Laboratorios Farmaceuticos Rovi (ROVI) Q3 2025 earnings summary

Executive summary

• Operating revenue for the first nine months of 2025 was €525.1 million, down 7% year-over-year, mainly due to a 28% decline in CDMO business, while specialty pharma sales rose 10% to €343.4 million.

• Okedi® sales surged 102% to €41.0 million, and the heparin franchise grew 7% to €189.8 million, with enoxaparin sales up 11% to €112.8 million.

• Gross margin improved to 67.1% (up 3.5 pp), aided by R&D grants, higher-margin product sales, and lower LMWH raw material prices.

• EBITDA fell 11% to €149.5 million, and net profit declined 14% to €97.7 million, reflecting lower revenues and increased R&D expenses.

• Strategic milestones included agreements with Roche, Sandoz, and BMS, acquisition of a Phoenix facility, and a €36.3 million R&D grant for the LAISOLID project.

Financial highlights

• Specialty pharma business offset CDMO weakness, with Okedi®, Neparvis®, and contrast agents as key growth drivers.

• CDMO sales dropped 28% to €181.7 million due to lower Moderna-related revenues and a temporary plant closure for upgrades.

• SG&A expenses rose 2% to €177.9 million, and R&D expenses increased 42% to €24.7 million, reflecting clinical trial activity.

• Free cash flow more than doubled to €63.3 million, and gross cash position rose to €51.2 million.

• Capex increased 14% to €38.5 million, mainly for plant expansions, new filling lines, and ISM® industrialization.

Outlook and guidance

• 2025 operating revenue expected to decrease by a mid-single-digit percentage versus 2024.

• 2026 operating revenue projected to grow by a high single-digit to low double-digit percentage, with growth levers including new product launches, CDMO agreements, and AI-powered diagnostics.

• Full-year 2025 enoxaparin biosimilar sales expected to rise mid-single-digit; bemiparin sales to increase low single-digit.