a annual report 2009
TRANSCRIPT
THE SCIENCEOF HEALTH,naturally
2009
www.arkopharma.com
ARKOPHARMA in brief
Key dates in d’Arkopharma’s progress
Introduction
THE SCIENCE OF HEALTH, NATURALLY 5
Outstanding events in 2009
2009 in figures
NATURE, EFFICIENTLY 9
Arkopharma, European leader in natural medicines
Arkopharma, a healthcare company
Phytotherapy, the science of plants
Nutritherapy
Dermopharmacy
Bio Cosmetics
Homeopathy and Aromatherapy
EXPANSION, INTERNATIONALLY 30
International Horizons
Group Organisation Chart
Administration, Management, Control
DEVELOPMENT, SUSTAINABLY 26
The environment’s respect
Our social responsibility: to manage and develop skills
CREATIVITY, SCIENTIFICALLY 20
Seeking the best in Nature
The latest facilities in the Service of Health
Dynamic marketing at everyone’s service
Graphic design
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A comprehensive approach to health
and well-being
By adopting a comprehensive approach to health
and well-being, ARKOPHARMA aims to meet
consumers’ expectations by providing natural
medicines, designed both to cure and to prevent,
and to encourage home medication, while at the
same time making new products available to the
medical profession for prescribing.
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Arkopharma in brief
ARKOPHARMA European leader
in Phytotherapy and Nutritional supplements
An International presence in more than 60 countries
8 overseas subsidiaries:Spain, Italy (2), Ireland,
Netherlands, Belgium, Switzerland, Greece
1 202 employees
€ 177.6 millionof consolidated sales
ARKOPHARMA holds 1 724 Product Licences
for medicines.
ARKOPHARMA invests4 % of net
medicine sales in Researchand Development.
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1980 - 1982 Laboratoires ARKOPHARMA, pharmaceutical company, established. ARKOPHARMA launched Arkocaps, capsules containing whole plant powder.
1985 ARKOPHARMA introduced innovations into plant powder manufacturing procedures and established the industrial useof freeze-grinding, making it possible to retain the whole of the plant’s active principles, intact, in the finished product.
1986 The Ministry of Health recognised phytotherapy as a medicine and drafted regulations governing Product Licences for plant-based pharmaceutical products. ARKOPHARMA obtain its first registration of Arkocaps as a medicine.
1987 - 1988 ARKOPHARMA established four subsidiaries abroad: : in Spain, Italy, the USA and the UK.
1996 Introduction on the Paris Stock Exchange Second Market.
1997ARKOPHARMA was the first pharmaceutical company to launch the 100% plant-based capsule. Steep rise in international business (+ 50%). Sales abroad accounted for 31% of consolidated net sales.
1998Takeover of Belgian distributor, establishment of a subsidiary in the Netherlands. New factory set up in Ireland.Transformed into a Company with a Management Board and Supervisory Board.
1999Takeover of in the USA (net sales € 7 m / FF 46 m in 1998) ); this company is well established at the 6000 points of sale in theAmerican Health Food Channel and the US leader on the polyunsaturated oils market. Creation of BURGUNDY, firm specializedin the production of extracts of plants and natural products.
2000Purchase of NUTRASENSE AUSTRALIA PTY Ltd (Net sales = 2.7 M€). Success of PHYTO SOYA, expert in treating menopause.
Key dates in ARKOPHARMA’s progress
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2002Launch of PLANTE SYSTEM Laboratories and the range of 16 phytodermocosmetic products..
2003Purchase of two new subsidiaries in Switzerland: PAD and Phyto Pharma Medika. Establishment of ARKOPHARMA Canada. Success in France 4.3.2.1.Minceur, a slimming drink based on 10 plants.
2004Mrs Colette Robert is awarded the Veuve Cliquot prize for Businesswoman of the Year 2004.International success for 4.3.2.1 MINCEUR, which becomes No. 1 product.
2005New production unit in Italy goes on line. OPTIMAL NUTRITION range launched,a new and original range of food supplements.
2006Transposition of European Directive No 2002/46/EC relating to food supplements on 20th March 2006.Launch of 4.3.2.1 SLIM CHRONO, Day and Night in capsules, providing RTC, advantages, a major pharmaceutical innovationfor 12-hour action. Launch of a new and original range “Plante System Bio Care”, free from chemical preservatives, free frompetroleum derivatives and certified by Ecocert.
2007Arkopharma delisted in July 17, 2007.Continuation of the action plan to improve the Group’s operating margin, with, in particular, a decrease in the productportfolio and ambitious advertising campaigns for the Group’s flagship products.
2008Doctor Max Rombi, founder of the Arkopharma Laboratories, appointed one of his sons, Philippe 47, as the Group’s newChairman of the Board.
2009Our french sales networks have merged: a strategic choice for developing customer satisfaction and building strong relations.
Our values, our strategy,our strength
For more than 25 years, ARKOPHARMA Laboratories
have been developing new "health medicines" based
on natural products.
In an era distinguished by a search for a healthier
life and a quest for essential values, phytotherapy
and food supplements are gaining ever-increasing
support from consumers worldwide.
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The science of health, naturally
In France, our sales networks have merged: a strategic choice for developing customer satisfactionand building strong relations. In 2009, the ARKOPHARMA and ARKOMÉDIKA sales networks mergedinto one single ARKOPHARMA network, comprised of 90 salesrepresentatives..
This merger was implemented in order to optimize the salesperformance of the Arkopharma Group, with the following goals:
- To boost the effectiveness of future product launches and securea foothold for the Group’s leading product lines in pharmacies,
- To increase the number of client pharmacies,
- To reduce the sales representatives’ sectors and thus increase thenumber of pharmacy visits,
- To lower management expenses and delivery charges,
- To establish the Group’s position as European leader in the field ofPhytotherapeutic remedies and dietary supplements.
On a Commercial level, this merger brought together 90 salesrepresentatives in the same network to create an increasingly dynamicsales force. The sales sectors were divided up in a new manner for moreeffective client follow-up.
On a Marketing level, this operation has consolidated the ARKOPHARMAand ARKOMÉDIKA product portfolios and will help redefine the strategicchoices for the Group’s leading brands.
This merger has enabled us to improve the quality of the services weoffer our pharmacy clients and thus consolidate customer relations,which were already optimized, thanks to the deployment of the CRM(Customer Relationship Management) tool that was finalized in 2009.
And, with the goals of developing lasting relations with our pharmacyclients, the sales promoter network expanded this year with a view tobetter meeting pharmacists’ needs in terms of product training andmerchandising support.
Product development that meets consumers’ needs.The new product lines that were launched in 2009 proved to be highly
successful both with pharmacists and consumers. This was the case for the
ARKOBIO TABLETS and ARKOBIO HERBAL tea lines, which combine 100%
Organic and Ecocert certified plants that offer all of the benefits of nature
in different dosage forms, and the ARKOLÉOL line that helps burn and
eliminate fat.
New products have been added to the different product lines, which are
already widely known and recognized for their high quality and leading
position on their respective markets, such as:
- In the ARKOCAPS line: ARKOLUTEINE (helps fight against eye strain),
ARKOLEVURE (helps restore balance to the intestinal flora), MACA
(physical and intellectual stimulation), SERENOA REPENS (urinary
comfort),
- In the ARKO ROYAL line: tablets combining Royal Jelly and Vitamins,
a SYRUP FOR RESPIRATORY COMFORT, a combination of Royal Jelly
and probiotics,
Outstanding events in 2009...And, what’s new in 2010
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- In the CHONDRO-AID line: RESTRUCTURING CHONDRO-AID with a
collagen base (to regenerate and strengthen the articular cartilage),
- In the CYS-CONTROL line: new dosage forms (capsules, effervescent
tablets),
- In the PLANTE SYSTEM COSMETIC line: Organic lip balm, eye contour
gel, creams that protect the skin from cold weather…
And many more...
In 2010 , we will launch a new ARKOPROBIOTICS
line on the probiotics market, which is a rapidly
growing sector (+30%) . This line will include
three products packaged in innovative small
bottles and will be highlighted in pharmacies
inside refrigerated display units, furnished by
ARKOPHARMA, which will help optimize the
quality and conservation of the probiotic-based
products..
Other new products will be launched throughout
the year on different buoyant segments in order
to continue to best meet consumer needs.
