STADA Arzneimittel AG — M&A Activity 2011

May 12, 2011

News Details

Ad-hoc | 12 May 2011 10:19

STADA and Grünenthal in exclusive negotiations on the purchase of a branded product portfolio in Central and Eastern Europe as well as the Middle East for approx. EUR 360 million

STADA Arzneimittel AG / Key word(s): Mergers & Acquisitions

12.05.2011 10:19

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

---

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(R), Zaldiar(R), Transtec(R) and Palexia(R) 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(R) 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.

Additional 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 us in the Internet at www.stada.com.

12.05.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---

Language: English
Company: 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: Regulierter Markt in Düsseldorf, Frankfurt (Prime Standard);
Freiverkehr in Berlin, Hamburg, Hannover, München, Stuttgart

End of Announcement DGAP News-Service

---