Euroapi: gradual restart of prostaglandin production in Budapest – 01/31/2023 at 09:10


(AOF) – Euroapi gradually restarted the production of prostaglandins at its Budapest site on January 19. As indicated to the market in its press release dated December 7, 2022, the group has identified, during an internal assessment, certain deviations from good manufacturing practices regarding production documentation and has decided as a precautionary measure to proactively and temporarily suspend prostaglandin-related activities at its Budapest site.

As the restart is by nature gradual, the active ingredient specialist predicts that most prostaglandin production will have resumed by mid-April 2023.

As anticipated, no other activity at the Budapest site was impacted, including the Contract Development and Manufacturing Organization (CDMO) activities.

AOF – LEARN MORE

The strengths of the value

– One of the world leaders in active pharmaceutical ingredients (No. 1 in small molecules, 2nd in APIs combining small and large molecules and 7th in innovative molecules), created in December 2021 by separation from Sanofi;

– Revenues of €902m, split between chemical molecules for 97% and peptides & oligos for 3%;

– Business model based on a clear commercial strategy of expansion into new markets and aiming to become a benchmark partner for pharmaceuticals and biotech;

– Capital held approximately 30% by Sanofi, 12% by BPI France and 5% by L’Oréal, Viviane Monges chairing the 12-member board of directors, Karl Rotthier being managing director;

– Very healthy balance sheet with €1 billion in equity and €19 million in net debt.

Challenges

– Strategy based on 3 pillars with 2025 objectives: launches of innovative molecules (35% of sales), deployment of resources and R&D productivity with the objective of an operating margin above 20%;

– Innovation strategy focused on:

– industrial and logistics optimization,

– innovative molecules developed in the CDMO (Contract Development and Manufacturing) with 30 ongoing projects,

– the combined supply of oligonucleotides and peptides from 2025;

– Environmental strategy aiming for carbon neutrality in 2050;

– 2 stages: 100% of sites powered by renewable energies in 2025, 30% reduction in CO2 emissions in 2035 (vs 2020),

– footprint reduction technologies;

– Extensive portfolio of 200 references, 55% of which are differential and complex, produced at 6 industrial sites in Europe, an asset in the face of Asian competition penalized by costs and supply chain disruptions.

Challenges

– Evolution of the capital Sanofi and Bpifrance being committed to keeping the shares until May 2024 and L’Oréal until 2023;

– Rise in operating margin, less than half that of its European competitors – Lonza, Siegried, Bache and PolyPeptide;

– Continued reduction of dependence on Sanofi by obtaining new contracts;

– Ramp-up of the production of vitamin B12, prostaglandin and hormones with an investment ratio raised to 14% of turnover;

– After 10% revenue growth in the 1st half, confirmation of the 2022 target: revenue of €1 billion and an increase in operating margin of +14%;

– No dividend for 2021, 23 and 24.

Find out more about the “pharmacy” sector

Loss of speed in European research

European research is losing ground to American and Chinese research. In twenty years, Europe’s share has fallen from 41% to 31% in global R&D. China’s share jumped from 1% to 8%. As for the United States, which supplanted Europe, in 2001 it devoted only 2 billion euros per year more than Europe to R&D, whereas now this gap has reached 25 billion! Some experts accuse the European authorities of not having deployed effective policies. The financing of pharmaceutical research should therefore have been better targeted via the “Horizon 2020” programme. France only comes in eighteenth position in European funding despite the quality of its research. Conversely, the United States concentrates funding on Boston and a few centers of excellence.



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