The Spain-based drug firm first revealed it had encountered supply problems in May, explaining “the circumstances that affected the evolution of the antibiotic segment in 2016 (delays in the supply of raw material, mainly) showed signs of recovery.”
This week, in its half year report, Reig Jofre said the recovery had continued and “allowed the company to correct its inventories and consequently reduce its gross financial debt to €27.6m at the end of the first half of 2017.”
This was confirmed by a spokeswoman, who told us the shortage occurred after “one of our main suppliers of a broad-spectrum penicillin with beta-lactamase inhibitor had a fire in one of its facilities mid-last year and that was the cause of the serious delay.”
She declined to name the supplier, but did confirm the firm involved had restarted production.
Financials
Reig Jofre reported total revenue of €84m ($98m) for the half year to June 30, up 2.2% on the equivalent period last year. The contribution from antibiotic and injectable drugs increased, climbing 0.9% to €42m. Revenue generated by penicillin was down €6m.
Dermatology and respiratory product sales grew 23% and 6% to €19m and €5.3m, respectively.
Revenue from nutritional supplements - which Reig Jofre sells through its Forté Pharma subsidiary - was €11.5m, down 17.6% and other product sales were €6.2m up 11.9%.
Injectable drug site expansion
Reig Jofre also predicted that injectable drug revenue will increase through the second half of the year.
The firm suggested its expanded injectable drug manufacturing unit, which was approved by the Spanish Medicines Agency in May, would drive growth.
The spokeswoman told us the firm has installed “a new lyophilizer that will increase by three million units, which is a 50% increase for this area to attend existing demand and also to increase current capacity.”