PCAS: ACQUISITION OF A LEADING R&D CENTER

Acquisition of a Leading R&D Center

• R&D teams brought together within a new center equipped with cutting-edge technology, meeting the highest international standards
   
• Creation of a global, complex-molecule development platform to support the group's strong growth in the healthcare and advanced technology markets
   
• R&D center previously owned by leading pharmaceutical companies; located close to PCAS's Limay site

Longjumeau, November 22, 2016, 6 p.m.

PCAS (Euronext Paris: PCA), a specialist in the development and manufacturing of complex molecules for life sciences and innovative technologies, announces the acceleration of its innovation strategy, with the acquisition, of a new R&D center in Porcheville, France. It will be PCAS' future global platform.

Vincent Touraille, Chief Executive Officer of PCAS, explains: "This new center will gradually become the central platform for PCAS' R&D projects, in order to support the expansion of its product portfolio and the development of proprietary solutions. The pooling of all our R&D teams close to our Limay industrial site will provide invaluable support to our innovation strategy, aimed at reducing development times and introducing powerful synergies. This major strategic milestone for PCAS, in addition to the optimization of our industrial production capacities, will help sustain and drive the profitable growth momentum firmly established for the group".

R&D teams brought together within a new center, equipped with cutting-edge technologies, meeting the highest international standards

By the end of 2017, PCAS' European R&D teams will be grouped together at a single hub, which will be responsible for innovation as well as product and industrial process development, Located in Porcheville, 40 km from Paris, this extensive center offers a use area of more than 10,000 m², along with the cutting-edge equipment required to develop complex molecules, including infrastructure and units specialized in crystallography and analytical method development. It also has significant kilo-lab and industrial pilot capacity. This equipment, which will enable validation of products and industrial processes in accordance with the world's most stringent standards, is in line with good manufacturing practices issued by regulatory bodies and also complies with environmental standards.

Creation of a global, complex-molecule research and development platform to support the group's strong growth in the healthcare and advanced technology markets

A genuine lever for future growth, the new platform will help PCAS ramp up its R&D subcontracting services and consequently reinforce its position as a favored partner of healthcare sector players, major pharmaceutical groups and biotech companies. To provide support to its major customers, there will also be a focus on the roll-out and operation of new technological supports and processes, as well as the reinforcement of analytical methods and tools. Such expertise is crucial in view of the increasing complexity of the molecules developed by the pharmaceutical industry. An increase in the number of kilo-labs and the integration of three new pilot workshops for the industrial testing of new synthesis processes prior to routine manufacturing will make it possible to offer specific support for biotech companies. Finally, the creation of a dedicated generics team will help develop the catalog of proprietary products aimed at generic drug customers, a rapidly expanding market segment.

This acquisition fits squarely with PCAS' development strategy, characterized by a high level of R&D investment - 7% of turnover - in line with the group's solid commercial drive and the increasingly high expectations of its customers.

Gérard Guillamot, Director of R&D, and Christophe Eychenne Baron, Deputy Director of R&D at PCAS, say: "We are delighted with the reinforcement of our analytical method development and pilot project management capacities, which are key differentiating factors in terms of winning market share in the healthcare sector and supporting our major customers today. Furthermore, PCAS' R&D teams are particularly enthusiastic about the idea of moving forward in this new environment, meeting the world's highest standards and equipped with the cutting-edge technology and equipment required to study the most complex chemical processes".

ABOUT PCAS 
PCAS specializes in the development and production of complex molecules for life sciences and innovative technologies. With 7% of its net sales earmarked for R&D and a large international footprint, PCAS is the preferred industrial partner for market-leading major global groups. Boasting especially high standards, the company offers of a growing range of proprietary products and solutions in leading-edge segments and also includes two very high-potential subsidiaries: Protéus in biotechnology and Enersens in high-performance insulation. PCAS generated net sales of €179.1 million in 2015 and employs close to 900 people in six countries.

To find out more about PCAS, visit: www.pcas.com