Press release: STADA continues strong growth journey in the first half of 2024
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STADA continues strong growth journey in the first half of 2024
- Group revenues with above-market growth of 9% take half-year turnover over €2 billion, resulting in double-digit profit increase
- Specialty was STADA’s fastest-growing and highest-margin segment in the first half of 2024, driven by an expanding biosimilars offering and roll-out of differentiated neurology and nephrology brands
- STADA CEO Peter Goldschmidt: ‟STADA’s ongoing growth journey bears testimony to the strength and resilience of our three-pillar strategy – Consumer Healthcare, Specialty and Generics. Our continued growth ahead of market averages is compelling proof that our strong culture drives our performance.“
Bad Vilbel, Germany – 28 August 2024 – STADA achieved six-month sales of more than €2 billion in the first half of this year. Group revenues in the six months ended 30 June 2024 increased by 9% to €2.02 billion compared to the first half of 2023, outpacing market trends, while effective investments drove reported earnings before interest, tax, depreciation and amortization (EBITDA), adjusted for currency fluctuations and special items, by 11% to €463.5 million.
All three of STADA’s business segments – Consumer Healthcare, Generics and Specialty – contributed to group revenues advancing ahead of overall industry trends in the first half of 2024. Specialty was STADA’s fastest-growing and highest-margin segment, supported by a rapidly growing biosimilars offering and the roll-out of differentiated neurology and nephrology brands.
“STADA’s ongoing growth journey bears testimony to the strength and resilience of our three-pillar strategy – Consumer Healthcare, Specialty and Generics. Our first-half performance ahead of the industry is a direct result of the exceptional engagement, entrepreneurial vision and growth culture among our around 11,500 colleagues around the world,” stated CEO Peter Goldschmidt.
Broad-based revenues and profit growth in the first half of 2024 came amid a challenging macroeconomic environment of major economies stagnating and inflation persisting, albeit at a lower level than in 2023. Through the group’s broad portfolio spanning prescription Specialty and Generics medicines as well as Consumer Healthcare products, STADA was able to provide a reliable supply to patients and their caregivers, while showing agility in managing the adverse financial impact of a weaker colds and flu season.
Specialty revenues surge by 14%
Specialty sales that advanced by 14% to €417.3 million – accounting for 21% of total group revenues in the first half of 2024 – were driven both by STADA’s expanded portfolio, which now comprises seven marketed biosimilars, as well as by the roll-out of differentiated brands such as the Lecigon Parkinson’s disease therapy and the Kinpeygo orphan medicine for a rare kidney disease.
Within the biosimilars portfolio, the Hukyndra high-concentration adalimumab brand achieved strong double-digit volume growth, capturing market shares widely through availability in 24 European Union (EU) countries. Available in 21 EU markets, Oyavas (bevacizumab) held an overall double-digit value share amid intense competition, while Ximluci (ranibizumab), available in 18 EU countries, continued to pick up share as the second-ranked biosimilar by value. Movymia (teriparatide) was able to defend its position as European market leader by value, ahead of the reference brand.
The end of the six-month reporting period also saw the first sales contribution from Uzpruvo (ustekinumab) following the initial launch of the immunology biosimilar in the Czech Republic. Agility in navigating intellectual property, as well as national pricing and reimbursement systems, during the reporting period enabled first-to-market launches and initial product orders in another 14 European countries in late July 2024. This entrepreneurial approach helped to improve patient access as the only company to announce biosimilar entry immediately following the expiry of applicable exclusivity rights.
During the reported period, STADA strengthened its biosimilars pipeline through new partnerships for golimumab and denosumab, and also named a partner to commercialize ranibizumab in the US.
With the ongoing roll-out of the Lecigon Specialty brand, more than 1,500 patients across Europe are now receiving the intestinal gel therapy. Following its initial launch in Germany two years ago, the Kinpeygo orphan medicine for treating a rare kidney disease was successfully introduced in further countries, including in the UK following a positive recommendation in guidelines issued by the National Institute for Health and Care Excellence. A further Specialty growth driver was the Corpos (ocrelizumab) brand marketed by STADA’s Hemofarm affiliate for Roche in Serbia.