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A dynamic Internet policy for both consumersand clients.The Group’s Internet site (www.arkopharma.com) enables users to view the
main product lines manufactured by the ARKOPHARMA laboratories in
France and abroad as well as access the websites of the Group’s different
subsidiaries.
The French web site (www.arkopharma.fr) has been entirely redesigned and
now boasts a new, more attractive and modern ergonomy. Moreover, the
pharmacists can now rapidly and easily place their replenishment orders
on-line. At the same time, a “Commercial Development” unit was set up to
manage the Internet orders and challenges in pharmacies..
On an international level, a restructurationthat has been successful since 2009.The closure of our non-strategic subsidiaries (Germany, Canada, England),
which were often in deficit, combined with a disposal of assets policy (USA,
Australia) have allowed us to significantly improve the contribution and
performance of the Group’s international activities. This strategy of
refocusing the subsidiaries’ business activities on Europe will be continued
throughout the following years.
A philosophy
Phytotherapy and nutrition therapy, those
natural medicines, provide a particularly
good solution to the “ills of civilisation”
brought on by stress, poor diet and an
unhealthy lifestyle. They meet the need to
“feel good” and to keep in shape, one of the
aspirations most strongly felt in our
developed societies.
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Nature, efficiently
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Preventing and curing, naturally, efficiently and safely.
For more than 20 years, the Arkopharma Group has demonstrated itscreativity and innovatory flair, directing its research and developmententirely towards humans, their health and their well-being.
Nowadays, French enthusiasm for natural treatments is equalled in alldeveloped countries, where there is increasing mistrust of chemicalmedicines. This is more than a fashion, it reflects a deep desire for areturn to nature, intensified by the disclosure of side-effects, perhapseven toxic, caused by some chemical medicines.
This situation explains the success enjoyed by phytotherapy, dietetics,nutritherapy and homeopathy, which satisfy the lasting need felt byconsumers seeking balanced, natural and healthy living.
These “health products” developed by the Arkopharma Group meet tworequirements: prevention and cure while maintaining the body’sequilibrium and treating the root cause rather than the symptom. Theyenable consumers to take charge of their own health, with all theproduct quality and safety guarantees that can be provided by apharmaceutical company.
The launch, in 1997, of 100% plant-based capsules provided an additionalguarantee and reassured consumers concerned for their health.
The constant advances made in phytotherapy, particularly theidentification of new active principles, new pharmacological propertiesand the performance of numerous clinical trials validating the efficacy ofthe treatments, have contributed to the success of this “othermedicine”..
ARKOPHARMA, European leaderin natural medicines
45,000 DOCTORS IN FRANCE
say they prescribe natural medicines(Source ICOMED datas)
WHAT DOES ARKOPHARMA REPRESENTIN FIGURES?With a catalogue of more than 1000 non-reimbursableproducts, ARKOPHARMA covers every sphere of self-medication. On the nutritional supplements market, (withoutproduct licences for medicine and non-reimbursable self-medication), representing € 46.9 m, ARKOPHARMA has aleading place, holding a 15.7 % market share.
(Source: IMS nutritional supplements, sell out- dec. 2008)
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A diversified range comprising more than 1000 lines makes it possible to cover all self-medication areas.
ARKOPHARMA, a healthcare company
The 12 main markets per indication (Sales pharmacy units 43,2 m/year)(Source: base IMS Nutritional Supplements in pharmacy, PM volume - CMA december 2009)
The market for slimming(Volume: year 2009)(Source: Nutritional Supplements IMS)
Arkopharma 13.5 %Phythea 14.5 % Forte Pharma 12.9 % Œnobiol 10.3 % Omega Pharma Franc 5.8 % Others 43.0 %
The market for sun protection in capsules(Source: year 2009 Nutritional Supplements in pharmacy)
Arkopharma 17.6 % Œnobiol 34.4 % Naturactive 17.6 % Forte Pharma 5.3 % Noreva Pharma 4.3 % Others 20.8 %
Slimming 22.4 % Tonic 21.3 % Immune systems 9.5 % Stress 9.0 % Hair care 5.8 % Bone remineralizer 5.2 % Ophtalmology 5.0 % Gyneco and urinary problems 4.9 % Sun protector 3.5 % Menopause 2.9 % Circulation (range) 2.8 % Skin 2.8 %Others 4.9 %
The market for tonics in pharmacy(Share market in pharmacy - Year 2009)(Source: IMS base Nutritional Supplements)
Arkopharma 24.2 % Bayer Sante Famil 14.9 % Urgo Soins & Santé 8.0 % Menarini 7.3 % Merck MF 6.4 % Others 39.2 %
The market for hair case(Share market in pharmacy - Year 2009)(Source: IMS base Nutritional Supplements)
Arkopharma 20.9 %Œnobiol 21.7 % Furterer 9.5 % Ducray 9.6 % Naturactive 4.3 % Others 34.0 %
The market for menopause in pharmacy(Volume: december 2009)
Phyto Soya/Arkopharma 13.9 % Theramex 9.2 % Omega Pharma 12.0 % Noreva Pharma 14.1 % Nutrisante 10.0 % Others 40.8 %
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The Group ARKOPHARMA always used the most modern technology to allow the phytotherapyto stand out as a full medicine.
Phytotherapy, the science of plants
Freeze grinding.
Medicinal plants contain thousands of constituents, all potentially activeand acting synergetically. In order to make the best use of them,ARKOPHARMA has developed the use of the whole powder of the activepart of the plant.
After strict, rigorous selection of plants and performing numerousbotanical, bacteriological and physico-chemical controls ensuringperfect quality and optimum efficacy, the plants are freeze ground in anitrogen atmosphere at –196°.
Using this efficient technique, ARKOPHARMA has been able to ensuretotal efficacy. Freeze grinding makes it possible to retain the whole ofthe plant, to ensure a high active principle content and to obtain aparticularly fine particle size, making assimilation easier and improvingbioavailability.
The 100% plant-based capsule.
In 1997, ARKOPHARMA made news by offering the first range of 100%plant-based products, thus confirming its status as phytotherapy leader:indeed, in that year, the gelatin traditionally used for the capsule shellwas replaced by a natural substitute of vegetable origin, a cellulosederivative. Cellulose surrounds and protects the cells of all plants.
The 100% plant-based capsule is entirely natural and contains no glutenor preservatives.
More than
120 DIFFERENT KINDS OF ARKOCAPS,that’s what ARKOPHARMA offers in phytotherapy
It is ARKOPHARMA’s incessant innovative thrust and itsquest for ever-better quality that enabled it quickly tobecome No. 1 in phytotherapy in France.
The scientific value of its products is officially recognised,
since ARKOPHARMA holds more than
213 Product Licences for
phytotherapy medicines, issued by the Agence
Française de Sécurité Sanitaire des Produits de Santé
(French Health Product Safety Agency).
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The ARKOCAPS range.With more than 120 products covering the principal indications for self-medication, this line, which has been the leader of its market for manyyears, is one of the ARKOPHARMA Group’s flagship lines. Its concept: oneplant/one capsule.
Thanks to ARKOCAPS and informed advice from pharmacists, everyoneis now able to naturally treat his or her minor ailments.
New highly promising plants have been added to the line, such as:
- MACA ARKOCAPS, help stimulate physical and intellectualstrength and capacity in men and women
- ARKOLUTEINE ARKOCAPS combine natural ingredients, such aslutein and xanthophylls to help protect the eyes and improve visualacuity.
- CARBON YEAST ARKOCAPS, a complete combination of botanicalcarbon, revivifiable yeast Saccharomyces boulardii and Inulin, whichare beneficial for digestion and intestinal comfort.
- SERENOA REPENS ARKOCAPS which improve urinary eliminationand thus help restore urinary comfort.
ARKOBIO TABLETS…4 ORGANIC plants in one tablet. A line made up of 6 ORGANIC products, which offers a well-adaptedsolution for all needs:
- ARKOBIO JOINTS: White Willow, Black Currant, Nettle andMeadowsweet for greater articular flexibility.
- ARKOBIO DIGESTION: Anise, Fennel, Rosemary and Angelica forimproved digestion.
- ARKOBIO DETOX: Black Radish, Artichoke, Dandelion and LindenBark to purify the body.
- ARKOBIO FOR TIRED HEAVY LEGS: Red Vine, Cypress, HorseChestnut and Ruscus for energize tired, heavy legs.
- ARKOBIO WEIGHT LOSS: Green Tea, Grape Pomace, Birch andCherry Stem to slim down the figure.
