2024-04-18 13:00:00
According to Servier’s statement, the group does not want to “comment on rumors”, adding that it “has made a major shift in innovative treatments, particularly in oncology”, and that “strategic reviews are regular to maximize the potential of all our activities.
Like the rest of “big pharma”, Servier has refocused its strategy on innovative drugs
Since 2018, Servier has been strongly committed to diversifying its portfolio by taking a pronounced shift towards oncology, with major acquisitions in Denmark and the United States, industrial investments in biomedicines, and turnover in this branch which has now exceeded one billion euros in annual turnover (out of a total of 5.33 billion euros for the 2022-2023 financial year ended at the end of last September).
This strategy is far from being unique: it is the one favored by most of the world’s major laboratories, which opt for activities focused on the most innovative and profitable drugs, addressing more serious diseases and sometimes without treatment yet. . In this logic, the majority of big pharma players have sold their ancillary activities, in particular their generic drugs, in recent years.
32% share of the generic medicines market in France for Biogaran
In France, Biogaran has a special status. With more than 30% market share, it is the leader in generic drugs in the country. Founded in 1996, the Biogaran subsidiary brings together nearly 1,000 references and sells more than 300 million boxes of medication each year in France.
It constitutes one of the branches of Servier’s generic medicines activity. Three other subsidiaries operate in parallel with Biogaran, with Egis for Eastern and Central Europe, Swipha in Nigeria and Pharlab in Brazil. In total, this set of generic medicines generated 1.29 billion euros in turnover for the 2022-2023 financial year, up 8.8% year-on-year. Servier does not detail its figures by subsidiary, but Biogaran’s sales are, according to information from L’Usine Nouvelle, around 750 million euros per year.
Servier manages its production, Biogaran relies on subcontracting
On the production side, Biogaran and Servier present very separate plans. For Servier medicines, the group relies on its subsidiary Oril Industries in Bolbec (Seine-Maritime), for active ingredients, and on its vast complex in Gidy, in Loiret, in addition to international locations in Spain, in China, Poland and Ireland. On the other hand, Biogaran relies mainly on subcontracting.
The subsidiary indicates that its medicines are 51% produced in France and 90% in Europe. In France, Biogaran mentions 39 subcontractors spread throughout the territory, but without further details on the actors concerned. In total, for France, 8,600 jobs are affected by these productions, but mainly through subcontracting. According to our information, Biogaran only has around 240 direct employees.
In the event of sale of this subsidiary, the risks of changes to subcontracting contracts and possible relocations cannot be ruled out. With potential impacts on the network and industrial jobs of the pharmaceutical industry in France, and therefore on its health sovereignty. Roland Lescure, Minister Delegate for Industry and Energy, believes that “ regarding the sale of Biogaran, I want to be clear and firm. The State is monitoring and being very vigilant on this issue. If a foreign investor wishes to buy Biogaran, we allow ourselves the possibility of activating the so-called IEF procedure. [investissements étrangers en France, ndlr]. It makes it possible to control investments made by foreign companies in France in strategic sectors. As part of this review, we will determine the necessary and proportionate conditions to ensure our health sovereignty ».
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