Servier successfully issues euro private placement
2 March 2017 – The independent pharmaceutical group Servier has just announced its first transaction on the Euro private placement (Euro-PP) market.
The second largest French pharmaceutical company derives its independence from its original structure without stockholders. It is governed by a non-profit foundation, while its capital is owned by non-profit associations and companies from the Group (self-controlled). This structure gives Servier a long-term vision and means that the Group can reinvest all its profit in therapeutic progress to benefit patients, and particularly in the research and development of new drugs, for which the Group earmarks 25% of its turnover (excluding generics).
In December 2016, the Group successfully issued a 55-million euro unlisted bond in the form of a seven-year Euro-PP. Servier has chosen to use a disintermediated financing arrangement in order to diversify the Group’s sources of finance in order to fund, in complement to its cash flow, its investments and numerous research and development projects.
Servier intends to use this type of financing again in the future as it attracts long-term investors capable of supporting the growth of its business in France as well as internationally.
“This first and successful transaction strengthens our growth strategy and will allow us to finance this growth while keeping some cash flow”, said Dominique Brissy, Executive Vice-President Finance and Information Systems at Servier.
In support of its new approach, the Group is backed Société Générale as a lead bank for the Euro-PP issue.
Servier is an international pharmaceutical company governed by a non-profit foundation with its headquarters in Suresnes (France). With a strong international presence in 148 countries and a turnover of 4 billion euros in 2016, Servier employs 21 000 people worldwide. Corporate growth is driven by Servier’s constant search for innovation in five areas of excellence: cardiovascular diseases, diabetes, cancers, immune-inflammatory diseases, and neurodegenerative diseases, as well as by its activities in high-quality generic drugs. Being completely independent, the Group reinvests 25% of turnover (excluding generics) in research and development and uses all its profits for growth.
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