Keys to ROVI’s 1Q 2022 Results

Rovi reports first quarter 2022 results with operating revenues up 57% to €205.6 million.

On 31 May, 2022, we closed the first quarter of 2022 with results that reflected our determination to improve both the quality of the patients’ lives and the assistance provided to them. Operating revenue rose 57% to 205.6 million euros. This achievement stemmed mainly from  growth of 167% in the contract manufacturing business as well as an increase of 16% in the specialty pharmaceutical business.

In financial terms, ROVI increased its EBITDA by 113% in comparison with the same period of 2021, reaching a total of 74.3 million euros. Net profit rose 123% to 53.0 million euros.

Consequently, if the General Shareholders’ Meeting approves the 2021 results, Laboratorios ROVI will distribute a dividend of 0.9556 euros per share charged to the 2021 profit. This would represent an increase of 151% compared to the dividend paid out of the 2020 profit (€0.3812/share) and entail the distribution of approximately 35% of the net consolidated profit for 2021.

This growth was possible because we diversified our investment and effort over several of the levers that reinforce our contribution to society. The divisions showing the greatest growth in terms of sales were the following:

  • The heparin division increased 19% to 75.9 million euros.
  • The enoxaparin biosimilar rose 50% to 44.2 million eros.
  • Neparvis® showed 7% growth, totalling 9.3 million euros.
  • Volutsa® grew 9% to 4.3 million euros.
  • Vytorin®, Orvatez® and Absorcol® showed growth of 21% to 8.2 million euros.
  • The contract manufacturing business increased 167% to 95.0 million euros. Its forecast growth for 2022 is between 30% and 40% on the 2021 figure.

In 2021, Laboratorios ROVI, in collaboration with Moderna, played a key role in the manufacture of the messenger RNA (mRNA) COVID-19 vaccine to be used globally, except in the United States. In this context, during the first quarter of 2022, the two companies announced an extension of this collaboration for manufacturing of mRNA medicines to ten years. This new agreement falls within the shared strategy of increasing the compounding, aseptic filling, inspection, labelling and packaging capacities at the ROVI facilities in Madrid, San Sebastián de los Reyes and Alcalá de Henares.

In this respect, ROVI will continue to produce the COVID-19 vaccine and will likewise be able to provide service for future Moderna mRNA vaccine candidates. At ROVI, we are striving to contribute all our experience as a contract manufacturer of high-technological-value injectables to solve this pandemic and we are confident of our ability to take part in the manufacture of new mRNA candidates in the future.

In addition, after more than ten years’ work on the development of the ISM® platform, our exclusive technology for the prolonged release of injectables, ROVI has achieved the first milestone. At the beginning of the year, the European Commission authorised the marketing of our candidate Risperidone ISM® for the treatment of schizophrenia in adults for whom the tolerability and effectiveness had already been established with oral risperidone. For ROVI, the European Commission’s approval of this new medicine is very exciting because we believe it will contribute to the clinical management of schizophrenia patients.

As part of the first phase of marketing, the medicine has recently been launched in Germany. In the rest of Europe, the product will gradually be launched in the different countries starting in the second quarter of 2022. Regarding the United States, ROVI has filed the application for marketing authorisation for Risperidone ISM® with the U.S. Food and Drug Administration (“FDA”), the United States health authority. At present, the FDA has reported a delay in its decision on granting the authorisation.

In this respect, ROVI’s current investment in research and development (R&D) is mainly related to preparing the following phase of the development of Letrozole ISM®, another ISM® platform candidate, and developing a three-monthly injection of Risperidone ISM®. Specifically, ROVI’s R&D investment in the first quarter of 2022 totalled 4.8 million euros.

Thus, with these results, Laboratorios ROVI hopes for its operating revenue to increase by between 15% and 20% in 2022. Our goal at ROVI is to show stable growth over forthcoming quarters and years, due to the potential of our R&D pipeline.