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STADA - A strong brand with strong brands

In the core segment Branded Products, STADA recorded sales growth of 6% to EUR 392.6 million in 2009 (previous year: EUR 368.9 million). This gave Branded Products a share of Group sales of 25.0% in 2009 (previous year: 22.4%). By taking into account portfolio changes and currency influences, adjusted sales of Branded Products recorded an increase of 15% in the financial year 2009.

In the first half of 2010 Branded Products recorded an increase of 8% to EUR 202.5 million (1-6/2009: EUR 187.6 million). The share of Branded Products in Group sales thus amounted to 26.0% in the first half year of 2010 (1-6/2009: 24.8%). Adjusted sales of branded products in the Group recorded growth of 3%.

In this segment, STADA’s focus lies on products with off-patent active pharmaceutical ingredients, for which the specific product characteristics and in particular also the brand name of the respective product are at the forefront of sale. Thereby, the Branded Products portfolio at group level continues to consist primarily of non-prescription products in individual national markets, but also of prescription drugs.

Also in the STADA Group’s second core segment of Branded Products growth prospects can be seen based on long-term trends such as the increasing life expectancy. However, here in the case of branded products economic influences in individual national markets play a greater role than in the case of generics, as the expenses for branded products are mainly assumed by the patients themselves and only partly reimbursed. Moreover the development of branded products can be subjected to regulatory framework conditions such as changed reimbursement regulatory conditions or pricing requirements even if in general with lower frequency and less marked operating consequences than with generics.

STADA has always followed a selective product portfolio structure for Branded Products. STADA’s Branded Products are only marketed in selected local markets depending on availability and market responsiveness. Here as far as possible STADA pursues the concept of “strong brands” which as they are very well known, ideally as the local market leader, with comprehensive promotional and sales support, enjoy growth potential independently of local market trends as far as possible.

With the top five branded products in the Group in terms of sales, STADA generated sales in the amount of EUR 106.3 million in the financial year 2009 (previous year: EUR 99.4 million). Thus, the share of these branded products amounted to 27.1% (previous year: 26.9%) of sales of the Branded Products segment in financial year 2009.

Measured by sales, Grippostad^®, with EUR 34.1 million in 2009 (previous year: EUR 28.0 million) continued to be the strongest branded product in the Group.

In addition to Germany, branded products are distributed by STADA’s subsidiaries in Austria, Belgium, Bosnia-Herzegowina, Bulgaria, China, the Czech Republic, Denmark, France, Finland, Ireland, Italy, Kazakhstan, Lithuania, Macedonia, Montenegro, the Netherlands, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Spain, Thailand, Ukraine, United Kingdom and Vietnam.