Celltrion is accelerating its market push by acquiring French healthcare company Gifrer, moving beyond its biosimilar-centered business to diversify its portfolio with local distribution networks and consumer product lines.
Celltrion (068270.KS) said Wednesday that it acquired a 100% stake in Gifrer through its French subsidiary. The acquisition price was not disclosed. The two companies plan to complete related administrative procedures and business arrangements within this month.
Founded in 1912, Gifrer is a local healthcare company with a sales network of more than 9,000 pharmacies and a supply network of approximately 800 hospitals across France. It mainly sells saline solutions, tooth whiteners, and infant products.
Celltrion plans to operate Gifrer as an independent entity to maintain its existing brand recognition and sales competitiveness. The company will also retain the employment of Gifrer's approximately 70 employees.
Celltrion explained that the acquisition will allow it to preemptively respond to the French government's expansion of its "substitute dispensing" policy. Substitute dispensing is a system that allows pharmacists to select and dispense specific products among medicines with the same ingredients.
"Through the acquisition of Gifrer, we have secured local pharmacy sales capabilities in France," a Celltrion official said. "We will be able to enhance product accessibility in line with the expanding substitute dispensing trend going forward."
The acquisition is also expected to expand Celltrion's product portfolio. The company will extend its reach from its existing biopharmaceutical-centered business into the generics and over-the-counter (OTC) markets. In particular, Gifrer's saline solution products hold the No. 1 sales position in the French market with a 42% share, while its tooth whitener share stands at around 28%.
Celltrion projected that it will be able to secure more than 250 billion won in additional revenue over the next five years through Gifrer's product lineup.
Celltrion is also considering plans to expand overseas sales of Gifrer's product lineup by utilizing its direct sales network. Conversely, the company plans to pursue a strategy of supplying generics, OTC products, cosmetics, and health functional foods from Celltrion Group affiliates to the French market through Gifrer's sales network.
"We plan to continue reviewing mergers and acquisitions focused on overseas companies with brand recognition and distribution competitiveness," a Celltrion official said.
