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OM PHARMA was founded in 1937 and today is a fully integrated specialty biotechnology and pharmaceutical company specialising in the research, manufacturing and sale of high quality biotechnological and synthetic drugs. OM PHARMA manufactures its products in Switzerland (biotechnological drugs) and Portugal (synthetic drugs). Its products are sold in more than 90 countries mainly via a network of agents and partners, but also via its affiliates in Switzerland, Portugal and Peru. The company is headquartered in Geneva (Meyrin) and employs a staff of around 350 (196 in Switzerland) and a sales force of 150 external delegates. The company realised net sales in 2008 of more than CHF 100 million.

A strategic and complementary match: A specialty pharma company with a strong product portfolio

As a specialty pharma company successfully focused on niche products occupying a leading position in their markets, OM PHARMA fits excellently into the Galenica Group’s strategy. The well organised company has a successfully established product portfolio and operates thus a very profitable business. In most countries, its drugs are prescribed by doctors or recommended and dispensed by pharmacists. Their cost is often not reimbursed by health insurance. For this reason the drugs are minimally influenced by governmental price reduction measures. The prices of these unique, branded specialties are nevertheless attractive for patients, which ensures long-term protection against generic competition.

The four major products are: Broncho-Vaxom^® (prevention and reduction of severity of infections of the respiratory tract), Uro-Vaxom^® (prevention and reduction of severity of infections of the urinary tract), both biotechnological drugs, as well as Doxium^® 500 (normalising capillary permeability and improving venous blood flow) and Dicynone^® (prevention and treatment of capillary haemorrhages), both synthetic drugs.

The new state-of-the-art biotechnological production unit in Geneva (Meyrin), built by OM PHARMA in 2005, represents an important strategic asset in the protection of the expertise of bio-stimulants (such as Broncho-Vaxom^® and Uro-Vaxom^®).

Pharma: Expansion of internationalisation and diversification of therapeutic areas

From a strategic standpoint the acquisition creates a huge potential for Galenica in its efforts to further increase its internationalisation. At the same time, this diversification of the pharma portfolio contributes to a better risk diversification.

OM PHARMA distributes its products in over 90 countries with 80% of sales generated in 20 key countries. Well established links with international distribution partners will make it possible for Vifor Pharma to penetrate important geographic regions for its iron products easier and faster. Vifor Pharma’s critical mass will be strengthened among partners in Southern Europe, Eastern Europe and Latin America who are also often agents in charge of Venofer^® and Maltofer^®. Promising synergies will be created both in Switzerland and in certain export markets, reinforcing the internationalisation of Consumer Healthcare products (OTC). The acquisition will therefore contribute significantly to the expansion of export possibilities of brands such as Equazen eye q^TM, Perskindol^® and Otalgan^®. Furthermore, OM PHARMA’s products complement the existing Galenica’s portfolio with medical specialties in new therapeutic areas and optimise risk diversification in the Vifor Pharma business sector.

Independent unit within the Vifor Pharma business sector

From an organisational standpoint OM PHARMA will be integrated as a profit centre into the Consumer Healthcare business unit of the business sector Vifor Pharma.

Christophe Ricard, President since 1995, will retire straight away. The proven and successful strategy will thereafter be continued and further developed together with the existing management team under the management of Dr. Gianni Zampieri, Head of Industrial Operations of Vifor Pharma and member of the Corporate Executive Committee of the Galenica Group.

The acquisition is being financed in the long term by loans at very favourable conditions. It will take effect as from 31 October 2009 and will be accretive for the Group results already in 2009. In financial terms OM PHARMA shows an excellent profitability.