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Recordati: From Italian Pharmacy to Global Rare Disease Powerhouse
A Deep-Dive Into One of Europe's Most Remarkable Pharmaceutical Transformations
In a small town in Emilia-Romagna, in the northern reaches of Italy's agricultural heartland, a young pharmacist stood in the back room of his family's pharmacy in the early 1920s, surrounded by beakers and compounds. Giovanni Recordati was 28 years old, restless, and convinced that the medicines on his shelves—while adequate—could be improved. He wasn't satisfied with simply dispensing pills; he wanted to create them. What happened next would set in motion a nearly century-long saga of family stewardship, strategic pivots, and value creation that culminated in one of Europe's most successful pharmaceutical companies and the continent's largest private equity pharma deal.
Today, Recordati trades on the Milan stock exchange with a market capitalization of approximately €10.24 billion, with shares fluctuating within a 52-week range of €43.98 to €60.95. The company operates through two segments: Specialty and Primary Care, and Rare Diseases, with the bulk of profit historically derived from its specialty and primary care segment, which includes the production of active pharmaceutical ingredients.
The central question this deep-dive seeks to answer: How did a small Italian family pharmacy evolve over nearly 100 years to become Europe's largest PE pharma deal and a global rare disease leader? The answer lies in a fascinating combination of multi-generational stewardship, prescient strategic pivots, and M&A as a core competency.
I. The Founding Era: A Pharmacist's Vision (1926–1952)
The Birth of a Dream in Correggio
In Correggio, Italy, in the early 1920s, Giovanni Recordati was working in a tiny laboratory installed in the back of his family's pharmacy. With a passion to help people, he was trying to find better combinations of existing treatments, believing more could be done to help those living with conditions that significantly impacted their ability to live a full life.
The vision that drove Giovanni was deceptively simple but revolutionary for its time: chronic conditions deserved better treatments. In an era when infectious diseases dominated medical attention and pharmaceutical companies focused on acute ailments, Giovanni saw an underserved population—people who suffered day after day with gastrointestinal distress, heart conditions, and circulatory problems. This insight would prove foundational.
In 1926, at only 28 years old, Giovanni left the pharmacy to create "Laboratorio Farmacologico Reggiano." Here, he pioneered the production of medicines focused on chronic conditions—and within just two decades his small team grew to over 300 people. The transformation from country pharmacist to pharmaceutical industrialist had begun.
Early Product Innovations
Recordati was founded in Correggio (Emilia, Italy) as "Laboratorio Farmacologico Reggiano" by Giovanni Recordati in 1926. By 1927, the company launched Antispasmina colica®, a gastrointestinal tract antispasmodic. The speed of that first product launch—less than a year after founding—demonstrated Giovanni's blend of scientific acumen and commercial instinct.
By 1935, the company launched Tefamin®, a cardiotonic, diuretic and antihypertensive, followed by its associations. These early products established Recordati's pharmaceutical expertise in chronic conditions—a focus area that would remain central to the company's identity for nearly a century.
The Tragedy and the Legacy
Giovanni sadly passed in 1952, before he could see his ambitious plans for expansion come to life, but his eldest son Arrigo and the generations thereafter protected his legacy—and his dream lived on in the heart of his family, and the growing family in the Recordati company.
Giovanni Recordati died just as the Italian economic miracle was beginning, before he could witness his small laboratory become a major player in one of Italy's most dynamic post-war industries. But he left behind something more valuable than any single product: a culture of innovation focused on chronic disease, and a family committed to carrying forward his vision.
II. Building the Foundation: Milan & Strategic Partnerships (1953–1983)
The Move to Milan
In 1953, Recordati moved the company to the current site in Milan, the most important Italian economic centre. Under the management of Arrigo Recordati, Giovanni's son, the company moved to Milan. It was 1953, and at the same time, Recordati began its international expansion.
The decision to relocate from the rural town of Correggio to Milan was transformational. Milan was the beating heart of Italian industry, finance, and commerce. The move signaled Arrigo's ambition to build something far larger than a regional pharmaceutical company—he wanted Recordati to compete on a European stage.
Under Arrigo's leadership, from a small company, Recordati became a R&D-based group. He was also responsible for the start of the company's internationalization. This shift from manufacturing to integrated research and development would prove critical in establishing Recordati's competitive position.
