Laboratorios Farmaceuticos Rovi, S.A.

In the first half of 2026, total revenue increased 13% to EUR 357 million and operating revenue rose 9% to EUR 344.2 million. Gross profit increased 21% to EUR 237.1 million, with gross margin improving 6.5 percentage points to 68.9%; excluding other income, gross margin was 65.2%. EBITDA totaled EUR 121.2 million, while EBITDA excluding the EUR 62.4 million Phoenix badwill declined 10% to EUR 58.8 million. EBIT was EUR 103.2 million and net profit was EUR 84.4 million, up 113% year over year. Looking ahead, management maintained 2026 guidance for operating revenue growth of low to mid-single digits versus 2025. They also now expect low molecular weight heparins sales to decline by a mid-single-digit percentage, improved from prior guidance of a high single-digit decline, and said SG&A excluding ROIS Phoenix should rise by a mid- to high single-digit percentage in 2026.

Juan Encina framed the quarter as validation of ROVI’s growth platform, emphasizing the strength of CDMO, Okedi, and the heparin franchise. He highlighted the Phoenix acquisition as a strategic step that expands the company’s U.S. industrial footprint, while stressing continued investment in vertical integration through Glicopepton and in the ISM pipeline. His tone was confident but measured: he repeatedly said the company remains committed to heparins, CDMO, and Okedi, while staying cautious on full-year guidance where visibility is limited.

Javier López-Belmonte focused on the mechanics behind the results, noting two nonrecurring items: the EUR 62.4 million Phoenix badwill and the completion of the tax inspection for fiscal years 2020 to 2022 without penalties. He said SG&A increased 28% to EUR 145 million, or EUR 140.5 million excluding nonrecurring items, while R&D rose 98% to EUR 33.3 million largely for Letrozole SIE Phase III preparation. Cash generation was a highlight: operating cash flow was EUR 94.3 million, free cash flow EUR 64.7 million, debt was EUR 107.7 million, gross cash EUR 130.2 million, and the company ended with net cash of EUR 22.5 million. He also noted a dividend of EUR 0.9594 per share, representing about a 35% payout ratio.

Analysts pressed management on the impact of the German healthcare reform, and Juan said the direct exposure appears limited, mainly to Okedi sales in Germany, which were EUR 8.4 million in the first half. They also asked about heparin raw material prices and competition; management said prices are still trending down but are nearing a bottom, and that the competitive landscape remains stable, with ROVI facing mainly Chinese players and a weakening Sanofi. On CDMO, management said capacity utilization remains the priority, Phoenix Optima is expected to be operational between end-2027 and early-2028, and the BMS agreement has a take-or-pay baseline of USD 50 million per year. Management also reiterated that the PFS contract’s regulatory approval is delayed and no recurring manufacturing revenue is included in 2026 guidance.