A long-term investor
Wendel is a hands-on investor and shareholder that assists sector-leading companies in their long-term development. Wendel's business model combines the entrepreneurial passion born of a long family tradition with a culture of performance and accountability.
Stallergenes
Immunotherapy
500,000 patients treated in more than 50 countries • 785 employees • More than 30 clinical studies since 2000
| (in millions of euros) | 2007 | 2008 | Δ |
| Net sales | 147.1 | 170.9 | +16.2 % |
| Operatig income before R&D | 49.1 | 58.1 | +18.5% |
| as a % of net sales | 33.4 % | 34.1% | |
| Net income(1) | 16.3 | 19.0 | + 16.6 % |
| Net financial debt | 10.4 | 9.6 |
(1)Consolidated net income (group share)
How Wendel is involved
• Board of Directors: David Darmon, Dirk-Jan van Ommeren, Arnaud Fayet, Jean-Marc Janodet (directors)
• Appointments and Compensation Committee: David Darmon, Arnaud Fayet (Chairman), Jean-Marc Janodet
• Audit Committee: Arnaud Fayet, Jean-Marc Janodet (Chairman).
Why we invested
Changes in lifestyles and the environment seem to have promoted a rapid increase in allergies, which are estimated to have doubled in the last 20 years. An estimated 20% to 30% of the populations of industrialized countries suffer from allergies. The immunotherapy market is therefore considerable.
In 1993, Wendel took control of Stallergenes, a major player in specific immunotherapy, which is the only therapy that truly cures allergies and constitutes an attractive alternative to traditional medicinal approaches.
Stallergenes was already the uncontested leader in France and had successfully set up in Germany. It had state-of-the-art production facilities and logistics chains that combined compliance with regulatory standards and industrial performance objectives.
How Wendel has helped Stallergenes to expand
Backed by Wendel, Stallergenes has, over the last 15 years, focused on Research and Development, to which 21% of sales is now devoted in terms of gross figures. This has helped identify and standardize new allergy proteins in responding to new allergies, as well as new media and methods of administration (besides injections), i.e., sublingual and tablet administration. These new drugs and administration methods have obtained clinical approval. Over the last 15 years Stallergenes has also expanded faster internationally.
Stallergenes is now the co-leader in the sector, with more than half of the allergy-treatment market. From 1996 to 2008, it increased its R&D 10-fold, and its net income has risen by 17% annually.
An excellent showing in 2008 that beat its own projections
Stallergenes’ growth was very strong in 2008, with net sales rising 16% to €171 million. Growth was achieved on all markets and particularly in exports, which were especially strong. Cost of sales rose by 21%, as the new production unit based in Antony, France, came on stream. Even so, the operating margin before R&D costs rose again, to 34.1% in 2008, vs. 33.4% en 2007. R&D costs increased by 26%, which was due to the additional cost of the phase III pollen trials in the US, which aim to obtain US registration for Oralair® (immunotherapy tablet for grass pollens). All in all, consolidated net income came to €19 million, a 16.6% increase over 2007. Cash flow was positive, and financial debt declined once again, to €9.6 million.
Stalair® allergy tablets program off to a good start
As a pioneer and leader in sublingual immunotherapy, Stallergenes is now carrying out an ambitious development program aimed at offering sublingual immunotherapy in tablet form. This includes three main drugs (for grass pollen, birch pollen and mites) and will make it possible to treat the main allergies afflicting around two of every three allergy sufferers in Europe.
On June 24, 2008, Stallergenes obtained marketing approval in Germany for Oralair® (grass pollen) for adults, which cleared the way for commercial launch. Approval for use in children was obtained on January 19, 2009. Oralair® (grass pollen) is thus being marketed for both patient segments in time for the 2009 pollen season in Germany, which is the world’s largest immunotherapy market, and the European mutual recognition registration process is underway.
The two other drugs, to treat mite and birch pollen allergies, are in the final phase of clinical development. Developing these tablets required heavy investments, both in capex, with the construction of a new production unit, and in sales and marketing in the run-up to the European launch of Oralair® (grass pollen).
On October 27, 2008, Stallergenes obtained US clinical study authorization from the FDA on Oralair® (grass pollen) for adult use. The findings of this study will be published in late 2009.
Outlook
In addition to the allergy tablets program (Stalair®), Stallergenes is conducting the Enhanced Allergens program, which aims to enhance tablet efficacy through new technologies (genetic recombination, adjuvant treatment, formulation). This innovative research program is part of Stallergenes’ broad approach, which consists in dedicating its unique expertise in allergens to the constant improvement of sublingual immunotherapy.
