Recordati Committed To R&D In Italy

Italian drugmaker Recordati SpA, which last month announced a decline inoperating income on an 8.8% turnover increase to 351.1 billion lire ($209.9 million; reported briefly in Marketletter March 31), says sales growth was attributable to strong volume (+12.5%) but was penalized by a negative currency effect (-2.9%).

Operating profitability, the firm notes, continues to suffer from the prices of reimbursable drugs in Italy, which are at least 30% lower than the European average. Moreover, the launch of new products caused higher operating expenses. R&D spending was in line with 1995.

Chairman and chief executive Arrigo Recordati says 1996 was the company's 70th anniversary and its dedication to R&D was rewarded with marketing authorization from the UK Medicines Control Agency for its once-daily calcium channel blocker Zanidip (lercanidipine). This is an example of Italian investment in research, he added, but he notes that financial resources for R&D in Italy are below international standards because of the low drug prices there. Notwithstanding, Recordati will continue to maintain its spending level, even though a short-term view based on current Italian politics would suggest reducing this.