Laboratorios Farmaceuticos Rovi (ROVI) Investor Update summary

Strategic rationale and transaction overview

• Acquisition of a state-of-the-art injectable drug manufacturing site in Phoenix, Arizona, with over $100 million invested since 2021 and significant room for expansion.

• The site includes advanced cytotoxic capabilities, FDA, EMA, and Japanese agency approvals, and will be further upgraded with a new Optima prefilled syringe filling line by 2027, adding 65–70 million units of annual capacity.

• The acquisition positions ROIS as a top-three global CDMO for injectables, expanding its US presence and supporting the goal to be among the leading CDMOs worldwide in high-value injectables.

• The acquisition price is not material for the buyer and is below 1% of market cap.

• The transaction is subject to regulatory approvals and is expected to close in H1 2026.

Growth potential and operational impact

• The Phoenix site offers ample space for future expansion, including biologics manufacturing and additional PFS filling and packaging capacities.

• The location provides strong logistics, access to talent, and is in a growing life sciences hub.

• Integration will broaden the global manufacturing network, enhance injectable capacity, and support U.S. and European supply.

• The facility will initially operate at cost-neutral levels, with profitability expected as new customers are onboarded and the new PFS line becomes operational.

• Expertise at the site includes high-potent OEB5 products, vaccines, biosimilars, monoclonal antibodies, and ADCs.

Strategic partnerships and market positioning

• Five-year toll manufacturing agreement with Bristol Myers Squibb guarantees a minimum $50 million annual fee and a total $250 million initial term supply agreement.

• The U.S. presence is expected to attract new and existing customers seeking local manufacturing.

• The company is rebranding its CDMO business to ROIS, marking a transformation into a global contract development and manufacturing organization.

• The Phoenix site complements four existing sites in Spain, enhancing the ability to serve global pharma clients.

• All sites are audited and approved for global operations, with a strong track record in vaccines and biotech products.