ROVI ACHIEVED STABLE TOTAL REVENUE OF 381.0 MILLION EUROS IN THE FIRST POST-PANDEMIC HALF YEAR

• Operating revenue remained stable, reaching 380.8 million euros in the first post-pandemic half of 2023.
• Positive evolution of Okedi® (Risperidone ISM®), which reached sales of 5.2 million euros in the first half of 2023. Okedi® sales increased by 36% in the second quarter of 2023 compared to the first quarter of the year.
• CMO sales increased by 4% to 172.2 million euros in the first half of 2023.
• Sales of the enoxaparin biosimilar decreased by 9% to 74.5 million euros in the first half of 2023. However, sales of the product increased 14% in the second quarter of 2023 to 39.6 million euros, compared to the first quarter of the year, and rose 5% in the second quarter of 2023 compared to the second quarter of 2022.
• Good performance of Neparvis® and Orvatez®, whose sales increased by 17% and 12%, respectively, in the first half of 2023 compared to the first half of 2022, rising to 22.1 million euros and 13.6 million euros, respectively.
• Gross margin showed a decrease of 3.1 percentage points due to the higher contribution to the CMO business of the income related to the activities to prepare the plant for drug production under the agreement with Moderna, which adds lower margins to Group sales.
• Net profit decreased by 17% to 66.6 million euros.
• ROVI General Shareholders Meeting, on 14 June 2023, approved the payment of a gross dividend of 1,2938 euros per share; it means an increase of 35% compared to the dividend charged to the 2021 profit (€0.9556/share) and represents approximately 35% pay out. This dividend was paid on 5 July 2023.
• Regarding the evaluation process to obtain marketing authorisation for Risvan® (Risperidone ISM®) in the United States, the Food and Drug Administration (FDA) has notified ROVI that the user fee goal date is 27 July 2023. The Company is awaiting an FDA notification on that date. The content of this notification will be reported as soon as it is received.
• Considering the Group's cash generation and the market situation, ROVI has decided to launch a buy-back programme for the Company's shares effective as of today's date, 26 July, 2023, in order to cancel ROVI shares and, at the same time, boost the remuneration of the ROVI shareholder by increasing the profit per share. The programme is for a maximum amount of 130 million euros (with the maximum number of shares to be acquired representing 5% of the share capital). 

OUTLOOK

In November 2022 and February 2023, ROVI announced it expected the operating revenue for the full year 2023 to show a low-double-digit negative growth on 2022, although positive growth of between 5% and 10% is expected in comparison with the 2021 figure. With the visibility that the Company has at this moment, ROVI is upgrading its operating revenue guidance for the full year 2023 from low-double-digit negative growth to high-single-digit negative growth.

For 2023, ROVI is assuming a new post-pandemic scenario in which COVID-19 would foreseeably be a seasonal disease and, in principle, the vaccine would be administered once a year. The uncertainty related to the evolution of the disease is very high. It is not, therefore, possible to make a precise assessment of the impact that this new scenario could have on the CMO business. Likewise, under the terms of the agreement signed with Moderna in February 2022, ROVI is still investing in increasing the compounding, aseptic filling, inspection, labelling and packaging capacities at its facilities and expects them to be fully installed by the end of 2024.

Taking account of the aforementioned guidance on a decrease in operating revenue in 2023, as well as the fact that ROVI will continue with its investment policy as stated, it is reasonable to expect that the Company’s profits may also see a downward adjustment in 2023.

LAUNCHING OF A SHARE BUY-BACK PROGRAMME

ROVI informs the market that, effective as of today's date, 26 July, 2023, a share buy-back programme (the “Buy-back Programme”) will commence under the following terms (see further information on page 26):

1. Purpose and scope: the Buy-back Programme’s purpose is to redeem own shares of ROVI (share capital reduction) while, at the same time, boost the remuneration of the ROVI shareholder by increasing the profit per share.
2. Term: from today, 26 July 2023, for a period of 12 months.
3. Maximum monetary amount: up to 130,000,000 euros.
4. Maximum number of shares to be acquired: 2,700,000 shares of the Company, representing approximately 5% of the Company’s share capital.