(Bloomberg) — Italian drugmaker Recordati SpA is on the lookout for acquisitions, saying market volatility and the impact of tariffs have created the potential for cheaper buyouts.
Recordati, which is backed by private equity firm CVC Capital Partners, has a “very high” appetite for deals, Chief Executive Officer Robert Koremans said in an interview after reporting preliminary quarterly results. He sees opportunities in the US, where some biotech firms may face cash strains.
“It would be logical to see a little bit more pressure coming on smaller companies in the US,” Koremans said. This could be a source for some “really good” acquisitions, he said.
US President Donald Trump’s tariff plans have sewn uncertainty across the global pharmaceutical industry, raising costs and potentially disrupting access to critical supplies. Milan-based Recordati also has exposure, but on balance Koremans sees the tumult creating opportunities.
“Our strategy hasn’t changed and the outlook is still very attractive,” he said. “If anything, the volatility helps us probably on the business development side.”
Recordati, seen as an acquisition candidate as recently as last year, is prioritizing targets working on rare diseases and its specialty primary-care segments of cardiovascular health, urology, and gastroenterology, Koremans said.
The company could pursue larger deals than its €750 million ($854 million) acquisition of EUSA Pharma in 2022, but remains focused on niche products with €200 million to €400 million peak sales potential, Koremans said.
While Koremans declined to provide specifics about the potential impact of US tariffs, he said he’s considering moving some production to the US. Recordati currently has no manufacturing plants in the US, which accounted for 17% of revenue last year.
Any production move would depend on evaluations of logistics and supply chain efficiency, he added.
Acquisitions and strong demand for Recordati’s rare-disease treatments are expected to fuel growth in coming years.
The company has set a goal of raising net revenue by about one-third to as high as €3.2 billion ($3.7 billion) by 2027, with earnings of at least €1.14 billion before interest, taxes, depreciation and amortization, it said in a statement Monday after markets closed.
First-quarter revenue came in at €680 million, based on preliminary figures, ahead of the average analyst estimate. Final results for the period are set to be published on May 8.
Recordati shares rose as much as 1.7% Tuesday morning in Milan and they’re roughly flat over the past 12 months.
CVC, which bought about 52% of Recordati in 2018 from the founding family, has trimmed its stake to about 47% in February. Bloomberg News reported last year that the private equity firm was exploring options for its stake, including interest from Italian peer Angelini Pharma SpA.
A tie-up with a European peer isn’t attractive because Recordati has the scale, the cash and the portfolio it needs, Koremans said.
“I understand that Angelini wanted to acquire us, that we are a very attractive company, but there is no ongoing discussion with either CVC and Angelini or Recordati and Angelini,” Koremans said.
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