Rovi Will Double Production to Sell to Third Parties After the Drop in Sales Post Covid-19

Rovi will increase its production capacity in 2024. With this decision, the Spanish pharmaceutical company aims to address the drop in income that the remission of the pandemic has meant for the entire sector. This objective will be materialized through a renovation of its facilities in San Sebastián de los Reyes (Madrid) with which the pharmacy hopes to double the manufacturing of injectables .

A total of 360 million units per year. This is the laboratory’s aspiration, as referred to in the documents of the General Directorate of Energy Transition of the Community of Madrid to which the aforementioned media has had access.

Currently, the company has two injectable drug manufacturing lines capable of producing 18,000 and 30,000 units per hour, and three more lines with the capacity to fill, cap and encapsulate 12,000 syringes: 84,000 drugs in total. Over the next few months, Rovi’s goal is to increase production to 57,600 and 36,000 units per hour, and with the rest of the lines to reach 177,600 units per hour.

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Rovi invoiced 403.5 million euros for sales to third parties in 2023 compared to 65.6 million in 2019

The reason for this increase is the need for Rovi to strengthen its business line aimed at third-party manufacturing. This decision is explained by a drop in sales after having signed an agreement with the American company Moderna to manufacture its Covid-19 vaccine for markets outside the United States. The agreement continues for other drugs, and that is precisely why Spanish pharmaceutical companies believe they must expand their production capacities .

The relationship with Moderna has been very fruitful for Rovi: the laboratory has gone from earning 65.6 million euros in third-party manufacturing in 2019 to billing 403.5 million in 2023, which means that this division goes from representing the 17.2% to represent 49.3% of the business. Rovi’s investment to double its production capacities will also impact the expansion of one of the buildings in its complex to have more capacity to store raw materials.

This Tuesday, Rovi will present the results for the 2023 fiscal year, in which its sales are expected to fall following the trend of many other pharmaceutical companies whose medications were among the most in demand to combat Covid-19.

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(Featured image by torstensimon via Pixabay)

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First published in PlantaDoce. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.

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