STADA: Russian STADA subsidiary strengthens branded product portfolio in the men's health area
Bad Vilbel, February 4, 2015 – The Russian subsidiary of STADA Arzneimittel AG, AO Nizhpharm, has further strengthened the Group's branded product portfolio through purchase of the two brands AndroDoz® and NeroDoz®.
The purchase follows Nizhpharm's successful introduction of the two products in 2012 in the context of a distribution and trademark license agreement. The purchase price amounts to a total of 526.5 million Russian rubles (approximately Euro 7.9 million at the official exchange rate of Central Bank of Russia as of December 25, 2014) in cash. The seller is OOO PharmEnergy, a Russian pharmaceutical company based in Moscow. In particular, the acquisition includes the brand rights to “AndroDoz” and “NeroDoz”, the international brand rights, related regulatory documents, marketing materials as well as a long-term contract manufacturing agreement with a third party contract manufacturer.
Both products are nutritional supplements and positioned in the over-the-counter area (OTC). AndroDoz® is used to improve spermatogenesis and prevent male infertility. NeroDoz® is used to treat premature ejaculation. In 2014 net sales generated with these two products in Russia amounted to approximately Euro 3.0 million.
“The purchase of AndroDoz® and NeroDoz® fits perfectly within our strategy of continuing to push the expansion of attractive-margin branded products, which today already contribute 51 percent of the adjusted operating profit of the core segments”, says Hartmut Retzlaff, Chairman of the Executive Board of STADA Arzneimittel AG.
The acquisition represents a good supplement to the preexisting branded product portfolio of the Russian STADA subsidiary in the area of men's health. In addition to strong growth, further synergies are expected that are to come both as a result of the bundling of marketing activities in the area of men's health and nutritional supplements in Russia and as a result of the utilization of the existing sales platform in the area of specialist doctors and pharmacists in the context of introducing the newly acquired products in the entire CIS region.
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