UCB SA - BNP Paribas Fortis

(e) Markets and Distribution
The majority of prescription products of the UCB Group are distributed through wholesalers to retail
and hospital pharmacies. The UCB Group maintains marketing and sales forces and has wholly-owned
distribution subsidiaries in most major markets in Europe, North America and Asia. These affiliates
distribute products coming from the main production sites of the UCB Group, which are located in
Braine l’Alleud in Belgium, Bulle in Switzerland, Pianezza in Italy, Monheim and Zwickau in
Germany, Rochester/New York in the United States, Vapi in India and Saitama in Japan, to wholesalers
in their own country. Wholesalers are responsible for delivery to thousands of retail pharmacies and
hundreds of hospital centres, with deliveries taking place typically at least once a day in most developed
countries. With few exceptions, the UCB Group does not deliver its products directly to patients or
individual pharmacists. The distribution chain for prescription drugs is subject to strict rules of quality
and safety and the UCB Group takes every reasonable precaution to ensure the regular supply of its
drugs to patients around the world.
7. GEOGRAPHIC SEGMENTS/PRINCIPAL MARKETS
The sales of the UCB Group are mainly derived from Europe and North America. As a part of the
SHAPE transition to a more streamlined business, the UCB Group has prioritised its geographical aims
to focus first on fully resourced strategic markets, such as the U.S. and key European countries, then
markets which are developing quickly and are strategically aligned but minimally resourced, then
tailored markets with long term investment opportunities and non-strategic markets.
The UCB Group currently has sales and marketing affiliates as well as manufacturing plants in North
America, Europe and Asia. In the financial year 2008, North America represented 40 per cent., Europe
represented 47 per cent. and the rest of the world represented 13 per cent. of the total net sales of the
UCB Group. The seven countries with the largest pharmaceutical markets in the world (United States,
Japan, Germany, France, Italy, United Kingdom and Spain) account for 74 per cent. of the total net sales
of the UCB Group and constitute the core of the business activities of the UCB Group, from a revenue
and profitability standpoint.
The UCB Group has increased its presence in Europe and the rest of the world significantly during
recent years, with North America remaining a major source of business. Rather than attempting to
expand globally, the UCB Group intends to make a significant impact in its core markets of North
America and Europe.
The following table sets forth the net sales of the UCB Group by core product and region in the
financial years ending 31 December 2007 and 31 December 2008:
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