- ARKOBIO REST/SLEEP: Passion Flower, Lavender, Bitter Orange andHawthorn to help you rest and relax.
ARKOBIO HERBAL TEAS 100% environmentally-friendly, the plants used in the ARKOBIO herbalteas are entirely ORGANIC and ECOCERT certified. These naturallyeffective herbal teas offer you all the benefits of nature.
This line includes the following 4 products:
- ARKOBIO INFUSION Sleep and Relaxation
- ARKOBIO INFUSION Detox
- ARKOBIO INFUSION Digestion
- ARKOBIO INFUSION Elimination
THE 4.3.2.1 SLIM LINE The Arkopharma Laboratories have created new, highly innovativeproducts:
- 4.3.2.1 SLIM CALORIATTACK: thanks to satioappetil®, an exclusivecomplex comprised of 4 natural active ingredients, this new “all inone” weight loss sachet helps you resist overeating by diminishinghunger pangs.
- 4.3.2.1 SLIM TEACTIVE: a delicious herbal weight loss tea, which iscomprised of 9 certified organic plants.
4.3.2.1 SLIM DIETPERFECT: a line of low calorie snacks with plantproteins that offers 7 original and delicious flavors.
And of course, the essentials from the 4.3.2.1 SLIM line:
- 4.3.2.1 SLIM ULTIMATE: the most highly concentrated formula onthe market in active botanical slimming ingredients, which comesin the form of a triple layer tablet.
- 4.3.2.1 SLIM DRAINEUR: a solution comprised of 99% botanicalaqueous extracts, which have been clinically proven effective.
- 4.3.2.1 SLIM DRAINEUR BIO: the expertise and effectiveness of4.3.2.1 Slim, in an ORGANIC version.
- 4.3.2.1 STARTER SLIM: a complete formula that comes in a smallbottle, which is ideal for active women who want to maintain theirshapely figure.
- 4.3.2.1 SLIM FOR MEN: a composition that is specially adapted toindividuals who wish to burn fat, yet retain their muscle.
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ARKOFLUIDSCreated by the ARKOPHARMA Laboratories’ research department, thisline of Certified Organic oral ampoules, formulated withoutpreservatives, alcohol, artificial colors or flavors, is made with naturalactive ingredients.
There are currently eleven products available: Joints; Urinary Comfort;Relaxation; Detox; Digestion; Tired Heavy Legs; Memory; Weight LossProgram; Black Radish; Stimulant; Weight Loss Synergy.
BAKOL FORT BAKOL FORT, is a formula to combatcholesterol both of dietary origin andproduced by the body. This combination ofphytosterols and policosanols is one of themost effective natural alternatives forstatin intolerant individuals.
ARTROPHYTUMThis is a Harpagophytum-based remedy,which relieves articular pain and offers agenuine alternative to classic anti-inflammatory drugs, without the sideeffects.
The ACTIVOX LINE This line provides a pharmaceutical solution suited to each type of ORLdisorder, thanks to a wide range of capsules, gums, pastilles, syrups,mouth-washes, inhalers, tablets for inhalation and pomades. The new products added to the line in 2009 are:
- ACTIVOX PASTILLES ACEROLA, that contain Erysimum, which isknown for its soothing action on the throat.- ACTIVOX SPRAY which soothes the throat and is formulated withErysimum, Chamomile, Honey, Thyme and Propolis.
CYS-CONTROL Cranberry’s anti-adhesion properties, recognized by the FrenchAuthorities, are at the heart of CYS-CONTROL’s action. To better meetthe needs of all consumers, CYS-CONTROL now comes in two differentforms.
CYS-CONTROL capsules, which provide 36 mg of proanthocyanidins, theeffective dose recommended to combat fixation by bacteria to the wallsof the urinary tract and thus control urinary discomfort and itsrecurrence.
Three dosage forms are available: capsules, sachets and effervescenttablets.
ACEROLA 1000 CHEWABLE TABLETS
Acerola is the fruit of a small shrub found in Central America that cancontain 20 to 80 times more vitamin C than citrus fruits. ACEROLA 1000,a delicious chewable tablet with a fresh taste containing 1000 mg ofconcentrated ACEROLA extract, offers an exceptionally highconcentration of natural vitamin C. Two dosage forms are available:chewable tablets or effervescent tablets, both of which contain aconcentrated extract of Acerola, i.e. 180 mg of natural vitamin C.
PHYTO SOYA THE EXPERT IN TREATING MENOPAUSE,NATURALLYThe PHYTO SOYA line provides women with a natural solution fortreating unpleasant menopausal symptoms: PHYTO SOYA “StandardFormula” 17.5 mg, PHYTO SOYA “Intensive Formula” 35 mg, Phyto Soya“Expert Formula”, PHYTO SOYA Age Minimizing Cream and PHYTO SOYAVaginal Gel.The effectiveness of the line’s dietary supplements (which offers asignificant decrease in hot flashes) as well as the safety of the extractused in terms of the breasts and endometrium has been clinically proven.These studies were published in international publications.
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Nutritherapy
AZINC RANGE There are times in life when our body shows a deficiency in vitamins andminerals, nutrients that are essential for the body to function properly.The AZINC range was specially designed to remedy such deficiencies andcomes in several pharmaceutical forms (capsules, chewable tablets,effervescent tablets and syrup).
New products: AZINC PROBIOTICS FOR ADULTS, which is formulated withPropolis extract, 3 probiotics, 12 vitamins, 7 minerals and trace elements,stimulates our body’s natural defenses. AZINC PROBIOTICS FOR SENIORS,which is formulated with plant extracts, lutein, CO-E Q10, 2 probiotics,12 vitamins, 7 minerals and trace elements, helps men and women overthe age of 50 stay healthy, boosts vitality and improves memory.
THE ARKOLEOL LINE The NEW GENERATION of fat burners
ARKOLEOL is a triglyceride-free product line that is rich in unsaturatedfree fatty acids, which helps break down and eliminate stored fat, by:
- supplying energy that may be directly used by the body
- targeting the heart of the cell in order to burn and eliminate stored fat
The ARKOLEOL program:
- To get your day off to a great start: ARKOLEOL SACHETS
- To continue the program all day long: ARKOLEOL CAPSULES
- To enhance your meals: ARKOLEOL DIETETIC AND HEALTHY OIL
CHONDRO-AID FORT A natural solution with a glucosamine and chondroitin base that helpsfight against the deterioration of cartilage and restore articular mobility.
The development of this formula and choice of specific doses were basedon the results of the GAIT1study, which proves the level of effectivenessof this specifically dosed active ingredient combination that helpsrestore comfort and articular mobility.
What’s new? RESTRUCTURING CHONDRO-AID, which is formulated withcollagen hydrolysat and hyaluronic acid, helps strengthen the articularcartilage.
1 : Clegg & al. Glucosamine, chondroitin sulfate, and the two in combination for
painful knee osteoarthritis, N Engl J Med. 2006 Feb 23; 354 (8): 795-808
ARKO ROYAL HIVE Honey, Royal Jelly and Propolis: these natural substances haveexceptional properties. Discover all of their healthcare benefits, thanksto the Royal Hive line from the ARKOMEDIKA Laboratories. This lineoffers a wide choice of products that meet the needs of the entirefamily: ROYAL JELLY Ampoules, DYNERGIE, Propolis, 100% ROYAL JELLY,PASTILLES and Propolis spray, syrups for children…
Two new products:
- ARKOROYAL ROYAL JELLY + PROBIOTICS, a combination oflyophilized royal jelly and probiotics packaged in a small bottle thatboosts energy, stimulates the body’s natural defenses and restoresbalance to the intestinal flora.
This product comes in 2 versions: a program for adults and aprogram for juniors
- ARKOROYAL ROYAL JELLY + GINSENG: This energizing formulacombines 2 sources of energy for extensive healthcare action.
SEROXYLSEROXYL, developed by the Arkopharma Laboratories, is ideal forfighting against anxiety, stress and mental fatigue. This compositionincludes an optimal dose of L-Tryptophan, which naturally plays a role inthe production of serotonin, an element that is essential to emotionalbalance and well-being. It is combined with vitamin B6, which promotesrelaxation, particularly during moments of overwork.
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SLIMEXCELLThree new slimming products that meet the needs of women:
- SLIMEXCELL PROBIOTIC BALANCE WEIGHT LOSS and SLIMEXCELLPROBIOTIC BALANCE WEIGHT LOSS 45+: These 2 formulas containgrape pomace extract combined with balance-restoring probiotics,to restore intestinal comfort, burn fat and drain toxins from thebody.