The Syntex Partnership: A Bridge to Global Science
In 1956, the company launched Recordil® (efloxate), a coronary vasodilator. But the transformational moment of this era came five years later.
In 1961, an exclusive license agreement was signed, later renewed until 2005, with Syntex Corporation (now part of Roche), at that time at the leading edge of research into the study and synthesis of steroid hormones. Located in Silicon Valley, Syntex was a pioneering company in the study and synthesis of steroid hormones.
The Syntex partnership deserves special attention. Syntex was no ordinary pharmaceutical company—it was the birthplace of the birth control pill and home to some of the most innovative steroid chemistry in the world. By partnering with Syntex, Recordati gained access to cutting-edge scientific knowledge that would have been impossible to develop internally. This pattern—augmenting internal capabilities through strategic partnerships—would become a recurring theme in Recordati's playbook.
The first drug synthesized and developed in Italy to receive FDA approval in the USA was a Recordati product. This milestone demonstrated that Recordati could compete at the highest levels of pharmaceutical development, meeting the stringent regulatory standards of the world's largest pharmaceutical market.
Manufacturing Excellence: The API Advantage
The manufacturing of active ingredients has been a core part of Recordati's history since it was founded in 1926 with Giovanni Recordati transforming the pharmacy and adjoined chemical laboratory into the "Laboratorio Farmacologico Reggiano," resulting in the birth of Recordati as a chemical pharmaceutical industrial company. Since moving its main operations to Milan, the division has grown internationally alongside the broader pharmaceutical business, exporting 90% of its production of APIs and intermediates, selling directly in over 50 countries.
This vertical integration—controlling both active pharmaceutical ingredient (API) production and finished product manufacturing—gave Recordati a structural advantage. While many pharmaceutical companies outsourced API production, Recordati maintained in-house capabilities that ensured quality control, supply security, and manufacturing expertise. Recordati is recognised as a leader in the market of several high purity APIs and a reliable provider for compendial reference standards.
III. Going Public & The Internationalization Bet (1984–2006)
The IPO: A New Era Begins
In 1984, the company was listed on the Italian stock exchange. In 1963, a new plant was opened in Aprilia, and the company changed its name to Recordati Industria Chimica e Farmaceutica. In 1977, ENI acquired part of the company's ownership and kept it until 1984, when the family decided to list 25% of the company on the Milan Stock Exchange.
A key milestone of Recordati was its early listing on Milan's stock exchange in 1984, making it the only public pharmaceutical company in Italy.
The decision to go public was about more than capital—it was about transformation. "That was a very important step because even if our company was, and still is, controlled by our family, to be listed is to change the mentality of the company, because you need to have professional management, real accounts, all details, and so it changes the culture of the company," Giovanni Recordati stated. "It improved the way our organisation developed, making us present the company in the most transparent way."
Product Line Expansion
In 1986, the company launched Lomexin® (fenticonazole), a dermatological and gynecological anti-mycotic, still widely used in clinical practice in many countries. This product demonstrated Recordati's ability to develop medicines that stood the test of time—nearly four decades later, Lomexin remains in active use.
The Internationalization Strategy
In 1995, Recordati outlined its growth and development strategy embarking on a process of internationalization. A subsidiary was established in Spain, now called Casen Recordati. This marked a decisive shift from being primarily an Italian company to pursuing a pan-European identity.
The Breakthrough Drug: Zanidip®
In 1997, the first launch of Zanidip® (lercanidipine), a new antihypertensive drug entirely discovered and developed by Recordati.
Zanidip represented a watershed moment. For the first time, Recordati had developed a major drug entirely in-house—from discovery through clinical development to regulatory approval and commercialization. The drug would become the cornerstone of Recordati's specialty care franchise and validated the company's R&D capabilities on the global stage.
European Expansion Through Acquisition
In 1999, Recordati acquired the French pharmaceutical company Doms Adrian to establish a Group direct presence in the second largest pharmaceutical market in Europe. In 2006, Recordati acquired the Grupo Jaba companies in Portugal, today Jaba Recordati.
Zanipress®, a fixed combination of lercanidipine and enalapril, was approved for sale by BfArM (the German medicines agency) in 2006. This lifecycle extension—combining Zanidip with another cardiovascular drug—demonstrated sophisticated product development and commercial thinking.
Arrigo's vision was maintained throughout the years after his unfortunate death in 1999. As a result, Recordati's international sales represent over 70% of the total and investment in R&D is one of the key success factors.
