Specialized pharmaceutical company Grünenthal with Continued Growth in First Half of 2012

Aachen (ots) -

- Core business of mid-sized pain therapeutics specialist grows 9
per cent
- Continued above-industry-average investment in research and
development
- Further expansion of business in Latin America

In the first half of 2012 Grünenthal Group, an international pain
therapy expert, reached revenues of EUR 473 mn (vs. EUR 483 mn in H1
2011). Corrected by divested businesses, core business grew by 9 per
cent in the first half of 2012. Growth was driven by the continued
success of Grünenthal's global pain brands, in particular the
strategic growth drivers Palexia® (+EUR 19 mn) and Versatis® (+EUR 16
mn) in Europe and Australia as well as increased royalty income for
Tapentadol, which Johnson & Johnson sells on the North American
market under the trade name Nucynta® (+ EUR 10 mn). The growth of the
innovative products more than compensated for the expected revenue
decreases for mature and local products. Additionally, development of
the business in Brazil and other countries as well as favorable
exchange rate developments in the Latin American business also
contributed to revenue growth in the first half of 2012.

Significant increase of operational EBITA (Earnings before
Interest, Taxes and Amortization) clearly shows the effect of the
implementation of focusing strategy in 2011. Group operating EBITA
rose to EUR 41 mn for the first half of 2012, an increase of 147%
versus H1 2011. Main drivers of this significant profitability
increase are accelerated revenue growth of the core business which
more than compensated for the loss of profit contribution of the
divested businesses. In addition, after several market launches of
Palexia® in 2011, marketing and sales cost decreased in the first
half of 2012. Savings in administration cost of about 14 per cent in
first half of 2012 further drove profitability.

Harald F. Stock, PhD., CEO of Grünenthal Group, commented on the
results: "We are pleased to see that our focus on the core business
is showing the expected results. We remain on track in implementing
our VISION 2020 long-term strategy. The measures we have taken
provide us with the necessary resources to invest in future growth
and maintain our independence as a family-owned innovative company.
With our pipeline of innovative projects in pain therapy we reached
further milestones in the first half of 2012."

Continued above-industry-average investment in research and
development

Tapentadol received FDA approval for label extension in diabetic
polyneuropathy. Grünenthal also completed the Phase III study for
Tapentadol with cancer patients in Europe. GRT6005, a compound with
an innovative mechanism of action is moving to Phase IIb. "Together
with our strategic development partner Forest, we see great potential
for GRT6005 to provide a significant enhancement in the therapy of
chronic pain," added Stock. Grünenthal Group continues to invest in
research and development about 25 percent of revenues which is well
above the industry average of approximately 16 per cent. Global pain
products that are in the market for less than five years generate
more than 32 percent of global pain revenues for Grünenthal (compared
with an industry average of about 9 percent). This illustrates the
successful track record of R&D investment for the company which aims
to launch one innovative product every five years.

Strategic licensing deal for Latin American pain market

In Latin America, Grünenthal is further strengthening the business
in these fast-growth emerging markets with selected acquisitions and
licensing deals. Following the successful acquisition and integration
of the Brazilian company Selfarma in 2011, Grünenthal announced in
June 2012 an exclusive agreement with US-based Horizon Pharma for the
commercialization of DUEXIS® (proprietary combination of ibuprofen
and famotidine) in Latin America. The complete coverage of the Latin
American market with a pain portfolio represents an important
strategic step and again demonstrates that Grünenthal is an
attractive partner for other pharmaceutical companies in the Latin
American market. The company's current leading market position in the
pain segment in Latin America is mainly based on centrally acting
analgesics and this licensing agreement provides the entry in the
larger and even more attractive non-steroidal anti-inflammatory drugs
(NSAIDs) market.

About Grünenthal

The Grünenthal Group is an independent, family-owned,
international research-based pharmaceutical company headquartered in
Aachen, Germany. Building on its unique position in pain treatment,
its objective is to become the most patient-centric company and thus
to be a leader in therapy innovation. Grünenthal is one of the last
remaining five research-oriented pharmaceutical companies with
headquarters in Germany which sustainably invests in research and
development. These investments amounted to about 25 percent of
revenues in 2011. Grünenthal's research and development strategy
concentrates on selected fields of therapy and state-of-the-art
technologies. We are intensely focused on discovering new ways to
treat pain better and more effectively, with fewer side-effects than
current therapies. Altogether, the Grünenthal Group has affiliates in
26 countries worldwide. Grünenthal products are sold in more than 155
countries and today approx. 4,200 employees are working for the
Grünenthal Group worldwide. In 2011, Grünenthal achieved revenues of
EUR 947 mn. More information: www.grunenthal.com.

Contact:
Frank Schönrock,
Vice President Corporate Communications
Tel.: +49 241 569-1568,
Fax: +49 241 569-3539,
frank.schoenrock@grunenthal.com
www.grunenthal.com