(AOF) – Continuing the overhaul of its group financing strategy, Orepa announced the conclusion and approval of a conciliation protocol with its main banking partners under the main terms provided for in the agreement in principle signed on May 12 2022. This protocol was notably signed subject to an agreement on financing and security documentation, an agreement which has since been reached with Orpea’s main banking partners.
At the request of Orpea, the Commercial Court of Nanterre, by judgment dated June 10, 2022, approved the protocol and terminated the conciliation procedure opened for the benefit of Orpea on April 20, 2022.
As previously indicated, these new credits will be made available to the company gradually until December 31, 2022 subject to preconditions, with a first drawdown of 250,000,000 euros in mid-June.
The financing provided for by the protocol and the credit documentation will enable Orpea to finance its activity, meet the due dates of its existing financing without modification of their terms and finance the investments necessary for its activity.
AOF – LEARN MORE
Key points
– European number 1 in comprehensive dependency care with more than 116,000 beds and 1,156 establishments in 23 countries, created in 1989;
– Turnover of €4.3 billion, split between France-Benelux for 60%, Central Europe for 26%, Eastern Europe for 9%, the Iberian Peninsula and Latin America ( Brazil, Chile and Uruguay) for 5% then China;
– Value creation model based on 4 pillars: investment in people, quality of service assessed regularly, an organization adapted to international development in locations with high purchasing power, 50% ownership real estate (47% in 2020);
– Split capital (14.5% for the Canadian pension fund CPPIB and 5% for FFP of the Peugeot family), Philippe Charrier chairing the 13-member board of directors, Yves Le Masne being managing director;
– Tight balance sheet with €3.6 billion in shareholders’ equity against €6.7 billion in net debt, increased by external growth.
Challenges
– Decentralized operational organization aimed at controlling the internationalization of the group present in 23 countries, with management teams for each geographical area and harmonization of procedures and controls carried out by head office;
– Innovation strategy to anticipate the management of human frailty:
Open innovation with 108 projects around health & care, catering & hospitality, construction and processes / university research with nearly 30 innovative projects / 100% of new buildings certified HQE / 5% reduction in energy consumption energy;
– 2023 environmental roadmap: 100% of calls for tenders including a CSR assessment / 100% of suppliers signatories to the responsible purchasing charter / 100% of new buildings certified HQE / 5% reduction in energy consumption / 1 er launch of a green loan in March;
– After the acquisition of the buildings of 3 German retirement homes, success of the partnership concluded with Icade Santé in the development in Europe;
– Growth reservoir provided by the 26,000 beds under construction and reinforced by the 6 acquisitions made in 1 er semester.
Challenges
– Reconquest of investors after the collapse of the valuation due to the publication of an essay – Les Fossoyeurs – on the mistreatment suffered by residents of the group’s retirement homes, the practices of rear margin and on the overwork of employees ;
– Share buyback program.
Oncology supports laboratory performance
Oncology generated $163 billion in revenue in 2021 (out of an industry total of $613 billion), up 11.9%, according to GlobalData. Its average annual growth has reached 15.4% over the past twenty years. This segment, which is increasingly competitive, is dominated by a few heavyweights such as MSD (Merck & Co. Inc), Roche, BMS . L ‘ immuno-oncology, the specialty that has been driving this market for ten years, supports research. GlobalData estimates that this segment could reach 180 billion in 2026. The major players are looking to strengthen themselves in this niche. Pfizer recently acquired Canadian biotech Trillium Therapeutics for $2.3 billion. Following this operation, the American group got hold of two promising molecules in the treatment of blood cancer.