The pharmaceutical company Esteve closed 2024 with a net profit of 75 million euros, 23% more than the previous year, after increasing revenues by 5% to 744 million euros. The company attributes the bulk of the profit increase to financial investments thanks to internal cash flow. The company expects 2025 to see an acceleration of its acquisition strategy and significant growth in its two business lines: the manufacturing of active ingredients for third parties and its own drug production. The forecasts it has announced are for double-digit growth for both business lines, which will be boosted by the cash flow they have available.
Regarding the previous year, the gross operating margin (EBITDA) adjusted for non-recurring expenses grew by 8%, to 138 million euros. The pharmaceutical business played a key role with net revenues growing by more than 15.8%, to 300 million. The activity of manufacturing active ingredients for third parties (CDMO) maintained stable revenues at 443 million (-0.7%), compared to the previous year when the company was still feeling the effect of COVID.
The company, which also owns 50% of Esteve Teijin Healthcare, 50% of Isdin, and 15% of Hangzou Jiuyuan Gene Engineering, has opted to continue making acquisitions, such as that of HRA Pharma in July 2024. The operation incorporates three treatments for diseases such as Cushing's syndrome and adrenocortical carcinoma. Schüberg highlighted that this 200 million euro purchase "launches the company in the right direction."
Of the total revenue, Spain represents 25%, while other European Union countries account for 53% and the rest of the world for the remaining 22%. The company expects little impact from US tariffs because it has a "minimal" business in the country, but assures that it is a market that any pharmaceutical company that wants to be competitive must take into account. In this regard, Esteve has admitted that in the current difficult commercial environment there will be "challenges" but has expressed confidence that it will be able to "overcome them." "No company, in any industry, likes tariffs and we are no different. However, no level of tariffs will affect the fundamental principles of the industry. Are there challenges? Very surely, but we will know how to overcome them," said the company's CEO, Staffan Schüberg, in statements to ACN.
The company, which employs 2,059 people, continues to follow the strategy launched in 2018 to become an international benchmark in specialized medicine. "The transformation we undertook in 2018 is underway and will be for a long time," detailed Schüberg, who expressed himself "very optimistic" about the future. The company's CFO, Roser Gomila, highlighted that the trend over the last five years has been sustained growth of 11% in revenue and more than 20% in EBITDA.
In 2025, the company continues its strategy towards highly specialized therapies with an agreement with Mepact to purchase a treatment for high-grade osteosarcoma that is to be formalized "in the short term" and also a license for a biological product for children and adolescents with severe primary growth factor deficiency, similar to type 1 insulin, agreed with Increlex.
As for production centers, the pharmaceutical company is in full expansion of the Celrà center, which will be fully operational in 2027. Similarly, the relocation of Esteve's Chinese plant continues, which will also be able to produce normally within two years.