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Annual Report 1 - 2 0 9 1 8 0 2 ANNUAL REPORT AN INDEPENDENT GROUP COMMITTED TO THERAPEUTIC PROGRESS TO SERVE PATIENT NEEDS - 1 - Because life is precious and caring means acting with compassion, patient health is our priority. Because seeking scientific excellence and discovering new treatments is all about improving patients’ lives, we are committed to therapeutic progress. Because meeting tomorrow’s challenges requires innovation, and our independence makes us unique and drives us to perform, we dare to innovate and succeed. Because the unity of men and women is the story of a collective commitment and is our strength, we grow by sharing. Because passing on to future generations a world that can ensure access to quality health care for all is our vision for the future, at Servier, all over the world, we are ready to meet the health care challenges of tomorrow, for and with patients. - 2 - TABLE OF CONTENTS SERVIER GROUP 2018/2019 ACHIEVEMENTS SERVIER ANNUAL - 2018/2019 REPORT P. 04 Editorial by Olivier Laureau P. 07 The basis for our actions P. 08 An independent Group P. 10 Preparing for the future P. 12 Financial results P. 14 An international Group P. 34 with strong roots in France Promoting access to P. 16 Servier R&D: meeting patient health care needs as effectively as possible for all P. 20 A comprehensive health care offering P. 30 P. 22 HR: mobilizing around the Group’s performance Acting for and with the patient P. 26 Committed to a safe, responsible, and transparent industry - 3 - P. 46 P. 54 Becoming a Developing recognized player generic in oncology activities P. 50 P. 40 P. 58 Building Opening up R&D Servier’s Making a to accelerate industrial positive impact innovation future today on society - 4 - I A L O R T I D E SERVIER ANNUAL - 2018/2019 REPORT A long-term investment strategy for therapeutic progress OLIVIER LAUREAU, President of Servier What are your thoughts on the past year? and Omecamtiv mecarbil, which is in phase III. As for the year’s most emblematic event, it was without O.L.: I have a very promising and confident view question the laying of the foundation stone for the future of our Group’s performance in an increasingly competitive Servier Paris-Saclay Research Institute. It is a perfect world. We continue to develop our pipeline of research example of our ongoing investment in innovation, and projects and drug candidates, while our sales growth it embodies our new way of approaching R&D: more remains strong. We are also strengthening our global agile, designed for and with the patient, focused on presence, particularly in the United States, the world’s projects, and open to the outside world. Bringing together largest biopharmaceutical market, while expanding our 600 researchers at the heart of one of the world’s largest portfolio of medicines on the market. Our U.S.-based innovation clusters is a great project for the future – one entity, Servier Pharmaceuticals, is celebrating one year that will expand the influence of French research around of success and has largely achieved its objectives the world and accelerate innovation to serve patient needs. for its first financial year. It is now our third-largest Finally, several of our subsidiaries were recognized brand-name subsidiary in terms of revenue. These for the special attention they pay to their employees. advances confirm the relevance of the transformation we These awards are important to me because they began five years ago. This transformation serves a single contribute to our ambition to make Servier “the objective: therapeutic progress to serve patient needs. place to work” and to attract and develop talent. What are the other highlights How important is the patient to Servier? of the 2018/2019 financial year? O.L.: We are committed to therapeutic O.L.: First of all, we achieved major progress, with and for the patient. We have two milestones in oncology this year: a new indication major assets serving this Vocation of ours. First and in France for Lonsurf®, the acquisition of the worldwide foremost, our 22,000 employees around the world, rights of Pixuvri® and the launch of Asparlas® in the whose collective strength is driven by this Vocation. United States. We also made our debut in oncology in Japan with the filing of a new medicine application for Onivyde®, whose launch is imminent. The successful “In a volatile, uncertain, integration of the oncology branch acquired from Shire contributed significantly to these advances by enriching complex and ambiguous our product portfolio. I would also like to emphasize world, our independence, the continued success of our global cardiology franchise. We still have strong development perspectives in and therefore our long-term this area, particularly with single pill combinations vision, are a strength.” Secondly, our independence, which results from our governance by a