Skip to content

Outlook

Home > Integrated annual report 2023/2024 > Risks and opportunities

CONTEXT

Challenge facing the market

  • Heightened competition and a race for innovation due to the increased number and variety of players in the market (biotechs, start-ups, health techs…)
  • Rising cost of innovation, especially in oncology, which requires ever-more varied and cutting-edge expertise
  • Increased pressure on prices in many countries and sometimes difficult access to market

Opportunities for Servier

Construction of more effective and tailored therapeutic solutions through the convergence of different areas of expertise available on the market

Capacity to adjust our strategy due to being an independent mid-size pharma company

Development of strategic partnerships through open innovation

Challenge facing the market

  • Stock shortages and supply chain tensions
  • Market volatility
  • Risks caused by conflicts affecting employees and infrastructure
  • Increasing complexity of supply chains and associated costs

Opportunities for Servier

  • Diversification and relocalization of certain operations (production facilities, suppliers, raw materials, logistics…)
  • Development of skills in economic intelligence and deployment of a risk management culture

Challenge facing the market

  • Deterioration and disruption to logistical engineering and impact on the production line
  • Risk to reputation in the event of inaction
  • Lack of certain raw materials
  • Deterioration of infrastructure caused by extreme climate conditions
  • Deterioration of working conditions and impact on employee health

Opportunities for Servier

  • Adaptation of supply chains toward more resilient and sustainable models
  • Differentiation on the market with a more environmentally friendly range of therapeutic solutions
  • Integration of the notion of circularity in dealing with our emissions and waste, in our innovations through the circular economy and value creation for regions

Challenge facing the market

  • Constant need to innovate
  • Insufficient production capacity to meet rapidly expanding global demand
  • Distribution and logistics risks to satisfy global demand
  • Increasing prevalence of counterfeit medicines

Opportunities for Servier

Differentiation in the market as a reliable supplier by striving to combat counterfeit medicine

Incremental innovation to respond to the challenge of low adherence to treatment among patients with chronic conditions

Search for innovative distribution methods, strategic partnerships to optimize logistics operations to achieve effective global distribution

Challenge facing the market

  • Competitive disadvantage in the event of falling behind in technology
  • Arrival of new disruptive tech players in health care (GAMAM)1
  • Ability to invest at the right level to collect, process and safeguard data
  • Lack of talent with technical skills in AI for the pharmaceutical industry
  • Cybersecurity


(1) Google, Apple, Meta, Amazon, Microsoft

Opportunities for Servier

Development of new skills and vectors for resilience

Acceleration of therapeutic innovation by harnessing artificial intelligence and data analysis at every stage of the R&D process to better understand diseases and how they develop in patients

Improvements in operational efficiency through digital technology

Challenge facing the market

  • Cost of adaptation to new regulations
  • Consideration of the problem of equity of access to care
  • Lack of trust in the pharmaceutical industry
  • ESG criteria increasingly considered with respect to market access
  • Risk to reputation and trust in the event societal expectations are not met
  • Legal risks in the event of non-compliance (criminal responsibility, administrative and civil responsibility of the company and/or its executives, financial penalties, suspension of administrative authorizations…)

Opportunities for Servier

Greater resilience for the company and opportunity to innovate for social good

Innovation and creativity in the development of therapeutic solutions

Heightened trust between authorities and health care professionals helping to reduce disparities in health

Challenge facing the market

  • Difficulty to attract and retain talent and failure to meet emerging expectations in a highly competitive labor market
  • Lack of qualified talent, which could affect the company’s growth
  • Employee health due to the sedentary nature of work and psychosocial risks

Opportunities for Servier

Innovation in recruitment practices and HR management (hybrid work, digitization of work…)

Valuing of the pharmaceutical industry, which by its very nature carries meaning

Valuing the independence brought by being governed by a Foundation

Previous page Our model for value creation
Next page Servier 2030: laying the foundations for future success