But it all depends on the definition of incidentNamed ideo it will be proposed on May 25Planning also leaves no flexibility to act urgentlyWe we recognize fully the national approachBut the proposals are not always favourably receivedThe difference is that La Grande Vadrouille laugh550 billion remains at the centre of the questions In my opinion it is a good case for GecinaIn their eyes the improvements to be implemented relate to area 44 and rent 33This is perhaps going a little too quicklyTwo years after buying Alliance Boots with KKR, Stefano Pessina welcomed results year last by the network of pharmacies and drugstores, who is also one of the major European pharmaceutical distributors. Even if that wholesale trade is put under pressure by Governments, anxious to reduce the public health bill. "Life has been particularly difficult in France," recognizes Stefano Pessina.
You publish your results next week. What were the trends of the year 2008
We have had a very good year, especially in terms of operating income, with a very satisfactory cash flow. Overall, we have reached our goals, even if we know more difficulties in the pharmaceutical distribution. The result of our distribution activity (Alliance Healthcare) is still in progress, but it was affected by a convergence of disadvantageous measures taken by Governments seeking to trim the margins of wholesale distributors. The decrease in prices of generics also affects us and the decline of the pound.
What are the countries which led you hard
Life has been particularly difficult in France. This is a trend that lasts for several years, but I hope that things will be able to arrange because the situation is actually very uncomfortable for the whole of dispatchers in General. The problem is this degressive margin which becomes void when the drug is very expensive and improves for generics, but, then, applies to very low prices.
What will be the consequences on your hexagonal device
We will continue our efforts to rationalize in France where, if one takes into account the recent acquisition of Depolabo, our numbers continue to grow. Our intention is to reorganize gradually by playing on the natural turnover. At the same time, our subsidiary Alliance Healthcare France will accelerate the deployment of our new economic model for our activities in pharmaceutical distribution. This model translates through a partnership with laboratories, our virtual chain Alphega pharmacy development and launch of new services for pharmacists.
You had the hope to create a chain of pharmacies in France, with the liberalisation of the sector. But this reform seems wrong committed, after the negative opinion delivered by the Attorney General of the European Court of justice. Is this a hard blow for you
We do not know what will be the decision finally taken by the European Court of justice. But this opening of the market of pharmacies remains a subject for return and return ever... For us, even if we had been allowed to acquire pharmacies over the water, this would have taken us years before it can be a large string. There were on it for our future in the short and medium term.
Alliance Boots was purchased by leveraging two years ago, because you find that the merger was not fairly quickly. The game worth the candle You now have a high debt...
On the one hand, we have accelerated in incredible way our development and we have a high rate of growth. The figures that we are going to publish will show that it is well worked, even more in this difficult environment. On the other, we have a long term debt with very low interest rates and a cash flow always very high. We have already started to pay off the debt. We will go on the stock exchange the day where he will have the repay completely, but we have years to do this. Our ability to invest remains very strong. In two years, we have invested 900 million pounds, both in acquisitions but also, for example, to convert all of our pharmacies in the Boots brand and to expand and strengthen our network.
It evokes your interest in the German Phoenix dispatcher, which could be put on sale in the quasi liquidation of the Merckle empire...
Phoenix is not for sale, for the moment.
Would you have the ability and the desire to buy this company
In principle, it is an operation that we consider. Alliance Boots would probably not have the ability to perform such acquisition under its own banner, but I have to what invest and KKR raised lots of money. It would be a good operation for us and for the market, but even once, the family decided to not to sell at this time and we therefore did not offer.
According to the "Sunday Times", you would separate into two your function of Executive Chairman to focus on the strategy of the Group
It is true I think for several months to ease the function. I always thought that, sooner or later, should be a General Manager to follow the business day the day. After a phase of integration and consolidation that followed the creation of Alliance Boots two years ago, it is probably time to think even further in the preparation of the future. We have many projects to carry out, either by external or organic growth. In particular, we benefit from the quality of the Boots brand, which has never really been exploited. All this requires much thought, and honestly, I think that my time will be better used if I take the decision to concentrate on the strategy and the growth of Alliance Boots. But be careful: I did not intend me detach from the company and to be a remote President. I will stay very close to the business.
