LETTER FROM PAOLO MARCUCCI
Looking back at 2021, I am proud of the accomplishments we achieved.
Few of us imagined that the global Covid-19 pandemic would still be with us at the end of the year. And yet, thanks to the determination and hard work of the Kedrion people, we came through the year’s significant challenges with notable successes.
The pandemic has had a profound impact on the collection of plasma, both in terms of volume and costs. The entire sector has been affected by this event, and our revenues from plasma sales have been hit.
Furthermore, since our competitors are focused on the US market, plasma derivatives prices did not fully adjust to the new plasma collection costs, with an impact on our profitability.
Still, with our strongest commitment to our patients, we maintained vital supplies and got a fair economic result.
We have also kept our eyes on the future, enhancing and increasing business possibilities throughout our areas of operations: in Turkey, where we widened and deepened our relationships with both patients and healthcare communities through a direct distribution model; in Germany, where we signed an agreement for exclusive distribution of 10% Intravenous Immunoglobulins; and in France, where we were able to enter the contract manufacturing market, to produce and distribute Immunoglobulins for French patients.
At the same time, we took an exciting major step into the future with the acquisition of the Prometic group of companies. This agreement has added a new plant in Laval, Canada, with 130 employees, a new country presence for Kedrion Biopharma and – most noteworthy – a new product, Ryplazim® , for the treatment of the rare and debilitating condition, Congenital Plasminogen Deficiency. Recently granted FDA approval, Ryplazim® is the LETTER FROM PAOLO MARCUCCI only therapeutic of its kind on the market.
We confirmed our determination to increase efficiency, foster sustainable growth and enhance profitability. An operational transformation project, NEXT, has been adopted, and it is already producing relevant and tangible results.
In 2021, we successfully refinanced Kedrion, with a very positive reception in the bond market. Capital earned from the refinancing process has been used to reimburse the existing debt and the bond issued in 2017, while sparing financial capacity to sustain our current business and its further development.
In 2021, the Marcucci family began discussions with global equity firm Permira for an operation on Kedrion equity and the simultaneous acquisition of a leading British biopharmaceutical company, Bio Products Laboratory (BPL). The deal is expected to be closed in 2022 subject to the fulfillment of certain conditions, creating a new global player for plasma-derived medicines treating patients with rare and life-threatening conditions.
These results have been possible thanks to the commitment of all Kedrion people. To all of you I say mille grazie!
Finally, I’d like to offer my warmest thanks to CEO Val Romberg, who left Kedrion in January 2022. Val’s leadership during 2021 was instrumental in our perseverance and success. We wish him the best in all his future endeavors.
Paolo Marcucci, Executive Chairman
COMPANY OVERVIEW
Who we are
Kedrion Biopharma is a dynamic and growing biopharmaceutical company, specializing in the development and production of plasma-derived products to address many serious, often rare, diseases and conditions. Our portfolio includes, among others, therapies for Hemophilia, Primary Immunodeciencies, and Rh sensitization as well as more widely used products like Albumin. Our interest in rare diseases and conditions is conrmed by our acquisition of Prometic and its new therapy for Congenital Plasminogen Deciency.
Our headquarters are in Tuscany, Italy, where the company was founded and grew to become a signicant partner to the Italian National Health System. Today it is one of the world leaders in the production of plasma-derived products which it distributes in some one hundred countries.
Working on a vertically integrated business model, Kedrion Biopharma is engaged on all aspects of the production of its products, from plasma collection to development and manufacturing cycles to distribution. We operate collection centers in the US and production plants in Italy, the United States, Canada and Hungary.
Kedrion’s partnership with the Italian Health System has resulted in unique expertise which we offer in support of countries and systems pursuing self-sufciency in the availability of plasma-derived therapies.
WHAT WE STAND FOR
Our focus, above all, is on people: the people whose generous donations of plasma make our work possible; our dedicated employees, whose work carries out our mission; our healthcare partners, whose collaboration is essential to reach the people on whom all of our efforts focus, the patients our products help. We think of ourselves as providing a bridge: from donor to patient; from plasma to therapies; from despair to hope.
OUR VALUES
Founded as a family business with deep roots in the hills of Tuscany, Italy, Kedrion Biopharma was built on a firm foundation of shared and assumed values. In 2021, we made these manifest, declaring and describing a set of standards and principles OUR VALUES by which we can measure our actions and the actions of each member of our Kedrion family.
These values are Caring, Integrity, Teamwork, Reliability, Excellence and Respect.
Caring
Our guiding inspiration is the generosity of our donors, the dedication of our healthcare and academic partners and – most centrally – the perseverance of our patients and their families. Our behavior needs to reflect empathy, the effort to understand and share the feelings of others. We keep in mind the people whose fear and suffering our work helps to ease. We remember the thousands whose generous donations allow us to do our work. We extend a helping hand or an understanding consideration to our fellow team members.
Integrity
All of our actions and decisions are guided by clear ethical principles, including honesty and transparency. We strive to be open and honest in all of our interactions with fellow workers, with outside agencies, with clients and customers, and of course, with our patients. We endeavor always to be forthright in our assessments and candid about our mistakes.
Teamwork
We recognize that our work at its most fundamental is the product of a team. Kedrion people work as one team adopting behavior that encourages trust and contribution. Teamwork requires a mutually supportive group in which all members contribute according to their skills and talents while helping others contribute according to theirs. While individual effort is recognized and rewarded, it is understood that no one works alone.
Reliability
We assume responsibility for our actions and are always accountable for the timely, successful outcomes those actions produce. Reliability is a necessary quality for the success of any business, but it is equally important for productive teamwork and satisfying relationships between co-workers and stakeholder partners. It is evidenced in consistently meeting deadlines and goals, being available when needed, and anticipating expectations.
Excelence
We strive to excel in every aspect of our business and approach every challenge with a determination to succeed. We challenge the status quo, encouraging our people to develop their skills, while learning from failures. Excellence is a moving target; it is reached only in its pursuit. Good enough
is the enemy of excellence.
Respect
We value trusted and enduring relationships with donors, patients, health care providers, colleagues and communities. We value diversity and proactively foster an inclusive work environment, where each person is respected and feels inspired to contribute. We seek out the best in others, assuming and expecting to find it; we appreciate our commonalities and celebrate our differences. Treating people fairly – as you would want to be treated – is at the core of ethical behavior. We cannot respect ourselves unless we respect others; we will not respect others if we do not respect ourselves.