Recordati (REC) Jefferies London Healthcare Conference 2025 summary

Business performance and financial highlights

• Achieved strong revenue growth of 12% and EBITDA growth of 11.8% in the first nine months, with robust performance across all segments.

• Confirmed full-year guidance at the lower end despite significant currency headwinds, and reaffirmed 2027 guidance.

• Rare disease segment is trending toward 50% of total revenue, currently at around 40%, with high teens growth expected in 2026.

• 2026 identified as an investment year, with €40–50 million annual spend expected to impact margins by 140–150 basis points.

• Return on capital employed remains strong, consistently between 15% and 20%.

Product and pipeline developments

• Isturisa (Esteresa) saw significant US uptake after FDA label expansion in April, with peak sales guidance raised to over €1.2 billion.

• Growth opportunities identified in mild Cushing’s syndrome patients, requiring expanded field force and education initiatives.

• Ongoing phase 4 trial and real-world evidence studies to support further market penetration and physician education.

• Enjaymo integration progressing well, with strong patient uptake in the US, Japan, and Europe, though currency effects may slightly impact revenue targets.

• New proof-of-concept study initiated for Ewing sarcoma, expanding rare disease pipeline.

Strategic investments and M&A

• Continued focus on business development and M&A, targeting both rare disease and specialty primary care assets.

• Recent deals include Vascepa, expected to offset the loss of Cardicor and drive cardiovascular growth.

• M&A strategy remains opportunistic, with a mix of deal sizes and a focus on assets overlooked by large pharma.

• Ongoing investments in both rare disease and SPC, with future portfolio balance dependent on deal flow.