Solvay S.A.: PharmaVitae Profile

CHAPTER 1 ABOUT THIS PROFILE 2

Executive summary 2

Quarterly news update 2

Company introduction 2

Company sales 2

Company financials 2

Key products and competitors 3

Data sourcing 3

Sales data 3

Analyst consensus 3

CHAPTER 2 EXECUTIVE SUMMARY 4

Key findings 4

Prescription pharmaceutical sales performance, 2001-13 5

Financial performance, 2001-13 6

Solvay: PharmaVitae forecasts at a glance 7

Strategic insight 8

Corporate restructuring favors profitable pharmaceutical segment 8

Expansion of dyslipidemia franchise set to drive pharma revenues 11

Operational efficiencies targeted across all sectors in order to boost financial performance 16

SWOT analysis 18

Strengths 18

Weaknesses 19

Opportunities 21

Threats 23

CHAPTER 3 QUARTERLY NEWS UPDATE 28

Product developments 28

Deals and alliances 29

Product deals 29

Technology deals 29

M&A activity 30

Company announcements 30

Future product milestones 31

CHAPTER 4 COMPANY INTRODUCTION 32

Key findings 32

Background 33

Key corporate developments 33

M&A history 33

Innogenetics NV 33

Fournier 34

Neopharma 35

Unimed Pharmaceuticals 35

Current corporate structure 36

Pharmaceuticals 36

Plastics 37

Chemicals 37

CHAPTER 5 COMPANY SALES 38

Key findings 38

Prescription pharmaceutical sales and growth rate analysis, 2001-13 39

Historical analysis 40

Forecast analysis 40

Product analysis 41

Product analysis, 2001-07 42

Growth drivers 43

Growth resistors 44

Product analysis, 2007-13 46

Growth drivers 47

Growth resistors 49

Therapy area analysis 51

Therapy area analysis, 2001-07 52

Therapy area analysis, 2007-13 54

Therapy area focus, 2001-13 56

Geographic analysis 57

Geographic analysis, 2001-07 58

Geographic analysis, 2007-13 60

Geographic focus, 2001-13 62

Launch/core/expiry analysis 63

Explanation of launch/core/expiry analysis 63

Launch analysis, 2007-13 64

Core analysis, 2007-13 65

Expiry analysis, 2007-13 66

Launch/core/expiry configuration, 2007-13 67

Molecule type analysis 68

Molecule type analysis, 2001-07 69

Molecule type analysis, 2007-13 70

Externalization analysis 72

Externalization analysis, 2001-07 73

Externalization analysis, 2007-13 75

CHAPTER 6 COMPANY FINANCIALS 78

Key findings 78

Reconciliation between PharmaVitae-formatted prescription pharma sales and company-reported total sales, 2001-07 79

