Celltrion(068270) will use its acquisition of the French healthcare corporations Giphar as a springboard to expand its direct sales strategy in Europe from hospitals to pharmacies. It plans to use the network of about 9,000 pharmacies established across France to increase sales of its biosimilars and to expand the pharmacy business model, proven locally, to other European countries.
Celltrion said on the 18th that it has completed post-merger integration of Giphar, which it acquired on May, and will begin in earnest to create business synergies. According to the company, Celltrion Group Chairman Seo Jung-Jin recently visited the French subsidiary and Giphar to personally review organizational operations, the status of the sales network, and product-by-product sales strategies.
Giphar supplies products to about 9,000 pharmacies and about 800 hospitals in France. It also has more than 140 products, including over-the-counter (OTC) medicines, behind-the-counter (DM) pharmacy medicines, and health supplements.
Celltrion plans to combine the direct sales network for biopharmaceuticals to hospitals and medical staff built by its existing French subsidiary with Giphar's pharmacy sales network. In particular, it will use Giphar's pharmacy network to expand sales of subcutaneous (SC) biopharmaceuticals that patients administer themselves. In France, pharmacy substitution for some biopharmaceuticals has been allowed since 2022, and as the scope of eligible products expands, pharmacy sales power is emerging as one element of biosimilar competitiveness.
Celltrion is first preparing to sell the osteoporosis treatment "Stoboclo-Osenbelt (denosumab)" directly to pharmacies in France. If the number of biosimilars eligible for substitution increases in the future, it plans to expand the items sold through pharmacies.
Celltrion is also considering bringing in other companies' biosimilars, generics, and healthcare products that do not compete with its own products to broaden the lineup of items sold through pharmacies. The company said, "The strategy is to increase the number of items handled per pharmacy to raise the productivity of the sales network."
It will also push to link with Celltrion Group's healthcare business. Celltrion Skincure's derma cosmetic brand "Gpiderm" will launch in French pharmacies early next year, with Giphar handling sales and distribution.
Kim Dong-sik, head of global for Celltrion in Europe, said, "We will gradually expand the pharmacy sales model, proven in France, across Europe in line with each country's systems."