(Bloomberg) — Stada Arzneimittel AG has signed a partnership agreement with a unit of Shijiazhuang Yiling Pharmaceutical Co. to sell its cough and cold syrups in China.
The cooperation will help Stada, which is owned by private-equity firms Bain Capital and Cinven, as it seeks to expand in the country, according to Carsten Cron, the German drugmaker’s executive vice president for emerging markets. Along with selling the locally-produced syrups in the world’s most populous country, the partnership will enable Stada to pursue a strategy in China’s e-commerce market for consumer health care brands, and for Stada and Yiling Pharmaceutical to jointly develop high-potency raw materials, he said. Cron declined to give a valuation for the deal.
“We’re playing catch-up in China, but this partnership with Yiling will give us a much-needed boost in the country,” Cron, who joined Stada from Pfizer Inc. in 2018, said in a phone interview on Tuesday.
The deal is part of the 125-year-old German drugmaker’s plans to further expand beyond its home market into Asia. Stada began doing business in Asia via Hong Kong in 1992 and has since built a presence in countries including China, Kazakhstan, the Philippines and Thailand, its website shows.
In Vietnam, Stada is seeking to boost sales after it recently obtained an approval to set up a legal entity there, Cron said. Its Vietnamese unit will soon start selling prescription and over-the-counter products and plans to collaborate with Pymepharco JSC, a local generic drugs maker in which Stada holds a majority stake, he said.
“We want to become the top player in Vietnam’s generic market within the next three years,” Cron said.
Stada’s products are available in about 120 countries, according to its website. It owns consumer health care brands such as Grippostad and Vitaprost. The company has sought to ramp up growth through deals including an announced acquisition in February of the FERN C vitamin supplement brands in the Philippines for an undisclosed amount. It also bought Takeda Pharmaceutical Co.’s over the counter and prescription medicines in markets such as Russia and Georgia for $660 million, as well as 15 consumer health brands from GlaxoSmithKline Plc.
“We are still hungry for more deals and we’ll continue to explore further acquisitions and partnerships in the Asia Pacific region,” Cron said.
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2020 Bloomberg L.P.