Reig Jofre Earns 3.27 Million in the First Quarter

Reig Jofre drops in profits, but in the rest of the areas it remains on the path of growth. The pharmaceutical laboratory closed the first quarter of the year with a profit of 3.27 million euros, 15% less than in the same period of the previous year, as reported to the National Securities Market Commission (CNMV) this Thursday.

Reig Jofre has explained that, in the first quarter of 2023, the result incorporated, through equity accounting of the Syna Therapeutics joint venture , the billing of a biosimilar development milestone that is not repeated this year, but that “is expected throughout” the exercise.

The Catalan pharmaceutical company also exceeds 86 million euros in sales, 10% above the first quarter of 2023 . It also managed to improve profitability, with a growth in gross operating profit (ebitda) of 11% to reach 10.3 million euros compared to 9.2 million euros at the end of the same period of the previous year.

The Specialty Pharmacare division, focused on prescription medical products, achieved the highest growth in revenue, up 26% . The division with the greatest weight in sales is Pharmaceutical Technologies, dedicated to injectable products and antibiotics, achieving a growth of 6%.

They are followed by the Consumer Healthcare area, the consumer products division, which contributes 24% of the group’s sales, with the Forté Pharma brand, in the French, Belgian and Spanish markets, and Reig Jofre’s OTC products.

Reig Jofre obtained 55% of its income from international markets

The pharmaceutical technology division, focused on products for hospital use, makes 60% of its sales outside Spain. During the first quarter of 2024, growth was driven by the European market (up 23%), followed by the Asian market (up 7%).

It has also been positively impacted by the continued increase in global demand for antibiotics, which has not yet recovered pre-coronavirus levels. Manufactured at the Reig Jofre plant in Toledo, these products grow by 16% . During this first quarter of the year, income from the capacity reserve of the Barcelona plant has increased, according to an agreement signed in June 2023.

The prescription product area grows 26% , maintaining sustained double-digit growth in all its therapeutic areas. The Dermatology area grows by 28% as a result of the patented CicloTech technology in Spain, and the first sales are expected in Portugal for the second half of 2024.

The osteoarticular area of Reig Jofre registers a growth of 21% , highlighting Spain (with a growth of 32%) and internationally in the Czech Republic and Finland, followed by Asia. Sweden is experiencing an increase driven by growing demand for third-party manufacturing (Cdmo) services, especially in the manufacturing of enteral gels and dermatological products.

The food supplements and OTC division presents a slight decrease of 1%, due to the discontinuation of distribution in France , of brands for third parties, in order to focus on Forté Pharma, its own product with greater profitability. This brand improves by 8%, reaching 17 million euros, and continues to grow in its main market, France, by 12%, and also in Spain, by 5%, where it gains market share and continues to consolidate the brand.

55% of Q1 2024 revenue was earned in international markets . Of this sales volume outside Spain, approximately 57%, some 49 million euros, come from the countries in which Reig Jofre has a presence with its own equipment, and the rest through distribution, licensing or CMO manufacturing agreements.

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(Featured image by Myriams-Fotos via Pixabay)

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