- SLIMEXCELL CONCENTRATE ANTIOXIDANT TISSUE DRAINER is ahighly concentrated product that comes in an innovative dosageform, with a practical dropper that releases a body contouring plantconcentrate and antioxidant pomegranate juice.
ARKOLEVUREA dual active formula (Probiotics and a Prebiotic) that helps the bodymaintain balance in the intestinal flora and stimulates the body’s naturaldefenses. Comes in capsules and sachets.
BETASELENA combination of vitamin C, vitamin E, beta-carotene, zinc and seleniumto fight against free radicals, which are responsible for cell and tissueageing, in the case of fatigue.
ARKOVISIONA combination of nutrients with antioxidant properties, LUTEIN ANDXANTHOPHYLLS, which help protect the retina and crystalline lens fromoxidative reactions that may be triggered by cigarette smoke, exposureto the sun, pollution, aging…
ARKOPROBIOTICSA brand new product line of probiotics that restores balance to the bodyand stimulates its natural defenses:
- ARKOPROBIOTICS DEFENSES Adults, packaged in small bottles,which contain 10 billion probiotics,
- ARKOPROBIOTICS DEFENSES + Adults packaged in Sachets, whichcontain 50 billion probiotics,
- ARKOPROBIOTICS DEFENSES JUNIOR, packaged in small bottles,which contain 5 billion probiotics.
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SUN PROTECTION: THE PHYTOBRONZ LINETo take full advantage of the sun’s benefits without suffering itsdrawbacks, the skin must be prepared for exposure to sunrays.PHYTOBRONZ thus offers: PHYTOBRONZ for fair, sensitive skin: thisformula, created for the most delicate skin types, helps activate theskin’s natural tanning process and protects it from cellular ageing.PHYTOBRONZ for dark, sensitive skin: this exclusive and completeformula, with a natural carotenoid base (carotene and lutein), wheatberry oil (rich in ceramides), natural silica and vitamin A, helps activatethe skin’s natural tanning process, replenish moisture and protect dark,sensitive skin.For complementary action, use PHYTOBRONZ Sublime Oil,which triggers, intensifies and prolongs a natural tan, leaving the skinwith a beautiful satiny golden glow.
HAIR CARE: FORCAPIL FORCAPIL Capsules are not only market leader, they provide the mostcomplete combination of active principles on the market: this formulacombines sulfurated amino acids, zinc and vitamin D3 with the vitaminB complex to remedy problems affecting hair and nails.
“All in one” action: anti-hair loss, fortifying and volume-enhancing, withclinically proven* effectiveness. Test results show a 66.5% decrease inhair loss after 6 months of product use.
The most recent new product: FORCAPIL FOR MEN. This formula,formulated with cystine, methionine, biotin, vitamins B5 and B6, Serenoarepens and zinc, directly target the hair roots and helps prevent hair loss.It increases the hair’s level of resistance and density and helps regulatethe excess production of sebum* Clinical study 2008 – ref 4757-77-E3
BEAUTIFUL SKIN: THE SKIN PEARL LINE To nourish your skin from within and prevent premature signs ofcutaneous ageing: MOISTURIZING SKIN PEARLS, for women who wish tomaintain radiant skin. .
Two new products have been added to the SKIN PEARL line: SKIN PEARLSUN-KISSED RADIANCE, for a healthy golden glow all year round. Thanksto its concentration of natural active ingredients (Borage, Evening
Primrose and Argan oils as well as carotenoids and vitamin E), this capsulehelps the skin maintain a natural radiant golden glow all year round.
And, SKIN PEARL HYALURONIC ACID, which contains 120 mg ofhyaluronic acid and helps the skin improve its level of moisture, elasticityand firmness from within.
LICE CONTROL ALTOPOU is a complete line of products to prevent and eliminate nitsand lice: ALTOPOU DIMETICONE LOTION, ALTOPOU REPELLENT,ALTOPOU CLOTHING, ALTOPOU ENVIRONMENT and ALTOPOUSHAMPOO with 100% pure and natural essential oils to alleviate itchingand repel parasites.
STICKS TRAVELLER, a combination of essential oils to soothe and refresh in thecase of motion sickness, sea sickness and mountain sickness withoutcausing drowsiness.
VERRUSTICK, an effective formula containing essential oils, to eliminatecommon warts.
MIGRASTICK, clinically-proven effectivenessin relieving headaches.
FITACNOL, the “anti-spot” productcontaining essential oils to heal and cleanse.
ASIA-STICK, a thousand-year-old formula torelieve pain.
MOSQUITOX STICK, a roll-on stick for theimmediate relief of mosquito bites.
X-ERPASTICK, to soothe burning sensations incold sores.
BACTISEPTIC An antiseptic hand gel, which combinesdisinfectant properties with Aloe Vera tomaintain moisture.
Dermopharmacy
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Bio Cosmetics
In 2009, PLANTE SYSTEM tripled the number of its points of sale, whichconfirmed the brand’s buoyant growth and the success of its newproducts:
- LIP CARE STICKS,
These genuine lip care treatments, in the form of sticks, contain no Vaselineor paraffin. Day after day, they nourish and soften the lips, thanks to bee’swax and plant oils. Four active ingredients, four fragrances: nourishing lipcare with Argan oil, Anti-age lip care with Orchid, Regenerating lip carewith Gold of Pleasure and Colorful lip care with Lotus.
- MOISTURIZING PRODUCTS WITH EDELWEISS,
This precious skincare, which is rich in rare and precious activeingredients, such as Edelweiss and Antarticine, protects the skin andprovides it with long-lasting moisturization. Two products are available:Light Moisturizing Cream with Edelweiss for dry skin and MoisturizingFluid with Edelweiss for normal skin..
- ANTI-WRINKLE AND ANTI-DARK CIRCLE EYE CONTOUR PRODUCTS
These products use the very best of nature to treat the eye contour(Formulated without fragrance and essential oils, hypoallergenic andtested on contact lens wearers):
• Formulated with Arnica, cornflower water and hyaluronic acid, theanti-dark circle gel diminishes dark under eye circles and reducessigns of fatigue.
• Formulated with Acacia Senegal (also called Acacia collagen),Wheat and Ruscus glucosides, the lifting anti-wrinkle balmdiminishes wrinkles and crow’s feet as well as softens the skin.
- TINTED MOISTURIZING EMULSION received a "BEAUTY AWARD" in 2009,after having been tested and approved by a jury of independentconsumers.
This skincare emulsion, which is lightly tinted, thanks to naturalpigments, restores moisture to the skin, helps diminish our first wrinklesand adds an instant natural golden glow to the skin, without leavingstreaks. .
On an international level, Plante System has proven to be successful inChina, the Netherlands and Spain. In the very near future, it will belaunched on new major markets, such as Russia, Brazil and Germany.
19
Homeopathy and Aromatherapy
HOMEOPATHYThe ARKOPHARMA Group has been present on the homeopathy marketsince 1991 (the year when it took over LABORATOIRES HOMEOPATHIEFERRIER) with:
- A range of FERRIER mother tinctures (reimbursed medication),comprised of 30 products, manufactured from strictly controlledraw materials.
- A range of OTC homeopathic products including the new TABAPASS,a real alternative for helping individuals break the nicotine addiction
and CONTUSIUM, a stick comprised of botanical ingredients (Arnica,Melilotus and Hypericum) to relieve knocks, bumps and bruises, whichhas just been added to the line of topical remedies.
- This line also includes: ANXIETUM sublingual tablets against stressand anxiety, AFTOSIUM to treat ailments of the buccal cavity,SLIMUM as an adjuvant to weight loss diets, NAUSETUM againsttravel sickness and nauseous states, VEINOSIUM, to treathemorrhoids and soothe tired, heavy legs (...) and NOCTIUM for themanagement of sleep disorders in children.
- A line of the most widely prescribed and recommendedpolychrests, granules and doses, such as Arnica montana, Nuxvomica, Ignatia amara, Gelsemium, Rhus toxicodendron,Chamomilla… as well as Influenzinum, which is used for preventinginfluenza states and influenza syndromes, has been hugelysuccessful with over 2 million doses sold in 2009.