IV. INFLECTION POINT #1: The Orphan Europe Acquisition (2007)
The Strategic Pivot That Changed Everything
In 2007, the company acquired Orphan Europe, a European pharmaceutical group dedicated to the development, registration, marketing and distribution of unique drugs for the treatment of rare and orphan diseases.
On September 28, 2007, Recordati agreed to acquire Orphan Europe, a European pharmaceutical group specialized in rare diseases with headquarters in Paris. The price to be paid at the closing was €135 million which was funded prevalently from existing liquidity. The conclusion of the transaction, expected to take place before the end of 2007, was subject to certain conditions, including clearance by the relevant anti-trust authorities.
At €135 million, the Orphan Europe acquisition might have seemed modest compared to later deals. But its strategic significance was enormous. Orphan Europe was a leading European pharmaceutical company dedicated to the development, registration, marketing and distribution of unique drugs for the treatment of rare and orphan diseases. Orphan Europe employed about 120 personnel, and had subsidiaries in nine European countries and in the United Arab Emirates as well as representative offices in seven countries.
Why Rare Diseases?
Of the 7,000 known rare diseases, less than 10% have an available treatment option. Since 2007, through the dedicated business unit Recordati Rare Diseases, the company has focused on helping the few who suffer from little known conditions.
The orphan drug business model offered compelling structural advantages:
- Regulatory incentives: Orphan drug designations provide 7-10 years of market exclusivity
- Pricing power: Small patient populations and lack of alternatives support premium pricing
- Limited competition: High barriers to entry and specialized expertise required
- Patient loyalty: Deep relationships with specialist physicians and patient communities
- Favorable reimbursement: Healthcare systems generally prioritize access to rare disease treatments
Giovanni Recordati declared: "Orphan Europe has achieved a leading European position in the treatment of rare and orphan diseases thanks to their efforts and professionalism and we therefore intend to manage the company independently from the rest of the group." "The acquisition of Orphan Europe fits well with Recordati's growth strategy based on expansion and the strengthening of its product portfolio and pipeline. We believe that the market for drugs that treat rare diseases will grow significantly as a result of the identification of a constantly increasing number of rare diseases and the growing awareness which leads to more patients being diagnosed and treated."
Building the Two-Pillar Model
Several companies formerly operating under the name of Orphan Europe were renamed Recordati Rare Diseases, which is today the global brand of Recordati's organization dedicated to treatments for rare diseases and orphan drugs. Orphan Europe, founded in 1990, pioneered the development of orphan drugs in Europe and became part of Recordati in 2007.
The Orphan Europe acquisition established what would become Recordati's distinctive two-pillar business model: a stable, cash-generative Specialty & Primary Care business alongside a high-growth Rare Diseases franchise. This structure provided both resilience and optionality—a pattern that sophisticated pharmaceutical investors prize.
V. Global Expansion & Building Scale (2008–2017)
Aggressive Geographic Expansion
In 2008, the company acquired the French companies FIC and FIC Médical which are dedicated to the registration and the promotion of pharmaceutical products in Russia and other Commonwealth of Independent States (C.I.S.) countries. Additionally, the company acquired Yeni Ilaç (today Recordati Ilaç), a well-known pharmaceutical company in Turkey. In 2009, Recordati acquired Herbacos-Bofarma, a pharmaceutical company operating in the Czech and Slovak markets.
The company also acquired Laboratorios Casen Fleet S.L.U., a Spanish pharmaceutical company with headquarters in Madrid, with production facilities in Utebo, Zaragoza.
Giovanni Recordati explained the strategic rationale: "We are most interested in those regions with currently underdeveloped pharmaceutical markets but which are growing economically and are progressively dedicating resources to spending for healthcare. For example, Russia and the other Central and Eastern European countries, like Turkey, and regions like the Middle East and North Africa." He noted that "Turkey is now our third largest market after Italy and France."
Rare Disease Regulatory Milestones
In 2014, the U.S. Food and Drug Administration (FDA) granted orphan drug designation for the use of Carbaglu® (carglumic acid) in the treatment of organic acidemias (OAs).
In 2015, establishment of subsidiaries in Brazil, Mexico and Colombia for the commercialization of treatments for rare diseases.