Complex generics launches boost growth
Introducing the complex generics rivaroxaban and dabigatran in several European countries helped to drive a 12% Generics revenues increase to €838.2 million in the first half of 2024. STADA benefited from positive market-share development in several countries, based on successful strategy execution with strong supply reliability and competitive prices. Growth drivers for the Generics segment included Germany, Italy, Poland, France, Ireland and Switzerland, as well as Nordic countries following the introduction of methylphenidate.
This strong performance confirms that Generics remain a consistent and sustainable growth driver for the group, which will benefit from a Generics launch pipeline that already covers approximately 80% of original medicines that will lose exclusivity over the next few years.
STADA’s Consumer Healthcare segment showed agility despite a weak cough and cold season, achieving a 3% revenues rise to €768.3 million. Excluding the impact of the seasonality in the cough and cold market, in which STADA’s numerous strong local brands were impacted by a sharp slow-down in customer demand, Consumer Healthcare achieved double-digit organic growth in the reported period.
Extensions to the Nizoral scalp and hair care range were a major factor in strong dermatology sales, while the Antistax vein-health brand acquired from Sanofi in 2023 performed strongly through brand activation in pharmacies. Line extensions within the Eunova vitamins portfolio, the promotion of the Elotrans Reload electrolyte supplement, and new presentations within the Zoflora disinfectants range also contributed to the Consumer Healthcare growth.
Having towards the end of 2023 strengthened its Consumer Healthcare presence in China through a partnership with major local player CR Sanjiu, STADA in the first half of 2024 further enhanced its operations in emerging markets through an agreement with Zuellig Pharma in the Philippines, as well as through a product supply and marketing alliance with ADCAN Pharma in the United Arab Emirates, where STADA achieved strong first-half growth along with other countries within the Gulf region.
Strong profit growth in first half
EBITDA increased by 11% to €463.5 million as adjusted for currency effects and special items. STADA’s adjusted group EBITDA margin improved by half of one percentage point. In part, this margin improvement reflected the double-digit growth of the Specialty segment, which improved its adjusted EBITDA margin by more than four percentage points to 35.3%. Normalization of global supply-chain volatility enabled STADA to capitalize on prior-year investments in inventory and dual-sourcing of active ingredients, thereby freeing up cash.
Goldschmidt commented: “Our continued growth ahead of market averages is compelling proof that our strong culture drives our performance. Across the group, we act with integrity and share best practices as One STADA, brought together by our common purpose of Caring for People’s Health as a Trusted Partner.”
Culture drives performance
Evidence of the exceptional growth culture among STADA’s diverse workforce came from the latest group-wide employees’ survey conducted in May 2024, in which 89% of all colleagues participated, far above industry norms. Among the encouraging results were that 89% of all participants are confident that the group will achieve its business objectives, and 84% feel that they can self-empower at STADA. During the reported period, STADA’s average number of full-time employees rose by 2% to 11,540, with women holding 52% of management positions.
STADA was able to maintain its position as a leader on sustainability in the first half of 2024, within the top 6% of the industry as assessed by independent experts Sustainalytics. As a major contribution to the debate around sustainable healthcare systems, the group in June 2024 revealed headline findings from its latest annual STADA Health Report survey of 46,000 individuals across 23 countries at a launch event in Rome, Italy, that was attended by more than 100 journalists and other stakeholders.
About STADA Arzneimittel AG
STADA Arzneimittel AG is headquartered in Bad Vilbel, Germany. The company focuses on a three-pillar strategy consisting of consumer healthcare products, generics and specialty pharma. Worldwide, STADA Arzneimittel AG sells its products in more than 100 countries. In financial year 2023, STADA achieved group revenues of EUR 3,734.8 million and reported earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 802.1 million. As of 31 December 2023, STADA employed 11,667 people worldwide.
Additional information for journalists: STADA Arzneimittel AG - Media Relations Stadastrasse 2-18 61118 Bad Vilbel - Germany Phone: +49 (0) 6101 603-165 E-Mail: press@stada.de Or visit us on the Internet at www.stada.com/press Follow @STADAGroup on LinkedIn
Additional information for capital market participants: STADA Arzneimittel AG - Investor & Creditor Relations Stadastrasse 2-18 61118 Bad Vilbel – Germany Phone: +49 (0) 6101 603-4689 Fax: +49 (0) 6101 603-215 E-mail: ir@stada.de Or visit us on the Internet at www.stada.com/investor-relations