Financial Statements - Solvay

24
Solvay Global Annual Report 2008
and Turkey, as well as numerous
smaller markets in Asia, Eastern
Europe and South America. In the
coming years, we will strengthen our
presence in these primary markets,
which are growing faster than our
traditional areas. In recent years, sales
and marketing structures have been
introduced in these new emerging
countries and staffi ng increased. In
2008, around 20% of sales were
generated in these countries, giving a
strong boost to the geographic profi le
of Solvay Pharmaceuticals’ income.
Parallel with this, we have adjusted
staffi ng in older, better established
markets, where future growth is
expected to be less, and pared
it considerably in markets facing
competition from generics.
Continuing the good growth
of products addressing urgent
medical needs
Solvay Pharmaceuticals’ present
offerings include a certain number of
products in so-called “urgent medical
needs” areas.
• Our fenofi brate franchise
products improve the blood lipids
profi les of patients at risk from
cardiovascular disorders. Right
now these conditions are among
the main causes of mortality in
both industrialized and developing
countries.
• Our CREON ® pancreatic enzymes
are a world-leading product line
used for treating, among other
things, life-threatening cystic fi brosis
in infants and adults. They are
also used in treating pancreatic
disorders, like infections or cancers.
• DUODOPA ® offers treatment for
late-stage Parkinson’s disease. The
desired level of active ingredient is
fed directly into the small intestine
through a catheter. Solvay is also
researching new treatments for
Parkinson’s.
• Our INFLUVAC ® range of fl u
vaccines is another product that
meets an urgent medical need.
Vaccination against fl u is one of
the World Health Organization’s
main priorities. It contributes
to fi ghting seasonal fl u and to
preparing for the next pandemic,
which is now expected at any time.
As well as manufacturing these
vaccines with chicken eggs, using
a well-established process, we
are completing validation of a new
plant to produce vaccines using cell
cultures.
Solvay Pharmaceuticals
results in 2008
Rising sales and profi ts in
recent years
Over the past 12 years, Solvay
Pharmaceuticals’ sales have risen
signifi cantly, from EUR 1 049 million in
1997 to EUR 2 699 million in 2008.
This represents an average growth
of 9% a year.
In terms of profi ts, over the same
period our REBIT has risen from
EUR 118 million to EUR 509 million.
This increase is paralleled by a strong
improvement in the REBIT to sales
ratio, from 11.2% in 1997 to 18.9%
in 2008.
In 2008, the Pharmaceuticals Sector
achieved sales of EUR 2 699 million,
despite the negative impact of the
USD exchange rate. At a constant
exchange rate, growth would have
been signifi cantly more sustained,
given that our US sales, expressed
in USD, grew by 14% in 2008.
In 2008, operating results (REBIT)
once again exceeded those
of previous years (up 11% to
EUR 509 million).
Certain historical records were
achieved in 2008:
• sales of cardiometabolic fenofi brate
passed the EUR 500 million mark,
up 18% from 2007;
• worldwide sales of ANDROGEL ®
(men’s health) exceeded
EUR 330 million for the fi rst time, up
9% from 2007;
• worldwide sales of CREON ® passed
the milestone of EUR 200, up 9%
from 2007.
Distribution by geographic zones
shows the predominance of Europe,
with 46% of sales, closely followed
by NAFTA in second position
with 40%. Our emerging markets
already represent almost 20% of
sales, proving that our geographic
diversifi cation is moving ahead, which
is an important trend indicator for the
future.
Our Russian company has done
particularly well. In 2008 it achieved a
market share of 2.4%, the best score
for any Solvay Pharmaceuticals entity.
In Russia, now our third country
in terms of sales, we are today
among the top ten pharmaceuticals
companies.