In June 2019, Recordati Rare Diseases reported that its strategy aimed at establishing a direct presence in the key markets across all continents had been successfully executed. Local Recordati Rare Diseases companies were then active in North America, Latin America, Europe, MENA (Middle East and North Africa) and Asia Pacific.
VI. INFLECTION POINT #2: The CVC Acquisition — Private Equity Takes Control (2018)
A Family Succession Crisis
On August 16, 2016, Italian drugmaker Recordati announced that its chairman and chief executive, Giovanni Recordati, aged 66, passed away following a long illness.
Recordati later held a board meeting at which Alberto Recordati was named chairman and Andrea, Giovanni's step-brother and hitherto chief operating officer, was tapped as deputy chairman and CEO. Giovanni Recordati had been in charge of the firm since his father Arrigo's death in 1999.
The Recordati family, which held about 51 percent of the company through its investment vehicle Fimei SpA, had been considering a sale since the August 2016 death of long-time chief executive Giovanni Recordati.
The agreement followed a Financial Times report that squabbling among members of the Recordati family—who had been weighing a sale since the 2016 death of CEO Giovanni Recordati—might have scuttled a potential deal. Political uncertainty in Italy also gave CVC pause at one point.
Europe's Largest PE Pharma Deal
Private equity firm CVC Capital Partners agreed to buy control of drugmaker Recordati SpA for about 3 billion euros ($3.5 billion) from the Italian family that founded the company almost a century ago.
CVC Capital Partners agreed to purchase a majority stake in Recordati, a pharmaceutical company that had been family-owned since its formation in 1926. The deal valued the Milan-based business at €5.86 billion, with CVC paying €28 per share to acquire a 51.8% stake valued at just north of €3 billion from a holding company controlled by the Recordati family. The move included a debt facility worth €750 million.
CVC's pact to purchase Recordati was the largest private equity deal in Europe's pharmaceutical sector in at least 10 years.
White & Case advised CVC Capital Partners on the financing and M&A aspects of the acquisition of 51.8 percent of publicly listed Recordati SpA (through FIMEI SpA, the family holding company) and subsequent tender, making it Italy's largest-ever LBO.
CVC's Strategic Vision
"Recordati has always been a very carefully managed, international pharmaceutical company with a broad platform of products and a strong geographical footprint in primary care," said Cathrin Petty, head of EMEA healthcare at CVC. "Over the last decade, Recordati has built up a very attractive rare disease business which we look forward to expanding in addition to the core business."
Management Continuity
Andrea Recordati, CEO, said: "I believe that this is a great outcome for the company and its employees who will benefit greatly from having CVC as a partner. In the process of finding the best partner to take Recordati forward, it was important to find a party that would allow Recordati to remain independent, with continuity for management and employees, and accelerate its growth strategy as a leading global consolidator in the pharmaceutical industry. I am very pleased to be working alongside CVC in accelerating Recordati's global expansion. I am personally reinvesting alongside the Consortium as I believe in and support Recordati."
The closing of the FIMEI purchase took place in the last quarter of 2018 and was subject only to mandatory competition approvals. The consortium's expectation was that Recordati would remain a publicly listed company.
VII. INFLECTION POINT #3: The Signifor/Isturisa Acquisition from Novartis (2019)
Building a Dominant Cushing's Franchise
In July 2019, Recordati announced the signing of an agreement with Novartis for the acquisition of worldwide rights to Signifor® and Signifor® LAR® for the treatment of Cushing's disease and acromegaly in adult patients for whom surgery is not an option or for whom surgery has failed. Worldwide sales of Signifor® in 2018 were $72 million.
The agreement also covered the acquisition of worldwide rights to osilodrostat (LCI699), an investigational innovative drug for the treatment of endogenous Cushing's syndrome, for which marketing authorization applications had been filed in the European Union and in the USA. Upon completion of the transaction, a consideration of $390 million was due to Novartis. Subsequently, additional milestone payments contingent upon the approval and market access of osilodrostat as well as royalties on sales of this new product would be due.
In October 2019, Recordati announced the successful completion of the acquisition from Novartis of worldwide rights to Signifor® and Signifor® LAR® for the treatment of Cushing's disease and acromegaly in adult patients for whom surgery is not an option or for whom surgery has failed. The acquisition also covered the worldwide rights to osilodrostat (LCI699). Upon closing of the transaction, a consideration of $390 million (€351 million) was paid to Novartis.
