The commercial court of Grasse has accepted the recovery plan of the former laboratory, Glaxo-Wellcome, one of the leaders in the health sector on the French Riviera in legal settlement since October 1999.
This is good news for Elaiapharm, the former laboratory of Glaxo-Wellcome in Sophia Antipolis : its recovery plan was accepted last week by the commercial court of Grasse. The company (120 employees at the moment against 180 two years ago and 120 million in turnover) was put in legal settlement in October 1999. Thus it has another chance and it might be the last one. Patrick Meilières, president of the board of directors finally succeeded to avoid that the laboratory, which has large premises and construction rights ends with a property sale with lay-offs at the end.
The recovery plan adopted is divided in several points. First: the refocusing of manufacturing activities. The laboratory had focused on generic drugs to fend for itself when the group Glaxo-Wellcome had decided to leave the website of Sophia. It was a strategy which showed its limits. Elaiapharm will give up its pharmaceutical products. It will now focus on manufacturing (liquids, creams, tablets, sterile product for vials) and will work for pharmaceutical companies. It is already doing it for Glaxo Wellcome and Pfizerat the moment and provides them more than four out of five of its activity.
Second : the financial section. The liability of 113 million francs was brought to 61 million francs because of a partial withdrawal of debts. It will be spread on 7 years and 40 million francs will be invested for the marketing of products and a reinforcement of the managing team (a new general manager, Philippe Dubost, was already appointed). The capital owned by 3i (34% of shares), the British, European leader of venture capital, will be taken over by a private investor.
Third: the marketing of premises and rights to build which are not essential for the activity. Elaiapharm has then already rented 1 000 square metres to Opt(e)way (85 employees), a start-up specialised in the cartography for mobiles and 1 4000 square metres to Nusil Technology, silicone manufacturer. Elaiapharm should also rent one of its warehouses to a telecommunication operator and sell 6000 square metres of rights to build to a promoter for the construction of offices. The acceptance of the recovery plan should get many other big contracts of manufacturing which were on hold, whereas Glaxo Wellcome will maintain a volume of ten million units for a year. After a long period of uncertainty, the conditions now seem to meet all the conditions for Elaiapharm escape from its bad situation.