- The 30 ABBE CHAUPITRE formulae, homeopathic drops, cover manyindications and arouse lively interest in consumers, particularlyformula 6 (vertigo-migraines) and 7 (Minor sleep disorders –temporary periods of anxiety)..
AROMATHERAPYIn line with its natural healthcare approach, the Arkomedika Laboratorieschose to develop an aromatherapy range, launching 100% pure andnatural ARKENTIAL essential oils that are non-deterpenated andmanufactured in compliance with the most rigorous specifications ineffect.
In order to meet growing consumer demands, 6 new Organic essentialoils will be added to the ARKENTIAL line in 2009: lemon, eucalyptus,lavender, mint, tea tree, thyme, and a new derivative products will belaunced in 2010 (sprays, capsules,…).
the many fruitsof effective research
With strict selection of starting materials, clinical
trials and the development of new manufacturing
technologies, ARKOPHARMA introduces something
new every year and offers products of impeccable
quality.
They are backed by efficient marketing, alert to
what consumers, pharmacists and doctors are
saying.
20
Creativity, scientifically
21
NEW REGISTRATIONS
PHYTOTHERAPY PRODUCTSNEW INTERNATIONAL PRODUCT LICENSESThe registration program for medicine continued on an Internationallevel, where a product license for ARKOCAPS HARPADOL was obtainedfor the United Kingdom, Portugal, Greece and Serbia. A product licensewas registered in Turkey for PROCALMIL.
Product licenses were obtained for different products in several SouthAmerican countries: PHYTOSOYA 17.5mg in Ecuador, PHYTOSOYA 35 mgin Chili, ARTROFITUM in Colombia and the CYS-CONTROL sachet in Peru.
In Madagascar, product licenses were obtained for the followingmedicine: ARKOCAPS CAMILINE, ARKOCAPS VALERIAN AND ARKOCAPSRED VINE.
A FOCUS ON THE 2011 PRODUCT LICENSES AND EUROPEAN LICENSESPROGRAMS
The European Directive 2004/24/CE for traditional herbal medicinalproducts had major consequences on ARKOPHARMA. It requires that ourcompany respect the European standards and that all of our MANphytotherapy applications for registration be refiled before January2011 in France. It is a matter of protecting and, in particular, developingthe product licenses for the ARKOCAPS line, which is an important partof our company’s portfolio.
Within the framework of this program, 23 ARKOCAPS applications forregistration were filed in 2009. The rest of the applications will be filedbefore January 2011, including the ACTIVOX line, amongst others.
ARKOPHARMA is by far the Laboratory that has filed the highest numberof this type of updated applications at the AFSSAPS (French agency forthe sanitary security for health products)..
Spain: 25 ARKOCAPS applications for registration were updated for theSpanish subsidiary, the Group’s leading subsidiary in terms of turnover.
7 applications for registration were sent to the main subsidiaries andmost important distributors, beginning with the most promisingARKOCAPS products in terms of sales. 16 new applications forregistration were budgeted for the European zone in 2010.
These applications were also filed for overseas export.Phytotherapy has always represented the foundation of our businessactivity and Laboratory expertise.
HOMEOPATHIC PRODUCTSNEW APPLICATION FOR REGISTRATION IN FRANCE
In homeopathy, a new preparation has been registered: Alfalfa.
Thanks to the success that the Ferrier homeopathic units line showed in 2009and with a goal to always optimally respond to our clients’ needs, 3 newapplications for registration were filed (pulsatilla, influenzinum and ginseng)and a dozen new developments were continued or initiated during 2009.
DIETARY PRODUCTS / DIETARY SUPPLEMENTS /OTHER PRODUCTS
337 international applications for registration were filed.
COSMETICS
The notification/registration policy for the PLANTE SYSTEM line
and other cosmetic products was continued in numerous
countries throughout the world.
NEW PRODUCT LAUNCHES
DIETARY PRODUCTS AND DIETARY SUPPLEMENTS
THE ARKOLEOL® PROGRAM
ARKOLEOL® SACHETS: a powder that is very rich in unsaturated fatty
acids (20%), which comes in the form of ethyl esters without glycerol
and is dispersible in water.
This product promotes the regulation of lipidic and glucidic metabolism,
breakdown of fatty deposits and elimination of stored fat, made up of
triglycerides.
A special milk protein absorption procedure was developed for this
formulation.
ARKOLEOL® DIETETIC AND HEALTHY OIL: this excellent seasoning oil,
which is comprised of fatty acids from olive oil in the form of ethyl
esters, allows you to delectably season your dishes without using
triglycerides. Having the same properties as the ARKOLEOL powder
sachet, this Dietetic and Healthy Oil allows to you effectively fight
against the metabolic syndrome.
A well-adapted industrial filtration system is used to manufacture this
oil, which separates the pieces of olive leaves and fruit that are in contact
with the fatty acids in order to improve its organoleptic characteristics.
EXPERIMENTAL STUDY
The ARKOPHARMA Laboratories have conducted an experimental study
on rats in order to compare the impact on the level of blood triglycerides
in the oils used for the ARKOLÉOL® sachets (ethyl oleate) and
ARKOLÉOL® capsules (omega-3 fatty acid esters), as compared to
ordinary olive oil (fatty acids in the form of triglycerides).
As expected, the use of classic olive oil causes the level of plasmatic
triglycerides to increase between the beginning and end of the study,
whereas the unsaturated free fatty acids, used in the ARKOLÉOL®
products, does not lead to a rise in the level of triglycerides. This
experimental study confirms the advantages of using free fatty acids,
which inhibit the rise in the level of blood triglycerides and thus their
storage in the adipose tissue.
Seeking the best in nature
22
PROBIOTICSThe ARKOPHARMA Laboratories have completed their probiotics offerby launching a new line with 3 products: ARKOPROBIOTICS DEFENSE,which are fresh and healthy dietary supplements that contain 5 to 50billion active lactic ferments. This has made big news, thanks to theexceptional and specially adapted refrigerated shipment containers usedto transport the products and thus ensuring the quality and integrity ofthe probiotics.
For each product, the line offers several strains of probiotics that havebeen specially chosen for their specific action on our immune systemand intestinal flora: ARKOPROBIOTICS JUNIOR DEFENSES andARKOPROBIOTICS ADULT DEFENSES, with a concentration of 5 to 10billion probiotics + zinc and selenium, which come in small bottles as wellas ARKOPROBIOTICS DEFENSES+ FOR ADULTS, with an exceptional doseof 50 billion probiotics* and selenium, in the form of sachets.
OTHER NEW PRODUCTSA genuinely innovative weight loss program by ARKOPHARMA:SLIMEXCELL BODY CONTOURING ELIXIR. 25μg of chrome per day (i.e. 63%of the recommended daily allowances RDA) stimulates fat and sugarmetabolism, thus preventing the storage of excess fat and reducing thedesire for sweets. Toxin-eliminating fennel seed improves digestivecomfort. Maté leaf burns fat and slows down digestion, thus eliminatingsensations of hunger throughout the day. Grape Pomace, which is rich inpolyphenols, drains and eliminates toxins from adipose cells as well asimproves microcirculation. Pomegranate juice (330 mg of Pomegranatepowder per day) is a powerful antioxidant.
Product advantages: a highly practical and innovative dosage form thatcan fit into even the smallest handbags: 30ml bottle with dropper; theproduct with the highest concentration in active ingredients on themarket: 2 grams per day of active ingredients from titrated plantextracts (2.3% Polyphenols), at only 6 kcal per day, i.e. 3 tic-tacs
Thanks to the launch of ARKOVISION, the ARKOPHARMA Laboratoriesnow offer a dietary supplement to help fight against damage done tothe retina cells.
Although AMD (age-related macular degeneration) is the main cause ofpoor vision in older individuals, it can be prevented through micro-nutritional supplementation. AMD develops after the age of 50 andresults in the progressive loss of central vision, leaving peripheral orlateral vision intact.
ARKOVISION is a dietary supplement that contains lutein andxanthophylls, which our body is unable to produce. They are naturalpigments that are found in green leafy vegetables, certain fruit and corn.They are known for the important role they play in protecting the eyesfrom the harmful effects of light (oxidation) by filtering blue light, whichis particularly harmful to the retina and crystalline lens and byneutralizing free radicals, thanks to their antioxidant activity.
ARKOVISION is also formulated with numerous antioxidants that protectthe crystalline lens (B vitamins, including folic acid, vitamins PP and E)and reduce the effects of ocular aging (Zinc, Copper, Manganese,Selenium and Glutathione).