FDA Approval: A Rapid Win
As part of a small 2019 deal, Italian drugmaker Recordati snagged a trio of underperforming Novartis endocrinology meds, including a late-stage candidate for Cushing's disease. Less than a year later, that drug was cleared for market after an FDA green light. The FDA approved Recordati's Isturisa (osilodrostat) to treat Cushing's disease—a rare disease in which patients' adrenal glands produce too much cortisol—in those who have undergone a prior pituitary gland surgery or are not eligible for one.
Recordati acquired the drug from Novartis in June 2019. Isturisa was the first drug approved that blocks an enzyme called 11-beta-hydroxylase, preventing synthesis of cortisol.
This deal exemplified what would become a signature Recordati playbook: acquiring underperforming assets from large pharma companies that lacked the focus or infrastructure to maximize their potential, then applying Recordati's specialized rare disease commercial capabilities to drive growth.
VIII. INFLECTION POINT #4: The EUSA Pharma Acquisition — Entering Rare Oncology (2021)
Expanding the Rare Disease Portfolio
Italian drugmaker Recordati agreed on a price for six-year-old EUSA Pharma. The Milan-based firm paid €750m ($845 million) for EUSA's portfolio of drugs to treat rare cancers.
Recordati announced the signing of a share purchase agreement to acquire EUSA Pharma (UK) Ltd, a global specialty pharmaceutical company with headquarters in the United Kingdom, focused on rare and niche oncology diseases. EUSA Pharma was founded in March 2015 and grew rapidly into a world-class pharmaceutical company with a portfolio of 4 rare and niche oncology products with approximately €130 million LTM Net Sales.
U.K.-based EUSA, which employed 200 people around the world, had developed four products, including an antibody treatment for children with neuroblastoma. A potential FDA approval for the treatment, known commercially as Qurziba, could bump annual sales of EUSA's products from €130 million to €250 million. Another promising product Recordati acquired was Caphosol, an FDA-approved medical device to counter some side effects from chemotherapy and radiotherapy. Also included was Sylvant, an approved antibody for idiopathic multicentric Castleman's disease, and Fotivda, an oral treatment for advanced renal cell carcinoma.
"We believe that the EUSA Pharma acquisition represents an excellent opportunity to further expand and reinforce our portfolio in a new and underserved therapeutic area, rare and niche oncology, with high potential growth products and will provide a platform for potential further future expansion in these areas," said Andrea Recordati.
Leadership Transition
Andrea Recordati, who had served as CEO, was appointed Chairman. Andrea stated: "I am delighted that Rob is joining Recordati. He is a highly experienced international executive with a strong track record of driving growth and business performance in pharma and biotech. I am confident that under his leadership, Recordati will continue its positive momentum and capitalise on what has been achieved so far. We have worked diligently over the past several years to strengthen our management team and now is the right time to bring on board a new CEO of Rob's calibre."
Robert Koremans qualified as a medical doctor from RSM Erasmus University in the Netherlands and has over 30 years' experience in managerial and executive roles, gained mainly in the pharmaceutical industry at various international companies, including Serono, GrĂĽnenthal, Sanofi-Aventis and Teva. He has worked globally and lived in the Czech Republic, Germany, Switzerland and the Netherlands. In 2018, he was appointed as Chief Executive Officer in Nutreco, a global leader in animal nutrition. Previously, he had been Chairman and Chief Executive Officer of Global Specialty Medicines and a member of the Executive Committee at Teva Pharmaceutical Industries Ltd. From 1st December 2021, he is Chief Executive Officer of Recordati S.p.A.
IX. INFLECTION POINT #5: The Enjaymo Acquisition from Sanofi (2024)
The Most Recent Major Deal
Sanofi sold Enjaymo, its humanized monoclonal antibody treatment for the rare autoimmune disorder cold agglutinin disease, to Italy's Recordati in an agreement potentially worth more than $1 billion. Under the terms of the deal, Milan-based Recordati paid $825 million upfront and pledged up to $250 million in sales-based milestones. Recordati bankrolled the purchase using its existing cash and new bank debt.
Recordati floated $825 million upfront—plus another $250 million in potential commercial milestones—to get its hands on the global rights to Sanofi's rare disease biologic Enjaymo. In 2022, Enjaymo became the first and only therapy specifically approved by the FDA for treating patients with the uncommon blood disorder cold agglutinin disease.
