Galenica Group focuses on pharmaceuticals as it becomes Vifor Pharma Group

The Galenica Group announced today that it successfully completed the initial public offering (IPO) of Galenica Santé, its leading provider of health, beauty and well-being products and services on the Swiss Stock Exchange (SIX). Following the IPO, Galenica Group becomes Vifor Pharma Group and will be listed on the Swiss Stock Exchange under its new ticker, VIFN. The company has thus taken the final steps toward separating into two independent companies: Vifor Pharma Group and Galenica Santé.

The Galenica Santé offering was well received by institutional and retail investors. Representing 97.5% of ordinary registered shares, the IPO was multiple times oversubscribed.

At the offer price of CHF 39.00 per share, the market capitalisation of Galenica Santé is CHF 1,950 million. Upon full exercise of the over-allotment option, the free float of Galenica Santé amounts to 97.5%. Galenica Group sold 42,391,300 shares in the offering. In addition, Galenica Group granted the syndicate banks an over-allotment option of up to 6,358,700 additional shares, which were also sold.  

Galenica Group will not hold any shares of Galenica Santé in future. The remaining shares, amounting to 2.5% of the share capital of Galenica Santé, are reserved for the exchange of Galenica Group shares into Galenica Santé shares for eligible employees of Galenica Santé.  

Galenica Group will not hold any shares of Galenica Santé in future. The remaining shares, amounting to 2.5% of the share capital of Galenica Santé, are reserved for the exchange of Galenica Group shares into Galenica Santé shares for eligible employees of Galenica Santé.  

The successful IPO will allow Vifor Pharma Group, formerly Galenica Group, to focus fully on executing against its Milestone 2020 strategy.

With the successful IPO of Galenica Santé and the establishment of Galenica as Vifor Pharma Group, we have created two strong, independent companies out of one. Our goal was to separate into two companies in a way that would benefit our stakeholders most while giving both new entities the strongest possible basis for realising their full potential. Galenica Santé has a bright future to look forward to in health and retail, while Vifor Pharma Group has a net-debt free situation and is able to focus solely on pharmaceuticals and many attractive projects at a global level,”

 

Etienne Jornod, Executive Chairman of Galenica and Vifor Pharma.

With regard to Vifor Pharma’s strategy, he added: “We want to exceed our Milestone 2020 targets just as we did as Galenica Group for 21 years of uninterrupted growth.”

At the coming Annual General Meeting, the Board of Directors will propose a dividend increase for 2017 of more than 10% to CHF 20 (CHF 2 per registered share following the proposed share split), which will then hold steady through 2019. From 2020 onwards, the payout ratio is targeted at 35% of net income. This proposal is a strong signal of the Board of Directors’ confidence in the Vifor Pharma Group strategy and in the company’s ability to achieve its ambitious mid-term targets. Furthermore, to increase the tradability of the company’s shares, shareholders will be proposed a 1:10 share split.  

Vifor Pharma Group includes the following companies: Vifor Pharma; Vifor Fresenius Medical Care Renal Pharma (VFMCRP), its joint company with Fresenius Medical Care; Relypsa; and OM Pharma. Vifor Pharma Group will also retain all infrastructure not offered under the Galenica Santé IPO. The change to the company’s name will be effective upon shareholder approval at the Annual General Meeting on 11 May 2017.  

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