On February 2, 2023 Servier, an independent international pharmaceutical group, reported its financial results for the 2021/22 financial year and presents the main stages of its resolutely committed transformation (Press release, Servier, FEB 2, 2023, View Source [SID1234626809]).

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Extract from consolidated and audited results
(under IFRS [1] , ended September 30, 2022)

(in €m) 2021/22 2020/21 Variation Variation
at TCC [i]
Group turnover 4,876 4,441 +9.8% +6.6%
Turnover from the Princeps activity 3,694 3,282 +12.5% +8.9%
Revenue from the Generics business 1,182 1,159 +2.0% +0.0%
EBITDA 859 638 +34.6% –
EBITDA/turnover ratio 17.6% 14.4% +3.2pts –
Current operating income 442 251 +76% –
Net profit 192 (95) +287 –

"In a complex and unstable geopolitical and economic context, all of the Servier group’s business segments have progressed, confirming the trajectory of our transformation. I am proud of the work accomplished by our teams, which highlights our daily commitment to patients. Servier is now an international health player built around three balanced pillars: cardio-metabolism and venous diseases, oncology and generics. Our innovation capabilities have been strengthened and we now have a balanced and promising pipeline, in line with our ambition in oncology as well as in neurosciences and immuno-inflammation. The achievement of our 2025 objectives is on track and we are implementing our Servier 2030 strategic plan with determination and confidence."

Olivier Laureau, Chairman of Servier, declares
The Servier group’s consolidated revenue for the 2021/22 financial year increased by 9.8% compared to the 2020/21 financial year and reached 4.876 billion euros. This performance is notably driven by the growth in sales volume worldwide of 7.6% and a favorable exchange rate of 3.2% (+€140 million in fiscal year 2021/22 compared to a negative impact of
-€156 million the previous year). The complex context of pressure on prices had a negative effect on turnover growth of 1%, an impact of 45 million euros.

Sales of brand-name medicines amounted to €3.694 billion for the 2021/22 financial year, up 12.5% ​​compared to the 2020/21 financial year. Sales of generic drugs are up 2.0% compared to the previous financial year to reach 1.182 billion euros in 2021/22.

Top 3 of the strongest growth of the Group’s originator drugs in 2021/22

Medication 2021/22 revenue
(in €m) Progress
vs. 2020/21
(in €m at constant exchange rates i )
Tibsovo _ 256 +180
Daflon _ 552 +68
Triplixam _ 211 +37
EBITDA for the 2021/22 financial year amounted to 859 million euros, up 34.6%, and represents 17.6% of Group revenue compared to a ratio of 14.4% for the ‘Previous exercice. Current operating income for the 2021/22 financial year amounts to 442 million euros and corresponds to 9.1% of Group revenue. This performance is explained by the increase in international turnover, a favorable effect of exchange rates, coupled with very good control of expenses and the prioritization choices that were made during the financial year. . Net income, up, amounted to 192 million euros, or 3.9% of Group sales, compared to a loss of 95 million euros for the previous financial year.

"The results for the 2021/22 financial year confirm the Servier group’s trajectory and its ability to achieve its objectives of 6 billion euros in revenue and 1.3 billion euros in EBITDA in 2025. strong growth in sales in oncology as well as the major investments made in recent years confirm our strategy of becoming a focused and innovative player in oncology, projecting to achieve a turnover of 3 billion in this field in 2030. To enable the Group to invest in the long term, particularly in neurosciences and immuno-inflammation which constitute our growth drivers by 2030, our ambition is to increase the ratio of EBITDA to our turnover
to 30%. »

Pascal Lemaire, Executive Vice-President Finance of Servier
Strong growth in international sales
The share of turnover generated outside the European Union represents more than half of Group turnover, ie 56%, up 16% compared to the previous financial year. This strong growth can be explained in particular by the Group’s performance in the United States, which thus becomes the Group’s leading subsidiary, ahead of China, with revenue of 437 million euros compared to 255 million euros in 2020. /21. This 55% i growth is the result of the performance of the drug Tibsovo marketed by Servier in the United States since the second half of the 2020/21 financial year. In Japan, 2ndworld market in oncology, the subsidiary Nihon Servier achieved a turnover of 97 million euros in 2021/22 thanks to the sales of Onivyde , the marketing of which was initiated in June 2020.

The originator sales in France represent 2.7% of the Group’s sales, when this territory concentrates 51% of the Group’s investments, in particular industrial and R&D, for this financial year; a figure that testifies to Servier’s continued desire to create value in France for all of its stakeholders.

