Uriach completes its Strategic Plan billing 75% more in the past five years

  • The pharmaceutical company completed its 2013-2017 strategic plan with record revenue of one hundred and seventy-four million euros, an increase of 75% compared with the end of 2012.
  • Consumer Healthcare, the business area that has grown the most during this stage, achieved an average increase (CAGR) of 15% per year.
  • Rupatadine’s entry into new countries and the acquisitions of Italian firm Laborest and the Portuguese company Theralab resize the company internationally.
  • Uriach expects to grow to €300 million over the next five years, through its new Strategic Plan 2018-2022.
  • The 2017 revenue of €174 million represents 15% more than in the previous year.

 

Barcelona, June 21, 2018 – The pharmaceutical company Uriach has completed its strategic plan 2013‑2017 with record revenue of one hundred and seventy-four million euros, 75% more than in 2012 (the year before the start of the strategic plan 2013-17). The company’s gross operating profit (ebitda) also increased significantly from €12 million in 2012 to €51 million last year. Uriach thus outperformed the targets set for the strategic plan (€170 mn revenue and €50 mn ebitda).

By business area, Consumer Healthcare grew the most, becoming the company’s strategic driver and recording an average increase (CAGR) of 15% annually in sales over the past five years. Within this business area, Uriach acquired three new brands over this period: Innovage, Halibut and Fisiocrem. The group also strengthened its international presence in this area by acquiring two new companies: Laborest in Italy and Theralab in Portugal. Both companies specialise in food supplements, and have also boosted Uriach’s product portfolio in Spain.

Over the past five years, the company has reinforced its other overseas marketing channel, based on licensing and distribution agreements (business to business) for pharmaceuticals (NCEs and generics) and active ingredients. A landmark of this five-year period was the introduction of Rupatadine, the main prescription product developed by Uriach, in Japan, Canada, and the MENA area, among other territories. The outcome of the process of internationalisation is that Uriach products are now sold in more than 70 countries in the world’s main regions, and in 2017 sales outside Spain already accounted for close to 60% of the company’s total turnover, while in 2012 it was still less than 30%.

 

“The results speak for themselves. The company’s drive towards transformation that we started a few years ago has meant changing the reality of Uriach,” says Oriol Segarra, CEO of the company. “We have fulfilled the commitments we set ourselves at the beginning of the Strategic Plan. But the results are not just numbers. The key is that today Uriach is a strong organization, with a clear strategic direction, a modern and agile corporate culture, and a great capacity to innovate. We are ready to continue internationalizing; we are very strong and able to continue transforming and building a bright future.”

 

On the industrial side, over the course of the Strategic Plan Uriach’s productive capacity increased. The pharmaceutical plant located in Palau Solità i Plegamans (Barcelona) has driven up its manufacturing output from twenty million units in 2012 to thirty-three million units today. Capital expenditure in the Urquima chemical plant, located in Sant Fost de Campsentelles (Barcelona), has transformed it into Uriach’s strategic site for the manufacture of active ingredients. In addition, both plants have significantly increased own-label output. Currently, only 30% of production is devoted to third parties and 70% is products and brands for own supply. The total investment made over the past five years in the industrial and technological development of the group exceeded 25 million euros.

 

2018-2022: the five-year consolidation

Following the success of the last strategic plan for Uriach, the company will take a growth-oriented stance in its new 2018-2022 Plan, which continues to focus on profitable growth, entry into new countries and innovation as the main strategic vectors. The vision of this new phase is to continue to lead the Consumer Healthcare market in Spain and expand that leadership to become a leading player in Europe. This business area currently accounts for more than 55% of the company’s sales and is expected to grow to two-thirds over the next five years. “The new Strategic Plan bears the imprint of the success and strong results of the previous one. Our aim is to continue with profitable growth, internationalisation and innovation in our products,” says Oriol Segarra.

The B2B business, which accounts for nearly half of the group’s turnover, will continue to grow, albeit at a lower rate than the Consumer Healthcare area. The NCEs and generics business (active ingredients and dossiers) will grow at almost the same high rate as consumer healthcare. However, contract manufacturing activity will decrease (because own-label production will increasingly take up productive capacity): this is the only reason why the B2B division will grow at a slightly lower rate. Uriach remains strongly committed to the B2B activity as an ideal complement to consumer healthcare growth, and the combination of both makes Uriach a more diverse and stronger company.

Over the new five-year period, the pharmaceutical company expects to increase revenue by around 75%, from one hundred and seventy-four million euros in 2017 to three hundred million euros, and to follow up this strong performance in terms of gross operating profit (ebitda).

 

Results for 2017

Uriach ended the 2017 financial year with consolidated revenue in excess of one hundred and seventy-four million euros, a 15% increase with respect to the previous year. This was the fifth consecutive year in which the company achieved double-digit growth.

The group, with 800 employees, saw growth in both its main businesses over the past year. The Consumer Healthcare area or self-consumption products for people’s health and well-being is the fastest growing area, growing 18% year-on-year (after growing by 25% last year). This powerful increase places Uriach as a leading company in southern Europe in Consumer Healthcare, with a total revenue of close to one hundred million euros.

The company’s other business area, Business to Business, which includes New Chemical Entities (NCEs), APIs and dossiers, and third-party contract manufacturing activity, grew 12%, coming close to the strong performance of Consumer Healthcare.

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