STADA Arzneimittel AG — M&A Activity 2007

Aug 3, 2007

News Details

Ad-hoc | 3 August 2007 07:27

STADA: STADA acquires Russian pharma group MAKIZ for approx. EUR 125 million

STADA Arzneimittel AG / Acquisition

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Today, on August 3, 2007, STADA acquired the Russian pharmaceuticals group
MAKIZ via a contract on the purchase of respectively 100% of the shares in
the companies ZAO MAKIZ-Pharma, ZAO Skopinpharm and ZAO Biodyne
Pharmaceuticals, which was concluded by STADA’s Russian subsidiary
Nizhpharm OAO, Nizhny Novgorod. The sellers are several private investor
companies. The staggered purchase price, which partly depends on the
results of fiscal year 2007, is expected to amount to a total of approx.
EUR 125 million less net debt of the Group at closing, but will be EUR 135
million at maximum. The agreement will take effect subject to the contract
implementation provisions.

In 2006, the MAKIZ Group was one of the fastest-growing suppliers in the
Russian pharmaceutical market. With a growth rate of +95% in local currency
or in Euro of +102% compared to the previous year, the Group achieved
annual sales of a total of RUB 1,756.4 million or in EUR 51.5 million in
2006; after tax profits increased to RUB 241.9 million (+98% compared to
the previous year) and in EUR 7.1 million (+104% compared to the previous
year) according to IFRS audited report 2006. For 2007, a further slight
sales growth of the MAKIZ Group is expected – despite current significant
changes in the market and customer structure.

The product portfolio of the MAKIZ Group currently consists of over 50
products with off-patent active ingredients, approx. one half of which are
positioned as generics and half as branded products. With a share of 95%
prescription products, the focus of the portfolio is in the indication
areas cardiovascular diseases, central nervous system, tuberculosis and
urology. The Group has strong positions with products in both, government
programs as well as in segments of the Russian pharmaceutical market, where
patients have to pay themselves.

The MAKIZ Group currently has more than 600 employees, of these approx.
one-third work in marketing and sales. The Group’s sales force covers all
the important Russian centers with approx. 130 employees. The two
production locations of the MAKIZ Group in Moscow and in the area of Ryazan
produce the company’s own products in addition to external products in
contract manufacturing. Over 40 projects are currently being followed in
the product development of the MAKIZ Group; more than 30 products are
currently in the approval process for the Russian market.

STADA considers Russia an important growth market and is already active
there with the companies Nizhpharm, Nizhny Novgorod, and Hemofarm, Moscow,
having achieved there sales of EUR 21.4 million in the first quarter of
2007. STADA is strengthening the Group’s activities in this market through
the acquisition of the MAKIZ Group. At the same time, the STADA Group also
gains access to further low-cost production units and development centers
in this region. The MAKIZ Group shall be quickly integrated into the Group
structures of STADA under the direction of the existing management after
completion of the contract implementation provisions that are expected at
the latest in the fourth quarter 2007. The company will continue to operate
independently in the market.

Further information:
STADA Arzneimittel AG / Corporate Communications / Stadastraße 2–18 / 61118
Bad Vilbel, Germany
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
DGAP 03.08.2007

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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

End of News DGAP News-Service

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