Price Cuts Hurt Almirall's 2010 Results

Reinforcing BMI's view that companies with significant exposure to European markets will be hard hit by government austerity measures across the region, and in particular by pharmaceutical price erosion mechanisms, the Spanish government's austerity measures look set to significantly affect local drugmaker Almirall. In June 2010, the pharmaceutical company cut its guidance for the year, expecting its revenues to fall by about 5%. In February 2011, the company reported a 4.7% decline in full-year 2010 net sales to EUR882.4mn (US$1.22bn) and a net income decline of 21.7% to EUR118.6mn (US$164.4mn).The drugmaker attributed this performance to the healthcare reform in

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