The ARKOPHARMA Laboratories have launched a new product tocomplete the Chondro-aid line: RESTRUCTURING CHONDRO-AID, which ismainly comprised of collagen (10 grams per sachet). Collagen is a fibrousstructural protein that constitutes the protein of the skin, tendons,bones and especially the cartilage. It gives the different organs andtissue their strength and elastic properties.
Over time, the production of collagen in the body slows down, whichaffects the cartilage. This results in articular friction, which leads to pain.
This is why it is important to take large quantities of collagen as soon asthe first signs of arthrosis or arthritis appear.
This product also contains ascorbic acid, which has a powerful effect onstimulating the collagen production process. In addition, it containsvitamin D3, which promotes bone recalcification, due to the moreeffective assimilation of calcium and hyaluronic acid that helps protectjoints by increasing the viscosity of synovial fluid and adding greaterelasticity to the cartilage.
4 % the share of net sales devoted to research
1724 : the number of product licences
held by ARKOPHARMA
75 : the number of scientists working
in Research and Development
23
Suitable industrial premises
One main site (Carros, 15 km from Nice), a site in Ireland opened in July1998 and an another in Italy opened in march 2005, provide more than105,000 m2 of industrial premises.The Group has modern, well-diversified equipment comprising about 90machines or production lines making it possible to deal with mostpharmaceutically manufactured galenic forms (powder and oil capsules,tablets, liquid and cosmetic forms).ARKOPHARMA’s know-how has enabled it to introduce innovations usingan original manufacturing procedure applied to phytotherapy: freeze-grinding.
Freeze-grinding
This industrial technology was used for the first tine by ARKOPHARMAfor medicinal plants in 1985. Freeze-grinding or grinding in liquidnitrogen at-196oC preserves the whole of the plants’ active principles,intact. It provides a powder with optimum particle size and thuspromotes the active principles’ bioavailability. It also improvesproductivity by making grinding easier. The production unit, operated bycomputer-aided production management software “SAP”, meets thefirm’s growth requirements by providing a very large productioncapacity.
2009, industrial development...
The industrial structure of the ARKOPHARMA Group is principallycomprised of 3 production plants that are located in Carros (France),Waterford (Ireland) and Vintimille (Italy).
These 3 plants, which are completely complementary, provide the Groupwith industrial resources that are in full compliance with the strictpharmaceutical, food and cosmetic regulations. The correspondingproduction capacity is large enough to enable the plants to keep up withthe Group’s projects and rate of development.
The industrial changes were based on the improved performance of ourcurrent installations.
In terms of performance, our production workshops have been organisedusing participatory working methods that aim at improving industrialeffectiveness. This has enabled us to increase productivity of certainmajor processes (bottles, blisters, vials ...)
This approach to continued improvement is one of the strong pointsbehind our industrial management and will contribute in both the shortand medium term to increase the ARKOPHARMA Group’s generalperformance.
Production, a few figures
Type of production Volumes 2009Plants used in manufacture 300 tonnesCapsules, (Plant powder, mineraland vitamin, oil and antioxidant) 1.4 billionTablets 168 tonnesNumber of units packedContainers (capsules and tablets) 21 millionBlisters and miscellaneous 23 millionVials and bottles 2.7 millionLittle vials 2.6 millionAmpoules 48 millionBags 12.2 millionTubes (tablets, liquids, homeopatics) 9.5 million
The latest facilities in the Service of Health
1,4 billion the number of capsules packed by ARKOPHARMAin 2009
24
● A team of Product Managers with dual training in Marketing andScience, devises new products in cooperation with the Research &Development Department, boosts existing lines and promotes themthrough Press and TV campaigns and the provision of all promotionalaids (counter and free-standing display units, showcards, maxi-boxes,booklets, brochures, etc.).
● A team of sales promoters travels throughout France: its mission is tosupport, train and guide the pharmacy teams in showcasing the productlines, advising and selling Group products. In 2008, these sales promoters assisted over 4,200 clients, via trainingprograms (5,600 training sessions were given in pharmacies) and well-adapted merchandising advise.
● A network of medical representatives keeps gynecologists and generalpractitioners regularly informed about a selection of the Group’sproducts that meet medical needs.
● A special division dedicated to Marketing and communication with:- A Press Department, whose task is to publicize the Group’sproducts in the Press, compile Press files and releases as well asregularly visit the major editorial offices in Paris. In 2008, there wereover 800 write ups in both the professional and general public press,thanks to press relations. - A Direct Marketing Department, whose task is to boostcommunication operations targeting the ultimate consumers(Arkonews, informative newsletter...).
● Part of the Global Marketing Department, the Multimedia Unit is incharge of the Arkopharma Group’s web projects, with a focus on twomain priorities: creating web sites and multimedia projects for all of theGroup’s units and subsidiaries (web-design, web-publishing, web-development, server management, domain name management, e-learning and the creation of eBooks for the sales representatives) andweb-marketing (web ranking, sponsored links and media buyingcampaigns, e-mailing campaign management, visitation analysis,competitive intelligence and follow-up on our e-reputation,…). And, since July 2009, Arkopharma has offered an e-Commerce solution toits pharmacy clients, who can now place their orders by Internet.
Dynamic marketing at everyone’s service
The marketing teams endeavor to boost product sales on the Pharmacy and Parapharmacy networks
25
Application of the European directive on product licenses
Packaging for medicine has been changed, due to the 2008 Europeandirective. All of our products were updated prior to the directiveapplication date on May 7, 2009.
The DTP team has added new coding and labeling, which must be placedon both the packaging and the insert, such as the systematic use ofBraille to indicate the product name and dosage for the visually impairedas well as the new generation CIP 13 bar codes.
Packaging, a joint effort between the Visual Design& Communication Department and the plant team
The Visual Design & Communication Department works hand in handwith the teams at the manufacturing plant to standardize thepackaging.
The goal is to improve workflow fluidity, reduce the time required forthe machine manufacturing phase and thus focus on creating highquality products
The Packaging Design and Methods divisions work together to resolvetheir manufacturing constraints and create their technicalcommunication materials.
This collaboration is not new, simply the reflection of a new policy withinthe company.
In 2009, 1178 files were sent out to printers andmagazines via FTP
The Visual Design & Communication Department has had a steadyworkload.
The 1178 files that were sent out included all of the different types offiles that the Department manages: packaging components, POSadvertising materials, press campaigns, the Arkonews magazine for thegeneral public, informative documents for pharmacists...
- March was the most active month with 160 files completed
- The most frequent packaging components were the boxes, with 400 new creations
- 25 files were sent out per graphic artist and per month in 2009.
The work is entirely done on-line: from the creation of the text that willbe placed on the product (Marketing) to sending the file to the printervia FTP.
CDs are used less and less frequently and there are no more paper filesused in the Visual Design & Communication Department: our companyis committed to protecting the environment.
Graphic design and communication
2009: the year of standardized packaging
IMPRIMEUR
Arkopharma
PRINTING HOUSE
Respect of nature
True to its philosophy, ARKOPHARMA views its
mission as a pharmaceutical company with the
greatest respect for Nature and basic ethical
principles.
Strict scientific rules and measures to ensure
quality help to produce natural, novel, safe and
effective medicines.
26
Development, sustainably
27
Our Environment and Safety Commitment
As manufacturers of medicine, dietary products and cosmetics madefrom natural raw ingredients, the ARKOPHARMA Laboratories arecommitted to producing their entire product line, while ensuringoptimal safety and health at work and protection of our environment.
Our policy in terms of safety and the environment includes risk control,pollution prevention and managing our business activities in the spirit ofa socially responsible company with regards to our employees andnature.
Fully conscious of the responsibility that the pharmaceutical industrybears in terms of the outer world, our Safety and Environmentcommitment is a factor in internal progress and a trump card in ourrelations with our partners.
For Sustainable Production
In the framework of its strategic business plan, ARKOPHARMA continuesto be extremely involved in controlling our environmental impact,maintaining the safety conditions of our installations and equipment,promoting accident prevention and improving working conditions.
The Group’s Management ensures that these policies are implemented,and daily put into practice by all the firm’s departments. Here, they arebacked by the Safety / Environment Department which contributes itsexpertise, with support from team members in the operational servicesand help from the CHSCT and the occupational physician.
Monthly committees were moreover established in every sector toanswer closer in the continuous improvement.
