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FOCUS ON MEDICAL CARE INNOVATION All change for R&D >50% of the new molecules being developed now come from biotechs with varying sources of funding (governments, pharma laboratory, investment funds etc.) and who have become a major source of assets and intellectual property Gene and cell therapies, immune therapies, the driving role played by biotechs...pharmaceutical research gone through many years of major upheavals. Buoyed by the success of its latest targeted therapies to reach the market, and its experience in research into targeted biotherapies and immune therapy, in 2020 the Group made the bold decision to continue its advanced oncology research while developing external partnerships for oncology and dermatology. This more agile R&D structure will be supported by its immuno- oncology research center based in Saint-Julien-en-Genevois. For the past decade or so, our teams have been developing extensive knowledge of the biological mechanisms behind the development and growth of cancers, especially the promising field of macrophages. Our research also relies on an Oncology Innovation Unit and a translational medicine department, both located in the Toulouse Oncopole. Finally, the Medical Affairs Department and Patient Centricity, a division created in 2020, are in charge of phase II, III and in-use clinical studies. 96% of the Group’s 800 dermo-cosmetics formulations now meet the Conscious Care standards Innovative partnerships in the fight against cancer Nowadays, innovating in the pharmaceutical sector without partnerships and the sharing of expertise is no longer an option. Aware of these issues and wanting to accelerate its identification of innovative therapies for patients who are refractory or resistant to existing treatment options, Pierre Fabre recently formed an alliance with the South Korean firm Y-Biologics for the development of new immune therapies using monoclonal antibodies. At the end of 2020, the Group therefore announced an international phase I clinical study (VISTA) for its experimental molecule W0180 in patients with relapsed or refractory solid tumors. The study involves several centers and institutes in France and abroad, including the Institut Gustave Roussy de Villejuif, Clinique Universitaire de Navarre (Spain), and Institut Universitaire du Cancer de Toulouse (France). 150 new dermo-cosmetics products (innovations and reformulations) developed in 2020 A year full of firsts Several products were released under the Conscious Care program in 2020. A-Derma launched Exomega Control Spray, the first natural emollient spray designed for dry and atopic skin, containing 97% natural-origin ingredients and 100% recyclable packaging. In turn, Klorane innovated with its strengthened oil-control care which washes and purifies the scalp. A dry, biodegradable formula made from organic nettle (80% less water used in the manufacturing process) and 100% recyclable packaging. With a formula based on Célastrol, a novel, powerful, 100% natural active ingredient used for the first time in dermo-cosmetics, Kertyol PSO hydrating balm from Ducray provides daily care for psoriasis-prone skin. This ‘expert’ formulation soothes itching and improves skin quality, as an alternative to medication or during the maintenance phase. FOCUS ON DERMO-COSMETICS AND PERSONAL CARE INNOVATION Conscious Care: a gage of dermo-cosmetic innovation Inventing and developing dermo-cosmetic products that are safer, more effective, and that respect people and nature. This is the guiding principle of the Group’s R&D for dermo- cosmetics and personal care. An ambition that has culminated in an original approach dubbed Conscious Care. Involving a comprehensive product design charter - encompassing the process from formulation to packaging, including transport and point of sales presentation - Conscious Care is based on four concepts: scientific research & pharmaceutical rigor, supply chain management and naturalness, useful and sensible dermo-cosmetics, and a humanistic vision & renowned ethical conduct. Whenever an existing product is reformulated, or indeed a new product is designed, the process now abides by all the rules and standards of the Conscious Care program. CHALLENGES & STRATEGY 27