RECORDATI: EXCELLENT RESULTS IN THE FIRST QUARTER 2017. CONTINUED GROWTH IN SALES +13.1%, OPERATING INCOME +19.0%, NET INCOME +19.9%

• Consolidated revenues € 341.9 million, +13.1%.
• EBITDA⁽¹⁾ € 117.7 million, +18.9%
• Operating income € 107.3 million, +19.0%.
• Net income € 78.5 million, +19.9%.
• Net financial position⁽²⁾:  net debt of € 105.6 million.
• Shareholders' equity € 996.7 million.
• Full year 2017 targets increased: sales of around € 1,250 million, EBITDA of around € 425 million, operating income around € 380 million and net income around € 275 million.

Milan, 4 May 2017 - The Board of Directors of Recordati S.p.A. approved the Group's consolidated results for the first quarter 2017 prepared in accordance with International Accounting Standards and International Financial Reporting Standards (IAS/IFRS) and in particular as per IAS 34 requirements for interim reporting. These financial statements will be available today at the company's offices and on the company's website www.recordati.com and can also be viewed on the authorized storage system 1Info (www.1Info.it).

Financial highlights

• Consolidated revenues in the first quarter 2017 are € 341.9 million, up by 13.1% compared to the same period of the preceding year. International sales grow by 11.2%.
   
• EBITDA⁽¹⁾, at 34.4% of sales, is € 117.7 million, an increase of 18.9% over the same period of the preceding year.
   
• Operating income, at 31.4% of sales, is € 107.3 million, an increase of 19.0%.
   
• Net income, at 23.0% of sales, is € 78.5 million, an increase of 19.9% over the first quarter of 2016.
   
• Net financial position⁽²⁾ at 31 March 2017 records a net debt of € 105.6 million compared to net debt of € 198.8 million at 31 December 2016. Shareholders' equity increases to € 996.7 million.

⁽¹⁾ Operating income before depreciation, amortization and write down of both tangible and intangible assets.
⁽²⁾ Cash and short-term financial investments less bank overdrafts and medium/long-term loans which include the measurement at fair value of hedging derivatives.

Corporate development news

In January the European Union Commission granted the European marketing authorization for its orphan medicinal product Cystadrops® 3.8mg/mL. Cystadrops® is the first eye-drop solution containing cysteamine hydrochloride approved in the European Union for "the treatment of corneal cystine crystal deposits in adults and children from 2 years of age with cystinosis". The European Commission had granted Cystadrops® orphan drug designation in November 2008. Cystadrops® eye-drop solution was developed specifically for cystinosis patients by Orphan Europe (Recordati Group). Cystinosis is a rare congenital lysosomal storage disorder recognized as a severe life threatening condition. It is characterized by an accumulation of cystine crystals which negatively affects all organs in the body, especially the kidneys and eyes. Cystinosis benefits from systemic treatment with cysteamine orally administered. However, oral cysteamine does not adequately address ocular cystinosis because of the non-vascularization of cornea. Without a proper, continued, local eye treatment, cystine crystals accumulate in the cornea, leading to severe consequences and possibly to blindness in the long term.

In February an exclusive worldwide licensing agreement covering the know-how developed by the Meyer Hospital in Florence (Italy) for the development of a treatment for pre-term babies affected by retinopathy of prematurity (ROP) was signed. The treatment is currently being investigated in a phase II clinical trial by the Meyer Hospital, while Recordati will complete the clinical development and the regulatory steps necessary to obtain the marketing approval for the drug. Retinopathy of prematurity (ROP) is a potentially blinding eye disorder that primarily affects premature infants weighing about 1.25 kg or less that are born before 31 weeks of gestation This disorder, which usually develops in both eyes, is a rare condition, however presenting as one of the most common causes of visual loss in childhood that can lead to lifelong vision impairment and blindness.

Furthermore, within the deal, Recordati shall support other Meyer projects in the rare disease area over a period of three years based on a mutually agreed plan. This collaboration between public and private institutions recognizes the important results obtained by the internal research conducted by the pediatric hospital in Florence.

Management Comments

"The financial results obtained in the first quarter of the year testify to the continued growth of the group also in 2017, with revenues and profitability increasing significantly", declared Andrea Recordati, Vice Chairman and CEO. "Furthermore, we received marketing approval for Cystadrops®, an innovative original product, and an important agreement was finalized with the Meyer Hospital in Florence, one of the most important neonatology and pediatric centers in Italy, which will contribute to reinforce our product development pipeline. The group's business continued to perform very well during April and for the full year 2017 we are increasing our objectives and expect to achieve sales of around € 1,250 million, EBITDA of around € 425 million, EBIT of around € 380 million and net income of around € 275 million."

Conference call

Recordati will be hosting a conference call today 4 May 2017 at 4.00 pm Italian time (3.00 pm London time, 10.00 am New York time). The dial-in numbers are:

Italy                             +39 02 8058811, toll free 800 213 858
UK                                +44 1 212818003, toll free 800 0156384
USA                             +1 718 7058794, toll free 855 2656959
France                        +33 170918703
Germany                   +49 69 255114451

Callers are invited to dial-in 10 minutes before conference time.  If conference operator assistance is required during the connection, please digit * followed by 0 or call +39 02 8061371.  A recording of the conference call will be placed on the website www.recordati.com.

A set of slides which will be referred to during the call will be available on our website www.recordati.com under Investors/Company Presentations.

Recordati, established in 1926, is an international pharmaceutical group, listed on the Italian Stock Exchange (Reuters RECI.MI, Bloomberg REC IM, ISIN IT 0003828271), with a total staff of more than 4,100, dedicated to the research, development, manufacturing and marketing of pharmaceuticals. Headquartered in Milan, Italy, Recordati has operations in the main European countries, in Russia, in other Central and Eastern European countries, in Turkey, in North Africa, in the United States of America, in Mexico and in some South American countries.  An efficient field force of medical representatives promotes a wide range of innovative pharmaceuticals, both proprietary and under license, in a number of therapeutic areas including a specialized business dedicated to treatments for rare diseases. Recordati is a partner of choice for new product licenses for its territories. Recordati is committed to the research and development of new specialties with a focus on treatments for rare diseases.  Consolidated revenue for 2016 was € 1,153.9 million, operating income was € 327.4 million and net income was € 237.4 million.

For further information:

Recordati website:  www.recordati.com

Investor Relations                                                                       Media Relations                   
Marianne Tatschke                                                                     Studio Noris Morano                                                           
(39)0248787393                                                                          (39)0276004736, (39)0276004745
e-mail: [email protected]                                                          e-mail: [email protected]
                                                                    

Statements contained in this release, other than historical facts, are "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based on currently available information, on current best estimates, and on assumptions believed to be reasonable. This information, these estimates and assumptions may prove to be incomplete or erroneous, and involve numerous risks and uncertainties, beyond the Company's control. Hence, actual results may differ materially from those expressed or implied by such forward-looking statements. All mentions and descriptions of Recordati products are intended solely as information on the general nature of the company's activities and are not intended to indicate the advisability of administering any product in any particular instance.

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