The stock market shoots up more than 12% after improving forecasts
Rovi obtained a net profit of 66.6 million euros in the first half of the year, a figure 17% lower than that of the same period in 2022, when it earned 80.6 million euros, as reported by the pharmaceutical company on Wednesday. National Stock Market Commission (CNMV).
Rovi's gross operating result (Ebitda) fell by 16% compared to the first half of 2022, reaching 97.1 million euros, with a drop in the Ebitda margin of 5 points, to 25.5%.
For its part, the net operating result (Ebit) of the pharmaceutical company fell by 18% between January and June, to 85.2 million euros.
Rovi's operating income remained stable in the first half after increasing by 0.1% compared to the same period in 2022, to 380.8 million euros, after sales of pharmaceutical products decreased by 3% and sales of pharmaceuticals increased. manufacturing to third parties 4%.
The pharmaceutical company assumes, for this year, a new post-pandemic scenario in which Covid would predictably be a seasonal disease and the vaccine would, in principle, be administered once a year.
"However, the uncertainty associated with the evolution of the disease is very high, so it is not possible to accurately assess the impact that this new scenario could have on the manufacturing business for third parties," says the pharmaceutical company.
IMPROVES FORECASTS AND ANNOUNCES REPURCHASE OF SHARES
On the other hand, Rovi has updated its forecasts for this year: it expects its operating income to decrease between 0% and 10% compared to 2022, compared to its previous forecast that they would decrease between 10% and 20%.
Given this forecast of lower income and the continuity of its investment policy, Rovi estimates that its results for 2023 "can be adjusted downwards".
For its part, the pharmaceutical company has announced that it has launched a share repurchase program in the company, effective as of this Wednesday, July 26, 2023, and for a period of 12 months, in order to amortize treasury shares for a maximum amount of 130 million euros and the maximum number of shares to be acquired (2.7 million) representing 5% of the share capital
Specifically, the company has explained that with this program it also intends to contribute to shareholder remuneration by increasing earnings per share.
Regarding the evaluation process to obtain marketing authorization for Risvan in the United States, the U.S. The Food and Drug Administration (FDA) has informed Rovi that the target date for closing the procedure ('user fee goal date') is this Thursday, July 27, 2023.
Specifically, the company has explained that it is waiting to receive a notification from the FDA, while it will communicate the content of this notification as soon as it is received.