Financial statements, 2001-07 81

Profit and loss account, 2001-07 81

Balance sheet, 2001-07 83

Operating costs and profit analysis 85

Operating costs and profit analysis, 2001-07 86

Operating cost ratio and profit margin analysis, 2001-07 87

Operating cost ratio and profit margin analysis, 2007-13 88

Operating costs and profit analysis, 2007-13 90

Return on capital employed analysis 92

Capital employed analysis, 2001-07 93

Return on capital employed (RoCE) analysis, 2001-07 95

Market capitalization analysis 98

Market capitalization analysis, 2001-07 98

Total shareholder returns analysis, 2001-07 100

CHAPTER 7 KEY PRODUCTS AND COMPETITORS 101

Key findings 101

Overview 102

Cardiovascular 103

TriCor/TriLipix 103

Overview 104

Sales forecast 106

Urology & sexual health 112

AndroGel 112

Overview 113

Sales forecast 114

Gastroenterology 118

Creon 118

Overview 119

Sales forecast 120

Central nervous system 122

Serc 122

Overview 123

Sales forecast 124

Infectious disease 126

Influvac 126

Overview 127

Sales forecast 128

CHAPTER 8 APPENDIX 131

R&D pipeline 131

References 132

Abbreviations 132

Exchange rates 134

List of Tables

Table 1: Solvay - PharmaVitae forecasts at a glance 7

Table 2: Solvay gross profit margin analysis, 2001-07 9

Table 3: Solvay's lipid management portfolio 11

Table 4: Solvay operating cost ratio analysis (% of total revenues), 2007-13 17

Table 5: Solvay key product developments, Q1-Q3 2008 28

Table 6: Solvay product deals and alliances, Q1-Q3 2008 29

Table 7: Solvay technology deals and alliances, Q1-Q3 2008 29

Table 8: Solvay M&A activity, Q1-Q3 2008 30

Table 9: Solvay company announcements, Q1-Q3 2008 30

Table 10: Solvay future product milestones, 2008-10 31

Table 11: Solvay product portfolio overview ($m), 2001-07 42

Table 12: Solvay product portfolio overview ($m), 2007-13 46

Table 13: Solvay product portfolio overview ($m), 2001-07 52

Table 14: Solvay product portfolio overview ($m), 2007-13 54

Table 15: Solvay portfolio overview by geographic region ($m), 2001-07 58

Table 16: Solvay portfolio overview by geographic region ($m), 2007-13 60

Table 17: Solvay launch portfolio overview ($m), 2007-13 64

Table 18: Solvay core portfolio overview ($m), 2007-13 65

Table 19: Solvay expiry portfolio overview ($m), 2007-13 66

Table 20: Solvay portfolio overview by molecule type ($m), 2001-07 69

Table 21: Solvay product portfolio overview by molecule type ($m), 2007-13 70

Table 22: Solvay product portfolio overview by source ($m), 2001-07 73

Table 23: Solvay product portfolio overview by source ($m), 2007-13 75

Table 24: Total Solvay sales by business unit ($m), 2001-07 79

Table 25: Solvay profit and loss account ($m), 2001-07 81

Table 26: Solvay balance sheet ($m), 2001-07 83

Table 27: Solvay operating revenue/cost analysis ($m), 2001-07 86

Table 28: Solvay operating cost ratio analysis (% of total revenues), 2001-07 87

Table 29: Solvay operating cost ratio analysis (% of total revenues), 2007-13 88

Table 30: Solvay operating revenue/cost analysis ($m), 2007-13 90

Table 31: Solvay capital employed ($m), 2001-07 93

Table 32: Solvay EBIT return on capital employed ($m), 2001-07 95

Table 33: Solvay EBIT pre-tax return/capital employed driver analysis (%), 2001-07 96

Table 34: Solvay market capitalization ($ billion), 2000-07 98

Table 35: Solvay total shareholder returns (annual %), 2001-07 100

Table 36: Key products overview 102

Table 37: TriCor: overview 104

Table 38: TriLipix: overview 105

Table 39: TriCor: sales forecast ($m), 2007-13 106

Table 40: TriLipix: sales forecast ($m), 2007-13 106

Table 41: Major dyslipidemia therapeutics, global sales ($m), 2001-07 109

Table 42: AndroGel: overview 113

Table 43: AndroGel: sales forecast ($m), 2007-13 114

Table 44: Creon: overview 119

Table 45: Creon: sales forecast ($m), 2007-13 120

Table 46: Serc: overview 123

Table 47: Serc: sales forecast ($m), 2007-13 124

Table 48: Influvac: overview 127

Table 49: Influvac: sales forecast ($m), 2007-13 128

Table 50: Solvay's R&D pipeline (Phase I-registration) 131

Table 51: Exchange rates, 2007 134

List of Figures

Figure 1: Solvay prescription pharmaceutical performance, sales ($m) and growth rate (%), 2001-13 5

Figure 2: Solvay's financial performance ($m), 2001-13 6

Figure 3: Financial performance lifted by restructuring efforts 8

Figure 4: Focus on pharma performance ($m), 2001-07 10

Figure 5: Solvay's lipid management portfolio, sales ($m), 2001-13 14

Figure 6: Solvay SWOT analysis 18

Figure 7: Current corporate structure 36

Figure 8: Solvay prescription pharmaceutical performance, sales ($m) and growth rate (%), 2001-13 39

Figure 9: Solvay key sales growth drivers and resistors ($m), 2001-07 43

Figure 10: Solvay key sales growth drivers and resistors ($m), 2007-13 47

Figure 11: Solvay prescription pharmaceutical sales by therapy area ($m), 2001-13 51

Figure 12: Solvay prescription pharma sales by therapy area (% of total), 2001-13 56

Figure 13: Solvay prescription pharmaceutical sales by geographic region ($m), 2001-13 57

Figure 14: Solvay growth drivers and resistors by geographic region ($m), 2001-07 58

Figure 15: Solvay drivers and resistors by geographic region ($m), 2007-13 60

Figure 16: Solvay prescription pharmaceutical sales by geographic region (% of total), 2001-13 62

Figure 17: Solvay launch/core/expiry configuration ($m), 2007-13 67

Figure 18: Solvay prescription pharmaceutical sales by molecule type ($m), 2001-13 68

Figure 19: Solvay growth drivers and resistors by molecule type ($m), 2007-13 71

Figure 20: Solvay prescription pharmaceutical sales by source ($m), 2001-13 72

Figure 21: Solvay growth drivers and resistors by source ($m), 2001-07 73

Figure 22: Solvay growth drivers and resistors by source ($m), 2007-13 76

Figure 23: Solvay operating revenue/cost analysis ($m), 2001-13 85

Figure 24: Solvay operating cost ratio analysis (% of total revenues), 2001-13 89

Figure 25: Solvay return on capital employed, EBIT margin and capital turnover, 2001-07 92

Figure 26: Return on capital employed formula 96

Figure 27: Solvay market capitalization ($ billion), 2001-07 99

Figure 28: Solvay total shareholder returns vs. S&P 500 ($m), 2001-07 100

Figure 29: Global testosterone market (% total sales), Q103-Q407 116