and this will be good news for the company, we expect in the second part of the year to spend more money on R&D compared to the first half. Probably will be in the range that we provided for R&D for the next years, and for this 2025 year, I guess that the R&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.
I guess that 2026 will be a more expansive year with regards to R&D.
Marta Campos Martínez, Head of Finance, ROVI: Thanks, Javier. Juan, the next question is from Guillerme Sampaio from Taishabank. Are you seeing any slowdown in conversations regarding neutral manufacturing contracts based on the volatility induced by the U.S. tariff announcements?
Juan López-Belmonte Encina, Chairman and CEO, ROVI: Any signal at all? As we mentioned in our presentation, the CDMO landscape is booming. Really the demand for injectable capacity is. They’re probably living through the most impressive days with a complete disalignment between supply and demand. We are really overwhelmed by the number of proposals, contacts, and tech transfer that we are involved. As Javier has mentioned before, we believe that the news flow on CDMO is going to be rich in the next 12 months. It’s logical as well that, if I may expand on the answer, the CDMO is not affected by all this geopolitical environment because we are really working on timings that go beyond a quarter or two quarters or a year. At the end of the day, conversations for CDMO contracts take at least a year and a half. You have to do the tech transfer, the regulatory submissions with your approvals.
We’re always talking about a period of time between two to four years. It really goes beyond any short-term volatility. We are extremely confident, as Javier has mentioned before and I have stressed myself, that the CDMO is going to be one of our lighting stars in the next coming quarters and years.
Marta Campos Martínez, Head of Finance, ROVI: Thanks, Juan. Javier Guillerme has another question. This is for you. On SG&A, is it reasonable to project a year-over-year development in the second part of 2025 in line with the first part of the year?
Javier López-Belmonte Encina, Deputy Chairman and CFO, ROVI: Thanks, Marta. Thanks, Guillerme, for your question. I mean, we are very happy with the evolution of SGNA during the first semester of the year. I think we are having very restricted cost containment policies, and probably for the remaining part of the year we don’t expect a higher increase, maybe a moderate, a very small increase, very modest anyway. That’s why we are quite excited about how we are managing the company. We are trying to maintain cost under control, and we are very happy about it.
Marta Campos Martínez, Head of Finance, ROVI: Thanks, Javier. Juan Alvaro Lense from Landra Equities asks 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 López-Belmonte Encina, Chairman and CEO, ROVI: Thank you, Aurora, for your question. As I mentioned before, we are probably overwhelmed by the number of contacts, tech transfer discussions that we are holding in the last 2, 3/4 really. In terms of leading times between small, let’s say, contracts and large contracts, there really is not much differentiation. We might gain some time regarding contract discussions or contract execution. When it comes to tech transfer, when it comes to filling high stability data, when it comes to registration submissions and registration approvals, it takes usually 90% of the same time of any large contract. As I mentioned before, we are trying to balance. Not everything can be large, huge contracts, stimuli material. On the other hand, I think something that we are working extremely hard on right now in the CDMO activities is really to try to expand our customer base.
I believe in that sense, as I mentioned before, we are going to have a very rich news flow in the next probably year ahead of us with many different announcements of small and large contracts. Always, as we mentioned before, in many cases always related to the confidentiality clauses that in many cases don’t allow us to provide that much detail and information regarding the intrinsics of the different agreements.
Marta Campos Martínez, Head of Finance, ROVI: Thanks, Juan. Javier, Alvaro also wants to know how are the preparation works for the 2024 announced CDMO client going, and when do you expect to start producing test batches and when commercial batches.
Javier López-Belmonte Encina, Deputy Chairman and CFO, ROVI: Thank you, Alvaro. For sure, this agreement now that we announced in 2024, I think this is a game changer for us and for the next coming future of the CDMO business. That’s why we are so optimistic for the evolution of the business. We have been working, or we are working, with the customer, you know, with a validation process. I’m trying to make sure that we progress in the right direction as we always guided the market. We expect next year to have the initial impact on sales from this agreement, of the initial commercial sales at least, impact from this agreement on ROVI’s revenue. We have explained several times that the starting or kicking off commercial activities normally depend, or always depend, on regulatory approvals.
Regulatory approvals are something that is difficult to plan very well ahead, or at least to, you know, to highlight it, if it’s going to be for sure in a quarter or in another quarter. What we are planning is that for sure, second part of next year we’ll have already commercial activities. I think that’s a good message. Both companies, our customer and 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. 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 will change the dynamic of the CDMO business.
Marta Campos Martínez, Head of Finance, ROVI: Javier, the next question is for you. Sorry, from Jaime Scrivano. Okedi €27 million in H1 2025. 2025 guidance is €50 million. Could this be conservative? How do you see the second part of the year?
Javier López-Belmonte Encina, Deputy Chairman and CFO, ROVI: Yeah, thanks Jaime for the questions around Okedi sales. I think we are quite, we are very optimistic about the evolution of Okedi sales as we try to deliver today. We have already launched the product in many countries and that’s why 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 supporting and the sales and the orders coming from partners, sometimes are not even or are not split evenly during the year and somehow we have different peaks and valleys during the year.
That’s why, taking into account that Okedi has been launched very recently in some of these countries, we prefer to maintain the guidance even though the first year, the first part of the year has been tremendous, I 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 direct sales in the second part of the year. As I said before, as we cannot control stocks of our partners, that’s why we prefer to keep and maintain the guidance for the whole year.
Marta Campos Martínez, Head of Finance, ROVI: Thanks, Javier. The last question comes from Chris Richardson from Jefferies. Juan, is for you, what changed in the enoxaparin guidance? What caused the initial negativity? Is there a possible pull forward of revenues from the rest of the year to avoid tariffs, for example?
Juan López-Belmonte Encina, Chairman and CEO, ROVI: Thank you, Chris, for your question. I hope I have got it right. First, let me say that we as a company don’t export, I mean we don’t commercialize products in the U.S., so we shouldn’t be impacted 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 European countries as well. So far, to the best of our knowledge regarding tariffs, it seems that so far, 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 products seem to be at least so far avoided any sort of measures from the, from the Trump administration. As has been mentioned, really the evolution is pretty good. We see momentum from the international markets, especially France, Israel, South Africa, and Canada.
We are investing heavily on the supply chain, as we have mentioned many different times on different occasions, trying to be self-sufficient in having a vertical integration from the really raw material. That means the picnic cost to the finished product. That definitely should allow us to improve our cost of goods, improve our margins, and definitely give us further competitiveness on the market.
Marta Campos Martínez, Head of Finance, ROVI: Thank you very much, Juan. Thank you very much for your participation. Let me now turn the floor over to our Vice President and CFO, Mr. Javier López-Belmonte Encina, for the closure of the presentation.
Javier López-Belmonte Encina, Deputy Chairman and CFO, ROVI: Thanks, Marta, for your help. As Marta was pointing out, there are 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 and a good summer break. Thank you. Bye bye.
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