Italy's record sees that the rate attracts volatility.

(Bloomberg) – Italian drug manufacturer Recordi Spa is on the lookout for acquisitions and says the volatility of the market and the impact of rates has created the potential for cheaper buyout. Recordati, supported by private equity firm CVC Capital Partners, has a ‘very high’ appetite for transactions, said Robert Koremans, CEO Robert Koremans said in an interview after reporting preliminary quarterly results. He sees opportunities in the US, where some biotechnical firms can face cash strains. “It would be logical to see a little more pressure on smaller businesses in the US,” Koremans said. It could be a source for some “very good” acquisitions, he said. US President Donald Trump’s tariff plans have sewn uncertainty in the global pharmaceutical industry, which can increase costs and disrupt access to critical supplies. Recordati-based Recordi also has exposure, but on balance Koremans sees the exciting opportunities. “Our strategy has not changed and the prospects are still very attractive,” he said. “If there’s anything, the volatility probably helps us on the business development side.” Recordati, which is seen as an acquisition candidate as recently as last year, is prioritizing targets that work on rare diseases and its specialty segments of cardiovascular health, urology and gastroenterology, Koremans said. The company could follow larger transactions than its € 750m ($ 854 million) of Eusa Pharma in 2022, but remained focused on niche products with € 200 million to € 400 million in peak sales potential, Koremans said. While Koremans refused to give details about the potential impact of US rates, he said he was considering moving production to the US. Recordati currently has no manufacturing plants in the US, which made up 17% of turnover last year. Any production move will depend on the evaluations of logistics and efficiency of the supply chain, he added. The acquisition of growth plans and the strong demand for Recordi’s treatments with rare diseases are expected to grow in the coming years. The company set a goal to increase net revenue by about one -third to as high as € 3.2 billion ($ 3.7 billion) by 2027, with earnings of at least € 1.14 billion before interest, tax, depreciation and amortization, it rang in a statement on Monday after the markets closed. The first quarter revenue was € 680 million, based on provisional figures, before the average analyst. The final results for the period will be published on May 8. Recordati shares rose to 1.7% in Milan on Tuesday morning and they have been flat for the past 12 months. CVC, which bought about 52% of the foundati from the founding family in 2018, hampered its stake in February to about 47%. Bloomberg News reported last year that the private equity firm is investigating options for its interest, including interest from Italian counterpart Angelini Pharma Spa. An access to a European peer group is not attractive because Recordati has the scale, the cash and the portfolio it needs, Koremans said. “I understand that Angelini wanted to get us, that we are a very attractive company, but there is no constant conversation with CVC and Angelini or Recordati and Angelini,” Koremans said. (Shares updates.) More stories like these are available on Bloomberg.com © 2025 Bloomberg LP first published: 30 Apr 2025, 02:26 pm Ist