DGAP-Adhoc: STADA strengthens business activities in Russia with the signing of a contract for the purchase of the branded product portfolio Aqualor(R) for the self-medication of sinusitis and sore th

STADA Arzneimittel AG / Key word(s): Miscellaneous

18.10.2013 13:10

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

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Bad Vilbel, October 18, 2013 - Today, on October 18, 2013, the Russian
subsidiary of STADA Arzneimittel AG, OAO Nizhpharm, signed a framework
agreement to purchase the branded product portfolio Aqualor(R).

The purchase price for the Aqualor(R) product package amounts to a total of
Euro 131 million in cash. 83 percent thereof is due upon completion of the
contract and a further 17 percent only once certain conditions have been
fulfilled - that have been agreed on by the purchaser and sellers - within
twelve months following the completion of the transaction. The product
package comprises ten prescription-free (OTC) product presentations based
on seawater in the form of sprays and drops with the local regulatory
status of medical devices for the treatment of sinusitis (infections of the
paranasal sinus) and sore throat. In 2012 net sales generated with these
Aqualor(R) products in Russia amounted to approximately Euro 28 million.
Since its launch in 2007, the brand Aqualor(R) has demonstrated vigorous
sales growth and is now one of the leading products in the market segment
for seawater products, which in the Russian market grew by approximately 34
percent per year over the last five years on average. In 2012 the
Aqualor(R) product portfolio posted an EBITDA margin which is significantly
above the average of the branded products in the STADA Group.

The transaction primarily includes the rights to various Aqualor(R)
trademarks allowing for distribution in Russia, related marketing materials
including website content and the package design, the regulatory documents
and marketing authorizations, a purchase agreement for existing inventories
as well as the rights to assume existing long-term contract manufacturing
agreements. The purchase does not include any production facilities or the
transfer of personnel. The portfolio is mainly being sold by Butterwood
Holdings Limited, a company located in Cyprus, and ZAO Pharmamed, a Russian
pharmaceutical company located in Moscow.

The completion of the contract and therefore the consolidation of
Aqualor(R) product sales in the STADA Group is expected for the first
quarter of 2014, after fulfillment of extensive completion conditions,
particularly in the areas of product documentation and supply chain.

For the financing of the acquisition, STADA will use existing cash on hand
and existing free credit lines.

The acquisition strengthens the Group's business activities in the market
segment for branded products for self-medication in Russia, which is
especially strategically important for STADA.

Additional information:
STADA Arzneimittel AG / Corporate Communications / Stadastraße 2-18 / 61118
Bad Vilbel - Germany / Tel.: +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.

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Language: English
Company: STADA Arzneimittel AG
Stadastraße 2-18
61118 Bad Vilbel
Germany
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

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