Stada in talks to buy Grunenthal brands in Central and Eastern Europe and ME for 360 million euros; 1st-qtr results

German drugmaker Stada Arzneimittel (SAZ: GR) is negotiating with family-owned Grunenthal the purchase of a branded product portfolio including the associated sales structures for numerous national markets in Central and Eastern Europe as well as in the Middle East.  Stada expects to pay around 360 million euros ($522 million) in cash for the portfolio including sales structures and various pipeline products.

The products, which include, among others, the branded products Tramal (tramadol), Zaldiar (tramadol+paracetamol), Transtec (buprenorphine) and Palexia (tapentadol) in the relevant countries, are for the most part prescription drugs and positioned primarily in the area of pain.

Expected sales in the current financial year 2011 for this product package in the respective markets are about 68.6 million euros. Expected earnings before interest, taxes, depreciation and amortization (EBITDA) in the same period should be around 25.6 million euros. Both values do not yet consider the sales and earnings of Palexia, which will be gradually introduced in the contract area in the next two years and from which thereafter an additional annual sales contribution of 20 to 25 million euros is expected. Palexia SR was launched in the UK today (see separate story).