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Facing financial difficulties for several months, the French specialist in pharmaceutical active ingredients, EuroAPI, is counting on its new strategic plan, Focus-27, to turn things around. Unveiled on June 26, this plan outlines investments of up to 400 million euros in industrial capabilities, alongside the divestment of factories and a 15% reduction in workforce to refocus the company on its most promising segments.
An Ambitious Investment Plan Despite Challenges
Despite a challenging financial environment, EuroAPI is committed to maintaining a high level of investment between 350 and 400 million euros by 2027 to strengthen its industrial capabilities. The group is particularly focused on enhancing production in higher-value segments such as peptides, oligonucleotides, and vitamin B12, of which it is the only producer in Europe at its site in Elbeuf, Normandy.“Our ambition is clear: to become the European leader and a top global player in the market for pharmaceutical active ingredients and subcontracting,” said Karl Rotthier, CEO of EuroAPI.
Focus on Structural Projects
Among the planned investments are:
- Strengthening production capacity for vitamin B12 at Elbeuf.
- Relocating essential medicines to the Vertolaye plant (Puy-de-Dôme).
- A 50 million euro plan for the Hungarian site specializing in prostaglandins.
- Investments at the Frankfurt site in Germany (peptides, oligonucleotides).
Refocusing the Industrial Portfolio
In parallel with its investments, EuroAPI plans to divest two of its six factories by 2027: Brindisi in Italy and Haverhill in the UK. The goal is to increase the overall utilization rate of its capacities from 60% currently to 80%. The Italian site, with 220 employees, specializes in anti-infectives but has been halted due to quality issues.EuroAPI also plans to cut 550 jobs, representing 15% of its workforce, primarily outside France. This reorganization is expected to cost between 110 and 120 million euros over the period.
Support from Sanofi
To support its transformation plan, EuroAPI can rely on backing from Sanofi, its former owner and largest shareholder with nearly 30% of the capital. The French pharmaceutical giant will inject 200 million euros via a hybrid bond and reserve 54 million euros of capacity until 2027.Since going public in May 2022, EuroAPI has lost nearly 70% of its valuation. Its revenue is expected to decline by 8% to 11% in 2024. However, through its strategic plan, the group hopes to return to sustainable and profitable growth in the medium term. The aim is to increase the share of high-value active ingredients from 57% in 2023 to over 70% by 2027 and that of pharmaceutical subcontracting from 28% to 35%.This ambitious bet for this young laboratory aims to secure a prominent place on the global pharmaceutical stage. The challenge remains to deliver results in a highly competitive and regulated sector where innovation and productivity gains are fiercely pursued.
