STADA successfully concludes negotiations to acquire Nizhpharm
12/22/2004 . Ad hoc Release
STADA Arzneimittel AG has successfully concluded negotiations to acquire the Russian pharmaceutical company Nizhpharm OJSC, Nizhny Novgorod after the provisional agreement was signed on November 8, 2004 (see ad hoc release as of November 8, 2004, published by DGAP). The final agreements, signed today, specify that STADA will acquire approx. 97.5% of Nizhpharm’s shares for a total price of approx. EUR 80.5 million which is to be paid in USD. The sellers are the European Bank for Reconstruction and Development (EBRD), the Nizhpharm management and other institutional and private investors. The existing management at Nizhpharm will continue to run the Russian company. Completion of the acquisition is conditional upon Russian anti-trust approval.
Nizhpharm is the fourth-largest local pharmaceutical company in Russia in terms of sales and is one of the fastest-growing suppliers in the Russian pharmaceutical market. In 2003, Nizhpharm increased sales in local currency by +28% to RUB 1,415.3 million and in Euros by +9% to EUR 40.8 million, respectively. These sales were mainly achieved with branded products. From today’s perspective, Nizhpharm expects that net income after taxes, which amounted to RUB 172.6 million and EUR 5.0 million in 2003, could be almost doubled in 2004. Nizhpharm also anticipates that the strong earnings growth will continue in 2005.
Nizhpharm employs around 1,250 people in total, thereof approx. 820 in its own production facilities. Nizhpharm's product portfolio consists of more than 40 brand-name products with off-patent active ingredients. Approx. 74% of Nizhpharm's sales in 2003 were in non-prescription drugs. The Russian market accounts for the major share (84%) of Nizhpharm's sales. Substantial export sales by Nizhpharm's own local subsidiaries are being achieved in Ukraine and Kazakhstan.
From STADA’s perspective, the acquisition of Nizhpharm is an important strategic step and is part of the expansion of Group activities in the CIS states within STADA’s framework of ongoing internationalization.
For more information, please contact:
STADA Arzneimittel AG
D-61118 Bad Vilbel
Tel.: +49 6101 603-113
Fax: +49 6101 603-506