Galenica Group half year results 2016
Tuesday, 9 August 2016, ↓ directly to download
Galenica reports double-digit profit growth in the first half of 2016
In the first half of 2016, the Galenica Group increased consolidated net sales by 12.1% to CHF 2,009.3 million. Net profit before deduction of minority interests rose by 23.3% to CHF 194.6 million and net profit after deduction of minority interests rose by 21.5% to CHF 158.9 million. On a comparable basis – without accounting components of IAS 19 – net profit before deduction of minority interests rose by 23.5% to CHF 201.7 million and net profit after deduction of minority interests increased by 21.8% to CHF 166.0 million.
Cash tender launched for shares of Relypsa:
It was announced at the end of July 2016 that a definitive agreement had been signed to acquire the US company Relypsa, Inc. Under the terms of the takeover agreement, on 4 August 2016, Galenica launched a cash tender offer at USD 32.00 per share, equivalent to a total of approximately USD 1.53 billion. The transaction brings Vifor Pharma a dedicated US sales organisation and worldwide rights to Veltassa®, a potassium binder for the treatment of hyperkalaemia.
Confirmation of planned division of the Group in 2017:
The acquisition of Relypsa affirms the commitment of the Board of Directors to divide the Galenica Group into two independent listed companies.
After a solid first half year, Galenica Santé confirms its target to increase EBIT 2016 over the previous year on a comparable basis.
Due to the excellent momentum in the first six months of 2016, Vifor Pharma is raising its former guidance in respect of the 2016 EBIT on a comparable basis, which is expected now to increase by approximately 10% compared to the previous year.
Likewise, Galenica Group net profit is expected to increase by approximately 10% on a comparable basis both before and after minority interests.
However, due to the significant but planned investment required to ramp-up sales of Veltassa® in the USA in the newly acquired business of Relypsa, the combined 2016 EBIT of Vifor Pharma is expected to reduce by approximately CHF 80 million and the 2016 Galenica net profit by approximately CHF 90 million both before and after deduction of minority interests on the assumption that Relypsa will be consolidated as of October 2016.
In recent months, Vifor Pharma has become increasingly dynamic. Ferinject® increased sales by 45.7% to CHF 163.3 million. All major markets contributed to this, notably the important US market (+102.2%). This confirms the focus on the indications of nephrology, cardiology and gastroenterology. In addition, a number of new partnerships have been established: following its successful launch in the USA in mid-2015, Mircera® contributed sales of CHF 153.2 million in the first half of 2016 alone, with the prospect of further growth in the second half of 2016.
Galenica Santé tapped its potential in the first half of 2016 with its Products & Brands, Retail, and Services Business sectors. Products & Brands achieved an important first step with the agreement with Pierre Fabre to exclusively distribute A-Derma products in Switzerland. The Retail pharmacy formats Amavita, Sun Store and Coop Vitality are differentiating themselves in the market with new services. Services will be able to strengthen its position with dispensing doctors with the planned acquisition of Pharmapool, and is already equipped to handle larger volumes thanks to the expansion in Niederbipp.
EBIT, EBITDA and consolidated net profit of the Galenica Group
(in million CHF)
1st half year 2016
1st half year 2015 1)
Change in %
- Health & Beauty
Eliminations Galenica Santé
Corporate and eliminations
- Shareholders of Galenica Ltd.
- Minority interests
1) The segment information disclosed in the interim financial statements 2015 has been restated to reflect the new management structure implemented in the second half of 2015
Galenica is a diversified Group active throughout the healthcare market which, among other activities, develops, manufactures and markets pharmaceutical products, runs pharmacies, provides logistical and database services and sets up networks. With its two Business units Vifor Pharma and Galenica Santé, the Galenica Group enjoys a leading position in all its core business activities. A large part of the Group’s income is generated by international operations. Galenica is listed on the Swiss Stock Exchange (SIX Swiss Exchange, GALN, security number 1,553,646).
Thursday, 6 October 2016
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Thursday, 21 July 2016
Head of Corporate Communications
Head Investor Relations