Annual Report - Part 2: Business sectors - Galenica.com

Prospects for the Year 2000A new strategyThe year 2000 will be a year of major challengesfor the Galenica Group. The time hasnow come to implement the corporate decisionsapproved in 1999. At the ExtraordinaryGeneral Meeting of shareholders held on16 December 1999 aclear signal was giventhat we should nowconsolidate Galenica’sstrong market positionand move into newfields.The revised statuteswill provide the necessaryconditions for the Group to enter newmarkets in Europe (prewholesale) as well as inSwitzerland (retail) and thus to meet thefuture demands of our clientèle. Thanks to thefact that Galenica’s A shares are now quotedon the Swiss stock exchange the Group willbe able to be more flexible and, an extremelyimportant factor, more attractive to investors.As a manufacturer of pharmaceutical productsand a provider of logistics and otherservices in the pharmaceutical field, theGalenica Group intends to take over theleading position in all its areas of operation.For this we need motivated managementstaff, whom we shall be presentingin this report, and enthusiastic employees.We are lucky enough to have both.A new partnerIn order to achieve this ambitious aimGalenica, already in a position of strength,has entered into a partnership with AllianceUniChem Plc. The latter, a company of Europeandimensions, now holds 10% of the votingrights of GalenicaHolding. Alliance Uni-Chem is the secondmost important Europeanpharmaceuticalwholesaler and enjoysa 16% share of theoverall European market.It supplies 41,000pharmacists, including over 670 who are partof their own Moss Pharmacy chain. The focusof the joint venture will be on expandingprewholesaling and entering the retailmarket.A new imageThis radical change in the Galenica Group isto be matched by a new visual image. At theend of 1999 a corporate identity project wasinitiated and a new image should be adoptedin the year 2000.A new structure as of1 January 2000At the start of the new year the GalenicaGroup was reorganised into six businesssectors:• Pharma International• Pharma Switzerland• Prewholesale• Distribution• Services• RetailWe have adopted the following strategicbases for further developing these six newsectors:• concentration on profit-orientateddevelopment• entering alliances and partnerships• anticipating changes in the marketThe year 2000 will be another decisive year inrelation to the ambitious aims we have set andwe are looking to the future with great confidence.Sales for the first quarter 2000The consolidated sales per Business sectorare CHF 575 million and are about 5% abovethe previous year.34Annual Business Report 1999Prospects for the year 2000

The New Structure of the Group 2000from 1 January 2000Galenica Holding LtdCorporate Executive Committee: Etienne Jornod(Chairman), Heinrich Unger, René Jenny,Philippe Weigerstorfer, Fritz HirsbrunnerGeneral ManagementFinance and Corporate ServicesHead Fritz HirsbrunnerGeneral ManagementPharmaHead Heinrich UngerGeneral ManagementDistribution and ServicesHead René JennyGeneral ManagementPrewholesale and RetailHead Philippe WeigerstorferPharmaPharmaDistributionServicesPrewholesaleRetailInternationalSwitzerlandHeadGianni ZampieriHeadHeinrich UngerHeadPhilippe MillietHeadRené JennyHeadRoger CavillierHeadPhilippe Weigerstorfer35Annual Business Report 1999Prospects for the year 2000

