Stada completes sale of US business
German generics manufacturer Stada has completed the sale of its US subsidiary to New Jersey-based Dava Pharmaceuticals.
German generics manufacturer Stada has completed the sale of its US subsidiary to New Jersey-based Dava Pharmaceuticals.
The sale is worth about US$40m (Euro 31m). Under the contract Dava paid Stada $5m (€3.9m) on the closing date, followed by about $15m (€11.8m) after 18 months and a further $20m (€15.7m) after 36 months.
With sales of €13.4m in the first half of 2006, the US business contributed only 2.3% of group sales, according to Stada. The company said it expects to post a loss of €10m before taxes and €5m after taxes on the sale.
"With this sale, Stada achieves the complete withdrawal of the group's existing US business," the company said. "The sale..was carried out against the backdrop of limited operative possibilities in the existing business structures and concurrently high price and margin pressures in the US generics market."
But it did not rule out starting a US business of its own in the medium term should the right opportunity arise.