Stada Arz extends generics deal with Omega Pharma; Omega appointments

German drugmaker Stada Arzneimittel's (SAZ: GR) Belgian subsidiary, Eurogenerics, and the pharmaceutical company Omega Pharma (OME: BB) have signed a new contract with a minimum term of five years for the distribution of generics to pharmacies and wholesalers in Belgium.

Compared to the previous conditions, Eurogenerics expects annual cost reductions in the higher single-digit million euro area over the period of the contract. Customers in Belgium will also benefit from considerably improved service as a result of more intense utilization of the Omega Pharma sales team.

“We are very pleased to have reached an agreement with our long-standing partner Omega Pharma. This not only guarantees us five more years of continuity as well as the professionalism we have come to expect from the distribution of our generics in Belgium, it also results in significant cost reductions as compared to the previous conditions”, says Hartmut Retzlaff, chairman of the executive board at Stada, adding: “In addition to group programs to increase profitability, such cost optimizations in the markets also keep us confident that we will be able to reach our financial goals for 2014.”