Enjaymo has traded hands multiple times throughout its lifespan. Sanofi picked up the drug through its $11.6 billion buyout of Bioverativ in 2018, while Bioverativ itself acquired the medicine—then known simply as sutimlimab—in 2017 through a $400-million deal for True North Therapeutics.
On 29 November 2024, Recordati announced the closing of the previously announced acquisition of the global rights to Enjaymo® from Sanofi, following regulatory clearances.
Integration proceeded on track, with sales of €10.9 million in December 2024 and €116 million for full year 2024 (first 11 months booked by Sanofi).
X. Modern Era: Financial Performance & The Path Forward (2024–2025)
Record-Breaking Results
In 2024, revenue for Rare Diseases reached €833.9 million, marking a 16.7% increase compared to the previous year. Isturisa® generated €203.6 million and Signifor® €118.0 million in 2024, compared to €139.5 million and €102.9 million, respectively, in 2023.
Rob Koremans, Chief Executive Officer of Recordati, commented: "2024 was a tremendous year of growth and progress for the Group. We delivered at the top end of our upgraded targets, driven by strong performance from both business units and our usual financial discipline."
"For Isturisa®, we submitted the sNDA for an expanded Cushing syndrome label in the U.S and received approval in China. We also successfully completed the acquisition of Enjaymo®, further demonstrating our robust M&A capabilities."
2025 Guidance and Outlook
On April 15, 2025, the U.S. Food and Drug Administration (FDA) approved the supplemental new drug application (sNDA) for Isturisa® (osilodrostat) for the treatment of endogenous hypercortisolemia in adults with Cushing's syndrome for whom surgery is not an option or has not been curative. This was an expansion of the previous indication for the treatment of patients with Cushing's disease, which is a sub-type of Cushing's syndrome. The Isturisa® indication expansion was supported by the extensive Isturisa® clinical development program, which included over 350 patients.
The Isturisa Opportunity: Peak Sales Doubled
The Company upgraded its peak year sales estimate for Isturisa to greater than €1.2 billion (from a previous range of €550 - €650 million) based on a decision to actively pursue the non-overt Cushing's syndrome market. CEO Rob Koremans commented: "We are very pleased with the excellent progress we have achieved in the first nine months across the business, especially in Rare Diseases and the strong traction of Isturisa® with the expanded label. After a thorough analysis of the Cushing's syndrome market, we are now confident to double our peak year sales expectations for Isturisa® to greater than €1.2 billion as we invest in and target the non-overt patient population, unlocking tremendous additional potential."
The Milan-based drugmaker announced it will raise annual spending on Isturisa-related commercial and medical activities in the U.S. by €40 million to €50 million, targeting the broader non-overt Cushing's syndrome market. That expansion follows the drug's updated U.S. label, which now covers about 30,000 eligible patients, compared with roughly 7,000 before the change.
FY 2027 targets: Net Revenue €3,000 - €3,200 million, EBITDA €1,140 - €1,225 million, Adjusted Net Income €770 - €820 million, excluding potential impact from tariffs and/or most favoured nation pricing policies in the U.S.
XI. Playbook: Business & Strategy Lessons
Multi-Generational Stewardship
The Recordati story spans three generations of family leadership: - Giovanni Recordati (Founder): Transformed an apothecary into a modern drug-based scientific business - Arrigo Recordati: Moved the company to Milan, took it toward listing, and initiated internationalization - Giovanni Recordati (Third Generation): Led the company from 1990 until his death in 2016, building the European footprint and acquiring Orphan Europe
Andrea Recordati gained a Bachelor of Arts in medieval and modern history from the University of London. He joined Recordati in 1998 as project leader for a project aimed at improving sales force productivity and better use of marketing investments. In 1999, he was given responsibility for pharmaceutical business development. In March 2002, the lercanidipine business unit was set up and he was appointed head of that unit.
The M&A Playbook
Value-accretive acquisitions have been the primary growth driver: - Orphan Europe (2007): €135 million – Strategic pivot to rare diseases - Multiple geographic acquisitions (2008-2009): Turkey, Russia, Czech Republic, Spain - Signifor/Isturisa from Novartis (2019): $390 million – Cushing's franchise - EUSA Pharma (2021): €750 million – Rare oncology entry - Enjaymo from Sanofi (2024): $825 million upfront – Cold agglutinin disease
Underpinned by a history of strong financial delivery, the company continues to grow from within, capture opportunities within its own pipeline, and identify opportunities to bring in new treatments through acquisitions across all its businesses.