The Environment: the factors involved
Protection of energy resources
Our energy policy is focused on rationalising energy consumption. Ourtechnical teams are busy studying how to best optimise techniques formanaging air conditioning stations, lighting, steam generation as well asstopping and restarting units.
Atmospheric waste control
ARKOPHARMA has developed industrial processes in which atmosphericwaste is minimal and therefore controlled.
The atmospheric pollutants include dust and greenhouse gas.
Dust that is emitted due to the industrial processes issystematically captured by efficient filtration installations.
Combustion gas emissions are also permanently controlled in ourinstallations.
Over the years, the reduction of pollutants in the air has becomeincreasingly significant.
Protection of water resources
Control of water consumption is also an important part of this waterresources protection policy. Water is of prime importance to ourproduction, being one of our raw materials as well as a utility. . We havenoted a decrease in water consumption, which demonstrates, in part, arationalization of its use.
Aqueous waste control
The control of aqueous waste is part of the strategy to improveourenvironmental impact. Our self-monitoring program enables us toclearly determine our goals in terms of quantity and quality.
By regularly communicating these goals to our production personnel,we have been able to continually and increasingly raise their awareness.
Over the past several years, we have observed a decrease in our annualvolume of aqueous waste.
The organizational measures and technical developments that we haveimplemented allow us to continue to significantly reduce the degree ofpollution in the aqueous effluents discharged from the production sites.
The environment’s respect:
28
Efficient waste control
Managing waste disposal is a major challenge for our company. Over thepast few years, we have placed emphasis on updating our wastemanagement program by striving to reduce waste and recycle wastematerials.
Given the fact that the cost of eliminating industrial waste is veryexpensive, more efficient waste control will allow us to bring togethereconomic development and environmental concerns.
The waste production indicator for our activity is in constant decline,due to more efficient waste control.
The Safety/Environment Department is permanently striving to ensurethat the waste sorting process is increasingly efficient. In 2009, a wastesorting program for paper was implemented on all of the Group’s sites.
Depending on the waste’s physicochemical nature, the Safety/EnvironmentDepartment sends it to authorized waste recovery, recycling and disposaltreatment and processing plants.
Safety / Occupational Health
Occupational accidents
The prevention of occupational accidents and professional diseases is apriority in our policy of protecting Group staff members and partners.
It is preceded by risk studies prior to making investments andarrangements, in order to be able to integrate inherent safety principlesin plant, equipment and processes as early as possible, right from thedesign stage.
All of these actions will help us continually reduce the number of work-related accidents. The results highlight a significant drop in the numberof these accidents.
Industrial risk
Our installations are regularly monitored and maintained, and regulatoryperiodic checks are made.
Given our numerous storage and distribution activities as well as ourprocesses that include flammable materials, fire is one of our major risks.High performance operational and organisational security systemsensure that our employees are permanently up to date on the measuresto be taken for fire risk prevention and emergency responsiveness.
Regulatory factors
Given the diversity of our activities, we are subject to numerousregulations, which we use as a basis for the construction of ourEnvironment & Safety measures.
We also have regulatory standards that are mainly taken from the
Environmental Code and in particular, the legislation on Classified
Installations for Environmental Protection (ICPE) as well as the Labor Code.
This is why our classified production sites are regularly and thoroughly
inspected by the public authorities.
This is not only due to the installations and equipment required for them
to operate, but also given the nature of certain products that are used
to produce our products.
The Safety/Environment Department is also in a position to rapidly
integrate regulatory changes, thanks to a monthly regulational watch.
We strive to take, whenever possible, a proactive approach in order to be
in full compliance with the legal obligations within the stated deadlines.
The increasing number of in-house audits on safety and the environment
has helped our employees become more involved and allowed us to reach
a more competitive level of conformity.
Investments in Environmental Protection and Safety
As part of our continual improvement policy, ARKOPHARMA continues to
make investments to improve its installations, tools and production
processes. These significant efforts help endow us with a more efficient
working tool and include environmental protection dimensions as well as
the health and safety of people outside and inside the firm.
In 2009, investments were made due to new regulatory measures or, in
particular, to cover certain areas of safety in our installations. Efforts
were also made to control the potential impact on the environment and
use of energy resources.
Needless to say, this has to be compared with the operating budgets,
which include these important areas of Group management.
As we remain convinced that the success of our policy on safety and the
environment lies in each individual’s involvement and wiliness to take
responsibility, we also invest in training programs to enhance all of our
employees’ skills. In addition to the compulsory training programs, we
have developed a training plan that takes into consideration the
prevention improvement goals as well as the previously stated changes
in legislation. Moreover, practical summaries that describe good
practices for prevention are included in our information system, such as
safety data sheets for each work station, safety booklets per activity
sector as well as specific operating procedures.
In addition to this, responsible behavior audits in each sector will enable
us to regularly evaluate whether or not our employees have adopted this
responsible behavior.
29
Managing and Developing Skills
Constantly endeavouring to increase its level of competitiveness, thanksto the continually improved skills of its personnel, the ARKOPHARMALaboratories are focusing on the development of expertise. Today,priority is placed on developing loyalty and motivating the company’sstaff members in order to ensure the Group’s sustainability.
For the past several years, a management policy has been implementedusing the predictive management of jobs and skills approach. Tools suchas an ARKOPHARMA trades reference guide as well as job and descriptiondefinitions for each staff member are used.
The goals behind this process are:- Better clarification of job limits, thanks to a comparison thatmeasures the job requirements for a specific position and thecapability and skills of the employees;- Better clarification of the link between the various componentsin the organisation in order to ensure a transversal dimension andimprove communication;- A more coherent remuneration system; - Increased internal mobility thanks to an intranet that enables eachstaff member to apply for a job on line and thus be the prime moverin his/her advancement within the firm.
Social Protection: a Priority
Social protection has always been one of the ARKOPHARMA Group’smain concerns.
A new contract was negotiated in this aim with the managingorganisations enabling us to once again and in a socially positive mannerdevelop this component of compensation.
The Group is constantly looking to improve its employees’ conditionsconcerning healthcare coverage.
For that purpose, the Group was equipped with services of a socialworker who helps the employees in their personal problems.
Besides, the retirements, more and more numerous, and themodifications of the Law, motivated the Group to set up a service ofpersonalized assistant.
Dialogue: giving preference to nearness
Verbalisation meetings are held regularly in each Department. The aimis to enable staff members to express their feelings to their superiorsconcerning matters that are of importance to them. This contact,regarded as a special time for exchanging views, is a definite drivingforce in the development of the Group’s Human Resources policy.
Social dialogue also takes form in the quality of the relationshipsmaintained between labour and management; several significantagreements are negotiated concerning various themes that boost thequality of the social context, in a common approach to the company’ssuccess as well as the success of those who work in the company.
Protecting Human Health
In an industrial environment, ARKOPHARMA has chosen to monitor itsstaff to ensure their safety at work. Significant means (training,information, alerting, etc.) are devoted to human safety in order toreduce the incidence of accidents at work and their seriousness. Similarly,to mitigate the risk of occupational illness, ergonomists regularly work inclose cooperation with employees, departmental heads and occupationalmedicine.
Our social responsibility
ARKOPHARMA
makes no secret of its powerful international
ambitions, via the 8 subsidiaries.
A worldwide presence in more than 60 countries
thanks to high-powered distribution contract
policy.
30
Expansion, internationally
31
International horizons
In 2009, the ARKOPHARMA Group showed excellent results in its international business activities, despite the decreasein sales of its seasonal products, such as weight loss and sun care products
In a difficult international economic situation, which is due to thegeneral decline of the world economy, the International Department’sglobal activity in 2009 has remained stable, on a like for like basis.
On the other hand, the Export Distributors structure (+7%) has shownexcellent progress as they benefitted from the opening of new marketsas well as the transfer of its subsidiaries’ activities to new distributors(i.e. England, Australia).
This winning strategy (closing non-strategic subsidiaries and focusingthe subsidiaries’ business activities on Europe) has enabled us to makemajor savings and consolidate the largest distribution structures’ sales(Portugal, Germany and Saudi Arabia).
Moreover, and thanks to new European regulatory opportunities(phytotherapy remedies and dietary supplements), the ArkopharmaGroup has been able to refocus its product mix/markets and increaseproduct development in order to stay a cut ahead of its Europeancompetitors.
