Celltrion announced on the 12th that it has acquired “Gifrer,” a French healthcare company with a 114-year history. The company is assessed to have expanded its business scope into the European generic and over-the-counter (OTC) medicine markets by securing a sales network that can proactively respond to changes in local healthcare policy.

This acquisition was conducted through Celltrion’s French subsidiary acquiring 100% of Gifrer’s shares. The acquisition price will not be disclosed. Celltrion and Gifrer plan to complete acquisition-related procedures and business alignment within this month.

Celltrion plans to operate Gifrer as an independent corporate entity. The strategy is to maximize synergies between the two companies while making full use of Gifrer’s local brand recognition. All approximately 70 Gifrer employees will be retained through employment succession.

French company Gifrer was founded in 1912 and is said to have a sales network covering more than 9,000 pharmacies across France and a supply network to some 800 hospitals. Its major products with high local market shares include saline solution (Physiologica), tooth whitening products (Bicare), and infant products (Liniment, etc.). In particular, the Physiologica saline product line holds more than 40% market share in France and is also known to be used as a cleansing solution for infants. In addition, the company reportedly has a portfolio of about 140 products, including OTC medicines, pharmacy medicines (DM, Drugstore Medicines), and health supplements.

Celltrion explained that through the acquisition of Gifrer it has secured pharmacy sales capabilities that enable it to respond in advance to the French government’s policy to expand “substitution dispensing.” Substitution dispensing refers to a system in which pharmacists, based on a physician’s prescription issued at a hospital, may independently select and dispense medicines containing the same active substance. France implemented pharmacy-level substitution dispensing for certain medicines in 2022.

In the first quarter of last year, the blockbuster biologic “adalimumab (Humira)” was additionally designated as a medicine eligible for substitution dispensing. This reflects a trend in which strengthening pharmacy sales capabilities is becoming increasingly important. Approval for substitution dispensing of “denosumab (Prolia/Xgeva)” is expected this year. Celltrion plans to actively utilize Gifrer’s sales network for pharmacy sales of its biosimilars “Stovoqlow” and “Osenvelt,” which correspond to this product.
Celltrion expects that its business scope and sales performance will expand, backed by Gifrer’s lineup of around 140 products. In particular, many of Gifrer’s key items are familiar to local consumers in France, which is expected to enable stable revenue generation. The company projects more than KRW 250 billion in additional revenue over the next five years.

In addition, the company is reviewing measures to leverage its European sales network to sell Gifrer’s product portfolio in other countries. In Germany, one of the EU5 major European countries, Celltrion’s local subsidiary is currently engaged in pharmacy sales of subcutaneous (SC) formulation products. For now, it supplies only biosimilars, but Celltrion explained that if Gifrer’s product range is added, it expects to strengthen its sales competitiveness through incremental OTC revenue and portfolio expansion.

A Celltrion official said, “To effectively utilize the more than 9,000-pharmacy sales network secured through the acquisition of Gifrer, we are planning to expand our business domain by obtaining distribution rights for competitive third-party generic and OTC products,” adding, “We will select generic and OTC product groups that can generate synergies with Gifrer’s sales network and that have high local demand but relatively low competition, in order to maximize substantive growth.” The company is also reviewing a plan to sell Celltrion Group’s own generics and OTC products, as well as cosmetics and health functional foods, in France through Gifrer’s pharmacy network.

Celltrion plans to continue actively reviewing mergers and acquisitions (M&A) of competitive local companies with strong brand recognition, such as Gifrer.

In Europe, led by France, moves to introduce substitution dispensing are said to be gaining momentum. The importance of sales capabilities across pharmacy networks is on the rise. Focusing on Western and Eastern European countries, Celltrion plans to closely monitor such regulatory trends and to actively pursue M&A in countries where possession of strong pharmacy sales capabilities and a direct-sales strategy can generate mutual synergies.

A Celltrion official said, “As substitution dispensing approvals expand in France, acquiring Gifrer, which has strong brand recognition and competitive pharmacy sales capabilities in the local market, has given us a ‘two birds with one stone’ effect, securing the ability to respond proactively to regulatory changes while expanding new business domains,” adding, “Starting with the acquisition of Gifrer, we will continue to actively pursue M&A of competitive companies that can strengthen the company’s direct-sales capabilities in line with the characteristics of healthcare policies in each country or region.”

Popular News