An announcement that has the effect of a breath of fresh air for Euroapi, a French producer of active pharmaceutical ingredients. The former subsidiary of Sanofi, which has been experiencing financial difficulties for several months, announced on Wednesday, June 26 that the large pharmaceutical group would bail it out to the tune of 200 million euros. The French giant, which separated from Euroapi in 2022, is still the main shareholder at 29.77%, according to stock market zone.
In parallel with the announcement of this bailout, the producer of active ingredients announced an investment plan of 350 to 400 million euros, “including capacity increases for large molecules, vitamin B12, prostaglandins and opiates.”
4 to 11% drop in sales anticipated in 2024
Indeed, as we wrote in L’Express in May, the group has expertise “in anti-infectives, opiates, corticosteroids” and “claims to be the world’s leading supplier of prostaglandins, which are used in the treatment of ailments such as glaucoma and high blood pressure”. It also boasts of being “the only Western manufacturer of vitamin B12 for the pharmaceutical industry”.
Euroapi nevertheless went through several difficulties, starting with the cessation of production at its Brindisi site in Italy, due to flaws in quality control. In the past, it has also identified structural weaknesses: portfolio made up of insufficiently differentiated active ingredients, oversized production equipment used on average at 30 to 60% of its capacity.
The brand therefore anticipates a drop in its sales “of between 4 and 11%” in 2024, although its performance could be revised slightly upwards from the third quarter.
The French laboratory also announced in its press release the resumption of production and deliveries from the Brindisi factory, although in the long term, it will have to get rid of this site and that of Haverhill (United Kingdom), before the end of 2027.
550 fewer jobs
Despite a slight improvement in the economic health of the French laboratory, it is still preparing for a workforce reduction of 550 people, all branches combined. These job cuts should nevertheless penalize French sites less, Euroapi director Ludwig de Mot, cited by Le Figarohaving announced its intention to make the Vertolaye and Elboeuf sites “flagships”, that is to say flagships of the laboratory’s production: “The impact of the job cuts there will be very limited. “
Euroapi estimates the cost of its restructuring between 110 and 120 million euros between 2024 and 2027. The laboratory now wants to achieve a “target of 75 to 80 million euros of Core EBITDA [NDLR : ou BAIIDA, en français] additional per year by the end of 2027″, i.e. before interest, taxes, depreciation and amortization.