Confirmed 2025 objectives and a new ambition for 2030
The 2021/22 annual results confirm the Group’s trajectory for 2025 and its ability to achieve its objectives: revenue of 6 billion euros, including 1 billion euros in oncology, and EBITDA of 1.3 billion euros. euros, i.e. approximately 20% of turnover in 2025.

Achieving the 2025 objectives is a key step for the Group in order to tackle the second stage of its transformation plan for 2030, which is based on three pillars:

Be a focused and innovative mid-size player in oncology, as well as in neurosciences and immuno-inflammation
Maintain the Group’s leadership in cardio-metabolism and in venous diseases
Pursue the profitable growth of the generics business
The Group wishes to accelerate its transformation dynamic in order to guarantee, over the long term, its independence and its creation of value, and to generate a significant societal impact to contribute to a sustainable world. Thus, Servier plans to achieve a turnover of 8 billion euros in 2030 with an EBITDA ratio above 30%.

Cardio-metabolism and venous diseases, consolidated leadership
Sales of originator drugs in cardio-metabolism and venous diseases (CMVD) amounted to 2.693 billion euros and now represent 55.2% of the Group’s consolidated sales.

The growth of 2.9% i compared to the 2020/21 financial year is notably attributable to the performance of Daflon . Marketed in more than 100 countries, Daflon is the Group’s leading drug with sales of 552 million euros. Servier has invested since 2021, more than 100 million euros on its Oril Industrie site in Normandy (France) in order to adapt the production of the active ingredient of Daflon and to meet growing international demand.

Servier also intends to assert its leadership in the field of cardio-metabolism – the Group is the world’s 3rd largest pharmaceutical player in cardiology and the 2nd in hypertension [ 2] – by relying on its expertise in incremental innovation (Single Pill Combinations) and digital services to improve diagnosis, knowledge of chronic diseases and treatment compliance. Triplixam thus reached a turnover of 211 million euros in 2021/22.

Servier involves patients and patient associations in all projects in order to optimize the effectiveness of the solutions proposed to improve therapeutic adherence. In this regard and in the field of hypertension, Servier works in particular with Global Heart Hub and Senior International Health Association. This collaboration resulted in initial study results, presented at the European Society of Hypertension (ESH) 2022 Congress . The Group thus aims to improve adherence to treatment for patients suffering from this chronic disease and thus their life expectancy by avoiding comorbidities.

Oncology, the realization of an ambitious strategy in 2021/22
The share of oncology in consolidated sales rose sharply compared to the previous year to reach 848 million euros (up 35.4% i ), representing 17.4% of sales. consolidated business, compared to 13.6% in 2020/21. This performance is notably driven by sales of Tibsovo for 256 million euros in 2021/22. Tibsovo joined Servier’s portfolio in mid-2020/21, following the acquisition of the oncology division of Agios Pharmaceuticals. In 2022, Servier submitted a marketing authorization application to the European Medicines Agency (EMA) for Tibsovo .

Sales of other oncology drugs also contributed to this performance, including Oncaspar , with sales of 290 million euros, up 2.8% i , and Onivyde which achieved sales of 145 million euros in 2021/22, up 13.7% i compared to the previous financial year.

All of these indicators support the Group’s growth strategy in oncology. With nearly 6 billion in investments made over the past five years, Servier now has a portfolio of 7 drugs available to patients targeting pathologies with a strong unmet medical need.

The Group devotes more than 50% of its R&D budget to oncology, with the ambition of being recognized as a focused and innovative player in the development of treatments targeting hard-to-treat cancers. Servier directs its R&D programs in oncology around two approaches: immuno-oncology and targeted therapies. In addition, this major investment by the Group is now reflected in a promising pipeline of 38 R&D projects in oncology (as of January 2023).

A balanced and innovative pipeline, reflecting the successful transformation of R&D
With 43 projects in clinical development and 32 research projects [3] , the result of significant and continuous investment in R&D (more than 20% of originator sales), Servier focuses its research and development efforts on all of its therapeutic areas where the needs are major. To date, 50% of the Group’s Research projects have the potential to become "first in class" (drug with a new and unique mechanism of action) and the quality of its projects should lead the Group to launch two to three first in human studies per year.

With 21 projects in neurosciences and immuno-inflammation, Servier has built a quality pipeline capable of constituting its next source of growth.

