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<p>By Joan Faus</p> <p>BARCELONA, May 11 (Reuters) – Spain’s Almirall’s profits may shrink in the second quarter because of the coronavirus pandemic, especially in the United States, but should remain positive after a 63% rise for the first three months, the company’s finance chief said on Monday.</p> <p>He also said in a telephone interview the company was looking out for M&A opportunities.</p> <p>The Barcelona-based pharmaceutical company said its first-quarter net profit rose 63% to 48.6 million euros ($52.58 million), as revenue rose 7% and sales 8%.</p> <p>This was partly driven by stockpiling, worth between five and 닥터스피부과 10 million euros, Chief Financial Officer Mike McClellan said.</p> <p>Second quarter earnings could decline as the crisis concerning COVID-19, the illness caused by the novel coronavirus, could make patients less likely to visit the doctor for other conditions.
In addition, 닥터스피부과 people may have already bought any medication they need and will not stockpile further.</p> <p>”We may see a little bit of downside versus the first quarter but we don’t expect to swing to a loss,” McClellan said.</p> <p>Revenues in the United States could be especially vulnerable to a drop in prescriptions, while Europe should be more resilient.</p> <p>”We hope to make up in the second half (of the year) either through other geographies (than the United States) or through promotional activities and some savings,” McClellan said.</p> <p>Almirall forecasts 2020 net sales growing in low to mid single-digit and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) falling to between 260 million euros and 280 million euros from 304.2 million euros in 2019.</p> <p>But if the health crisis does not stabilise over the coming months, 닥터스피부과 the company will have to evaluate whether to maintain its 2020 outlook, McClellan said, adding that a potential update could be given in late July.</p> <p>Almirall’s shares were 4.4% lower at 13.14 GMT, 닥터스피부과 having reversed a rise of nearly 6% just after it reported its results.</p> <p>”2020 is a transition year, but we remain confident in the dermatology portfolio and continued operating leverage,” Jefferies Group said in a note, noting first-quarter sales were 10% above the consensus forecast.</p> <p>Almirall will assess potential M&A opportunities, likely in Europe’s dermatology sector, balancing price with the risk of higher interest rates, should loans be needed for financing.</p> <p>”The situation may make some assets available at a better price, either through companies who would like to get some value for products that we could either license or buy, or potentially parts of business that are already on the market that could help add to our critical mass,” McClellan said.
<b>($1 = 0.9243 euros) (Reporting by Joan Faus; editing by Inti Landauro and Barbara Lewis)</p></div></b>
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