Siegfried Reports Higher Operating Results for 2010

Siegfried has reported sales of CHF 314.4 million for the 2010 financial year, corresponding to a growth of 11.1% over the previous year, or of 14.2% in local currencies. The EBITDA rose by 11.5% to CHF 36.7 million (2009: CHF 32.9 million), representing an 11.7% EBITDA margin. EBIT amounted to CHF 5.4 million, following an operating loss of CHF 14.3 million the previous year. Net loss is reported at CHF 4.2 million. When excluding special financial charges of CHF 5.2 million, profit is reported at CHF 1.0 million.

While sales in Siegfried's active pharmaceutical ingredients (API) business grew by 14.1% to CHF 252.2 million, sales of CHF 62.2 million in formulated drug products remained at the previous year's level.

Strategy Implementation On Target

Siegfried implemented significant steps of its strategy in 2010. In March, Siegfried's organization was converted from a divisional to a functional structure. At the beginning of May, the Siegfried Group successfully placed CHF 80 million mandatory convertible notes (MCN), which were fully subscribed by Siegfried's shareholders. At the end of September, Siegfried divested its PulmoJet inhalation project as planned to Sanofi-Aventis and, following market introduction, Siegfried will benefit from royalties. Several measures were implemented in connection with the strategic goal of securing and expanding Siegfried's presence in the U.S., such as realigning and strengthening the marketing and sales organization. Capacity utilization of the U.S. plant clearly grew in 2010.

Solid Pipeline

On Dec. 31, Siegfried's development pipeline comprised 31 projects for active ingredients and intermediate products as well as nine projects for development services connected with formulated drug products, including 3 projects embracing both active pharmaceutical ingredients and galenic formulations.