This article first appeared on GuruFocus .
Release Date: July 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Recordati SpA ( RCDTF ) delivered strong financial results in H1 2026, with revenue increasing 6.6% to 1.4 billion and EBITDA growing 8.8% to $540 million, reflecting robust operational performance.
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Rare disease portfolio continues to be a key growth engine, with revenues up 17.1% to $604 million, driven by outstanding performance of ISTRISA (up 58%) and strong contributions from hemo-oncology products like Injemo (up 31.1%).
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The company maintained strong cash generation, with free cash flow of $299 million in H1, and a healthy balance sheet with net debt below 1.9 times EBITDA, providing financial flexibility for investments and business development.
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Specialty and primary care business showed resilience with revenue broadly stable at $774 million, supported by continued growth of promoted brands like Vascapa and Eligard, despite expected headwinds.
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Recordati SpA ( RCDTF ) expanded its rare disease pipeline through a licensing agreement with Ionis for Zilgarnesen, reinforcing its long-term growth platform in ultra-rare diseases.
Negative Points
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The specialty and primary care business faced headwinds, including a 1.6% decline in cardiovascular revenue due to the loss of Carticor and lower sales of mature products from order phasing.
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Cough and cold revenue declined 9.7% as expected, due to a weaker season across major markets compared to the prior year.
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Metabolic franchise in rare disease was lower versus a strong prior-year comparison, reflecting timing of Carboglue shipments and softer demand for panhematin in the US, though it returned to growth in Q2.
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The company experienced a temporary competitor stockout in Turkey boosting Eligard sales, which is not expected to be sustained and may reverse in the future.
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Recordati SpA ( RCDTF ) faces ongoing uncertainty related to the proposed transaction with CVC and GBL, which limits commentary on the deal and may create near-term distraction.
Q & A Highlights
Q: On Isterisa, you mentioned delays in converting patients to commercial prescriptions in Q1. Can you provide an update on conversion rates in Q2 and what is driving the improvement? A: Scott Pescatore, Executive Vice President of Rare Diseases: Conversion rates picked up significantly in the second quarter, with almost more than 20% additional conversions versus the first quarter. The churn from Obamacare insurance expirations that impacted Q1 has washed out. We are also seeing a significant number of new prescribers, and repeat prescribers with more than one patient on therapy are converting more smoothly. We continue to focus on making the process easier for physicians and patients.
Q: Can you discuss the relative size of the opportunity for the Zilgarnesen product licensed from Ionis and the timelines for approval in the markets you have rights for? A: Rob Cormans, CEO: We have not guided on this opportunity and it is not a good time to do so. It is an ultra-rare disease, and pricing outside the US, where we are responsible for bringing it to patients, will be different. It is a wonderful opportunity for a very small but severely impacted patient group.
Q: Within the cardiovascular business, what drove the strong performance of Lovazzo (pitavastatin) in the first half? A: Alberto Martinez, Executive Vice President of Specialty and Primary Care: The strong growth is driven primarily by Russia and Turkey, where we promote the product. It is also partly due to the repatriation of the brand in Spain from Esteve into Recordati at the beginning of the year. The market dynamics remain solid, but growth is more in the single-digits than double-digits.
Q: Can you quantify the benefit from the competitor stockout in Turkey for Eligard and discuss the dynamics for Tergunon? A: Alberto Martinez, Executive Vice President of Specialty and Primary Care: In Turkey, the main competitor went out of the market, making Eligard the only ADT available. We have met patient needs with a huge supply chain effort, leading to exceptional performance. This effect is not expected to be sustained, and we don't know how long the competitor will be out. For Tergunon, the relaunch in Russia last year is influencing the overall growth of urology, but it is performing well in Russia and other territories.
Q: How are you thinking about Specialty and Primary Care (SPC) margins over time, as they appear to be coming down? A: Rob Cormans, CEO: The margins are based on three things: increasing price where we have flexibility, continued operational efficiency, and a favorable product mix. The rightsizing of the commercial operations is largely behind us. Alberto Martinez added that SPC margins have been improving over recent years due to significant rightsizing, and they remain very strong and well above peers, though the launch of Vascapa is minimally impacting margins.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
