Regulated information
Waregem (Belgium)/Rotterdam (The Netherlands)[1], 12 April 2016
Turnover from continued operations increased by 0.9% to € 103.6 million
Fagron decides to close Bellevue Pharmacy
Fagron’s consolidated turnover from continued operations increased by 0.9% (+7.2% at constant exchange rates) to € 103.6 million during the first quarter of 2016. Organic turnover growth from continued operations amounted to -6.0% (-0.1% at constant exchange rates).
After the change in the reimbursement system for non-sterile compounding in the United States in 2015, Bellevue Pharmacy (part of Fagron Specialty Pharma Services) became loss-making in the first quarter of 2016. The Board of Directors has therefore decided to close Bellevue Pharmacy. The production of non-sterile compounding at Bellevue Pharmacy was stopped in March 2016 and the majority of the employees have been made redundant. Due to this decision, the turnover of Bellevue Pharmacy is reported in this press release under discontinued operations.
Turnover (x € 1,000) Q1 2016 Q1 2015 Total growth Total growth CER Org. growth Org. growth CER Fagron Specialty Pharma Services 37,809 27,631 +36.8% +36.9% +12.7% +12.8% Fagron Trademarks 11,814 11,594 +1.9% +17.3% +1.9% +17.3% Fagron Essentials 51,962 60,543 -14.2% -6.5% -16.4% -8.9% HL Technology 1,978 2,848 -30.5% -29.0% -30.5% -29.0% Fagron Group (continued operations) 103,563 102,616 +0.9% +7.2% -6.0% -0.1% Discontinued operations 4,210 15,185 -72.3% -72.9% -72.3% -72.9% Total 107,774 117,800 -8.5% -3.1% -14.0% -8.9%CER = constant exchange rates
Hans Stols, CEO of Fagron: “Fagron’s turnover from continued operations increased by 0.9% in the first quarter of 2016, to € 103.6 million. At constant exchange rates, the turnover from continued operations in the first quarter of 2016 developed positively everywhere, except in the United States. During the first quarter of 2016, the sterile FSPS activities in the United States continued the strong growth from 2015. The change in May 2015 to the reimbursement system for non-sterile compounding unfortunately had a negative impact on the sale of pharmaceutical raw materials in the United States during the first quarter of 2016 as well.
The changed reimbursement system in the United States also had a major impact on the turnover and profitability of Bellevue Pharmacy. After the impairment on Bellevue Pharmacy at the end of 2015 and the losses in the first quarter of 2016, we decided to close Bellevue Pharmacy.
The refinancing of Fagron required a great deal of attention over the past few months. The extension of the waiver until the end of June 2016 for the financial covenants concerning the revolving credit facility and the US private placement gives Fagron time to focus on reaching an agreement on adjusting its current financing and the proposed capital increase for a total amount of € 220 million to safeguard its financial situation for the longer term.”
[1] This press release was sent out by Fagron NV and Fagron BV.
Please open the link below for the press release: