The boss of German healthcare company Stada says his business is a better bet than Big Pharma, as he tries to win over investors ahead of what could be Europe’s biggest IPO this year.
Stada, which sells generic drugs and consumer health products, is preparing for an IPO in Frankfurt that would be among the largest in European pharma in recent years. According to a person familiar with the company’s plans, it could happen as soon as the start of the second quarter. Another person said Stada would aim to raise up to €1.5bn at a valuation of more than €10bn.
Private equity firms Bain Capital and Cinven took Stada private in 2017 at a valuation of €5.3bn. Last year, they held talks with other private equity firms about a sale of the company, according to people familiar with the matter. Bain and Cinven declined to comment.
Peter Goldschmidt, who took over as chief executive of Stada in 2018, said the company had been resilient through the pandemic, inflation and the Russia-Ukraine war.
He said it was an “even more solid” bet for the mid to long term than a large pharmaceutical company. “It’s hard that something really rocks us,” he told the Financial Times, adding that the company sold more than 25,000 products in 100 countries. “No product we have is bigger than 3.7 per cent of our sales.”
Stada’s revenues rose 9 per cent year on year to €4.1bn in 2024, while adjusted earnings before interest, tax, depreciation and amortisation were €886mn, up 11 per cent on the previous year, according to unaudited accounts.
Some 40 per cent of its revenues come from consumer health, which includes cough and cold products, dermatology, painkillers, vitamins and minerals. Its brands include Cetraben skin cream and Zoflora antibacterial spray.
The company has been buying up smaller local brands and extending product lines to grow. Goldschmidt described Stada as “the truffle pig for finding these great local brands . . . We are not obsessed about this global brand building.”
Generics contribute another 40 per cent of sales. Stada says it is preparing to launch versions of 85 per cent of the drugs due to go off patent in Europe in the next couple of years. “The other 15 per cent, we don’t want,” Goldschmidt said.
Stada has decided to focus on Europe for sales of these off-patent drugs, where Goldschmidt said it benefited from having specialised sales teams. He added that the US market was more difficult because of consolidation of buyers, low barriers to entry and fierce completion on price, for example, from Indian generics makers.
The other 20 per cent of Stada’s revenue comes from speciality pharmaceuticals including biosimilars, off-patent versions of more complex “biologic” drugs, and a modest portfolio of patented medicines that are too small for large pharmaceutical companies.
It has a small market share for its biosimilar of blockbuster Humira that is used to treat conditions including rheumatoid arthritis, Crohn’s Disease and psoriasis. It also sells ustekinumab, a version of Stelara, another anti-inflammatory drug used for Crohn’s Disease and psoriasis. “That’s the biggest biosimilar for the next two or three years,” he said. “And we’re number one or two [for sales] in most countries in Europe right now.”