The Servier laboratory announced on Friday, September 6, that it was for the time being giving up on the sale of its subsidiary Biogaran, the leader in generic drugs in France, putting an end, at this stage, to an industrial but also political saga on health sovereignty. In an internal letter addressed to employees, of which Agence France-Presse obtained a copy, the Servier group announced that it had “received expressions of interest from international investors for Biogaran”but have decided to end discussions with the stakeholders concerned.
“The value creation proposed did not seem beneficial to us” for the company, its employees, the Franco-European industrial fabric, as well as patients, pharmacies and partners, writes Olivier Laureau, president of Servier, in this letter. “In addition, political and regulatory uncertainties have weighed on these expressions of interest.”he adds.
This decision puts an end to months of speculation about the future of the French leader in generic drugs, which sells 320 million boxes per year in France. Since the rumours of a sale, which have been circulating since the end of 2023, Servier had not officially communicated its intentions regarding its subsidiary, launched in 1996 on the generics market and which has since become the largest generic brand in France.
Read the decryption | Article reserved for our subscribers Biogaran: the possible sale of the French flagship of generic drugs raises concerns
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A political file
As early as the spring, the executive had stepped up to warn against a possible sale of this laboratory, which holds nearly a third of the generic market in France. A sensitive issue therefore, in a context of drug shortages and efforts undertaken at the top of the State to relocate essential drugs and to attract additional investments in health.
Two Indian pharmaceutical players had been identified as candidates, Aurobindo and Torrent Pharmaceuticals, in addition to the British fund BC Partners, which had submitted an offer in June in tandem with Bpifrance. The French pharmaceutical company Benta Lyon had also positioned itself. It was feared that a foreign acquirer could stop certain products or have them produced elsewhere.
On several occasions, the executive has assured that “drastic conditions” would be put in place in the event of a foreign buyer, with the possibility of activating the control of foreign investments in France so as not to compromise health sovereignty.
After the government resigned, staff representatives sounded the alarm in a petition to mobilize public opinion. They warned of the risks associated with a “loss of sovereignty if production is relocated”which could be translated as “less responsiveness to health crises”, “no more stock shortages in pharmacies” et “the elimination of jobs within Biogaran and its subcontractors”They also said they feared an acceleration of the sales process pending the appointment of a new government.
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Some offers are said to have reached “more than a billion euros”
The generic manufacturer, which has 240 employees, currently produces half of its production in France, via its forty or so subcontractors who manufacture for it. It thus accounts for 8,600 jobs. But with 1.2 billion euros in sales, it represents less than a quarter of its parent company’s turnover. There was no mention of price in this information point contained in the internal mail.
According to a source close to the case consulted by Agence France-Presse, some offers have reached “more than a billion euros” more “The question of price was not a major criterion” in Servier’s decision. However, the group is not throwing in the towel once and for all. “We will be able to initiate new strategic reviews in the future as we do regularly to assess the potential of our activities”he emphasizes.
For a medium-sized company like Servier, the growth drivers are elsewhere, primarily in innovation in oncology, a more lucrative expertise than that of generics.
Read the decryption | Article reserved for our subscribers Acquisition of Biogaran: BC Partners joins forces with Bpifrance to submit an offer
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