Stallergenes: Half-Year Revenues and Results

Regulatory News:

Stallergenes (Paris:GENP):

At its meeting of 23 July 2014, the Board of Directors approved the financial statements for the first six months of 2014:

2014 first half sales

Total revenues for the first half of 2014 were €130.3 million, an increase of 1.2% compared with the same period of the previous year.

The performance of "International markets”, which grew by 22.3%, reinforces the Group’s expansion strategy into new geographies. As market leader in Australia, Russia and the Middle East, Stallergenes achieved strong growth in these countries thanks to the increase in the number of prescribing physicians and patients.

Sales for the first half of 2014 recorded growth in the "Northern and Central Europe” region due to good performance in Switzerland and several Eastern European countries, such as Poland and the Balkans, and a slight decline in the "Southern Europe” region, where some countries continue experiencing difficult economic conditions.

Profitability further strengthened

Operating profit reached €33.7 million, representing 26.0% of sales. Net profit increased by 3.5% to €23.3 million.

EBITDA reached €42.3 million representing 32.6% of sales.

Net cash and cash equivalents increased by €29.4million reaching €139.1 million. This strong financial position allows the Group to continue the international expansion plans as well as its clinical development programmes.

Oralair^®, a major step forward in the treatment of pollen allergy in the US

In the sublingual segment, the five-grass pollen immunotherapy tablet Oralair^® achieved sales growth of 26% to €18.1 million in the first half of 2014. Oralair^® is now available in 23 countries and has achieved a 47%¹ global market share in the grass pollen tablet segment. Since its launch a year ago, Oralair^® has become the leader in the tablet market in France.

Oralair^® was approved by the FDA on 1 April 2014 and launched in the U.S on 5 May 2014 by Greer Laboratories Inc. a leader in the U.S. allergen immunotherapy market. It is the first and only five-grass pollen sublingual allergen immunotherapy tablet with a pre and co-seasonal protocol approved in the U.S for the treatment of grass pollen allergy. Oralair^® is currently being reimbursed by the top U.S. payors representing more than 160 million covered lives. Several thousand people have already joined allergy patients’ support programs.

Stallergenes further strengthens its international presence with the acquisition of ALERGO PHARMA S.R.L., the market leader in allergen immunotherapy in Argentina. With this acquisition, Stallergenes is now present in major markets in Latin America (Brazil, Argentina).

Full-year targets

Stallergenes maintains its 2014 total revenue target and increases EBITDA margin by 3 points to 28% of sales in 2014, excluding non current income and expenses.

Financial calendar

Q3 revenues: 23 October 2014

The half-year financial report is available at www.stallergenes.com. The Statutory Auditors have performed a limited review of the half-year financial statements. Their report is pending.

ABOUT STALLERGENES

STALLERGENES is a global healthcare company specialized in the diagnosis and treatment of allergies. For more than 50 years, it has been continuously expanding the existing frontiers of science in order to provide allergy patients with more effective long lasting therapeutic options. Thanks to its innovation strategy, fuelled by investments amounting to around 20% of total annual revenues as well as external partnerships, STALLERGENES is able to provide targeted allergen immunotherapy-based allergy solutions that significantly improve the lives of allergy patients around the world.

STALLERGENES operates in 20 countries and employs over 1,000 people. In 2013, the Company generated total revenues of €248 million, and more than 500,000 patients were treated with STALLERGENES products.

Forward-looking statements related to Stallergenes
This press release may contain forward-looking statements, including forecasts of future revenue and operating profit as well as expected business-related events. Such statements are based upon the current beliefs and expectations of Stallergenes’ management and are subject to risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements, due to various factors. Without being exhaustive, such factors include economic situations and business conditions, including legal and product evaluation issues, fluctuations in currencies and demand, changes in competitive factors and reliance on suppliers. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events and except as required by law.

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¹ IMS data: only countries where both Oralair^® and Grazax^® are available. In Moving Annual Sales (April 2014).