The Two-Pillar Model
Recordati reports two operating segments: Specialty and Primary Care and Rare diseases. The bulk of the company's profit is derived from its specialty and primary care segment which includes the production of active ingredients.
This structure provides: - Cash flow stability: Specialty & Primary Care generates reliable earnings - Growth optionality: Rare Diseases drives valuation expansion - Risk diversification: Multiple therapeutic areas and geographies
Recordati forecast that Rare Disease sales could "approach 50%" of total revenue in 2026, up from 40% in the first nine months of 2025 and 36% in 2024. The company guided for low-single-digit growth in Specialty and Primary Care next year, before a return to mid-single-digit growth in 2027.
Platform Strategy
A field force of more than 1,700 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 Rare Diseases is now present in over 50 countries including several local partnerships and direct exports. We ensure worldwide availability and timely supply of our rare disease products from our Nanterre (France) dedicated plant."
XII. Strategic Analysis: Porter's 5 Forces & Hamilton's 7 Powers
Porter's Five Forces Analysis
1. Threat of New Entrants: LOW
Of the 7,000 known rare diseases, less than 10% have an available treatment option. This statistic highlights the specialized expertise required to succeed in rare diseases. Key barriers include: - High regulatory hurdles (FDA, EMA approvals take years) - Orphan drug designations provide 7-10 years of market exclusivity - Capital intensity of drug development - Established relationships with rare disease patient communities and specialists - Specialized manufacturing and distribution capabilities
2. Bargaining Power of Suppliers: MODERATE
The manufacturing of active ingredients has been a core part of Recordati's history since its founding. Since moving its main operations to Milan, the division has grown internationally alongside the broader pharmaceutical business, exporting 90% of its production of APIs and intermediates.
Recordati's vertical integration into API manufacturing significantly mitigates supplier power for many products. However, biologic products like Enjaymo require complex contract manufacturing relationships.
3. Bargaining Power of Buyers: LOW to MODERATE
In rare diseases, patients often have no alternative treatments, giving manufacturers significant pricing power. Healthcare systems generally prioritize access to rare disease treatments. However, specialty pharmacies and government payers can exert pressure.
4. Threat of Substitutes: LOW
For most of Recordati's rare disease products, there are no approved substitutes. Enjaymo became the first and only therapy specifically approved by the FDA for treating patients with cold agglutinin disease. Similar first-in-class or only-in-class positioning exists across much of the rare disease portfolio.
5. Competitive Rivalry: LOW to MODERATE
While large pharma companies increasingly pursue rare disease assets, Recordati has built specialized capabilities that are difficult to replicate. The company's commercial infrastructure, relationships with patient communities, and therapeutic expertise create sustainable advantages.
Hamilton's Seven Powers Framework
1. Scale Economies: Moderate advantage through manufacturing scale and geographic footprint
2. Network Effects: Limited direct network effects, but strong relationships with rare disease patient communities create virtuous cycles of expertise accumulation
3. Counter-Positioning: Recordati's specialized rare disease focus represents counter-positioning versus large pharma, which often struggles to prioritize small patient populations
4. Switching Costs: High switching costs for rare disease patients, who develop relationships with specialist physicians and treatment protocols
5. Branding: Strong brand equity within rare disease communities ("Focused on the Few" positioning)
6. Cornered Resource: Access to unique drugs through acquisitions; specialized rare disease expertise accumulated over 17+ years since Orphan Europe acquisition
7. Process Power: Recordati Rare's commitment to rare diseases affords it a competitive advantage through deep expertise and tailored R&D efforts. Specialized commercial, medical affairs, and patient access capabilities for rare diseases represent process power.
XIII. Key KPIs to Monitor
For long-term fundamental investors tracking Recordati, three KPIs stand out as the most critical indicators of ongoing performance:
1. Rare Diseases Revenue Growth Rate
This is the single most important metric to track. As rare diseases approach 50% of revenue and drive the majority of valuation, the segment's growth trajectory is paramount. Key sub-metrics include: - Isturisa® growth and progress toward €1.2B+ peak sales target - Enjaymo® integration and commercial execution - New product launches and lifecycle extensions
2. EBITDA Margin
EBITDA Margin is targeted at approximately 37%. This margin reflects the balance between rare disease investments (which drive growth but require significant commercial spending) and overall profitability. Significant margin compression could indicate competitive pressure or execution issues.
