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1. Company Snapshot

1.a. Company Description

Laboratorios Farmaceuticos Rovi, S.A. engages in the research, development, production, and sale of pharmaceutical products in Spain, European Union, OECD countries, and internationally.The company distributes other products that are licensed from other laboratories.Its principal products include Hibor, a low-molecular-weight heparin to prevent and treat venous thromboembolic disease; Enoxaparin biosimilar Becat, a low-molecular-weight heparin; Neparvis to treat symptomatic chronic heart failure with reduced ejection in adult patients; Absorcol, Vytorin, and Orvatez to diet in patients with hypercholesterolemia; Hirobriz Breezhaler and Ulunar Breezhaler that are long-acting bronchodilators for the maintenance treatment of chronic obstructive pulmonary diseases; Volutsa for treatment of moderate to severe storage systems symptoms and voiding symptoms associated with benign prostatic hyperplasia in men who are not responding adequately to monotherapy treatment; and Medikinet and Medicebrán to treat attention deficit hyperactivity disorder in children and teenagers.


The company also markets various hospital products for imaging diagnosis, such as Iomeron and Iopamiro for computed tomography and intervention; Multihance and Prohance for magnetic resonance imaging; Sonovue for ultrasounds; and EmpowerCTA+, EmpowerMR, and CT Exprès that are contrast injection systems and compatible disposable material.It provides non-prescription pharmaceutical products; and contract-manufacturing services to other companies for a range of pharmaceutical forms, including prefilled syringes, vials, suppositories, tablets, hard capsules, and sachets.The company serves wholesalers, doctors, nursing staff, pharmacists, and patients.


It has a collaboration with Moderna, Inc.for manufacturing mRNA COVID-19 vaccine candidate.The company was incorporated in 1946 and is headquartered in Madrid, Spain.


Laboratorios Farmaceúticos Rovi, S.A. is a subsidiary of Norbel Inversiones, S.L.

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1.b. Last Insights on ROVI

Laboratorios Farmaceuticos Rovi, S.A.'s recent performance is driven by strong international sales and specialty pharma growth. Despite a decline in total operating revenue, the company's Q2 2025 earnings call highlights confidence in future performance. The European market's cautious optimism, fueled by potential EU-U.S. trade agreements and steady monetary policy, also supports the stock. Additionally, Rovi's potential undervaluation, estimated to be up to 47.8% below intrinsic value, presents a growth opportunity. Recent market trends and strong corporate earnings have led to a positive surge in the European market.

1.c. Company Highlights

2. ROVI's Mixed Performance

ROVI's operating revenue reached EUR314.6 million in the first half of 2025, a 4% decrease from the same period in 2024, mainly due to the performance of its contract development and manufacturing business. However, sales of the Specialty Pharma business increased 13% to EUR237.4 million, driven by a 12% growth in low-molecular-weight heparin sales, including Enoxaparin, which rose 14% to EUR79.8 million. The company's gross margin was 62.4%, a 3 percentage point increase. EBITDA decreased 6% to EUR65.6 million, while net profit stood at EUR39.7 million, a 10% decrease. The actual EPS came out at '1' relative to estimates at '0.61', a significant beat.

Publication Date: Jul -28

📋 Highlights
  • Decrease in Operating Revenue: - 4% decline to EUR314.6 million, primarily due to lower CDMO performance.
  • Specialty Pharma Growth: - 13% increase to EUR237.4 million, driven by Enoxaparin's 14% rise to EUR79.8 million.
  • Gross Margin Improvement: - 3 percentage point increase to 62.4%.
  • Profit Decline: - EBITDA down 6% to EUR65.6 million, net profit down 10% to EUR39.7 million.
  • Upgraded Sales Expectations: - Mid-single-digit increase now expected, up from a low single-digit decline forecast.

Segment Performance

The Specialty Pharma business showed a remarkable performance, with sales increasing 13% to EUR237.4 million. Enoxaparin sales rose 14% semester over semester, driven by higher orders from international partners, particularly in Canada, South Africa, and France. Okedi sales surged 115% to EUR26.9 million, with a full-year guidance of EUR50 million. The company is optimistic about Okedi's evolution but prefers to maintain guidance due to potential fluctuations in partner orders.

Operational Efficiency

SG&A costs are expected to remain under control, with a moderate increase in the second part of 2025. R&D expenses were EUR17 million in H1, with the company expecting to be in the middle to high part of the EUR40-60 million R&D budget range for 2025. The company is preparing for a Phase III clinical trial of Letrozole SIE and anticipates increased R&D spending in the second half of the year.

CDMO Business

CDMO contracts are progressing well, with the company overwhelmed by proposals, contracts, and tech transfer discussions. However, the company does not expect to offset the weaker-than-expected evolution in CDMO, reiterating its 2025 guidance, expecting operating revenue to decrease by a mid-single-digit percentage compared to 2024.

