“Conquest 2025” A roadmap built around innovation

How would you sum up the “Conquest 2025” roadmap?

Through their commitment to the Transformation Plan (2019-2022), the teams at Pierre Fabre succeeded in freeing up resources to build the company’s future, in particular by improving its operating efficiency. Those resources allowed us to acquire and develop promising drugs for the treatment of a number of cancers and rare diseases, and invest in our business drivers to take our brands to the next level of growth.

Accelerating our innovation is the very essence of the “Conquest 2025” plan, and goes hand in hand with the continuing efforts to optimize our operational excellence, whilst caring for the planet and our communities.

What aspects of innovation does the company need to focus on?

For our Pharmaceuticals activity, NAVELBINE, BRAFTOVI/MEKTOVI and EBVALLO® are examples of external innovations. The successful build-up of a new drug portfolio relies on this capacity to attract external innovation and then drive this innovation to the market place. Dermo-cosmetics, on the other hand, has grown mainly through internal innovation. One example being the success of the new sun filter TriAsorB.

To accelerate that innovation, we can count on our medical expertise. But innovation, within the meaning of “Conquest 2025,” goes beyond products themselves and takes full advantage of the infinite possibilities offered by new technologies, which should also boost our operational efficiency.

What guiding principles have been applied over the past 2 years, with regard to the renewal of the Supervisory Board?

We regularly assess the composition of our Supervisory Board to make sure the skills and experience required to guarantee the success and longevity of Pierre Fabre are properly represented. In 2023, Hervé Hoppenot joined the Board, reinforcing our oncology skills, while Florence Parly consolidated international affairs, and Olivier Sadran industrial efficiency and customer service excellence. Those new members supplement the expertise of Jean-Laurent Bonnafé, Eduardo Sanchiz, Marie- Anne Aymerich and Rachel Marouani.

All the Board members share the same passion for the company's purpose, the same deep-seated attachment to our geographical roots of Occitania, the same admiration for our founder, and a collective pride in enabling our primary shareholder, the Fondation Pierre Fabre, to strive to improve healthcare in the world’s poorest countries.

5 pillars to guide our actions for the benefit of patients and consumers

Innovation for the benefit of patients & consumers.

Caring for 200 million patients and consumers by 2025 means introducing new therapies onto the market, developing a portfolio of dermo-cosmetic brands with specialized, complementary positioning, increasing our investments in priority areas (US, Brazil, Mexico, Poland, Benelux) and reinforcing our digital presence and expertise.

A host of actions got underway in 2023, and we are already seeing the first results: an unprecedented one billion in net sales for Eau Thermale Avène, the launch of EBVALLO^® in Europe, for the treatment of a rare lymphoproliferative disorder, plus the launch of Darrow in Mexico.

Establishing our scientific and medical leadership.

Staying at the forefront of innovation in our priority therapeutic fields (oncology, rare diseases and dermatology) is a major challenge. With that in mind, in 2022 the company made the decision to focus its medical R&D on targeted therapies and to work more closely with innovative biotechs. In 2023, it set up a scientific advisory board made up of international experts in oncology and dermatology. A new active ingredient (STX-721) also entered the clinical development phase in 2023, supplementing two trials already in progress in the field of oncology.

Preserving our ecosystems.

The company continues to roll out Green Mission Pierre Fabre, its cross-business approach to naturalness and CSR: the launch of new organically-farmed plant-based active ingredients, a reduced carbon footprint, reduced water consumption, biodiversity protection, eco-social product design and support for local stakeholders. After being awarded the “Outstanding” level of the Responsibility Europe label in 2022 by AFNOR Certification, Pierre Fabre received a B score from the Carbon Disclosure Project in 2023. That is the highest score any company can achieve the first time it undergoes this internationally recognized assessment in the field of decarbonization.

Optimize our operational excellence.

Maximizing the availability of our products to improve the service we provide to our customers is a top priority. Our service level performance reached 90% in December 2023 (up nine points compared to January)*. Building on that achievement, we set about modernizing our distribution chain through digitalization and robotization, launching a new distribution plan in 2023. This consolidates our presence in Muret (Haute-Garonne) and Ussel (Corrèze) and allows for the creation of a third hub in the Loiret, for international shipments. Regarding industry, a new master plan came into effect, to prioritize manufacturing in France through increa- sed production capacities, investments in new technologies and the reduction of our carbon footprint.

Building our collective future.

“Conquest 2025” embodies a collective, financial and humanist project that stays true to the company's purpose. Employees are at the center of our vision. Its fundamental aspects are talent development, upskilling our teams, and internal promotions. It also puts great emphasis on equal opportunities and promoting diversity.

That vision is underpinned by an attractive, motivating work environment, fostering empowerment and supporting change. Lastly, rewarding each person’s contribution to overall performance is essential. For example through changes to our wage policy. As a result of the actions deployed in 2023, the engagement of our 10,000 employees rose by one point compared to 2022, reaching an overall score of 73**.

*Product availability rate measured via TIFI (Turnover Invoiced In First Intention).

**2023 Glint survey.