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Results in line with our expectations
DOMINIQUE BRISSY, Executive Vice President Finance

The results for the 2018/2019 financial year are in line with our expectations. Servier delivered a strong performance with an 11.1% growth in revenue at constant exchange rates. Business was driven by good…

Our 2018/2019 results

Figures as of September 30, 2019

The Group revenue in the 2018/19 financial year was 4.615 billion euros, an increase of 10.5%. The brand-name revenue (€3.232 billion) represents 70% of the consolidated revenue and generics represent 30% (€1.383 billion).

The operating income dropped by 34.2% to €202 million, affected in particular by the impact of the acquisition of Oncaspar® and Onivyde® as well as the cost of setting up the Group’s American subsidiary in Boston.

 

A steady increase in brand-name medicines revenue

In 2018/19, revenue from brand-name medicines reached 3.232 billion euros, showing an increase of 11.8%, mainly due to a positive volume effect of sales of Group brand-name medicines, increasing by 4.4%, which helped compensate for certain losses of patents and price drops.

 

Maintaining a leading position in cardiology

With Group revenue of 2.4 billion euros (53% of Group revenue), the Servier Group maintains its leading position in cardiology: 2nd European and 6th internationally. The Group has excellent prospects in cardiology with, in particular Omecamtiv mecarbil, currently in phase III, and the launch of new fixed drug combinations.

 

Strong growth in oncology

Group revenue in oncology (€578 million) increased by 120%, driven by the sales of two brand-name medicines, Oncaspar® and Onivyde®, and the increase in revenue from biosimilars. Lonsurf® also showed a good increase in revenue with growth of +15.5%.

In 2019, the Group took an important step in oncology with, in particular, the authorization in Europe of a new indication for Lonsurf®, the launch of Asparlas® in the United States, and the acquisition of the worldwide rights for Pixuvri®. A promotional partnership was signed in Japan in preparation for the market launch of Onivyde® by the local Servier subsidiary in 2020.

 

Expanding generic activities

Generic medicines are produced by four Group subsidiaries in France, Eastern Europe, Brazil, and Nigeria. Today, the Group has 1500 generic medicines that cover the majority of diseases.

The generic activities’ share of the Group’s revenue is €1.383 billion. With an increase of 7.5%, this activity continues to develop in a sustained way and to diversify, in particular in the area of OTC medicines and biosimilars.

Internationally driven growth

The Group’s international revenue is 3.580 billion euros and represents 78% of consolidated revenue.

The Group achieved revenue greater than 100 million euros in 11 countries. More than half the Group’s revenue is generated in Europe.

Respectively first and second international subsidiaries of the Group, China (€440 million in revenue, 20% growth), and Russia (€376 million in revenue, 6% growth), continue to offer strong growth potential. It is also worth noting that the United States is becoming the 4th market for the Group, and its American subsidiary Servier Pharmaceuticals, is celebrating its first year of activity.

 

Today, 9 out of 10 boxes of Servier’s brand-name medicines are distributed internationally.

 

Read the press release