Download Medienmitteilung 9 Monate 2004

Media Release
Siegfried – when substance matters
Semi-annual report 2008
Semi-annual report 2008
Siegfried Posts Growth Despite Negative Currency Influence
During the first half of 2008, the Siegfried Group (SWX: SFZN) achieved revenues of
CHF 159.6 million, an increase of 6.8% in local currencies and, as a result of the declining U.S. dollar, 1.2% in Swiss francs.
Operating profit (EBIT) reached CHF 28.5 million (+33.2%). The sale of the pharmaceutical production facility in Zofingen to the U.S.-based Arena Pharmaceuticals and
license payments for a previous bio-generic project both contributed to the positive
results.
Siegfried Actives Division
The Division increased production during the first six months compared to 2007 and
markedly upped utilization levels. Due to customer postponements of deliveries to the
second half of 2008, the Division results of CHF 95.1 million remained below the 2007
results (12.7% in Swiss francs and 4.9% in local currencies).
Operating profit (EBIT) amounted to CHF 1.7 million, clearly lower than last year. One
reason for the comparative shortfall is the one-time payment of CHF 9.1 million made
by U.S.-based Celgene during the first half of 2007 for a reactor system.
The Siegfried Actives Division sells a substantial part of its production to U.S. dollar
regions, which strongly impacted both revenues and operative results; leaving a 7.8%
currency-influenced difference in revenues.
Good order inflow
For the Siegfried Actives Division, the rate of incoming orders remains solid. Last
year, 20 new exclusive synthesis projects were won; during the first half of 2008, six
more projects were added, and we await decisions on various promising offers. The
pipeline for exclusive synthesis
currently has 8 projects for pharmaceuticals that have already been launched by the
customer. Further 6 projects are in the clinical phase III, and 26 projects are in phases I or II.
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Two products are about to go into ramp-up of production that will add to the 2008 results and be a key growth factor in 2009.
Successful standard products
The expansion of standard product activities (incl. controlled substances) continues.
Primarily, this includes a range of opiate-based substances for powerful analgesics
used in cancer therapies. New substances are continually being brought to commercial production. In addition to the U.S. market, interest for opiate derivatives is also
growing markedly in the Canadian and European markets.
Sales of the active pharmaceutical ingredients methadone and nicotine, where Siegfried Actives is the market leader, continue to develop well. Currently, Siegfried
Actives is working to expand its product range of nicotine derivatives.
Siegfried Generics Division
Siegfried Generics developed well during the first six months of 2008 and achieved
revenues of CHF 64.6 million (+32%). The CHF 30.3 million EBIT was bolstered by
the sale of the pharmaceutical facility in Zofingen to Arena Pharmaceuticals in San
Diego. Operating profit was CHF 16.7 million, which includes licensing income for a
successfully completed - bio-generics project.
Generics in new dosage forms
After the sale of the production facility in Zofingen, the production of generics (in solid
dosage forms) will be successively transferred to Malta. In addition, new dosage form
projects will supplement the pipeline; these will be carried out in cooperation with industry partners. The generics pipeline now has 13 projects, including 3, which are already in the registration phase. The remaining projects are in the evaluation phase.
Rapid development of the inhalation technology
Development work on generic inhalation products used for asthma therapy is moving
along vigorously. A new GMP production facility in Höchstädt, Germany was found for
the manufacture of inhalation drugs based on the PulmoJet®. The development lab in
Munich was updated and continues to grow.
The inhalation technology costs were charged to the profit & loss statement. Discussion with potential marketing partners in the U.S.A. and Europe are now underway.
Initial cost sharing solutions, especially for a project targeting the U.S. market, are
expected already in 2009.
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Outlook
The Siegfried Group expects the Siegfried Actives Division to achieve markedly better
sales for the second half of 2008 – despite the negative U.S. dollar pull – and this
trend might continue into the next year. A key reason for this optimism is the expected ramp-up for two larger customer projects, scheduled for the end of the year.
These active pharmaceutical ingredients might also have a positive influence on margins in 2009.
The competitive situation will become increasingly noticeable for the Siegfried
Generics Division, resulting in declining revenues for the second half of 2008.
Nevertheless, the Siegfried Group sees single digit growth for the year. Due to the
weakness of the U.S. dollar and ongoing investments in the inhalation technology,
operating margins might drop slightly below 10%. Net profit should remain solid,
thanks to the abovementioned special factors.
Zofingen, 27 August 2008
For further information:
Dr. Richard Schindler, Chief Financial Officer der Siegfried-Gruppe
Tel. +41 (0)62 746 11 35, Fax +41 (0)62 746 11 03
Siegfried Holding AG
Untere Brühlstrasse 4
CH - 4800 Zofingen
Phone + 41 62 746 11 11
Fax + 41 62 746 11 04
www.siegfried.ch
About Siegfried
Active in Life Science markets, the Siegfried Group is a global manufacturer of pharmaceutical
products with production facilities located in Switzerland, Germany, Malta and the US.A. Siegfried currently has approximately 900 employees and achieved annual sales of approx. CHF
318 million in 2007.
Siegfried has two pharmaceutical divisions. Siegfried Actives develops and produces both exclusive active pharmaceutical ingredients (API) and cGMP and non-cGMP intermediates for the
pharmaceutical industry, and standard APIs. Siegfried Generics produces complex generic
products.
Siegfried Holding AG is listed on the Swiss Exchange in Zurich (SWX: SFZN).