Galenica Seeks Acquisition for Vifor Iron Unit in Move to Split
Nov. 5 (Bloomberg) — Galenica AG, the owner of Switzerland’s biggest pharmacy network, is seeking an acquisition for its unit that makes iron deficiency treatments and then may split into two companies earlier than anticipated.
“The acquisition of a good company could help us to reach the needed critical mass” in the Vifor Pharma division, which sells the Ferinject iron therapy, Chairman Etienne Jornod said in an interview. “In that case, a separation could happen earlier.”
Galenica introduced a new management structure in August to prepare for a separation into two publicly traded companies. Vifor Pharma and Galenica Sante, which runs the Amavita and Sun Store pharmacy chains, are now run by different chief executive officers who report to Jornod.
The potential split, which may allow investors to benefit from Vifor’s greater profitability, may take three to five years, Galenica said two months ago. The likelihood a separation will occur in that time frame is “much higher,” Jornod said in the interview in Zurich, where he was attending a conference last week.
The chairman declined to say whether the Bern-based company has identified solid takeover targets. “We are looking at acquisition opportunities every day.”
While Vifor accounted for 20 percent of Galenica’s first- half sales of 1.66 billion Swiss francs ($1.72 billion), it made up 74 percent of earnings before interest and taxes.
The company’s shares have declined 8.6 percent this year through yesterday, including reinvested dividends, while the Bloomberg EMEA Pharmaceuticals Index of 20 companies including Galenica has returned 8.8 percent.
To contact the reporter on this story: Jan-Henrik Förster in Zurich at jforster20@bloomberg.net To contact the editors responsible for this story: Mariajose Vera at mvera1@bloomberg.net David Risser, Tom Lavell
