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Company profile

STADA – Active worldwide

Functionally organized Group with local and close to market sales companies

STADA’s international sales infrastructure consists of many nationally aligned sales companies, therefore providing them with market proximity, which are supported and managed by the central functions of the Group.

Depending on the local market structure and the corresponding demand relevance, the STADA subsidiaries in the area of national sales and marketing concentrate on various target groups such as patients and/or consumers, doctors, doctors’ cooperatives, pharmacies, pharmacy cooperatives, hospitals, wholesalers and other service providers in the health care market as well as on cost bearers in the form of public health insurance organizations or private insurances.

In order to differentiate by specific target groups, STADA is actively involved in selected markets sometimes also with parallel sales companies. Taking into account Group guidelines, the individual subsidiaries can thereby structure their local product portfolio differently in order to be able to optimally meet respective local requirements.

This market-oriented sales concept enables STADA to respond promptly to changes in the individual national markets and to quickly adapt its respective local commercial presentation to the corresponding requirements. These could include, for example, a different product assignment, a modified market presentation, or the diversification, expansion or reduction of local sales structures.

In addition, sales activities in the STADA Group are also coordinated on an international level; this applies, for example, for the structuring of the product portfolio for the purpose of the further internationalization of individual products, or for other sales activities such as wholesaling cooperative agreements. On the other hand, STADA separates marketing and sales activities of various sales companies within individual markets, if this is advantageous or necessary due to structural or legal framework conditions, such as to maintain so-called“ confidential tenders” in the context of tenders for discount agreements in the German generics market.

Continuous expansion and further internationalization of the Group-wide sales network Generally, the Group continues to pursue the objective to constantly expand the existing sales network. On the one hand, this is to further reduce the dependence on national markets such as Germany whose health care system is still characterized by difficult local framework conditions for generics. On the other hand STADA thereby intends to optimally use the arising growth opportunities.

In financial year 2011 the Group complimented the existing international sales structures through two further acquisitions. STADA thus acquired a branded product portfolio including the associated sales structures for numerous national markets in Eastern Europe and the Middle East in two installments on December 30, 2011 and in the current financial year on January 31, 2012.¹⁾ Furthermore, STADA signed a contract in 2011 for the purchase of a generics business in Switzerland including the respective sales structures, which was concluded in the first quarter of 2012.²⁾

As of March 31, 2012, the Group was operating with 54 sales companies in 33 countries (March 31, 2011: 44 sales companies in 31 countries). The Group’s sales focus continued to be on Europe in 2011. There, as of March 31, 2012, STADA was represented by 48 sales companies in 27 national markets (March 31, 2011: 38 sales companies in 25 national markets).

Furthermore, in Asia, as of March 31, 2012, the Group was operating with own sales companies in China, Kazakhstan, the Philippines, Thailand and Vietnam as well as in Africa with an own sales company in Egypt. STADA is also active in sales with local distributors in 52 countries, particularly in the Middle East.

In addition in the first quarter of 2012, STADA began preparatory activities for the establishment of an Australian generics business by founding an own subsidiary, STADA Pharmaceuticals Australia Pty Ltd, which should already lead to a start in the market within 2012.

More information on the development of Group activities in the individual national markets can be found here.

1)	See the Company’s ad hoc release of May 12, 2011 as well as the Company’s ad hoc update of July 22, 2011, December 30, 2011, January 1, 2012, January 27, 2012 and January 31, 2012.
2)	See the Company’s ad hoc release of May 19, 2011 and the Company’s ad hoc update of November 9, 2011.
3)	All companies with a STADA share of at least 50% have been listed. Unless indicated otherwise, the companies are wholly-owned by the STADA Group.
4)	Currently not consolidated.
5)	Acting as commission agents on behalf of STADA Arzneimittel AG.
6)	Consolidated since January 1, 2012.
7)	Bundled under the umbrella brand STADA CIS.
8)	Including various local sub-labels.
9)	In Australia in the current first quarter of 2012, STADA began preparatory activities for the establishment of an Australian generics business by founding an own subsidiary, STADA Pharmaceuticals Australia Pty Ltd, which should already lead to a start in the market within 2012.