"The quality of our pipeline concretely attests to the transformation of our R&D in our three therapeutic areas. This year, we demonstrated our ability to accelerate the process of discovering and making innovative therapies available to patients, through strategic partnerships and increased use of digital technologies. »

Claude Bertrand, Executive Vice-President Research & Development of Servier
Thus, during the 2021/22 financial year, Servier entered into new partnerships and reached important milestones regarding studies carried out in collaboration with partners. The Group notably entered into a collaborative research agreement with Oncodesign Precision Medicine (OPM) for the identification of new targets in pancreatic cancer. Also with this partner, an exclusive worldwide license option was exercised for a drug candidate in the treatment of Parkinson’s disease. Finally, in Sjögren’s Syndrome, this year marked the end of the inclusion of patients in a phase 2a clinical study conducted by Servier in partnership with OSE Immunotherapeutics, the results of which are expected in 2023.

In order to accelerate the development and marketing of new drugs and services, the Group has also entered into a strategic collaboration with Google Cloud, centered on the use of data. Servier has also entered into a partnership with GNS in the digital twin aimed at accelerating the discovery and clinical development of new treatments through AI and biosimulation.

The opening of the Servier Research and Development Institute in Paris-Saclay, during the
1 sthalf of 2023, constitutes a major step in the transformation of R&D. The result of an investment of nearly 400 million euros, it illustrates Servier’s ambition to build open, dynamic, productive and innovative research for the benefit of patients. It will be the heart of the Group’s global R&D organization and will work cross-functionally with the other R&D centers located in Budapest in Hungary, Ballerup in Denmark and Boston in the United States, as well as with the 3 hubs ( Europe, Asia-Pacific, America) for clinical research. Servier has also joined forces with BioLabs, a leading American player in the management and management of start-up incubators, for the management of its "Spartners" incubator in Paris-Saclay. The latter will host young shoots in the field of health and life sciences.

During the summer of 2022, Servier inaugurated its first Research center in Boston. Located at the heart of the world’s largest health ecosystem, the center brings together nearly 200 employees who work every day to develop innovative cancer treatments.

Generics, a strategy of local champions confirmed
Over the 2021/22 financial year, revenue from the Servier group’s generics activity remained stable compared to the previous financial year at constant exchange rates and amounted to 1.182 billion euros (24.2% of consolidated turnover of the Group). The favorable impact of sales volume growth on sales was neutralized by very strong pressure on net prices, particularly at Biogaran, and a very significant increase in the safeguard clause in France.

Today, the Group has an offer of more than 1,500 generic drugs covering the majority of pathologies and which are distributed throughout the world by four subsidiaries: EGIS in Eastern Europe, Pharlab in Brazil, Swipha in Nigeria and Biogaran, leader in the generics market in France.

Biogaran has thus consolidated its leadership around its range of reimbursed drugs, reaching 32% market share for generic drugs and has begun to diversify its activity with the ambition of becoming the reference player in the daily health of French people in the pharmacy. Biogaran, for example, launched a new range of technical dressings for wound care, developed its OTC offer, and the company also marketed GSK’s flu vaccine. It also intends to capitalize on the opening of the right to substitute biosimilar drugs in pharmacies to develop its presence in this fast-growing market.

Patient and CSR commitments at the heart of the Group’s strategy
Servier is committed to therapeutic progress for the benefit of patients. The Group thus works with patients at each stage of the drug’s life cycle. This reality was rewarded in June 2022 by a notable progression in the rankings resulting from the survey carried out by the organization PatientView in 2021 among patient associations around the world. Servier is notably ranked 7th out of 30 oncology laboratories.

During the year, Servier also acted to reduce its environmental footprint and contribute to the fight against climate change. The Group’s efforts have focused on all aspects of its business and have included in particular the eco-design of drugs, the decarbonization of its supply chain and the preservation of biodiversity. Beyond the Group’s desire to reduce its CO 2 emissions by 25% by 2030 (vs. 2015/16), more than 30,000 tonnes of CO 2 equivalent have been offset by Servier in 2022 thanks to projects capturing or limiting emissions.

A milestone in terms of diversity and inclusion, the Group launched "She is Servier", a female leadership program aimed at supporting and accompanying the women of the Group in their professional development. By 2024, Servier intends to reach a target of at least 40% women in top management.

Finally, and as part of its 2030 ambition, Servier plans to commit to a flagship CSR project every three years, in line with the Group’s vocation.