STADA strengthens business activities in Russia with the signing of a contract for the purchase of the branded product portfolio Aqualor® for the self-medication of sinusitis and sore throat
10/18/2013 . Ad hoc Release
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®.
The purchase price for the Aqualor® 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® products in Russia amounted to approximately Euro 28 million. Since its launch in 2007, the brand Aqualor® 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® 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® 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® 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.
For more information, please contact:
STADA Arzneimittel AG
D-61118 Bad Vilbel
Tel.: +49 6101 603-113
Fax: +49 6101 603-506