- Stada Pharmaceutical's expansion continues, yet the rate of sales increase is diminishing.
Stada's Revenue surge from Generics and Specialized Meds
Pharmaceutical maker Stada saw a surge in revenue due to sales of generic medications and specialized drugs. The company reported a nine percent rise in year-on-year sales in the first half, reaching approximately €2 billion, based on their announcement from Bad Vilbel. Alongside this, the adjusted operating profit (EBITDA) climbed by 11 percent to €463.5 million. CEO Peter Goldschmidt credited this growth for surpassing market averages. Stada's net income for the first half soared by 15 percent to €186 million compared to the previous year.
Known for its cold remedy Grippostad and sun care product Ladival, Stada's sales of generics and specialized drugs jumped by double-digit percentages, partly due to the arrival of new brands. Sales of over-the-counter medications, however, saw a more modest increase of three percent, which Stada attributed to a subdued cold and flu season leading to reduced demand for several of their own brands.
Excluding the Russia business, which its owners, private equity firms Bain Capital and Cinven, decided to spin off, the first-half results came into play. This decision is part of plans to either sell or list Stada on the stock exchange. Previously contributing more than 15 percent to sales, the Russia business was considered a considerable obstacle. Regardless of the Ukraine conflict, Stada refused to abandon Russia, stating the importance of supplying medical supplies to the local population.
Discussions on a potential billion-dollar sale or IPO of Stada, which employs around 11,500 people, have been delayed longer than anticipated. Bain Capital and Cinven are still in negotiations with potential buyers, ranging from private equity firms to pharmaceutical companies. Alongside these negotiations, preparations for an IPO are also underway.
Stada's revenue boost primarily came from the sales of Stada medicinal products, which include both generic medications and specialized drugs. Despite a modest three percent increase in over-the-counter medication sales, it was the strong performance of Stada medicinal products that drove the overall growth.
