(BFM Bourse) – The manufacturer of active pharmaceutical ingredients Euroapi announced on Monday an investment of 40 million euros for the implementation of a new technology for the production of vitamin B12 on its site in Saint-Aubin-lès-Elbeuf, in Seine Maritime. This project should enable it to increase its production capacity by 2025.
Euroapi wants to boost its production of vitamin B12. The manufacturer of active pharmaceutical ingredients announced on Monday an investment of 40 million euros for the implementation of a new production technology for this vitamin at its site in Saint-Aubin-lès-Elbeuf, in Seine-Maritime.
This project should enable Euroapi to increase the production capacity of its plant by 2025, while reducing its environmental footprint. The investment benefits from financial support of 7.9 million euros in total, from the French government as part of the Recovery plan, the Seine-Normandy Water Agency (AESN) and the region. Normandy.
Vitamin B12 has essential physiological properties for the body and plays a major role in DNA synthesis, the formation of red blood cells and the regulation of the nervous system. “The only Western vitamin B12 manufacturing site, Saint-Aubin-lès-Elbeuf plays a crucial role in supplying a large number of customers around the world, including DSM and P&G Health” indicates Euroapi.
Next generation fermentation technology
“The plant specializes in large-scale fermentation and downstream processing. The Saint-Aubin-lès-Elbeuf site is approved by the main health authorities in the world, GMP and ISO certified and operates in compliance with the standards the highest industrial standards” adds the leader in active pharmaceutical ingredients.
In addition to expanding the Saint-Aubin-lès-Elbeuf plant, Euroapi plans to deploy new generation fermentation technology, enabling the site’s production to be increased by 60%.
“This new technology will give Euroapi the means to develop a more robust and nitrite-free manufacturing process, to reduce its waste and to reduce its water consumption by around 50%”, explains the company. The process described as “innovative” by Euroapi was also designed to reduce the number of steps required to manufacture the product. The production of vitamin B12 should thus reach its full capacity by 2027, specifies the manufacturer of active pharmaceutical ingredients. This investment is in addition to that of 24 million euros announced in July 2022 for the construction of a state-of-the-art biomass boiler room.
Only manufacturer to have a vitamin B12 factory in Europe
The investment will enable Euroapi “to increase [sa] productivity in a dynamic vitamin B12 market, which shows growth of around 6% to 7% per year. It will also reinforce the degree of differentiation of our portfolio, while deploying a production technology that is more respectful of the environment”, commented Karl Rotthier, CEO of Euroapi.
“We benefit from a unique positioning as we are the only vitamin B12 manufacturer to have a European production site. This project reinforces our reputation as a reliable supplier and partner of choice and we look forward to strengthening our cooperation with our customers and to establish new collaborations”, added Laurent Alexandre, commercial director of Euroapi.
In November 2022, the group announced an initial investment of 18 million euros to increase the manufacturing capacities of its Frankfurt site dedicated to the peptides and oligonucleotides segment.
A trying end to the year 2022
Euorapi hopes to turn the page on a difficult end to the year on the stock market when it had a flawless run since its IPO last May. The active ingredient specialist had lost much of its lead after being forced to lower its financial targets for the 2022 financial year last December.
The former subsidiary of Sanofi had indeed had to suspend part of its production on its site in Budapest, Hungary, the group having noted “certain deviations from good manufacturing practices, relating to the management of documentation”.
Revenues are thus expected at 980 million euros for the 2022 financial year against around 1 billion euros previously. Core Ebitda is expected in a range of between 12% and 13% against a target previously expected at a rate “equal to or greater than” 14%.
For the time being, the investment project is going unnoticed, the Euroapi share only progressing by 0.8% to 14.19 euros, bringing its rise to 1.70% since the start of the year.
Sabrina Sadgui – ©2023 BFM Bourse
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