Recordati: Recordati SpA (RICFY) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

In This Article: Release Date: November 08, 2024 For the complete transcript of the earnings call, please refer to the full earnings call transcript . Positive Points Negative Points Q & A Highlights Q : What is causing the erratic trend in EBITDA margin evolution this year compared to previous years? A : Luigi La Corte, CFO, explained that the quarterly EBITDA margins are influenced by the seasonal nature of the cough and cold business, which has a healthy margin, and the timing of international distributor orders. Additionally, the accounting rules for hyperinflation economies like Turkey add some volatility. The company is also investing in the potential approval of a broader label for Isturisa in the US, which affects margins. Q : What are the expectations for Isturisa's approval in China and its potential revenue impact? A : Rob Corman, CEO, stated that Isturisa was approved in China earlier than expected, and they anticipate peak sales in the range of EUR 50 million. This approval is part of the company's guidance, and they are optimistic about the product's potential in both China and the US, where they are seeking a label extension. Q : How should we think about the metabolic portfolio and the erosion of Carbaglu in the US? A : Luigi La Corte, CFO, and Scott Pescatori, provided insights that while Carbaglu is experiencing some erosion in the US, the overall metabolic portfolio is expected to remain flat. Growth in international markets and other products like Panhematin and Cystadrops are expected to offset the decline. Q : How will Recordati manage the transition of the NJO acquisition from Sanofi to minimize disruption? A : Scott Pescatori mentioned that early interactions with Sanofi have been positive, and they anticipate minimal disruption. The transition is being managed carefully, with plans to integrate the new team smoothly once the deal closes. Q : What factors could influence Recordati's revenue guidance, and how is the company managing its financing post-NJO acquisition? A : Rob Corman, CEO, noted that the business momentum is strong, and they are confident in meeting the guidance. Luigi La Corte, CFO, added that the financing for the NJO acquisition is secured, with a mix of fixed and variable rates, and they expect an increase in financing expenses next year due to the acquisition. For the complete transcript of the earnings call, please refer to the full earnings call transcript . This article first appeared on GuruFocus .