non-profit Foundation. We can therefore “We are committed invest significantly in research and development to innovate to therapeutic progress, and discover new medicines. This unique advantage means that the patient is the ultimate beneficiary with and for the patient.” of the therapeutic progress to which we contribute. I also want to highlight the first successes in deploying our patient approach, which aims to involve the patient throughout the life cycle of the medicine. which is part of our strategy to have a differentiated global geographic footprint. Finally, our Group makes a significant Could you give us more information contribution to the surplus in the French trade balance in about your R&D pipeline? pharmaceuticals and fine chemicals. We create a lot of value in France that is destined for the international market. O.L.: Our pipeline is promising, with 31 research programs and 30 drug candidates1, including 13 innovative So Servier is well positioned to respond to anti-cancer development projects. We currently have current and future challenges in health care? two new drugs in phase III clinical trials: Omecamtiv mecarbil, a highly innovative treatment for heart failure with O.L.: I am firmly convinced that yes, reduced ejection fraction, developed in partnership with we are. In a volatile, uncertain, complex and ambiguous Amgen and Cytokinetics, and Bumetanide, developed world, our independence, and therefore our long-term in partnership with Neurochlore for the treatment of vision, are a strength. Our size and organization give autism-related disorders. These advances demonstrate us a lot of agility. The potential for our projects and the our continuous efforts in research and development to transformation of our Group are sources of motivation meet patient expectations in areas of major medical need. and commitment for our teams and powerful levers for attracting new talent. Our project pipeline and A few words about product portfolio are growing and expanding, as is your geographic development? our global footprint. Digital technology and artificial intelligence must now be implemented within our O.L.: It’s a source of pride. China, the Group’s Group to increase our competitive advantages. Finally, leading subsidiary, whose 40th anniversary we celebrated we must be ever more committed to work with and this year, has strong growth potential in many therapeutic for the patient. I am proud of how far we have come areas. We also have strong positions in Russia and are since beginning our transformation. We approach the developing our activities in Japan and Italy. I spoke earlier future with confidence, ever inspired by our Vocation, about the growth of our business in the United States, driven by our Values and guided by our Vision. 1. As of september 30, 2019. - 7 E S U S - I V R D 4 goals T A H W THE BASIS for 2021 FOR OUR ACTIONS We are inspired by our Vocation, driven by our Values and guided by our Vision. These are our pillars and our identity. LAUNCH A NEW MOLECULAR ENTITY EVERY Around the world, the Servier Group’s 22,000 employees THREE YEARS are committed to therapeutic progress to serve patient needs. Day after day, they work passionately to care for patients and save lives. • SERVIER GROUP - THE BASIS FOR OUR ACTIONS VOCATION BECOME A KEY PLAYER IN THE FIELD OF ONCOLOGY Committed to therapeutic progress to serve patient needs while maintaining our position in cardiovascular health and diabetes VISION • Put patients and innovation at the heart of all our actions • Foster our individual and collective commitment, the Group’s driving force • Guarantee our independence and our capacity for long-term investment REACH A REVENUE • Be a Group with global reach OF €5 BILLION Through our actions, we contribute to transmit to future generations a world that can ensure access to quality health care for all. VALUES REACH AN OPERATING PROFIT OF 8% - Care - Commit to succeed TO FINANCE - Dare to innovate - Grow by sharing OUR DEVELOPMENT - 8 N C E N A R E - V O G AN INDEPENDENT GROUP The Servier Group is BEING A COMMITTED GROUP leaders. French non-profit associations governed by a non-profit Servier has chosen independence by governed by the French law of 1901 Foundation, the International deciding to be governed by a non-profit own 48% of the Group’s capital, with the Servier Research Foundation Foundation. This structure allows it to remain rest of the capital held by the Group itself. (Fondation Internationale focused on its Vocation: to be committed To ensure unity in strategy and day-to-day de Recherche Servier – FIRS). to therapeutic progress to serve patient needs. management, the same people serve on the Unique in the pharmaceutical With no shareholder pressure, the Group executive committees of the FIRS Foundation sector, the Group’s is fully committed, in a free and sustainable and Servier SAS.
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