GUERBET (EPA:GBT) 2009 First Half Financial Results

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30/07/2009 08:27

Villepinte, 30 July 2009

                               PRESS RELEASE

Results marked by strong growth in volume in a highly competitive environment

Consolidated financial statements       2009           2008
(IFRS - EUR millions)                first half     first half    Change
Net sales                               162            157        +3.5%
R&D expenditures                        17.1           14.1       +21.6%
Current operating income                14.0           21.2       -33.8%
Current operating margin                8.6%           13.5%
Net income net                          8.1            14.9       -45.2%
Net margin                              5.0%           9.5%
Net debt at 30 June                     81.0           91.0       -11.0%

Note. Percentage is calculated on the basis of exact figures in thousands of
euros

Growth in sales volume

Dotarem grew 17.5% in volume and 10.9% in value. Guerbet reinforced its
leadership in the MRI segment gaining 4 points in market share in Europe.

Xenetix experienced a strong upturn in growth, expanding 14.7% in volume and
1.7% in value, reflecting efforts to achieve market share gains by progressively
ramping up production capacity.

The Group further strengthened its position in Europe (2.3%), particularly in
Germany (+9.2%). Growth in Asia was more robust (+ 10.5%) on expanded sales in
China.

First-half earnings and full-year outlook

The earnings trend for the first half reflects a decline in the gross margin and
increased expenditures to support innovation:

*  The gross margin declined EUR4 million. Increased industrial production
   costs accounted for more than one half of this decrease.
*  Expenditures devoted to innovation increased EUR3 million to finance
   Dotarem's filing in the US and the development of new chemical entities.

In the second half, we anticipate accelerated sales growth, notably for Xenetix
that will result in increased production activity both for the chemical and
pharmaceutical segments. This will in turn enable us to improve our industrial
cost prices. For this reason, we anticipate positive trends for margins in the
second half while maintaining the ambitious pace of efforts devoted to
innovation.

A promising strategy for future growth

Despite the decline in margins in the first half, Guerbet confirms its strategy
in a market that continues to offer growth potential though subject to regular
declines in prices. The Group's strategy, based on the recognized qualities of
its main products, consists in pursuing market share gains to offset the erosion
of sale prices by increasing volumes and improving production costs.

Guerbet has considerable potential for further market share gains first in
Europe and then in emerging countries and the US. Its program for investments,
improving processes and effectively managing outsourcing and purchasing should
contribute to sustainable improvements in our cost prices that will accelerate
starting in early 2010.

About the Group

Guerbet is the only pharmaceutical group fully dedicated to medical imaging. It
has the most comprehensive range of x-ray and MRI contrast media available
worldwide. These products assist medical professionals (radiologists,
cardiologists, oncologists, etc.) in better diagnosing and treating their
patients (cardiovascular, cancer, inflammatory and degenerative diseases).

To develop new products and assure its future growth, every year Guerbet devotes
significant resources to research and development with 166 R&D employees and an
amount equivalent to approximately 10% of sales.

Guerbet is solidly positioned in Europe with a market share of 25% and is
expanding its presence in the United States and Japan.

Guerbet, listed on Eurolist Euronext Paris in compartment B had sales in 2008 of
EUR320.8 million with a total workforce of 1,277 employees.

For additional information about Guerbet, please consult: www.guerbet.com

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