European OTC Results Round-Up: Recordati, Ipsen and Venture Life

First-half 2020 financials from Italy's Recordati, France's Ipsen and the UK's Venture Life.

Recordati Feels Effects Of COVID

Italy’s Recordati SpA blamed the global COVID-19 pandemic for a double-digit slide in OTC sales in the first half of 2020.

Turnover from the company’s OTC corporate products – which Recordati defines as those sold directly in more than one market – declined 15% to €52.8m ($61.8m) in the six months, as lockdowns in its core European markets suppressed demand.

Recordati said its OTC business “bore the brunt of the impact of COVID-19” on the company in the first half of 2020, resulting in lower consumption of lifestyle products, such as vitamins and supplements.

A drop in demand for probiotics was seen in Spain – one of the European countries hardest hit by the coronavirus – Recoradati said, with sales of its Bioralsuero brand in particular suffering.

In addition to a drop in demand for supplements, Recordati said lower incidence of mild infectious disease, such as cold and flu, resulting from the diminished circulation and interaction between people had also hurt its OTC sales. Turnover had been hit hardest in Russia and Central Eastern Europe as demand dropped for its Isofra nasal spray.

Despite the drop in OTC sales, Recordati’s group turnover advanced by 2.3% to €760m in the first half.

The company looks set to significantly expand its OTC portfolio in Europe through the centralized Rx-to-OTC switch of premature ejaculation treatment Fortacin. (Also see "EMA Approves EU-Wide Rx-to-OTC Switch Of Fortacin" - HBW Insight, 27 Jul, 2020.) 

Ipsen Sales Hit By Pandemic

France’s Ipsen SA saw its Consumer Healthcare sales slump in the first half as COVID-19 hit sales in Europe and Asia.

Total Consumer Healthcare turnover declined by 21.1% to €101.2m for the six months, with Ipsen reporting that sales continued to be negatively impacted across geographies despite a slow recovery in China in the second quarter.

Sales of gastrointestinal line Smecta – Ipsen’s biggest Consumer Healthcare brand – fell by 33.7%, impacted by COVID-19, a weaker performance in France and regulatory changes in China, while turnover from the Fortrans/Eziclen laxative dropped by 29% due to the effect of the pandemic in China and Russia.

On a more positive note, sales of the Tanakan ginkgo biloba line advanced by 12%, driven by positive market dynamics in Russia.

Consumer Healthcare accounted for 8% of Ipsen’s total first-quarter sales, which improved by 3.1% to €1.27bn. The Specialty Care business accounted for the remainder of group revenue.

Venture Life Enjoys Big Sales Jump

UK-based Venture Life Group reported a big jump in sales in the first half of the year thanks to a combination of organic and acquisition derived growth.

The firm posted sales up 80% to £16.9m for the six months, reflecting a strong performance from its own brands and eight new partnering agreements signed during the period.

Strong sales in the UK and the Netherlands had been recorded from products acquired from medical device specialist PharmaSource earlier this year, Venture Life noted, while the launch of its new hand sanitizer brand in the UK, DISINPLUS, had been a success.

"There has been step change in the business in this first half of the year,” commented Venture Life CEO Jerry Randall. “This is a remarkable achievement, amidst an extremely challenging backdrop of the COVID-19 pandemic; we have demonstrated agility both of our team and our business model, and this agility will provide us with a strong platform for future growth.”