German generic drugmaker Stada to buy UK’s Thornton & Ross
17 Aug 2013
German generic drugmaker Stada Arzneimittel AG yesterday agreed to buy British over-the-counter drug (OTC) manufacturer Thornton & Ross for €259 million ($343 million).
Early this month Bad Vilbel- (Germany) based Stada had announced that it was in exclusive talks to acquire Thornton & Ross, one of the fastest-growing companies in the British pharmaceutical market and the fifth-largest in the UK OTC market. (See: German generic drugmaker Stada in talks to buy UK's Thornton & Ross)
The deal will beef up Stada and protect it from becoming an acquisition target for Sun Pharmaceuticals Industries Ltd, India's biggest drugmaker by market value, which has been eyeing the German Stock Exchange-listed company.
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.
The company employs approximately 425 people and posted revenues of £66.23 million ($103 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.
The acquisition will allow Stada to sell its own brands through Thornton & Ross's marketing and distribution channels.
Founded in 1895 in Dresden, Stada specialises in generic and OTC drugs.
It has an extensive product portfolio of a wide range of therapeutic indications, 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. Germany and Russia are its two biggest markets.
The company has grown through aggressive acquisitions made in Europe and Asia.
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