So what does this mean?
Barcelona, 10July 2017
Almirall, S.A. has provided today an update to the yearly guidance for 2017 that reduces the company's initial estimations for Total Revenues, Net Sales and EBITDA growth for this year. While Almirall's business is performing in line with expectations in Europe and rest of the world, the US business, operated by Aqua, an Almirall company, is being materially adversely impacted by three issues: a rebalancing of inventories in the distribution channel; a significant level of inappropriate adjudication of the Patient Assistance Program (PAP), resulting in a material deterioration of the Gross to Net sales ratio; and the recent launch of a generic to Acticlate in the US market.
Although significant actions have been put in place to mitigate the impact, the company has decided to lower its financial expectations for the year and has provided a Guidance of low double digit decline in Total Revenues and Sales versus last year and an EBITDA figure within the range of 140 to 170 million euros.
Eduardo Sanchiz, Almirall's CEO, commented: 'The US remains the most profitable world market and we believe that Aqua´s infrastructure and capabilities will continue to offer significant benefits to Almirall. Elsewhere, with the exception of a slow start to the year for ThermiGen, our performance remains on track and we look forward to the upcoming launches in Europe of Skilarence in Q3 as well as tildrakizumab in 2018. We see progress in the R&D pipeline and have new leadership in place with substantial expertise in skin health. Finally, we continue to have a strong focus on inorganic growth supported by a strong balance sheet. While we view the current situation as very challenging, we remain focused on delivering our strategic goals and creating value for our stakeholders'.
Barcelona, 10July 2017
Almirall, S.A. has provided today an update to the yearly guidance for 2017 that reduces the company's initial estimations for Total Revenues, Net Sales and EBITDA growth for this year. While Almirall's business is performing in line with expectations in Europe and rest of the world, the US business, operated by Aqua, an Almirall company, is being materially adversely impacted by three issues: a rebalancing of inventories in the distribution channel; a significant level of inappropriate adjudication of the Patient Assistance Program (PAP), resulting in a material deterioration of the Gross to Net sales ratio; and the recent launch of a generic to Acticlate in the US market.
Although significant actions have been put in place to mitigate the impact, the company has decided to lower its financial expectations for the year and has provided a Guidance of low double digit decline in Total Revenues and Sales versus last year and an EBITDA figure within the range of 140 to 170 million euros.
Eduardo Sanchiz, Almirall's CEO, commented: 'The US remains the most profitable world market and we believe that Aqua´s infrastructure and capabilities will continue to offer significant benefits to Almirall. Elsewhere, with the exception of a slow start to the year for ThermiGen, our performance remains on track and we look forward to the upcoming launches in Europe of Skilarence in Q3 as well as tildrakizumab in 2018. We see progress in the R&D pipeline and have new leadership in place with substantial expertise in skin health. Finally, we continue to have a strong focus on inorganic growth supported by a strong balance sheet. While we view the current situation as very challenging, we remain focused on delivering our strategic goals and creating value for our stakeholders'.