An exception for paracetamol: while the government seeks to reduce health spending, an unprecedented agreement offers respite to UPSA and Sanofi, two paracetamol heavyweights. In exchange for a moratorium on the planned drop in prices, UPSA undertakes to relocate strategic production in France, a strong signal for “made in France”.
Paracetamol, a strategic issue for France
Paracetamol, an essential molecule for the French, is at the heart of a standoff between the pharmaceutical industry and the State. UPSA and Sanofi, leaders in this market with their emblematic brands Dafalgan, Efferalgan and Doliprane, have obtained a two-year moratorium from the government. The planned 10% reduction in the price of paracetamol, currently set at 76 cents per box, is suspended to encourage the relocation of production.
“Producing in France costs more, but it has to be done,” underlines Isabelle Van Rycke, CEO of UPSA, who calls for an increase in prices for products manufactured locally.
Relocation: a winning bet for UPSA and the State
In return for this decision, UPSA has committed to producing in France two drugs appearing on the list of strategic molecules, published in 2023 by the government. Among the molecules considered, Pregabalin and Lamotrigine, treatments for neuropathic pain and epilepsy, could be manufactured in the UPSA factory in Agen.
This site, already responsible for the production of 320 million boxes of paracetamol per year, is at the heart of the system. With ongoing investments, UPSA hopes to increase this figure to 450 million boxes, covering almost all national needs. 55% of this production is currently intended for export, but the objective is to strengthen French pharmaceutical sovereignty.
Investments supported by the State and France 2030
The agreement is part of France 2030, an ambitious plan which aims to reindustrialize key sectors. Sanofi and UPSA have already invested in the Seqens factory, in Isère, to relocate the production of the active ingredient of paracetamol by 2026. This initiative puts an end to a dependence dating from 2008, when Europe stopped producing this component.
At the same time, UPSA is diversifying its activities by exploring segments with higher added value, such as food supplements and women's health. In China, “made in France” is becoming a major commercial asset, particularly for personalized gummies from the Nourished brand.
The challenge of drug prices in France
The price of paracetamol in France, among the lowest in Europe, illustrates the challenges of the pharmaceutical sector. With a box set at 76 cents excluding tax, profitability on the domestic market remains limited. “Since 2022, the law has made it possible to promote local roots in setting prices, but this revaluation is still not applied,” regrets Isabelle Van Rycke.
This low cost also affects other drugs, such as codeine Dafalgan, which face competition from foreign generics benefiting from lower production costs. UPSA advocates for regulations that protect French producers and ensure their competitiveness in the face of global competition.
An ambitious course for UPSA by 2027
Since its acquisition by the Japanese group Taisho in 2019, UPSA has doubled its sales and is now targeting a turnover of 500 million euros in 2024. Its five-year plan aims to reduce the share of paracetamol in its portfolio (from 75% to 60%) while increasing that of high value-added products.
With strategic investments in local production and increased diversification, UPSA embodies a new dynamic for the French pharmaceutical industry, combining innovation, competitiveness and relocation.
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