Stock Markets May 6, 2026 03:24 AM

Rovi Lowers 2026 Revenue Forecast as Heparin Demand and Pricing Weigh on Sales

Spanish drugmaker trims growth outlook after partner order shortfalls and pricing pressure hit heparin franchise and margins

By Caleb Monroe

Laboratorios Farmaceuticos Rovi SA revised down its full-year 2026 revenue guidance following reduced orders from a global pharmaceutical partner and pricing pressure in its heparin business. The company reported modest revenue contraction in Q1, a sharp EBITDA decline, mixed performance across product lines and completed a delayed acquisition of a Phoenix manufacturing site.

Rovi Lowers 2026 Revenue Forecast as Heparin Demand and Pricing Weigh on Sales

Key Points

  • Rovi cut its 2026 revenue guidance to low-mid single-digit growth from a prior high single-digit to low double-digit forecast due to reduced partner demand and pricing pressure in heparin.
  • First-quarter results showed a 1.5% revenue decline to 152.5 million and a 33% fall in EBITDA to 20.3 million, with the EBITDA margin dropping to 13.3% from 19.6%.
  • Segment performance was mixed: Okedi grew 37% to 17.2 million, while heparin sales fell 12% to 61.4 million; CDMO revenue rose 5% to 37.4 million.

Laboratorios Farmaceuticos Rovi SA announced a downward revision to its full-year 2026 revenue guidance on Wednesday, attributing the change to reduced demand linked to an agreement with a global pharmaceutical partner and continued pricing pressure in its heparin portfolio.

The company now anticipates operating revenue growth in the low to mid-single-digit range for 2026, a cut from its prior outlook of high single-digit to low double-digit increases. The revised guidance reflects both lower partner orders for low molecular weight heparin and weakening pricing dynamics in that product area.

Rovi reported operating revenue for the first quarter of 2026 of 152.5 million, a 1.5% decline versus the year-ago period. Adjusted EBITDA fell 33% to 20.3 million, and the EBITDA margin narrowed to 13.3% from 19.6% a year earlier. Management attributed the margin compression in part to higher selling, general and administrative expenses and elevated research and development spending.

At the segment level, specialty pharmaceuticals revenue decreased 3% to 115 million as declines in the heparin franchise more than offset gains elsewhere. Okedi registered notable top-line growth, with sales up 37% to 17.2 million, which the company said was supported by a wider rollout across Europe.

By contrast, heparin sales dropped 12% to 61.4 million. Low molecular weight heparin was down 13% to 58.9 million; within that category, bemiparin sales declined 35%, driven by what Rovi described as international destocking and lower partner orders. The contract development and manufacturing organization business delivered 5% revenue growth, generating 37.4 million in the quarter.

Rovi completed the acquisition of a manufacturing site in Phoenix, Arizona from Bristol Myers Squibb on April 1, 2026. The company noted the closing occurred later than its previously communicated timeline of the first half of 2026.

On cost guidance, Rovi expects selling, general and administrative expenses - excluding the Phoenix site - to increase by a mid to high single-digit percentage. Gross margin improved to 62.3% from 58.5%, a change the company linked to the recognition of research and development grants, stronger Okedi sales, lower costs for low molecular weight heparin and higher contract manufacturing revenue.

Rovi also reiterated its clinical development plans, stating it intends to initiate two new multinational studies for Risperidone QUAR, including a Phase 3 efficacy trial. Patient enrollment for these studies is expected to begin by the fourth quarter of 2026.

Overall, the update highlights a mixed quarter: revenue and EBITDA weakness driven largely by the heparin franchise and partner behavior, offset in part by growth in other specialty products and the CDMO business, alongside margin improvement from specific accounting and product-cost factors.


Key financials (Q1 2026)

  • Operating revenue: 152.5 million, down 1.5%
  • EBITDA: 20.3 million, down 33%; EBITDA margin 13.3% (prior-year 19.6%)
  • Specialty pharma revenue: 115 million, down 3%
  • Okedi sales: 17.2 million, up 37%
  • Heparin sales: 61.4 million, down 12%; low molecular weight heparin 58.9 million, down 13%
  • CDMO revenue: 37.4 million, up 5%

Risks

  • Continued lower partner orders and pricing pressure in the heparin market could further weigh on Rovi's revenue and margins - impacts concentrated in the pharmaceutical manufacturing and hospital anticoagulant markets.
  • Higher selling, general and administrative and research and development costs could continue to compress EBITDA margins if revenue does not recover as expected - a risk for investor returns in the branded pharmaceutical sector.
  • Delays or operational issues related to the recently acquired Phoenix manufacturing site could affect capacity or cost profiles, with potential implications for the company's contract manufacturing operations.

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