Banking on three key therapeutic areas, including a newly established rare disease franchise, the Italian midcap Chiesi has pursued a sweeping transformation in recent years. In its reboot efforts, the company has not only made significant R&D investments, but pursued key M&A and partnership deals, and aimed for global expansion. The company’s bold strategic shift has paid off, with impressive double-digit growth for three consecutive years.
Leveraging a Solid Legacy
Like many of Italy’s enduring biopharma giants, Chiesi boasts over 80 years of history, with breakthrough treatments such as its Poractant Alfa for preterm babies suffering from respiratory distress syndrome. However, for much of its existence, Chiesi was often perceived as a cautious, more traditional player in the market. That all changed in recent years as the company made radical shifts to its business strategy, positioning itself as an innovator with global aspirations.
When Chiesi announced its 2024 financial results showing EUR 3.4 billion in revenues, a 13 percent increase from 2023, CEO Giuseppe Accogli confirmed: “Chiesi Group delivered an impressive performance, making 2024 the third consecutive year of double-digit growth. These results highlight the positive impact of our clear strategy, our innovative, comprehensive and diversified product portfolio, and strong international footprint.”
A Transformational Journey
What perhaps marked the beginning of the company’s change in tactics was its 2018 legal status shift. Becoming a Benefit Corporation to align business objectives with social and environmental responsibilities, Chiesi decided that its aim should be to benefit society as well as its shareholders. “[Our] stakeholders are the patients we serve, the communities where we operate in and the planet, because all these elements are interconnected,” said senior VP and head of global business and development Stefano Cottignoli. Taking social responsibility a step further, Chiesi also became B Corp certified in 2019.
But beyond these more theoretical transformations, the firm has undergone a strategic re-focus. On the back of a new visual identity in 2021, Chiesi moved to centre its efforts on three main therapeutic domains and pursue development more specifically in these areas. With its “Air, Care, and Rare” strategy, it set out to concentrate on respiratory health, specialty care, and rare diseases.
The “Air” franchise remains the Parma-based firm’s primary therapeutic area. With best sellers like its fixed triple formulation for the treatment of asthma and chronic obstructive pulmonary disease, the respiratory area accounted for 54 percent of the company’s total revenue in 2024. The “Care” franchise, in second place, accounted for 24 percent of Chiesi’s revenues last year.
The “Rare” franchise is the latest addition to Chiesi’s portfolio. As of yet it may account for just 22 percent of the drugmaker’s revenue, yet Chiesi has made some major strides in rare diseases, reporting 2024 revenues of EUR 763 million. Major milestones that have strengthened the firm’s position in rare diseases include the FDA approval of its alpha-mannosidosis treatment, Lamzede (velmanase alfa-tycv), and the approval of its Fabry disease therapy in Europe, the US, and the UK.
R&D and M&A: A Winning Formula
Chiesi has crafted a winning blend of in-house R&D and strategic acquisitions, fueling its growth between developing its in-house pipeline and bringing new value online through acquisitions and partnership deals.
It has made a strong pledge for R&D, deciding to reinvest a large part of sales revenues to furthering its pipeline. Last year Chiesi reinjected no less than 24 percent of its sales into R&D. For Deng Haoqing, president and general manager at Chiesi China, this is “a proportion that far surpasses that of many multinational corporations and underscores an unwavering commitment to innovation and long-term value creation.”
In 2024, the biopharma’s R&D spend reached a total USD 829 million, an increase from EUR 721 million in the previous year. An additional testament to its R&D commitment are the 33 new patent applications Chiesi filed with the European Patent Office (EPO) in 2024.
Another innovative step for the Italian firm last year was the inauguration of its Biotech Centre of Excellence. Representing a total investment of EUR 380 million, the facility is dedicated to developing and producing monoclonal antibodies and enzymes, housing both research and production.
When it comes to M&A activity, Chiesi made a momentous rare disease acquisition in 2023, buying up Amryt Pharma and bringing onboard the rare disease specialist’s approved therapies.
Beyond the Amryt buyout, the Italian drugmaker has also set up a few key partnerships. Namely, it teamed up with Affibody AB in 2023 to develop and commercialize respiratory diseases therapies. In another 2023 deal, the company signed a license agreement with Haisco Pharmaceutical to develop, manufacture, and commercialize a novel solution for bronchiectasis. Moreover, Chiesi entered a collaboration agreement this year with Gossamer Bio to develop and commercialize seralutinib, a late-stage therapy for pulmonary arterial hypertension.
Another important objective for Chiesi has been to broaden its global reach, expanding the company’s presence in critical markets like China and the United States, as well as Japan.
Shining Prospects for 2025 and Beyond
Looking ahead, Chiesi has its sights set on continued growth. “In 2025, Chiesi aims to continue to grow by mid-single digits, and achieve strong cash flow generation and a solid financial position,” said Accogli. “This will enable us to further boost our future growth, via significant investments in innovation, acceleration in external partnerships and potential acquisitions to expand our portfolio and pipeline across all development stages.”
With its clear focus, innovative spirit, and global expansion efforts, Chiesi is primed to continue its transformational journey, aiming to position itself as a biopharma powerhouse for the next 80 years and beyond.