Products and Services Provided withinthe Six Business SectorsVifor (International) LtdVifor France LtdPharma InternationalAt the end of 1999 Vifor (International) receivedthe authorisation by the EuropeanAgency for the Eventuation of MedicinalProducts (EMEA) to register Venofer ® in 10EU countries. We nowneed to have urgentdiscussions with thepricing authorities sothat the products inquestion can be officiallylaunched in thecorresponding markets.The next milestone forVifor (International) isto register Venofer ® in the North Americanmarket in 2000.In addition, existingproduct ranges willbe expanded with lifecycleprojects and ourproducts will be launchedin further FarEast markets.The expansion of productionin the premisesbought in 1999 in St. Gallen will be plannedduring the current year. The buildings will berenovated and extended in various stages.Pharma SwitzerlandIn the future Pharma Switzerland will deal withall activities involving the development, manufactureand marketing of the Group’s ownpharmaceutical and para-pharmaceutical productsas well as those manufactured underlicence or marketed on behalf of third parties.In 2000 the focus will be on integratingcompanies without compromising the advantageswe offer our customers simplifyingmanagement and operational proceduresand using potential synergies to the fullest.In addition, the corresponding resources willbe made available for developing or acquiringnew products or product ranges.Vifor will continue to specialise in OTC productsfor pharmacists and market niche productsfor private practices, while Democal willwork with pharmacistsand druggists, theMedichemie Group willcontinue to concentrateon scientificallyproven phytotherapyand gastroenterologyproducts for dispensingdoctors and Panpharmaand Adima will sell parapharmaceuticalproducts on behalf of third parties.In 2000 the Medichemie Group plans to consolidateand expand its leading position in thefield of phytotherapy prescription products,principally through targeted marketing ofJarsin ® , Symfona N ® , Hepa S ® and two newregistered products which are the subject ofan application for reimbursement by healthinsurance companies. In the gastroenterologicalfield the Group’s leading position willalso be expanded. Along with Salofalk ® , concentratedpromotion of Budenofalk ® , a newlocally effective glucocorticoid, should increasethe Group’s market share in productsfor treating morbus Crohn and colitisulcerosa by over 50 %.Vifor LtdMedichemie GroupDemocal LtdAdima LtdPanpharma Ltd36Annual Business Report 1999Prospects for the year 2000

Galenica Distribution LtdDistributionIn the pharmaceutical logistics sector,Galenica Distribution will remain the marketleader for all players in the Swiss healthsystem. Our aim is to offer top-qualitylogistical services at best prices. In order toachieve this ambitious aim we must constantlyoptimise our logistical procedures.Following a phase of acquisition and reorganisationGalenica Distribution is now entering aphase of optimisation and development. Theforemost aim is to bring profitability in distributionup to the European level. The jointventure with Alliance UniChem will providesynergies in the medium term and both partnersshould profit from the systematic exchangeof technology and know-how.38Annual Business Report 1999Prospects for the year 2000

The Companies in the GroupGalenica Holding LtdCorporate Executive Committee: Etienne Jornod(Chairman), Heinrich Unger, René Jenny,Philippe Weigerstorfer, Fritz HirsbrunnerFinance and Corporate ServicesHead Fritz HirsbrunnerFinance and Real EstateSigal LtdGalenica Guarantee CooperativeGalenica Deutschland GmbHGalenica Finance LtdGalenica International (B.V.I.) LtdSigal Drize LtdPharmaDistribution and ServicesPrewholesale and RetailHead Heinrich UngerHead René JennyHead Philippe WeigerstorferPharmaPharmaDistributionServicesPrewholesaleRetailInternationalSwitzerlandHeadGianni ZampieriHeadHeinrich UngerHeadPhilippe MillietHeadRené JennyHeadRoger CavillierHeadPhilippe WeigerstorferVifor (International)LtdVifor LtdGalenicaDistribution Ltd«Services»* LtdGalenicaRepresentations LtdMedicount LtdVifor France LtdMedichemie Group• Medichemie Ltd• Serumwerk Ltd• Phardi Ltd• MedichemieBioline LtdWyss Pharma Ltd*Project namePharmaconcept LtdWinpharm LtdBipharma SADemocal LtdAdima LtdPanpharma LtdLaboratoireGolaz Ltd40Annual Business Report 1999The Companies in the Group

