Galenica's H1: Steady Growth, Strategic Pivot in Homecare, and Digital Healthcare Momentum

Swiss healthcare network posts 7.1% sales growth, expands services, and navigates restructuring with confidence

GALE.SW · Earnings Call · 2026-08-06

Resilient Execution in a Soft Market

Galenica's first-half 2026 results reflect a company executing on multiple fronts despite a sluggish Swiss pharmaceutical market. Group sales rose 7.1% to CHF 2.136 billion, while adjusted EBIT grew by a like amount to just under CHF 118 million — or 12.6% once last year's one-offs are stripped out. “We have once again achieved strong sales growth of 7.1% to CHF 2.136 billion and have also increased our adjusted EBIT by 7.1% to just under CHF 118 million.” — Marc Werner, CEO · 2026-08-06 This outperformance is particularly noteworthy given that the overall market grew only 3.7%, with pharmacy volumes down 0.6% and OTC sales negative. Galenica's healthcare services and integrated network are clearly winning share, especially in prescription medicines.

Labor Team and the GLP-1 Tailwind

The integration of Labor Team, acquired in September 2025, remains on track and contributed 3.1% to sales growth. The diagnostics business is being woven into Galenica's wholesale network, with plans to offer medications and lab services from a single source. Meanwhile, the ongoing surge in GLP-1s is a meaningful driver. CFO Julian Fiessinger noted, “GLP-1, yes, that is clear. This remains a strong growth sector. We have seen some 30% growth in GLP-1.” — Julian Fiessinger, CFO · 2026-08-06 GLP-1s now represent roughly 4% of pharmacy sales, and Galenica is growing in line with the market, reinforcing its position as a key distribution channel.

Homecare Restructuring and the Exit from Production

A more significant strategic pivot is underway in homecare. Galenica has decided to discontinue Bichsel's pharmaceutical production by end-2026 and merge Bichsel HomeCare with Lifestage to create a single, focused homecare provider. The move will streamline operations and position the company for growth in blister packaging and patient-specific medication services. The extraordinary costs are coming in lower than initially feared:

Now extraordinary costs in connection with closing down Bichsel are at CHF 30 million lower than we expected. Originally, we expected CHF 35 million to CHF 40 million.
Julian Fiessinger, CFO · 2026-08-06

Management emphasized that this was a difficult but deliberate decision, and the lower-than-expected costs provide some cushion.

Digital Services and the Path to Liberalization

Galenica is also investing in its digital customer journey, with the Prescription Manager tool already used by around 90,000 people. Healthcare consultations grew 27% year-on-year to 193,000, reflecting the success of services like Consultation+. As the Swiss government moves toward liberalizing mail-order OTC sales, Galenica is positioning itself with the Redcare joint venture and omnichannel capabilities. CEO Marc Werner highlighted, “In the first 6 months, we carried out 193,000 fee-paying healthcare consultations, an increase of 27% compared with the last year.” — Marc Werner, CEO · 2026-08-06 While the liberalization is still years away, the company is clearly preparing to capitalize on it.

Outlook and Execution

Management reaffirmed its 2026 guidance for 5.7% sales growth and EBIT expansion of 6–8%, while also reiterating the stable dividend policy. The upcoming SAP switch at the Niederbipp wholesale site is a key second-half focus, with efficiency gains expected from 2027 onward. Galenica's integrated model, strong balance sheet (adjusted net debt at 2.7x but expected to revert to 2.2–2.3x by year-end), and disciplined cost management provide a solid foundation. The pharmaceutical production exit and homecare consolidation may carry short-term costs, but they position the company for higher-margin services growth. Overall, Galenica is executing well in a challenging environment, with the GLP-1 tailwind and digital investments providing visible momentum.