Lavipharm's management describes as very important the signing of the strategic commercial agreement announced by the multinational pharmaceutical company iNova Pharmaceuticals, owner, among others, of the Betadine brand.

The agreement concerns the rights to market a new Lavipharm antiseptic drug from iNova in 60 countries.

The new antiseptic is an over-the-counter (OTC) pharmaceutical formulation, developed by Lavipharm's research laboratories in Greece, which has already received marketing approval in some European countries, and sales are expected to start in the last quarter of the year.

Lavipharm will produce the product at its facility in Peania for the majority of international markets, while at the same time proceeding with its launch in Greece.

THE BENEFITS FOR LAVIPHARM

According to sources close to the company, the deal with Inova means:

• Credibility for what Lavipharm has already done to establish the brand, Betadine, in Greece
• Confidence in the R&D and the products produced
• Confidence in the knowledge and expertise of the company in the R&D and development of the company and in the confidence in Lavipharm's expertise in the development of the product and in the quality of its products.
• Functional effect
• Strengthening of the company's relationships with customers, suppliers and banks

SKY IS THE LIMIT

The Greek company can meet demand with existing production dynamics, but it is estimated that it will move to investments related to faster machinery in order to meet the expected increased volumes.

Regarding the prospects of expanding the collaboration between Lavipharm and iNova (which, we recall, acquired Betadine producer Mundipharma in 2023), knowledgeable sources note that "sky is the limit".

STRATEGY

Overall, the strategy being implemented by Lavipharm focuses on four key therapeutic categories involving:

• urology
• cardiology
• Cardio-vascular diseases
• Oncology-Pono oncology

PORTFOLIO

At the portfolio level, sales of the pharmaceutical products Lonarid N, Lonalgal and Flagyl started at the end of the first half of 2024 and are expected to be reflected in the company's results in the second half of last year. And it is stressed by company sources that management's... antennae are up for possible new acquisitions of products already on the market.

Lavipharm is also focusing on the promotion of transdermal systems, especially abroad. Reportedly, Lavipharm has completed work on the premises where the second production line for transdermal systems will be installed, with an expected on-stream date in the near future. The new line is expected to give a further boost to the company's size, as it will double the current production capacity, while offering greater security as there will be a back-up in case of possible problems occurring on one of the two lines. 

TWO-DIGIT GROWTH

Regarding the company's sales and EBITDA, based on the picture so far, these are expected to strengthen to double digits in fiscal 2024, following the trajectory they had shown in the nine months.

We recall that in this period, consolidated sales before Clawback & Rebates amounted to €47.38 million, a double-digit increase of 16%, while EBITDA had stood at €9.42 million, an increase of 26.1%