Solvay announced that it has signed a memorandum of understanding with the shareholders of Fournier Pharma, with the aim of acquiring 100 per cent of the company for EUR 1.3 billion in cash. The confirmation of Solvay's intention to integrate the global leader in fenofibrate, a successful cardio-metabolic product for treating raised blood lipids, is subject to a detailed review of the company which will be carried out in the next four weeks. Pending satisfactory outcome of this complementary due diligence, approval from the relevant authorities and appropriate employee information procedures, the acquisition could be completed during the summer 2005, a release said.
The integration of Fournier Pharma would add a strong and unique product line in dyslipidemia (i.e. control of cholesterol and triglycerides) to Solvay's cardiology business and research pipeline, making this new cardio-metabolic area Solvay's largest franchise. Fournier Pharma's other smaller fields of activity include gynaecology, gastroenterology and psychiatry - all of which match Solvay's own therapeutic choices. The transaction would expand Solvay Pharmaceuticals' business by more than one third in terms of sales and immediately enhance the Group's profitability, with a potential for significantly improved performance through pipeline development and synergies.
Fournier Pharma is experiencing solid growth worldwide with a rapid development of income stemming from the United States, thanks to an agreement on fenofibrate-products with Abbott Laboratories, (under the brand name TriCor) which would continue after the acquisition. In the mean time, TriCor has become a blockbuster. Fournier Pharma is successfully launching innovative developments with proven therapeutic benefits of its well-proven leading therapy. Fournier Pharma is also developing promising new products, such as new combinations of fenofibrate with other molecules and intended for novel indications and has additional pipeline projects in different disease areas. Fournier Pharma's expertise and research are a promising and well-fitting addition to Solvay's already rich R&D pipeline.
The alliance of both companies' projects would be supported by a substantial R&D budget, of about EUR 370 million pro forma on the basis of 2004 figures for the new combined entity.
"Solvay's strategy focuses on sustainable and profitable growth in selected areas of pharmaceuticals, chemicals and plastics," stated Aloïs Michielsen, chairman of the executive committee of the Solvay Group. "The acquisition of Fournier Pharma would be an excellent and well-timed opportunity to accelerate the growth and profitability of our pharmaceuticals business, which we further expect to gain tremendous momentum when the full potential of the combined R&D pipeline kicks in," Michielsen said.
Fournier Pharma is an international privately owned research-based pharmaceutical company headquartered in France, with operations in 30 countries. The company focuses on dyslipidemia with significant upside in the prevention of cardiovascular events and potential in metabolic disorders.