Ad hoc release according to § 15 WpHG 05/12/2011
Bad Vilbel, May 12, 2011 – STADA Arzneimittel AG and Grünenthal GmbH, a globally active research pharmaceuticals company located in Aachen, Germany, have today, on May 12, 2011, agreed to negotiate exclusively on the purchase of a branded product portfolio including the associated sales structures for numerous national markets in Central and Eastern Europe as well as in the Middle East.
The purchase price for the branded product portfolio including sales structures and various pipeline products should amount to a total of approx. EUR 360 million in cash. The products, which include, among others, the branded products Tramal®, Zaldiar®, Transtec® and Palexia® in the relevant countries, are for the most part prescription drugs and positioned primarily in the pain area of indication. Expected sales in the current financial year 2011 for this product package in the respective markets amounts to approx. EUR 68.6 million. Expected earnings before interest, taxes, depreciation and amortization (EBITDA) in the same period should be approx. EUR 25.6 million. Both values do not yet consider the sales and earnings of the licensed product Palexia® from the acquired product pipeline, which will be gradually introduced in the contract area in the next two years and from which thereafter an additional annual sales contribution of EUR 20 to EUR 25 million is expected.
The product portfolio to be acquired consists of over 14 own and licensed brands for Central and Eastern Europe as well as the Middle East. The products are currently sold in the contract area in Poland (approx. 30% share of sales), Russia (approx. 20% share of sales), Czech Republic, Slovakia, Slovenia, Romania, Bosnia, Serbia, Croatia, Latvia, Estonia, Ukraine, Hungary, Saudi Arabia, Kuwait, Lebanon, Jordan, the United Arab Emirates, Egypt, Yemen, Oman, Bahrain and Qatar and are each generally market leader in the relevant area of indication. It is planned, in these markets, to also take over all legal sales units along with the approximately 240 employees – thereof about 70% sales representatives – as well as the brand names and existing licenses. Grünenthal will itself continue to market the products in all other markets outside of the contract area under the same brand names. In addition, STADA has acquired all rights to these products for the national markets of the contract area in which the products acquired have not yet been introduced.
The intended purchase does not include any production facilities. For at least a contractually agreed period not yet determined, Grünenthal will continue to manufacture the products for STADA, insofar as these are not licensed products. For the licensed products, STADA seeks a long term entry into the existing license and supply contracts; if, contrary to current expectations, this is not possible, an appropriate reduction in the purchase price is called for.
The contract signing is planned for the third quarter of the current financial year. The acquisition requires the approval of the responsible anti-trust authorities, so that the implementation of the transaction, which was agreed today, as well as the consolidation of product sales is sought for the fourth quarter of 2011. Payment of the purchase price will be made at the time of completion of the acquisition.
STADA will use cash on hand, free cash flow as well as existing free credit lines to finance the acquisition.
With a successful acquisition, the STADA Group will strengthen its presence in Central and Eastern Europe, one of the largest growth regions in the world, and further expand its basis in the Middle East and thus its international presence overall. In addition, STADA opens up new strategic distribution channels for appropriate products from the comprehensive Group portfolio which in future can also be marketed as branded products via the acquired sales structures in the respective markets in Central and Eastern Europe as well as the Middle East.
For more information, please contact:
STADA Arzneimittel AG
D-61118 Bad Vilbel
Tel.: +49 6101 603-113
Fax: +49 6101 603-506