Media Coverage

Ceva plays balancing act as it continues to stay solo


Mar 06, 2017 - Animal Pharm

By Joseph Harvey
Animal Pharm
March 6, 2017

Ceva Santé Animale expects its vaccines to play a more prominent role in its portfolio over the next three years.

Over the last few decades, the company has overhauled its product portfolio and expanded its offering of vaccines. According to Pierre Revel-Mouroz, Ceva's global finance and support functions director: "In the 1990s, less than a quarter of our products were biologicals. In 2020, we think it will be balanced 50:50 between biologicals and pharmaceuticals."

Speaking at the Animal Health Investment Europe event in London recently, Mr Revel-Mouroz gave an overview of Ceva's transformation since it became a standalone company.

"In the mid-90s, we were close to bankruptcy as part of Sanofi," he explained, before citing the company's first management buy-out as a turning point. "Since 2000, Ceva has achieved over 12% average annual growth. By 2020, we aim to be part of the top five."

There have been other transformations since 2000. Most notably, the company has increased revenues almost 10-fold and can now be considered one of the top players in the animal health industry.

As part of Sanofi, Ceva had no products with yearly sales of over €10 million. Now the company has eight products in this sales bracket across numerous species. The firm also had minimal revenues in North America, Asia or Latin America. Today, these regions make up a considerable portion of Ceva's annual sales.

In fact, according to Ceva's 2016 results, these regions are still producing double-digit sales growth for the firm.

Mr Revel-Mouroz was speaking days after Ceva had established its second joint venture in China – a country he specifically singled out as a leading growth opportunity.

M&A integration task

Since it became a standalone company, Ceva has integrated 30 additional business through its M&A strategy – a tough organizational and cultural task no matter what size the acquiror.

"We allow these businesses to join Ceva as shareholders," he explained. "We say to them: 'This is not the end of the story for you as entrepreneurs'. A key point for us is to keep the motivation of our people."

Despite the firm's acquisition spree and annual revenues of over $1 billion, Mr Revel-Mouroz believes Ceva still remains a nimble business.

"We are still small enough to stay flexible and reactive," he noted. "But we have to be careful not to kill the golden goose."

Even though Ceva has been very acquisition-friendly, the firm forecasts upcoming internal growth. Mr Revel-Mouroz said the company forecasts growth through to 2020 will be 60% organic.

Reprinted with permission of Animal Pharm News

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