STADA Arzneimittel AG — M&A Activity 2007

Aug 31, 2007

News Details

Ad-hoc | 31 August 2007 10:11

STADA acquires UK pharma Group Forum Bioscience for approx. EUR 55.6 million

STADA Arzneimittel AG / Acquisition

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
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The issuer is solely responsible for the content of this announcement.

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STADA Arzneimittel AG has today, on August 31, 2007, via subsidiaries
completed a contract for the acquisition of 100% of the shares in the
British pharmaceutical Group Forum Bioscience Holdings Ltd., Redhill,
Surrey, in the United Kingdom. The purchase price amounts to GBP 37.7
million or approx. EUR 55.6 million. The sellers are the Japanese company
Ajinomoto Co. Inc. and the co-founder Peter Duckworth. The agreement will
take effect subject to the contract implementation provisions as well as
approval of the anti-trust authorities.

In the fiscal year from April 1, 2006 to March 31, 2007, the Forum
Bioscience Group achieved, primarily in the United Kingdom, with adjusted
annual sales of approx. GBP 55.6 million or approx. EUR 82.0 million
(approx. -3% as compared to fiscal year April 1, 2005 to March 31, 2006)
and an operating profit of approx. GBP 4.3 million or approx. EUR 6.3
million (approx. +41% as compared to the previous fiscal year), net profit
of approx. GBP 3.0 million or approx. EUR 4.5 million (approx. +48% as
compared to the previous fiscal year). The re-statements carried out in
connection with sales relates to an adjustment of an income stream of a
commercial business on a commission basis which will not be prolonged after
the acquisition.

In fiscal year 2006, there were approx. 125 people employed in the Forum
Bioscience Group which, as a pure sales company, has no production
facilities of its own.

The acquired Forum Bioscience Group consists of various companies, which
are divided into two divisions, the Britannia division and the Forum
Products division.

The Britannia division, which is smaller in terms of sales (share of
adjusted Forum Bioscience Group sales approx. 35%) but generates all of the
Group’s profits, is focused on the sale of – partially licensed – branded
products with off-patent active ingredients in market niches of the British
pharmaceutical market; by far the biggest product is APO-go® (active
ingredient apomorphine, for the treatment of Parkinson’s disease) with
annual sales of approx. GBP 14.3 million or approx. EUR 21.1 million. The
Britannia business model fits in well with the existing STADA business in
the United Kingdom (sales of STADA in the United Kingdom in 2006: GBP 27.3
million or EUR 40.1 million) because the STADA sales company there, Genus
Pharmaceuticals has also been pursuing a sales concept targeted toward
market niches for off-patent active ingredients in the area between
generics and branded products. Consequently, Britannia will likely be
integrated with the local STADA sales structures quickly.

The second Forum Bioscience division, Forum Products (share of adjusted
Forum Bioscience Group sales approx. 65%), which was also acquired, is
among other things, trading with active and supplementary ingredients,
mainly in the area of veterinary medicine. When share of Group overheads
are taken into account, this division´s profitability is currently slightly
under the break even point. For STADA, Forum Products will not be part of
the core business and will also continue to operate separately. The costs
of separating the two divisions and integrating Britannia are currently
estimated by STADA at a mid single-digit million amount.

For STADA, with today’s acquisition of the Forum Bioscience Group, the
clear focus of interest is on the Forum Bioscience division Britannia. With
Britannia, the sales structures of the Group in the United Kingdom will be
further strengthened by products which fit in well with the existing STADA
business there.

Further information:
STADA Arzneimittel AG / Corporate Communications / Stadastraße 2–18 /
D - 61118 Bad Vilbel / Phone: +49 (0) 6101 603-113 /
Fax: +49 (0) 6101 603-506 / E-mail: communications@stada.de
Or visit our website at www.stada.com
31.08.2007 Financial News transmitted by DGAP

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Language: English
Issuer: STADA Arzneimittel AG
Stadastraße 2-18
61118 Bad Vilbel
Deutschland
Phone: +49 (0)6101 603- 113
Fax: +49 (0)6101 603- 506
E-mail: communications@stada.de
Internet: www.stada.de
ISIN: DE0007251803, DE0007251845,
WKN: 725180, 725184,
Indices: MDAX
Listed: Amtlicher Markt in Frankfurt (Prime Standard), Düsseldorf;
Freiverkehr in Berlin, Hannover, Hamburg, München, Stuttgart

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