Rovi Cuts Its Profit by 4% in the First Nine Months, to 113.5 Million

Rovi posted a net profit of 113.5 million euros in the first nine months of the year, 4% lower than in the same period in 2023, when it earned 118.8 million euros, the pharmaceutical company reported to the National Securities Market Commission (CNMV) on Thursday.

Rovi’s gross operating profit (EBITDA) fell by 2% compared to the period between January and September 2023, reaching 167.2 million euros, with an increase in the EBITDA margin of eight-tenths, to 29.6%.

The Spanish pharmaceutical company‘s net operating profit (EBIT) fell by 4% between January and September this year, to 146.6 million euros.

Rovi’s operating income reached €564.6 million in the first nine months of the year, down 5% compared to the same period in 2023.

Rovi shares fell 8% on the stock market after its results were announced

The company has attributed the decline in its operating income mainly to the performance of its third-party manufacturing division, which generated lower sales associated with the manufacture of the Covid vaccine and the activities carried out to prepare the plant for the production of the vaccine under the agreement with Moderna.

However, Rovi highlights that sales from its third-party manufacturing business increased by 16% in the third quarter compared to the same period in 2023, reaching 134.4 million euros.

Looking ahead to the end of the 2024 financial year, Rovi expects its operating income to decrease in the mid-range of the first ten (between 0 and 10%) compared to 2023.

For 2025, the pharmaceutical company has made the same forecast: its revenues could fall between 0% and 10% compared to those obtained in 2024.

The company will not market its drug to treat schizophrenia in the United States

Rovi also announced during its results presentation that it will not market its product for the treatment of schizophrenia in adults, Risvan, in the United States, “after an assessment of the uncertainties and opportunities associated with this launch.”

The pharmaceutical company is therefore betting on the European development of Okedi, Rovi’s first product based on its cutting-edge drug delivery technology for the treatment of schizophrenia in adults, and hopes to achieve potential global sales of this product of between 100 and 200 million euros in the coming years.

In the first nine months of the year, Okedi’s sales reached 20.3 million euros, 126% more than in the same period in 2023.

“This is a key year to lay the foundations for Rovi’s future. We are in a phase of growth focused on increasing our production capacity in the third-party manufacturing business and strengthening the company’s internationalisation,” said Rovi President and CEO Juan López-Belmonte Encina.

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