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Company profile

STADA - Generics with “value for money”

In fiscal year 2008, Generics contributed 70.1% (previous year: 73.5%) to STADA’s Group sales and thus continued to be the clearly larger of the two core segments. In 2008 STADA achieved sales of EUR 1,154.5 million (2007: EUR 1,154.4 million) and in the first nine months of 2009 EUR 816.6 million (1-9/2008: EUR 854.2 million) in this segment.

Generics are products for which the focus of sales is on a low pricing and/or on a cross-product and active-ingredient marketing concept.

In the Executive Board’s assessment, generics, in particular, hold high structural growth potentials within the pharmaceutical market. Generics allow for a low-cost medical therapy without quality cutbacks and as such represent a competitive response to the ongoing growing cost pressure. In addition, the continuous expiration of patents or other commercial property rights consistently ensures a constant automatic expansion of market potential available for generic competition.

The high growth potential of generics is also visible through current data. The sales volume of the global generics market grew by 6.1%¹⁾ in 2008; sales of the global generics market was approx. EUR 90.0 billion in 2008²⁾; the share of generics in the global pharmaceutical market is thus 17.7%. With continuously clear volume growth in the future, the sales growth of the generics market could slow due to stronger price pressure. A leading international pharmaceutical market research institute, however, continues to assume in its latest estimates a strong annual average growth rate of the generics market until 2013 of 8% to 11% annually.¹⁾³⁾

Overall, in fiscal year 2008, STADA generated sales in the amount of EUR 217.5 million with products containing the Group’s top five active pharmaceutical ingredients in terms of sales (previous year: EUR 237.7 million). These products thus contributed 13.2% to Group sales in 2008 (previous year: 15.1%).

Measured by sales, the stomach medicine Omeprazole continued to be the best-selling active pharmaceutical ingredient in the product portfolio, both in the core segment Generics and in the STADA Group as a whole.

STADA´s sales network outside of Germany consists the following sales companies in Europe: Austria, Belgium, Bulgaria, Bosnia-Herzegowina, the Czech Republic, Denmark, Finland, France, Ireland, Italy, Lithuania, Macedonia, Montenegro, the Netherlands, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Spain, Sweden, Ukraine and United Kingdom.

Further own sales companies outside of Europe are in: China, Kazakhstan, Vietnam, Philippines and Thailand.

1)	Data based on the 26 leading generics markets.
2)	Data based on the 26 leading generics markets and a projection for the other generics markets.
3)	Data from IMS Health at ex-factory prices. The market data on generics fluctuates – in some cases substantially – due to differing market definitions from source to source.