Stada confirms 360 million-euro buy of Grunenthal branded product portfolio

German drugmaker Stada Arzneimittel (SAZ: GR) and have confirmed the previously-flagged signing of a deal with family-owned Grunenthal to the contracts on 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 (The Pharma Letter May 16).

The purchase price for the branded product portfolio including sales structures and various pipeline products amounts to a total of around 360 million euros ($517.2 million) in cash as already announced in May. The products are for the most part prescription drugs and positioned primarily in the pain area of indication. The product portfolio to be acquired consists of over 14 own and licensed brands for Central and Eastern Europe as well as the Middle East.

Expected sales in the current financial year 2011 for this product package in the respective markets are about 68.6 million euros. Earnings before interest, taxes, depreciation and amortization (EBITDA) in the same period should be around 25.6 million euros, the companies have said.