Valuation

According to analysts, the stock is trading at a P/E Ratio of 13.91, a P/B Ratio of 4.93, and a P/S Ratio of 2.9. The EV/EBITDA stands at 14.05, with a Dividend Yield of 1.64%. The Free Cash Flow Yield is 2.75%, with a ROIC of 29.69% and an ROE of 38.26%. The Net Debt / EBITDA ratio is 0.37, indicating a healthy financial position.

Outlook

Analysts estimate next year's revenue growth at 14.7%. The company upgraded expectations for product sales, now anticipating a mid-single-digit increase, up from a low single-digit decline. With a strong performance in product sales offsetting a weaker-than-expected evolution in CDMO, the company seems poised for a rebound.

3. NewsRoom

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Global Value Stocks Priced Below Estimated Worth In November 2025

Nov -14

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European Market Picks: 3 Stocks That May Be Trading Below Their Estimated Value

Oct -16

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September 2025's European Stocks Estimated To Be Trading Below Fair Value

Sep -11

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3 European Stocks Estimated To Be Trading At Discounts Up To 49.1%

Aug -13

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European Value Stocks: STIF Société anonyme Among 3 Companies Estimated Below Intrinsic Value

Jul -31

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European Stocks That May Be Trading Below Estimated Value In July 2025

Jul -31

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European Stocks Conceivably Undervalued In July 2025

Jul -30

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3 European Stocks Estimated At Up To 41.3% Discount To Intrinsic Value

Jul -30

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.99%)

6. Segments

Marketing

Expected Growth: 10%

Laboratorios Farmaceuticos Rovi's 10% marketing growth is driven by increasing demand for specialty pharmaceuticals, successful product launches, and strategic partnerships. Additionally, the company's focus on digital marketing and e-commerce platforms has expanded its customer reach, while investments in sales force effectiveness and customer relationship management have improved sales productivity.

Manufacturing

Expected Growth: 12%

Laboratorios Farmaceuticos Rovi, S.A.'s 12% growth in manufacturing is driven by increasing demand for generic medicines, strategic partnerships, and expansion into emerging markets. Additionally, investments in R&D, process optimization, and cost savings initiatives have improved operational efficiency, contributing to the company's growth momentum.

7. Detailed Products

Enbrel

Etanercept injection is a tumor necrosis factor (TNF) inhibitor used to treat autoimmune diseases such as rheumatoid arthritis, juvenile idiopathic arthritis, and psoriasis.

Humira

Adalimumab injection is a TNF inhibitor used to treat autoimmune diseases such as rheumatoid arthritis, Crohn's disease, and ulcerative colitis.

Remicade

Infliximab injection is a TNF inhibitor used to treat autoimmune diseases such as rheumatoid arthritis, Crohn's disease, and ulcerative colitis.

Simponi

Golimumab injection is a TNF inhibitor used to treat autoimmune diseases such as rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis.

Cimzia

Certolizumab pegol injection is a TNF inhibitor used to treat autoimmune diseases such as rheumatoid arthritis and Crohn's disease.

Biosimilar products

Rovi's biosimilar products are used to treat various autoimmune diseases, including rheumatoid arthritis, Crohn's disease, and ulcerative colitis.

8. Laboratorios Farmaceuticos Rovi, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Laboratorios Farmaceuticos Rovi, S.A. is medium due to the presence of alternative pharmaceutical products in the market.

Bargaining Power Of Customers

The bargaining power of customers for Laboratorios Farmaceuticos Rovi, S.A. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Laboratorios Farmaceuticos Rovi, S.A. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Laboratorios Farmaceuticos Rovi, S.A. is high due to the growing demand for pharmaceutical products and the ease of entry into the market.

Intensity Of Rivalry

The intensity of rivalry for Laboratorios Farmaceuticos Rovi, S.A. is high due to the presence of several established players in the pharmaceutical industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.82%
Debt Cost 3.95%
Equity Weight 89.18%
Equity Cost 6.34%
WACC 6.08%
Leverage 12.13%

11. Quality Control: Laboratorios Farmaceuticos Rovi, S.A. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Genmab

A-Score: 5.9/10

Value: 3.7

Growth: 9.7

Quality: 9.4

Yield: 0.0

Momentum: 8.0

Volatility: 4.3

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Alkermes

A-Score: 5.2/10

Value: 4.4

Growth: 8.4

Quality: 8.9

Yield: 0.0

Momentum: 6.0

Volatility: 3.7

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ALK-Abelló

A-Score: 5.0/10

Value: 0.5

Growth: 8.2

Quality: 7.5

Yield: 0.0

Momentum: 8.0

Volatility: 6.0

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Rovi

A-Score: 4.5/10

Value: 1.8

Growth: 7.7

Quality: 8.0

Yield: 2.5

Momentum: 1.0

Volatility: 6.3

1-Year Total Return ->

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Camurus

A-Score: 4.4/10

Value: 0.0

Growth: 9.3

Quality: 9.0

Yield: 0.0

Momentum: 6.0

Volatility: 2.0

1-Year Total Return ->

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Zealand Pharma

A-Score: 3.2/10

Value: 7.0

Growth: 2.2

Quality: 9.9

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

59.85$

Current Price

59.85$

Potential

-0.00%

Expected Cash-Flows