...May 8, 2025 This report does not constitute a rating action The operating performance of Grunenthal Pharma GmbH in 2024 exceeded our expectations, demonstrating resilience despite revenue erosion from Palexia. While the group's revenue declined 1.2% year-over-year to 1.8 billion in 2024, it exceeded our forecast. Qutenza's robust performance in the U.S., contributions from Movantik's addition to Grunenthal's portfolio, and earnings from Grunenthal Meds in Europe more than offset the revenue decline from Palexia, which faced competition from generic players. S&P Global Ratings-adjusted EBITDA margin was relatively stable at 21.4% in 2024, compared with 21.6% in 2023. However, the margin was 130 basis points higher than our base-case scenario, thanks to tight control over promotional spending, as well as efficiency and restructuring gains. An unfavorable product mix and increased research and development investment tempered the increase in profitability. S&P Global Ratings-adjusted debt to...
