Fagron BV on Thursday reported a 6.4% increase in third-quarter revenue to €228.2 million, driven by growth in Europe and Latin America, while the U.S. Food and Drug Administration validated the expansion of its Wichita, Kansas, facility. The expansion is expected to add about $25 million in revenue.
The Netherlands-based pharmaceutical compounding group reaffirmed its full-year revenue forecast of €930 million to €950 million and said profitability is expected to improve slightly for the year.
At constant exchange rates, quarterly revenue grew 10.3%, with organic growth of 8.5% on a normalized basis and 5.7% including the impact of GLP-1 drug shortages.
The company said structural market drivers and continued merger and acquisition activity supported performance across regions.
By geography, revenue in Europe, the Middle East and Africa rose 17.3% to €86.3 million, reflecting strong demand in all segments and contributions from recent acquisitions, including Active Pharma Supplies and LSP in the United Kingdom, EuroOTC in Germany, and Guinama in Spain.
Latin America posted 9.2% growth to €48.1 million, led by commercial activity and product launches in Brazil. The company noted the weakening Brazilian real weighed on reported figures.
North American revenue fell 3.1% to €93.8 million, or a 3.6% increase at constant exchange rates, as GLP-1-related demand tapered and production slowed during the Wichita expansion validation.
Segment results showed Essentials revenue up 12.7% to €90.7 million, Brands up 14.4% to €37.8 million, and Compounding Services down 1.3% to €99.7 million.
Source :
https://www.investing.com/news/earnings/fagron-q3-revenue-rises-64-to-228-mln-as-fda-clears-wichita-expansion-4278647