Galenica HoldingHead Etienne JornodPharma SwitzerlandHead Heinrich UngerGalenica Holding LtdRegistered office:BerneShare-capital:CHF 32,500,000.–Pharma InternationalUntermattweg 8, 3027 BerneTel.: 031-990 81 11, Fax: 031-990 81 12Etienne Jornod, Chairman and CEODr. Heinrich Unger, Head of PharmaRené Jenny, Head of Distribution and ServicesPhilippe Weigerstorfer, Head of Prewholesaleand RetailFritz Hirsbrunner, CFOFelix Burkhard, Head of Corporate Controllingof the GroupMark Ita, Head of Legal Services andCommunicatives of the GroupDaniel Keller, Head of Group FinanceDaniel Pernet, Head of Group Corporate ServicesVifor LtdRegistered office:Villars-sur-GlâneShare-capital:CHF 2,250,000.–Shareholding: 99 %Route de Moncor 10, 1752 Villars-sur-GlâneTel.: 026-407 61 11, Fax: 026-401 14 85Dr. Heinrich Unger, HeadSiegfried Bürgy, Head of Finance and HumanResourcesDr. Pierre Guex, Head of ProductionDr. Sergio Mantelli, Head of Quality and DevelopmentBernard Perrod, Head of Marketing and SalesEric Haberkorn, Head of MarketingRoland Koch, Head of Controlling and PlanningMorena Mariotti Vuignier, Head of AS 400Georg-U. Töndury, Head of SalesVictor Vuignier, Head of ITResearch, development, manufacturing and commercialisationof pharmaceutical (prescription and OTC)products for pharmacists.Head Gianni ZampieriVifor(International) LtdRegistered office:St. GallenShare-capital:CHF 2,000,000.–Shareholding: 100 %Vifor France LtdRegistered office:Neuilly-sur-SeineShare-capital:FRF 250,000.–Shareholding: 100 %Rechenstrasse 37, 9014 St. GallenTel.: 071-272 84 84, Fax: 071-272 84 85Dr. Gianni Zampieri, HeadFranz Berger, Head of Administration (till 29.2.2000)Dr. Peter Geisser, Head of Research andDevelopmentManfred Kirsch, Head of Registration andQuality AssuranceDr. med. Jessica Tanner, Medical DirectorAlexander Zwyer, Head of Sales and MarketingDr. Ernst Winkelmann, Head of Quality AssurancePeter Zwyer, Sales and MarketingResearch, development, manufacturing and commercialisationof pharmaceutical (especially iron-based)products, export of products via licensees and agents.15, rue de l'Hôtel de Ville, F-92200 Neuilly-sur-SeineTel.: 0033-1-46 43 90 96, Fax: 0033-1-47 47 45 13Pierre Murisier, HeadHandles product registration within the EU and marketingof parapharmaceutical (especially iron-based)products in France.Medichemie LtdRegistered office:EttingenShare-capital:CHF 70,000.–Shareholding: 100 %Serumwerk LtdRegistered office:EttingenShare-capital:CHF 80,000.–Shareholding: 100 %Phardi LtdRegistered office:EttingenShare-capital:CHF 100,000.–Shareholding: 100 %MedichemieBioline LtdRegistered office:EttingenShare-capital:CHF 100,000.–Shareholding: 100 %Brühlstrasse 50, 4107 EttingenTel.: 061-726 22 00, Fax: 061-726 22 05Peter Hadorn, HeadAndreas Broechin, Head of AdministrationDr. Véronique Ditesheim, Head of Medical IssuesChristian Jaeggi, Head of MarketingManufacture, marketing of and trade with chemicaland pharmaceutical products, in particular phytotherapeuticand gastroentereologic products.Brühlstrasse 50, 4107 EttingenTel.: 061-726 22 00, Fax: 061-726 22 05Manufacture, marketing of and trade with sera andvaccins, pharmaceutical, biological, chemical andother medical products.Brühlstrasse 50, 4107 EttingenTel.: 061-726 22 00, Fax: 061-726 22 05Trade with chemical, pharmaceutical and aquaintedsubstances.Brühlstrasse 50, 4107 EttingenTel.: 061-726 22 00, Fax: 061-726 22 05Manufacture, marketing of and trade with pharmaceutical,galenic, immunbiological, hygienic and cosmeticproducts.41Annual Business Report 1999The Companies in the Group

