FAREVA increases its pharmaceutical capacity in France

1 FAREVA increases its pharmaceutical capacity in France In an exclusive interview with actulabo, Bernard Fraisse, chairman of the CMO FAREVA , unveils the 69 million investment programme to benefit several French pharmaceutical manufacturing sites that have reached their full capacity . In addition, some major cosmetics projects will soon be starting in the United States and Latin America. FAREVA , which expects to generate sales of billion in 2015, is embarking on an investment programme aimed mainly at its French pharmaceutical production sites over the next few months. We are facing pressing demand for some forms and types of product that we produce at the plants concerned, explains Bernard Fraisse, chairman of the family-owned business. He indicates, in passing, that he will prioritize organic growth in the coming months; at the same time, FAREVA will not neglect opportunities for growth if they present themselves, but we will be more selective.

2 Although the group is keen to slow down its pace of acquisitions its main development driver in recent years it is certainly intending to increase the capacity of certain plants in France that have reached saturation point. As a result, 25 million will soon be invested into Excelvision in Annonay in south-east France a former Ciba Vision plant with 400 employees where FAREVA produces eye washes and ophthalmic products. The project will involve physically extending the plant and includes plans to install two new BFS (Blow FM Seal) lines. A budget of 19 million has also been allocated to the Valdepharm plant in Val-de-Reuil in north-west France , which was taken over from Pfizer in 2006; it mainly manufactures freeze-dried products and is involved in distribution activities (bottles).

3 The programme currently being implemented aims primarily to strengthen our freeze-drying and sterile distribution capacities, explains Bernard Fraisse. Both initiatives will be complemented by the 25 million programme at the former Merck Sharp & Dohme (MSD) plant in St-Germain-Laprade (Haute-Loire). We are planning to give it large-scale high-patent capacity to support our API production at the Feucht (Excella) plant in Germany, which is close to saturation, explains the chairman. Pharmaceuticals and mainland France are not FAREVA s only priorities: the company is also relying on the cosmetics sector and the Latin American markets. Having added Brazil to its list of conquests, the group is now targeting Mexico, where it soon plans to invest between 8 and 10 million in a new cosmetics plant located 200 km from Mexico City, specifically for a French customer.

4 The Ard che-based manufacturer also plans to develop new capacity . In the coming months, the OTC products plant in Richmond (Virginia) bought from Pfizer in 2011 will benefit from a $30 million investment programme that will fund the deployment of cosmetics production capacity , essentially new aerosol and spray lines, which will be housed in a dedicated building covering 30,000 sqm, explains Bernard Fraisse. The group s chairman and founder, who rejects the idea of turning to the stock market or investment funds in order to maintain the company s independence, should be well equipped to fund its various projects. FAREVA recently restructured its debt following a Euro PP-type private investment. And at the end of June, it had over 405 million in capital: more than enough to give the business room for manoeuvre !

5 Jean-Christophe Savattier ActuLabo - October 7h 2015