Italy's Recordati has said that it plans to sell off its pharmaceutical chemical activities over the next few months in order to concentrate on its finished pharmaceutical products.
The company made the announcement in its interim results statement, in which it reported sales down 2.7 per cent to €247.2 million and operating profits down marginally to €37.1 million compared to the first half of 2002.
"To focus management resources and finance in the pharmaceutical sector, the decision has been taken to divest the pharmaceutical chemical activities in all or part in the next six to nine months," said the firm in a statement.
Recordati's pharmachem business accounts for around 16 per cent of the company's turnover and produces both active ingredients for its own proprietary pharmaceuticals, as well as active ingredients and intermediates for the generic drugs market.
Sales in the division fell 22.3 per cent in the first-half to €33.3 million, affected by currency factors and reduced profitability in the biochemical sector. Excluding pharmachem, Recordati's pharmaceutical sales rose 1.3 per cent to €213.9 million, helped by its lercanidipine calcium antagonist.
Chief executive Giovanni Recordati said that, in light of the first-half figures and little chance that the operating environment will change in the latter half of the year, the company has cut its full-year operating profits by €7 to €8 million to around €80 million.