Democal LtdRegistered office:BerneShare-capital:CHF 400,000.–Shareholding: 100 %Untermattweg 8, 3027 BerneTel.: 031-990 88 88, Fax: 031-990 88 89Markus Kälin, HeadHans Bohner, Head of Product ManagementPromotion and marketing of a broad range of genericproducts and corresponding service partner for originalmanufacturers.Distribution CentresBerne-SchönbühlGrubenstrasse 11, 3322 SchönbühlTel.: 031-858 71 11, Fax: 031-858 72 12Jean-Claude Clémençon, Head of Distribution CentreMarcel Bosson, Head of OperationsRolf Jost, Head of Sales to DoctorsGondini Schneider, Head of Sales to PharmacistsAdima LtdRegistered office:BerneShare-capital:CHF 500,000.–Shareholding: 100 %Panpharma LtdRegistered office:BerneShare-capital:CHF 1,500,000.–Shareholding: 100 %Route de Moncor 10, 1752 Villars-sur-GlâneTel.: 026-407 65 03, Fax: 026-407 65 50Martin Zimmermann, HeadDaniel Steck, Head of SalesAgencies, promotion and distribution of non-exclusiveparapharmaceutical products as well as cosmeticsand perfumery.Route de Moncor 10, 1752 Villars-sur-GlâneTel.: 026-407 65 04, Fax: 026-407 65 50Martin Zimmermann, HeadClaude Monnier, Head of MarketingDaniel Steck, Head of SalesAgencies, promotion and marketing of top of therange parapharmaceutical products and medicatedcosmetics (RoC).Zürich-SchlierenZürcherstrasse 113, 8952 SchlierenTel.: 01-733 91 11, Fax: 01-733 92 31Bruno Burkhard, Head of Distribution CentreJanos Borsodi. Head of Sales to DoctorsHans Peter Portmann, Head of Sales to PharmaciesSilvio Wernli, Head of OperationsLausanne-EcublensRoute de Crochy 2, 1024 EcublensTel.: 021-694 51 11, Fax: 021-694 51 34Eric Wegmuller, Head of Distribution CentreWilly Mariéthoz, Head of Customer ServicesPierre Philippin, Head of OperationsBielLängfeldweg 119, 2504 BielTel.: 032-344 45 45, Fax: 032-344 46 46Walter Federer, Head of Distribution CentreTonino Tundo, Head of Sales to DruggistsLaboratoire Golaz LtdRegistered office:Villars-sur-GlâneShare-capital:CHF 1,000,000.–Shareholding: 100 %Route de Moncor 10, 1752 Villars-sur-GlâneTel.: 026-407 61 11, Fax: 026-401 14 85Bernard Perrod, HeadDevelopment, manufacture and sale of pharmaceuticalproducts (OTC), agencies for prescription productsimported or manufactured under licence.Wyss Pharma LtdRegistered office:ChamShare-capital:CHF 1,000,000.–Shareholding: 100 %Riedstrasse 1, 6330 ChamTel.: 041-749 08 88, Fax: 041-749 08 49Denise Wissmann, Head of PharmacyManufacture and sale of the most common pharmaceuticalproducts.DistributionServicesHead Philippe MillietHead René JennyGalenicaDistribution LtdRegistered office:SchönbühlShare-capital:CHF 25,000,000.–Shareholding: 100 %Grubenstrasse 11, 3322 SchönbühlTel.: 031-858 71 11, Fax: 031-858 71 12Philippe Milliet, HeadJean-Claude Clémençon, Head of OperationsAndreas Hofer, Head of Marketing and PurchasingJürg Lehmann, Head of Finance and HumanResourcesProf. Dr. Michel Troyon, Head of Support«Services»* LtdBusiness sector in beingestablished*Project nameRené Jenny, HeadDr. Christoph Bangerter, Head of MarketingJürg Lehmann, Head of Finance and HumanResourcesDr. Ulrich Schaefer, Head of OperationsBrigitte Bosshard, Head of DocumentationThomas Möri, Head of Product Management,Information SystemsHans Bürgi, Head of Special ServicesEsther Chatton, Head of FinanceMarkus Egli, Head of Non-Pharma PurchasingBernd Fischer, Head of Pharma PurchasingJürg Furer, Head of PurchaseRudolf Hafner, Head of LogisticsPhilippe Hilber, Head of IT DevelopmentRosmarie Mauerhofer, Head of Human ResourcesChristoph Metzler, Head of Marketing ServicesKasimir Rötheli, Head of IT ProductionNiklaus Sägesser, Head of Organisational LogisticsBusiness sector under construction. An offer ofscientific and business data base systems for thehealth sector. IT services for the networking of healthsector partners.Responsible for all back-office tasks such as logistics,IT, purchasing and central services for the profitcentres pharmacists, doctors and druggists.42Annual Business Report 1999The Companies in the Group

