Media Release

The process of transforming Galenica’s Pharma Division into a fully integrated specialty pharmaceutical company has been launched 16 months ago by the acquisition of Aspreva. The objectives set at the beginning of 2008 have been achieved. In view of the significant opportunities to grow the market with Ferinject®, Vifor Pharma is entering into a new phase now. Anthony Coombs who led the integration process will leave Vifor Pharma but remain for certain tasks with Galenica for some time. Etienne Jornod will chair the Vifor Pharma Leadership Team until a new CEO Vifor Pharma is engaged.

In early 2008 Galenica acquired the Canadian pharmaceutical company Aspreva to develop and strength the Pharma Division. The acquisition enabled Galenica to integrate professional complementary core competences and know-how in Clinical Development, Medical Affairs, Regulatory Affairs and Business Development. The integration process of Aspreva and the creation of the new formed Vifor Pharma are completed. The objectives set at the beginning of 2008 have been achieved.

In view of the significant opportunity to grow the market with Ferinject® confirmed by the positive response from its launch in Germany, the Nordic countries and Switzerland, Vifor Pharma is entering into a new phase now. The experience gained in Switzerland, where it took eight years to build up a market, shows that it will require time to establish a market at the international level.

Strategically Vifor Pharma will reinforce its strong focus on the core business (iron deficiency) anaemia to maximise its iron based portfolio and manage it’s life cycle. In addition the strategy aims for continued support of CellCept and developing Consumer Healthcare products.

To realise this strategy, important and focused additional investments will be made in Research, Clinical Development and Commercialisation to fully exploit the opportunities. These investments will be focused on the core iron products Ferinject®, Venofer® and Maltofer® as well as pipeline products including PA21, VIT91 and other iron projects.

The detailed program of clinical trials will be presented at the Analyst Day which will be held on 23 June 2009 in Niederbipp.

With the integration phase completed and the strategy and focus for Vifor Pharma now defined, Anthony Coombs has decided to step down from his position of CEO. He has made this decision for personal reasons although he will remain for certain tasks with Galenica for some time. Anthony Coombs’ leadership throughout the highly challenging phase of building up the ‘new’ Vifor Pharma has been very much appreciated by Galenica’s Board of Directors and they thank him for his significant contribution. The successful integration of Aspreva has resulted in the build-up of the company structure, a new international culture and strong market orientation. Vifor Pharma will now enter a new phase of realization.

To enter this new phase, the Galenica's Board of Directors has decided to adapt the way of managing Vifor Pharma and has started the process of searching for a new CEO for Vifor Pharma. This work will be done in parallel with the search of a new Group CEO. An external and internal assessment process led by an international consulting firm has been launched in March. In the meantime, Etienne Jornod who is Executive Chairman of Vifor Pharma will chair the Vifor Pharma Leadership Team.

Outlook

High investments in clinical trials will influence the Net profit in 2009, but the Galenica Group confirms the estimation of about 10% earnings growth in 2009.