The Hessian drug manufacturer is expanding its business with over-the-counter drugs.
(Photo: Reuters)
Frankfurt The Hessian drug manufacturer Stada is again buying several over-the-counter branded products from the French manufacturer Sanofi. The company announced this on Wednesday morning. The group is thus expanding its portfolio in Germany and other European markets.
In Germany, Stada will in future be responsible for the entire range of the Antistax brand for vein disorders, as well as European brands such as Omnivit vitamins and the allergy eye drops Lomudal and Opticrom. The transaction is scheduled to close in the fourth quarter and will be funded from cash flow and existing debt, according to the company. A purchase price was not mentioned.
In 2021, Stada had already acquired 16 brands from Sanofi and taken over the distribution of the consumer healthcare portfolio – these are mostly over-the-counter medicines – in ten countries in Central Asia. Sanofi focuses its business in this area on important international brands and large markets and has already sold various medicines that do not meet these requirements.
Stada: Business with branded products is the largest division
“We are very pleased to continue our collaboration with Sanofi. This acquisition further strengthens Stada’s position as one of the four leading providers in the European consumer healthcare market,” said Stada CEO Peter Goldschmidt on Wednesday. Haleon, a company split off from the pharmaceutical company GSK, is currently the largest supplier in this area in Europe, followed by Sanofi, Bayer and Stada.
The Hessian company, once known primarily as a manufacturer of imitation products (generics), has since been taken over by the financial investors Bain and Cinven in 2017 expanded its business with branded products into what is now the largest division of the company. Well-known drugs are the cold remedy Grippostad, the muscle ointment Mobilat and the sun protection product Ladival.
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In 2020, Stada had already acquired some brands from GSK in more than 40 countries and numerous therapeutic areas. Last year, the company’s consumer healthcare business grew by 17 percent at constant currency to 1.6 billion euros in sales. Overall, Stada was able to increase currency-adjusted sales by eleven percent to 3.8 billion euros.
The company thus continued on its growth course – despite a relatively strong presence in Russia, where Stada generates around 15 percent of its sales. The operating result (EBIT) increased by around a quarter to 569 million euros in 2022.
Stada’s debt is rising sharply
Since the takeover by Bain and Cinven in 2017, Stada has spent a total of around 1.6 billion euros on around 20 major acquisitions. However, this also caused the Group’s net debt to rise sharply. In the Stada financial statements, 2.3 billion euros are reported, another around three billion euros at Nidda German Topco and other holding companies through which Bain and Cinven hold their shares.
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