3. Free Cash Flow Conversion
Free cash flow conversion is targeted at 90-100% of Adjusted Net Income. This metric indicates Recordati's ability to convert earnings into deployable capital for acquisitions, dividends, and debt reduction. Strong cash conversion has enabled the company's M&A-driven strategy.
XIV. Bull and Bear Cases
The Bull Case
1. Isturisa Becomes a Blockbuster The drug's updated U.S. label now covers about 30,000 eligible patients, compared with roughly 7,000 before the change. If Recordati successfully penetrates the non-overt Cushing's syndrome market, Isturisa alone could generate €1.2B+ in peak sales—more than 40% of current group revenue.
2. M&A Momentum Continues Recordati has demonstrated consistent ability to acquire underperforming assets from large pharma and drive growth. With balance sheet capacity and a proven playbook, additional accretive deals could further accelerate growth.
3. Platform Leverage Each acquisition leverages existing commercial infrastructure, creating operating leverage. As rare diseases approach 50% of revenue, the fixed costs of the specialized platform are spread across a larger base.
4. Pipeline Optionality New product launches like Maapliv® for maple syrup urine disease and lifecycle extensions for existing products provide additional growth drivers.
The Bear Case
1. U.S. Policy Risk Potential drug pricing reforms, including "most favored nation" pricing policies referenced in company disclosures, could pressure rare disease margins. The concentration of rare disease revenue in the U.S. creates geographic risk.
2. Patent Expirations and Competition While orphan designations provide exclusivity, eventual competition could erode margins on key products. Biosimilar and generic entrants in specialty care could also pressure that segment.
3. Integration Risk Multiple significant acquisitions require management attention. While track record is strong, integration failures could destroy value.
4. Currency Headwinds The adverse FX impact for the first nine months of 2025 was 35.5 million euros or 2.0%. A significant portion of revenue is generated outside the eurozone, creating ongoing currency exposure.
5. CVC Exit Timing As a PE-controlled company, investor uncertainty around eventual CVC exit (timing, mechanism, pricing) creates potential overhang.
XV. Conclusion: The Recordati Playbook
Nearly a century after Giovanni Recordati left his family pharmacy to pursue a dream of better medicines, Recordati stands as one of Europe's most successful pharmaceutical companies. The journey—from a small laboratory in rural Emilia to a €10B+ market cap global rare disease leader—offers enduring lessons:
Lesson 1: Specialization Creates Moats The 2007 Orphan Europe acquisition, made before rare diseases became mainstream, established first-mover advantages that persist today. Deep therapeutic expertise is harder to build than broad portfolios.
Lesson 2: M&A as a Core Competency From geographic expansion to therapeutic diversification, Recordati's ability to identify, acquire, and integrate assets has been the primary value creation lever. The company has developed institutional capabilities—commercial, regulatory, financial—that make it a preferred buyer.
Lesson 3: Two-Pillar Models Work Balancing stable cash flows from Specialty & Primary Care with high-growth Rare Diseases investment has enabled Recordati to compound through cycles while maintaining financial flexibility.
Lesson 4: Family Heritage, Professional Management The transition from family CEO (Andrea Recordati) to professional management (Rob Koremans) while maintaining Andrea as Chairman represents a sophisticated governance evolution that preserved institutional knowledge while adding external perspective.
Lesson 5: PE Can Be Value-Accretive Despite initial skepticism about CVC's involvement, the private equity ownership period has coincided with accelerated growth and strategic execution. Proper alignment between sponsors and management can unlock value.
For investors, Recordati represents a compelling case study in pharmaceutical specialty strategy. The rare disease thesis—high barriers to entry, limited competition, pricing power, regulatory advantages—remains intact. The key questions are execution-dependent: Can Isturisa achieve its expanded targets? Will Enjaymo integration succeed? Can the M&A machine continue to find attractive deals?
Recordati is a global pharmaceutical company, listed on the Italian stock exchange, with over 4,450 employees. The company develops and commercializes medicines to serve people living with common diseases, as well as those living with some of the rarest, in around 150 countries.
From a pharmacist's dream to a global rare disease powerhouse—the Recordati story continues to be written.
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