ROVI Cuts 2026 Revenue Guidance on Lower Pharma Demand

ROVI Revises 2026 Revenue Forecast Downward

Laboratorios Farmaceuticos Rovi SA has lowered its full-year 2026 revenue guidance, now expecting growth in the low to mid-single-digit percentage range. This marks a significant reduction from the previous forecast of high single-digit to low double-digit growth. The Spanish drugmaker attributes the revision to decreased demand from a global pharmaceutical partner and ongoing pricing pressures within its heparin business.

First-Quarter Financial Overview

The company's first-quarter results reflect these headwinds. Operating revenue fell 1.5% to €152.5 million, while EBITDA dropped sharply by 33% to €20.3 million. Consequently, the EBITDA margin contracted to 13.3% from 19.6% in the same period last year, driven by higher selling, general, and administrative expenses, alongside increased research and development costs.

Business Segment Performance and Outlook

Performance across segments was mixed. Specialty pharma revenue declined 3% to €115 million, as a 12% drop in heparin sales offset a 37% surge in Okedi sales. In contrast, the contract development and manufacturing organization (CDMO) business posted 5% revenue growth. ROVI also recently completed its acquisition of a manufacturing site in Phoenix, Arizona, from Bristol Myers Squibb.

Summary

Despite the near-term challenges and revised guidance, ROVI continues to pursue strategic growth. The company plans to initiate two new multinational clinical studies for Risperidone QUAR, with patient enrollment anticipated by the fourth quarter of 2026, underscoring its commitment to pipeline development.

FAQ

Q: Why did ROVI lower its 2026 revenue guidance?
A: ROVI cited decreased demand from a key pharmaceutical partner and significant pricing pressures affecting its heparin business.

Q: How did ROVI perform in the first quarter?
A: First-quarter operating revenue fell 1.5% to €152.5 million, and EBITDA dropped by 33% to €20.3 million compared to the previous year.

Source: Investing.com