PrewholesaleHead Roger CavillierFinance and Corporate ServicesHead Fritz HirsbrunnerGalenicaRepresentations LtdRegistered office: BerneShare-capital:CHF 1,500,000.–Shareholding: 100 %Untermattweg 8, 3027 BerneTel.: 031-990 87 11, Fax: 031-990 87 00Roger Cavillier, HeadNicolas Florin, Head of Controlling and PlanningMartin Höhener, Head of OperationsGaudenz Schnell, Head of LogisticsSigal LtdRegistered office: BerneShare-capital:CHF 2,000,000.–Shareholding: 100 %Untermattweg 8, 3027 BernTel.: 031-990 81 11, Fax: 031-990 85 35Fritz Hirsbrunner, HeadReal estate management, loans, cash managementfor the Group.RetailHead Philippe WeigerstorferProviding logistic and other services in connectionwith the import and export as well as the distributionof pharmaceutical and cosmetic products.Galenica GuaranteeCooperativeRegistered office: BerneCapital:CHF 1,200,000.–One and only Member:Sigal LtdUntermattweg 8, 3027 BernTel.: 031-990 81 11, Fax: 031-990 85 35Fritz Hirsbrunner, HeadGiving security on bank loans to clients.Medicount LtdRegistered office:UrdorfShare-capital:CHF 2,500,000.–Shareholding: 100 %Untermattweg 8, 3027 BernTel.: 031-990 81 11, Fax: 031-990 85 35Participation in both domestic and foreign companiesof all kinds especially those in the pharmaceuticalsector and pharmacies.Galenica DeutschlandGmbHRegistered office:Frankfurt a/MainShare-capital:DEM 1,000,000.–Shareholding: 100 %Frankfurt a/Main (Germany)Fritz Hirsbrunner, HeadShareholding company.Pharmaconcept LtdRegistered office:Villars-sur-GlâneShare-capital:CHF 500,000.–Shareholding: 100 %Route de Moncor 10, 1752 Villars-sur-GlâneTel.: 026-407 65 10, Fax: 026-407 63 51Manuel Ruchti, Head (till 31.3.2000)Development and application of dispensary marketingand management measures for a network of independentpharmacists.Galenica Finance LtdRegistered office:St-HélierShare-capital:CHF 5,000,000.–Shareholding: 100 %Jersey (UK)Fritz Hirsbrunner, HeadFinancing the Group’s activities in Europe.Winpharm LtdRegistered office:Villars-sur-GlâneShare-capital:CHF 100,000.–Shareholding: 55 %Route de Moncor 10, 1752 Villars-sur-GlânePeter Lüscher, HeadDevelopment and application of marketinginstruments and services.Galenica International(B.V.I.) LtdRegistered office:TortolaShare-capital:USD 50,000.–Shareholding: 100 %Tortola, British Virgin IslandsFritz Hirsbrunner, HeadGroup’s holding in venture capital fund.Bipharma SARegistered office:MorgesShare-capital:CHF 700,000.–Shareholding: 100 %Grand Rue 69, 1110 MorgesDr. Claude Rey Bellet, HeadManagement of Pharmacies.Sigal Drize LtdRegistered office:Plan-les-OuatesShare-capital:CHF 2,500,000.–Shareholding: 100 %Route d’Annecy 48, 1256 TroinexTel.: 022-342 21 53, Fax: 022-342 34 72Fritz Hirsbrunner, HeadReal estate management.Other shareholdingnot consolidatedDolisos (Suisse) SARegistered office:Plan-les-OuatesShare-capital:CHF 300,000.–Shareholding: 50 %Route d’Annecy 48, 1256 TroinexTel.: 022-343 09 70, Fax: 022-343 55 10Dr. Peter Medilanski, HeadThis joint-subsidiary of Galenica Holding Ltd andDolisos Paris imports, manufactures and sells a completerange of homeopathic products.43Annual Business Report 1999The Companies in the Group