P H A R M AC EU T I CAL S
SIEGFRIED: EVOLVING FOR FUTURE GROWTH Dr Rudolf Hanko, CEO of Siegfried, talks to Specialty Chemicals Magazine about his EVOLVE strategy, which sees the company enjoying the critical size achievement that supports greater flexibility and brings greater value to clients worldwide.
n 2016, Siegfried announced the completion of its TRANSFORM Strategy. The strategy strengthened Siegfried’s position in the market, and its customer base grew significantly – especially in the USA. Achieving several significant milestones for the company, TRANSFORM included the provision of a fully-fledged integrated supply offering, forward and backward integrated services, and critical size expansion. Primarily, these achievements were gained through several mergers and acquisitions (M&As), which contributed substantially to Siegfried’s asset base. Of particular importance to Siegfried’s global asset base, according to Dr Hanko, is the Nantong site in China. The market recognizes the importance of a Western supplier with a production facility in China. The Nantong site allows Siegfried to reduce costs and to maintain competitiveness; also, to have previously externally manufactured steps now done in-house. The next phase will define how Siegfried captures and grows its market share even further. To do this, Dr Hanko has implemented a 5-year growth strategy known as EVOLVE. Over the next few years, Siegfried will enjoy the critical size achievement that supports greater flexibility to meet its customer requests and needs, and brings greater value to clients worldwide. Highlights of the strategy include an expanded solid dose footprint, since Siegfried is a relatively small provider in the field of solid dosage forms without a production facility in the US. Siegfried is also completing large- and small-scale offerings for sterile filling, with added lines for enhanced biologic services. This will include whole drug product formulation, including bridging technologies (e.g. spray drying and micronization). Siegfried’s Board and Executive Management staff is fully committed to this pure-play CDMO business model, which comprises a global network with enhanced drug substance and drug product asset infrastructure
worldwide. The company will take a broader range of significant internal and external measures to allow for significant growth beyond potential of strategy TRANSFORM. Looking ahead to the rest of 2017, Dr Hanko expects the strategy to yield returns quickly, with The Siegfried Group predicted to show high single-digit sales growth, double-digit growth of EBITDA, and an improved EBITDA margin.
Dr Rudolf Hanko, CEO of Siegfried
The Nantong site is an important cornerstone of Siegfried’s global asset base
22 Speciality Chemicals Magazine 37.04 August 2017