Welcome to the new Galenica!

Dear Shareholders, Ladies and Gentlemen

Spring 2017 marks a milestone in our company history: the IPO of Galenica Santé – today Galenica – on SIX Swiss Exchange and thus the division of the former Galenica Group into the two independent companies Galenica and Vifor Pharma. Since the first day of trading on 7 April 2017, Galenica has been held by a diversified group of private and institutional investors. The transaction saw the entire share capital placed at the top end of the price range, resulting in a market capitalisation of around CHF 2 billion. The IPO of Galenica is thus the largest in Europe in the first half of 2017. The basis for this major success, besides a convincing track record, was a clear, focused strategy and experienced, well-functioning teams at all levels. Together, we have the goal and the ambition to be the first choice in Switzerland for health, beauty and wellbeing.

Innovations for the healthcare market

Over the last few years, we have proven that we can successfully continue to develop Galenica despite a challenging environment. The first half of 2017 was no exception (see text box page 5). We earn the trust of our customers with professional advice, high-quality services, flexibility, reliability and clear customer focus, for example with personalised offerings. In doing so, we are supported by the political desire of the Swiss government to strengthen the role of pharmacies as the first point of contact for questions related to health and basic medical care.

In the Retail Business sector, we have strengthened the pharmacy network and further harmonised and simplified processes for all pharmacy formats. At the same time, we
want to give the market innovations and new models, and test customer acceptance. This includes running pilot projects such as the Aprioris walk-in clinic at the Amavita pharmacy in Adliswil and the Sun Store pharmacy Métropole in Lausanne, and MedCenter, which was launched at the beginning of 2017 at the MediService site in Zuchwil.

In the fourth quarter of 2017, Daniele Madonna, currently Head of Coop Vitality pharmacies, will assume responsibility for the Retail Business sector, taking over from Jean-Claude Clémençon who will focus fully on his duties as CEO Galenica Group.

In the Products & Brands Business sector, we have expanded the product range. Since May 2017, our portfolio of strong brands such as Algifor®, Anti-Brumm®, Perskindol® and Triofan® also comprises the newly-acquired iconic brands Merfen® and Vita-Merfen®. In addition, at the beginning of 2017 we launched exclusively in Switzerland Lierac and Phyto – premium brands for skincare and haircare from the French Alès Groupe.

In the Services Business sector, Galexis expanded its offering for self-dispensing physicians with the acquisition of physicians’ wholesaler Pharmapool at the beginning of 2017.

Targets for 2017 confirmed

Thanks to the acquisition of physicians’ wholesaler Pharmapool, the continuing reinforcement of the pharmacy network, the newly-acquired brand Merfen® and the in licensed brands A-Derma, Phyto, Lierac and Schüssler salts from Adler, the Galenica Group’s growth in the first half of 2017 was well above the market as a whole, which was, however, below expectations. Based on the positive business performance to date, we are confident of achieving the ambitious targets for 2017. Consequently, the outlook regarding dividends also remains unchanged, and Galenica aims to be able to propose a dividend payment of CHF 80 million to the 2018 Annual General Meeting.

More retail expertise on the Board of Directors

The Board of Directors will propose Bertrand Jungo to the 2018 General Meeting for election as a new member of the Board. Bertrand Jungo previously worked for 26 years in leadership positions at Manor, a department store with locations across Switzerland, including 11 years as CEO. He knows the Swiss retail market from the ground up, and has experience in multi-channel retail as well as in the areas of beauty, personal care and international sourcing. His retail expertise makes him the perfect addition to the Board of Directors.

Thank you for your trust

Galenica is a dynamic company helping to shape the Swiss healthcare market of the future through innovation. As a reliable, attractive partner and employer, we aim to generate consistently attractive returns with manageable risks. Our employees demonstrate this every day. We would like to thank them sincerely for their tireless commitment. We look forward to continuing to develop Galenica together and thank all our shareholders for their trust.

Bern, 8 August 2017

Jörg Kneubühler, Chairman of the Board of Directors, Jean-Claude Clémençon, CEO
Jörg Kneubühler, Chairman of the Board of Directors, Jean-Claude Clémençon, CEO


Galenica Ltd.
Untermattweg 8
3027 Bern

Tel. +41 58 852 85 17
Fax +41 58 852 85 58