2004 Financial Year Results,Strong growth in profitability enabling an acceleration in R&D efforts,Strengthening of commercial positions in Spain and Portuga

The Board of Directors, meeting on 15 March 2005 under the chairmanship of Albert Saporta, approved the 2004 consolidated financial statements of Stallergenes Group.

Stallergènes Group realised sales growth of 11% in 2004, with sales progressing 15% in France, 5% in Europe and 10% in other countries.

In 2004, the growth of Stallergènes’ sales, combined with productivity and purchasing control initiatives, resulted in a 30% improvement in gross operating profit, enabling an acceleration of Research & Development efforts reflected in a 43% increase in expenditure, while ensuring a 22% increase in operating profit. This improvement in operating profit coupled with a near 40% decrease in working capital funds requirements has enabled Stallergènes Group to end 2004 virtually debt free.

Net profit improved by 34% to € 9.8 million generating a net profit margin of 10.3%, with no exceptional items affecting results.

The Board of Directors will propose to the General Meeting of 23 June 2004 the distribution of a cash dividend per share of € 1.05, an increase of 25% over the preceding year.

2005 Outlook

Stallergènes forecasts double digit organic sales growth for 2005, as well as a pursuit of its profitability and innovation efforts. Significant growth is expected for Germany, driven by the combined effect of volume increases and the elimination of the regulatory 10% price discount.

Stallergènes undertook in 2004 a European Phase II/III effectiveness study on a grass pollens tablet, whose results will be known by the end of 2005. 

Acquisition of IPI

STALLERGENES concluded an agreement at the beginning of March 2005 with the Spanish Group ASAC BIO to acquire the immunotherapy activities specific to its IPI subsidiary based in Spain and Portugal, which generated sales of € 4 million and an operating profit of € 1.4 million in 2004.

Through this acquisition, Stallergènes strengthens its presence in Spain and Portugal, increasing its market share to 20% in Spain and 30% in Portugal.

ASAC BIO will continue to manufacture IPI products for Stallergènes in Europe, and for its own account in Latin America.

In the words of Albert Saporta, Chairman of Stallergènes: “The acquisition of IPI reflects our Group’s external growth policy, within the perspective of the launch of allergen tablets planned for 2007, and enables is to nearly double our sales in Spain and in Portugal.”

For his part, Angel Sanchez Covisa, Chairman of ASAC BIO comments: “This operation enables our Group to increase its resources to pursue its growth strategy for other businesses”.

This acquisition will be debt-financed. The transaction price is subject to a confidentiality clause.