French CDMO EuroAPI announces today that it has completed and secured the financing of its ongoing Focus-27 strategic plan. The agreements comprise:

* An agreement with EuroAPI’s banking syndicate on a new secured €451 million revolving credit facility, refinancing the existing revolving facility to mature in February 2029

* An investment by Sanofi of €200 million in a perpetual deeply subordinated hybrid bond, which EuroAPI said that will give it “additional financial flexibility” to deliver Focus-27

French-based CDMO EuroAPI has reached an agreement with Sanofi to finance the implementation of its Focus-27 restructuring programme through a €200 million perpetual subordinated hybrid bond. Sanofi, from which EuroAPI was originally spun out, remains its main shareholder and customer. It also agreed in principle to reserve minimum available capacities for selected products manufactured by EuroAPI through a €54 million payment.

The European Commission has approved the first Important Project of Common European Interest (IPCEI). Under IPCEI Med4Cure, member states will provide up to €1 billion in public funding, which is expected to unlock €5.9 billion more in private funding.

During its full-year results presentation, CDMO and API supplier EuroAPI announced the launch of Focus-2027, a comprehensive project that will seek to unlock profitable growth and increase returns. Key means of achieving include:

* Streamlining the value-added API portfolio by discontinuing 13 with low or negative margins and focusing on highly differentiated, profitable products, such as vitamin B12, prostaglandins, peptides and oligonucleotides

* Having a focused CDMO offer “leveraging our recognised capabilities and technology platforms” *

CDMO EuroAPI has been listed on the Euronext Paris market as of 5 May. CEO Karl Rotthier said that the listing “marks an exciting milestone for the development of our company as it will enable us to consolidate our leadership in the dynamic API market”.

Sanofi has announced that newly established API manufacturer EuroAPI will begin trading on the Euronext Paris on 6 May, subject to shareholder approval at a meeting three days before. Following this, EuroAPI will operate independently.

“This important step towards our listing is a key milestone for EuroAPI and is part of the deployment of our strategy and our independence from Sanofi,” said CEO Karl Rotthier.

Big Pharma giant Sanofi has revealed that the name of its new subsidiary in third party API manufacture, as originally announced in February 2020, will be EuroAPI. It has also recruited Karl Rotthier from Centrient Pharmaceuticals, formerly DSM Sinochem, to be CEO. “

Addressing recent increasing medicine shortages that critically impact patient care, EuroAPI will ensure additional API supply capacities for Europe and beyond, and help balancing the industry’s heavy reliance on API sourced from other regions,” Sanofi stated.