Discussions that worry employees. A petition entitled “For the maintenance of generic drugs manufactured in France” has just been launched on change.org. As of 11 a.m. on July 16, 24,600 people had already signed it. Those who launched the petition say they “fear a loss of sovereignty if production is relocated, less responsiveness to health crises, more stock shortages in pharmacies and job losses.”
Aurobindo: a serious candidate
The Indian group Aurobindo (3.2 billion euros in sales last year) is a serious candidate. The group has had a direct presence in France since the acquisition of the generics laboratory Arrow in 2014, with 250 employees in the country. According to the Indian laboratory, 65% of Arrow’s supplies are still European, and a source close to the matter indicates that “40% of suppliers are French, as in 2014”. Another source, however, claims that “Some manufacturers in France have lost contracts”.
Other offers are on the table. There is that of the British investment fund BC Partners, associated with the BPI. BC Partners is not a pharmaceutical manufacturer, but the company has strong expertise in the field. For example, it sold the Greek generic manufacturer Pharmathen in 2021 and, last April, sold the German pharmaceutical subcontractor Aenova. The latter saw its turnover double to more than 800 million euros per year during the ten years under the control of BC Partners.
The fund currently owns the Dutch Synthon, specializing in complex generics, with European factories in the Netherlands, the Czech Republic and Spain. In addition, although it is not a pharmaceutical company, BC Partners also took a majority stake in 2022 in the French Havea, a specialist in food supplements and natural health, which produces extensive ranges in Vendée. There is also another Indian group: Torrent Pharmaceuticals.
Sell Biogaran to accelerate oncology
Although Servier believes that there is still development potential for Biogaran, the group believes that it is important to sell its division to finance its future. Since 2018, the company has been strongly committed to diversifying its portfolio by taking a pronounced turn towards oncology. Major acquisitions have been made in Denmark and the United States, as well as industrial investments in biomedicines. Revenue in this branch has now exceeded one billion euros in annual revenue (out of a total of 5.33 billion euros for the 2022-2023 financial year ending last September).
This strategy is far from 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 yet a treatment. In this logic, the majority of big pharma players have thus sold their ancillary activities, in particular their generic drugs, in recent years.
Bercy still needs to be convinced. Even if the line has been less fluid since the legislative elections, discussions between Servier and the government are regular on the subject. In the middle of the election campaign, the file had even become a subject of controversy. Which had prompted Roland Lescure to pull out the red card. According to the Minister of Industry, “if a foreign investor wants to buy Biogaran, we leave ourselves the possibility of activating the procedure known as foreign investments in France”. Barring a last-minute surprise, the file could still be closed in the middle of summer.
Source: www.usinenouvelle.com
