Mensagem do Presidente

In 2011, allergen immunotherapy (AIT) celebrates its centenary.

It is the least to say that it has seen strong development over the past century and especially over the last decade. It used to be an empirical technique, essentially based on the experience of allergists. It now calls on patented medicines in their own right, allergen tablets, whose efficacy and safety are demonstrated by the evidence of large-scale clinical trials. Since its foundation in 1962, Stallergenes has fully taken part in this development and is, today, at the forefront of innovation.

In 2010, we obtained several very important clinical results that are evidence that fundamentally reinforce this level of evidence:

— We have demonstrated that Oralair® (sublingual grass pollen immunotherapy tablets) maintained its efficacy one year after the conclusion of treatment. These results attest to the product’s contribution to patient «desensitization» by tackling the causes of allergic disease;

— In a study conducted in China with Staloral® 300 dust mites (a sublingual immunotherapy product in solution), its efficacy in moderate asthma, a pathology that develops on an allergy backdrop, was demonstrated. This significant result opens the way to developing Actair® (sublingual immunotherapy tablet against house dust mites) against asthma;

— In the United States, we confirmed the results obtained with Oralair® in Europe, which should allow us to register it in the United States.

In that country, our goal is to forge an alliance with a leading partner who will accompany us into the next stages of clinical development to be carried out locally and in the marketing phase of the 3 products relevant to that market (Oralair®, Actair®, and ragweed pollen tablets).

The strengthening of our clinical record is of particular significance at a time when a feeling of distrust for the drugs seems to prevail and where regulatory requirements are continuously increasing. In the very short term, only products whose therapeutic value is indisputable will be kept on the market. In the world of allergens, it is likely that most players will not have the necessary financial resources to carry out large-scale studies or developments related to increasing regulatory requirements. Our market should thus continue to consolidate. Stallergenes plans to play a key role in this.

The agreement concluded with Shionogi & Co Ltd is the explicit recognition of the value of our products in the treatment of allergic diseases. Our partner – one of the largest Japanese pharmaceutical companies – will develop two allergen tablets (Actair® and a Japanese cedar pollen tablet) with Stallergenes in Japan, to treat the two most common causes of respiratory allergy in that country.

Oralair®, our first registered tablet, is in the process of being launched in many countries. Following Germany, where sales doubled in 2010, Oralair® was rolled out in Europe in excellent conditions. In 2011, Oralair® will be marketed in Italy, Spain and France as soon as a fair level of reimbursement and pricing has been set by the relevant authorities.

The dynamics of our Company are reflected in its results: for the tenth consecutive year, in 2010 Stallergenes experienced strong growth in sales (up 12%) and even more in its net profit (up 39%). This exceptional growth in net profit is due to a one-off decrease in R&D investment, and to the recognition of a part of the payment of the first installment from our Japanese partner Shionogi as income. The cash balance now stands at over € 50 million and strengthens our capabilities for acquisitions.

In 2011 we expect a decline in our rate of growth (5 to 7%). The 2010 pollen season has indeed been the weakest in Europe for a decade, and consequently fewer patients have started treatments. Moreover, the macroeconomic environment is not favorable. We however intend to maintain our operating margin at the historic level achieved in 2010, while maintaining a high level of investment in R&D and continuing our international expansion.

Stallergenes’ new majority shareholder, Ares Life Sciences, has confirmed its ambition to support, and even accelerate the growth of our Company. No doubt the support and experience of our new board directors will be invaluable in achieving our goals. More than ever, Stallergenes is in a position to assert its confidence in the future.

Albert Saporta

Chairman & CEO