(Bloomberg) – Italian drugmaker records Taishua is looking for a acquisition, saying market volatility and the impact of tariffs bring potential for cheaper buyouts.
Chief Executive Robert Koremans said in an interview after reporting preliminary quarterly results, backed by private equity firm CVC Capital Partners and backed by private equity firm CVC Capital Partners. He sees opportunities in the United States, and some biotech companies may face cash pressure.
“It is logical that smaller companies in the United States face greater pressure,” the Korean said. This may be the source of some “very good” acquisitions, he said.
U.S. President Donald Trump’s tariff plan sews uncertainty in the global pharmaceutical industry, raising costs and potentially undermining opportunities for critical supplies. Milan-based record labels have also been exposed, but overall, Koreans have seen creating opportunities.
“Our strategy has not changed and the outlook remains very attractive,” he said. “If anything, volatility may help in terms of business development.”
Koremans said the record label, which was recently seen as a candidate for acquisition last year, is prioritizing the goal of engaging in rare diseases and its specialty in primary care in cardiovascular health, urology and gastroenterology.
Koremans said the company could acquire EUSA Pharma’s 750 million euros ($854 million) deal in 2022, but remain focused on niche products, with its niche offering peak sales potential of 200 million to 400 million euros.
Although Koremans declined to provide specific details about the potential impact of U.S. tariffs, he said he is considering transferring some production to the U.S. Recordati currently has no manufacturing plant in the U.S., which accounted for 17% of revenue last year.
He added that any production move depends on the assessment of logistics and supply chain efficiency.
Growth is expected to be driven by acquisitions and strong demand for rare treatments for record diseases in the coming years.
The company aims to increase its net income by about one-third to €3.2 billion (US$3.7 billion) and by 2027, its revenue will be at least €1.14 billion and its interest, taxes, depreciation and amortization will be at least €1.14 billion.
According to preliminary data, revenue in the first quarter was 680 million euros, which is more than average analyst estimates. The final results of the period are scheduled to be released on May 8.
Record label shares rose 1.7% in Milan on Tuesday morning, and they have been roughly flat over the past 12 months.
CVC purchased about 52% of the record from founding households in 2018, but dropped its stake to about 47% in February. Bloomberg News reported last year that the private equity firm is exploring options for its stake, including interest from its Italian counterpart Angelini Pharma Spa.
Koremans said the collaboration with its European counterparts was not attractive because Rocalati had the size, cash and portfolio needed.
“I know, Angelini wants to attract us, we are a very attractive company, but there is no ongoing discussion with CVC, Angelini or Recordati or Angelini,” Koremans said.
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