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STADA - A strong brand with strong brands

In the Branded Products core segment, STADA increased sales – also due to acquisitions¹⁾ – by 21% to EUR 368.9 million in fiscal year 2008 (previous year: EUR 304.0 million). This gave Branded Products a share of Group sales of 22.4% in 2008 (previous year: 19.4%). In the first nine months of 2009 sales increased by 2% to EUR 278.7 million (1-9/2008: EUR 273.0 million).

In this segment, too, STADA’s focus lies on products with off-patent active pharmaceutical ingredients, so-called multisource products. 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.

The Branded Products market segment is also characterized by long-term growth potentials since here, too, major growth-promoting trends such as increasing life expectancy should be noticeable. However, this segment is more strongly dependent on economic trends in individual national markets since STADA’s Branded Products are frequently paid for by the patients themselves and are not or only in part reimbursed. Nevertheless, Branded Products can also be affected by regulatory interventions such as changed reimbursement rules or pricing requirements, however, as experience showed at a lower frequency and with less distinct operating consequences than in the Generics segment.

STADA also pursues a selective portfolio concept in the Branded Products segment. Depending on availability and market attractiveness, the Group usually sells its branded products only in selected local markets. However, with STADA’s increasing international alignment the number of internationally sold branded products is also gradually growing. In addition, in the Branded Products segment the STADA Group targets so-called “strong brands” with its product portfolio. Those are branded products which – due to their high degree of public awareness, ideally with a position as local market leader and through substantial promotional or sales support – preferably have a growth potential which is as independent from local market trends as possible.

With the top five branded products in the Group in terms of sales, STADA generated sales in the amount of EUR 99.4 million in fiscal year 2008 (previous year: EUR 78.7 million). The share of these branded products thus amounted to 6.0% in the reporting year (previous year: 5.0%).

Measured by sales, Grippostad®, with EUR 28.0 million in 2008 (previous year: EUR 24.0 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.

1)	The units acquired in the United Kingdom in 2007 (Forum Bioscience Group) and Russia (MAKIZ Group) comprise significant shares in sales in the Branded Products core segment. Beyond that, since November 14, 2008 the Italian branded product Keritrina® contributed to sales of Branded Products in 2008.