Mediator: Servier has 2 billion euros in cash

Written by Sandeep Nehra

Servier laboratory, which could have ultimately to compensate victims of the Mediator, has cash of EUR 2 billion and no debt, it was learned from the group, confirming a report in Les Echos on Tuesday.

This amount is very important due to the fact that the laboratory has never paid any dividends since its inception in 1954, the newspaper said, revealing some financial elements from Servier, the group then confirmed to AFP. The group, which is not publicly traded, is under no obligation to make its accounts public.

The laboratory is currently establishing reserves to address complaints about Picks, says the financial daily, while the government announced the establishment of a public fund for compensation but intends to ultimately pay Servier .

With such a cash effect, Servier “can not plead insolvency,” writes Les Echos, adding that the group is not in debt “crisis Mediator should not compel Servier to sell its assets,” the paper concludes.

“There was never any question of selling Biogaran”, the generic subsidiary of the group, also provides a framework for Servier Echos. Rumors in the heart of the crisis of Mediator had reported this possibility.

“The group did not intend to cede any of its assets”, confirmed to AFP spokesperson Servier.

Servier, which has 20,000 employees, of which three quarters abroad, has earned a net profit more than doubled during the year ended last Sept. 30, to 378 million euros against 143 million in 2009.

Sales in the laboratory because of their side rose 6% last year to 3.7 billion euros.

France represents the largest market Servier, with 1 billion euros in turnover, thanks to sale of generic Biogaran. Outside France, sales rose 6.4% to 2.7 billion euros.

Drug for diabetics who are overweight widely misused as an appetite suppressant, the Mediator would have done in 33 years between 500 and 2,000 deaths, before being withdrawn from the French market in November 2009. Hundreds of complaints have been filed to date.

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