Celltrion Acquires French Healthcare Firm Gifrer, Secures Pharmacy Sales Network

Proactive Response to France’s Expansion of Substitution Prescriptions
Business Portfolio Broadens to OTC and Generics

Celltrion announced on May 12 that it has acquired Gifrer, a French healthcare company with a 114-year history, thereby securing a pharmacy sales network that will allow it to proactively respond to changes in local healthcare policy. The company also plans to accelerate its expansion into the European generics and over-the-counter (OTC) pharmaceuticals market.

This acquisition was carried out by Celltrion’s French subsidiary acquiring 100% of Gifrer’s shares. The acquisition price will not be disclosed, in accordance with mutual agreement between the two companies. Both companies plan to quickly complete administrative procedures and business coordination related to the acquisition, aiming to finalize all relevant work within this month.

Celltrion plans to operate Gifrer as an independent entity, leveraging its local brand recognition to maximize product and sales synergies between the two companies. All of Gifrer’s approximately 70 employees will be retained.

Founded in France in 1912, Gifrer is a healthcare company that boasts a sales network spanning over 9,000 pharmacies and a supply network to more than 800 hospitals nationwide. The company offers a portfolio of about 140 OTC, pharmacy medicines (DM), and health functional food products, including saline solution, teeth whitening agents, and infant products, all of which maintain high market shares locally.

Celltrion stated that through this acquisition, it has secured specialized pharmacy sales capabilities to proactively address the French government’s policy of expanding substitution prescriptions. Substitution prescriptions allow pharmacists to independently select and dispense medicines containing the same active ingredient as prescribed by a doctor.

France implemented substitution prescriptions for certain drugs in 2022, and in the first quarter of last year, the global blockbuster adalimumab (Humira) was added to the list of drugs eligible for substitution. Celltrion expects that denosumab (Prolia·Xgeva) will also be approved for substitution this year, and plans to leverage Gifrer’s sales network for its biosimilars, Strovoklo and Osenbelt, in pharmacy sales.

Celltrion explained that with this acquisition, its portfolio has expanded beyond biopharmaceuticals to include OTC and generics, as it now has access to Gifrer’s product lineup. Popular products in the local market, such as saline solution (42% market share), teeth whitening agents (28% market share), and infant products, are included. The company estimates that it can secure more than KRW 250 billion (approximately 250 billion won) in additional revenue through Gifrer’s product lineup over the next five years.

Celltrion is also considering the sale of Gifrer’s products in other countries by utilizing its direct sales subsidiary network. In Germany, Celltrion’s local subsidiary is already engaged in pharmacy sales of subcutaneous (SC) formulation products, and with the addition of Gifrer’s products, the company expects to further increase OTC revenue and expand its portfolio.

Furthermore, Celltrion plans to acquire distribution rights for competitive third-party generic and OTC products to maximize the use of the 9,000-plus pharmacy sales network gained through the Gifrer acquisition. The company’s strategy is to select generic and OTC product lines with high local demand but limited competition, to maximize performance growth. Several candidate products are currently being reviewed, and the introduction of new distribution rights is expected soon. Celltrion is also considering selling generics, OTC products, cosmetics, and health functional foods from its group affiliates in France.

Celltrion intends to continue actively pursuing mergers and acquisitions (M&A) of local companies with strong brand recognition in the future. As the adoption of substitution prescriptions becomes more widespread across Europe, starting with France, the company plans to focus M&A efforts on countries where pharmacy sales capabilities and direct sales strategies can create strong synergies.

A Celltrion representative stated, "Through the acquisition of Gifrer, we have achieved the dual benefits of proactively responding to regulatory changes and expanding into new business areas," adding, "We will continue to actively pursue M&A of competitive companies that can strengthen our direct sales capabilities in line with the healthcare policy characteristics of each country or region."