German generic drugmaker Stada in talks to buy UK’s Thornton & Ross

German generic drugmaker Stada Arzneimittel AG today said that it is in exclusive talks to acquire British over-the-counter drug manufacturer Thornton & Ross.

Founded in 1922 and based near West Yorkshire, Thornton & Ross has several well-known prescription-free (OTC) branded products for a wide variety of indications, including cold, pain and dermatology.

Thornton & Ross is currently one of the fastest-growing companies in the British pharmaceutical market and is fifth-largest in the UK OTC market.

The company employs approximately 425 people and posted revenues of £66.23 million last financial year.

Stada said that it will use cash on hand and existing free credit lines to fund the acquisition and plans to complete the deal by the third quarter of the current financial year.

Founded in 1895 in Dresden, Stada specialises in generic and over-the-counter drugs.

It has an extensive product portfolio for a wide range of therapeutic purposes, such as for pain, women's health, cardiovascular conditions and diabetes.

Its product portfolio also includes well-known branded products such as Grippostad, Ladival and Mobilat.

The German Stock Exchange-listed company does not conduct research on any new active pharmaceutical ingredients, but rather focuses on the development and marketing of products with active ingredients that are patent-free. These drugs are then commercially positioned in the two core segments of generics and branded product

Generics formed 66 per cent of the company's 2012 sales of 1.84 billion, while branded products formed 32.5 per cent.

The company has grown through aggressive acquisitions made in Europe and Asia. Germany and Russia are its two biggest markets.

In August 2012, Bloomberg had reported that Sun Pharmaceuticals Industries Ltd, India's biggest drugmaker by market value, was planning acquisitions in Europe and might buy Stada. (See: Sun Pharmaceuticals eyes German generic-drug maker Stada: report)