Product Mix
Phytotherapy has played a major role and thus enabled us to compensatefor a lack of sales in the Weight loss and Menopause categories, asmature markets have become more difficult and highly competitive.Moreover, and given today’s unfavorable economic environment, thereis a change in the behavior of consumers, who have made the decision todiscontinue using certain intensive treatments / remedies.
Nonetheless, new product categories, such as hair loss treatments(FORCAPIL®) and chronic bladder infection treatments (CYS-CONTROL®)have continued to grow and consolidate their market share.
We have continued to deseasonalize our sales by reinforcing our positionon the winter product lines: Royal jelly, cough and cold medicine, hairloss capsules as well as other products in the Vitamin and Mineral
categories. This policy has finally proved to be successful and has allowedus to achieve 2 figure growth as compared to 2008 during the last four-month period of 2009.
All of these categories are showing buoyant growth and should reachtheir full potential in the years to come.
The international product portfolio not only focuses on the main OTCindications (Phytotherapy, articular pain, tonics) but also on the newtherapeutic classes where self-medication is rapidly developing, such astreatments for recurring bladder infections using Cranberry extract andthe prevention of winter colds and flu, with Echinacea, which stimulatesthe immune system.
Distributors
The Business Unit Export Distributor confirmed the strategyimplemented by the ARKOPHARMA Group for its internationaldevelopment, outside of its subsidiaries, showing a global growth of 7%in sales to distributors as compared to 2008. The future looks very bright,due to the fact that our company shows overall growth in all regions andour active product portfolio is rapidly renewed.Moreover, the Latin American zone displayed buoyant growth withnumerous countries showing a major expansion on the purely OTCpharmaceutical markets.
AKOPHARMA Spain
32
Outlook for 2010
The food supplement and plant-based product market (medicine ordietary supplements) in Europe has become the Arkopharma Group’spriority area of development on an international level, thus confirmingthe company’s new focus on its core business: Phytotherapy, Plant-basedmedicine and Specialties with a plant and vitamin-mineral base.
New marketing operations have been planned for 2010 to relaunch ourWeight Loss, Phytotherapy and Tone/Vitality lines as well as promotingdifferent promotional operations in the various points of sale with aview to developing long-term customer loyalty.
Priority will be placed on the Phytotherapy lines (ARKOCAPS and PlantAmpoules) in order to develop our core business, which proves to behighly solid and stable in relation to sales and the economic situation..
As for the Distributors, 2010 has gotten off to a good start withnumerous new distribution agreements (Germany, Colombia, and Russia)as well as the export of our PLANTE SYSTEM line. This development policyshould allow the Group to make a name for itself in the organiccosmetics sector.
It is also important to note the imminent launch in numerous Europeancountries of phytotherapeutic medicine for treating arthrosis, calledHARPADOL®. It is a specialty that is made from cryogroundHarpagophytum powder and is part of the ARKOCAPS line, which is theARKOPHARMA Group’s Core Business line.
Lastly, we must highlight the fact that our Russian partner has stabilizedsales and successfully confronted the significant economic recession inthis region at the beginning of 2009.
AKOPHARMA Italy
AKOPHARMA Belgium
AKOPHARMA Netherlands
AKOPHARMA Ireland
33
60 : the number of countries where ARKOPHARMA
has a presence through its subsidiaries or distributors
Subsidiaries
Specific sales and marketing follow-up in each countryhave again proved successful in Europe.
Our international development except Europe has tolean on solid partnerships to penetrate into newmarkets.
Distributors
34
Group Organisation Chart at 31st December 2009
French subsidiaries
100% • FERRIER Laboratories Sarl. Pharmaceutical Laboratory
100% • L H S S.A.
International subsidiaries
100% • ARKOCHIM ESPANA S.A. Spain
100% • ARKOFARM Srl Italy
100% • CIPRIANI Srl Italy
100% • ARKOPHARMA UK Ltd. United Kingdom
52% • ARKOPHARMA Nederland B.V. Netherlands
96% • ARKOPHARMA BELUX Belgium
100% • ARKOPHARMA Ireland Ireland
100% • ARKO DIFFUSION SA Switzerland
55% • ARKOPHARMA HELLAS Greece
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Administration, Management, Control
SUPERVISORY BOARD
Dr Max ROMBIChairman of the Supervisory Board (Terms of office: june 2004 – june 2010)
Monique ROMBIVice Chairman of the Supervisory Board (Terms of office: june 2004 – june 2010)
Bernard ROMBIMember of the Supervisory Board (Terms of office: june 2004 – june 2010)
Janine ARONMember of the Supervisory Board (Terms of office: may 2009 – june 2015)
MANAGEMENT BOARD
Philippe ROMBIChairman of the Management Board (Terms of office: june 2008 – november 2010)
Olivier ROMBIChief executive Officer (Terms of office: november 2004 – november 2010)
Bénédicte FOURNETChief executive Officer - Head Pharmacist (Terms of office: november 2004 – november 2010)
Brigitte ANDORRA Member of the Management Board (Terms of office: november 2004 – november 2010)
FINANCE
Jean-Jacques ROBERTFinance Director
STATUTORY AUDITORS CONTROL
CABINET TRINTIGNAC ET ASSOCIÉS KPMG SA (Terms of office: may 2009 – june 2015)27, boulevard Général Vautrin Philippe LEVERT 06000 CANNES 80 route des lucioles
06560 SOPHIA ANTIPOLIS
LABORATOIRES ARKOPHARMALimited Company with a Management Board and Supervisory Board with a capital of € 22 501 736 Registered Office: Zone industrielle de Carros - Premiere avenue 2709m – 06511 Carros (Alpes-Maritimes) - FRANCECompany Registration Number: Grasse B 307 378 489Telephone: (33) 4 93 29 11 28 - Fax: (33) 4 93 29 11 62 Web Site: www.arkopharma.com – e-mail: [email protected]
36
Arkopharma group company addresses
FRANCE ARKOPHARMA LaboratoriesLID de Carros-le-Broc1re Avenue - 2709 m - BP 2806511 CARROS CEDEXTél. : (33) 04 93 29 11 28Fax : (33) 04 93 29 11 62E-mail : [email protected]
LHSLID de Carros-le-Broc1re Avenue - 6008 m - BP 64606511 CARROS CEDEXTél. : (33) 04 93 29 11 28Fax : (33) 04 93 29 11 62E-mail : [email protected]
FERRIER LaboratoriesLID de Carros-le-Broc1re Avenue - 2709 m - BP 4706511 CARROS CEDEXTél. : (33) 04 93 29 11 28Fax : (33) 04 93 29 11 62E-mail : [email protected]
BELGIUMARKOPHARMA BELUXAvenue Edison 13, Parc de la noire épineZoning Nord1300 WAVRETél. : (32) 2 10 233 600Fax : (32) 2 10 233 610E-mail : [email protected]
SPAINARKOCHIM ESPANA SAC/de Almatea, n°928045 MADRIDTél. : (34) 91 527 15 12Fax : (34) 91 527 99 91E-mail : [email protected]
GREECEARKOPHARMA HELLAS85 lavriou ave.19002 PEANIA ATHENSTél. : (30) 210 66 83 000Fax : (30) 210 66 83 250E-mail : [email protected]
ITALYARKOFARM SrlVia Maneira n 17/c rosso - Frazione Bevera18039 VENTIMIGLIA IMTél. : (39) 0184 211 72 00Fax : (39) 0184 211 74 00E-mail : [email protected]
CIPRIANI SrlVia Maneira n 17/c rosso - Frazione Bevera18039 VENTIMIGLIA IMTél. : (39) 0184 211 72 00Fax : (39) 0184 211 74 00E-mail : [email protected]
IRELANDARKOPHARMA IRELANDUnit 507 Western EstateWaterford Industrial Estate, BallynaneashaghWATERFORDTél. : (353) 51 351 776 / 777Fax : (353) 51 351 782
NETHERLANDSARKOPHARMA NEDERLAND B.V.Josephine Bakerstraat 431311 GB ALMERETél. : (31) 36 54 69 747Fax : (31) 36 54 68 216E-mail : [email protected]
SWITZERLANDARKO DIFFUSION5D route des Jeunes1211 GENEVE 26Tél. : (41) 22 300 1381Fax : (41) 22 300 1396E-mail : [email protected]
B.P. 28 - 06511 Carros cedex - France - Tel. : + 33 (0) 4 93 29 11 28 - Fax : + 33 (0) 4 93 29 11 62Web Site: www.arkopharma.com – e-mail: [email protected]