German generics maker Stada is back to business after being acquired by CapVest Partners last year, loading itself up with 16 of Orifarm’s vitamins, minerals and supplements (VMS) brands in its first major deal since its buyout.
With the buy, Stada takes on several European market-leading VMS franchises in Norwegian pharmacy line Nycoplus, Danish franchise Apovit, Belgian magnesium supplements Magnecaps and the popular Vitrum multivitamin brand in Poland, to name a few. The deal stands to boost Stada’s consumer healthcare presence across European pharmacies and aligns with the company’s strategy of “focusing on local hero brands that hold leading positions in national or regional markets,” Stada explained in a June 24 release.
“On top of our continued organic growth, the impressive Orifarm portfolio will further support our strong growth journey," CEO Peter Goldschmidt commented in a statement. “Stada has built an industry platform which will make us a leading acquirer of additional companies in the future."
Stada did not say how much it is paying to take over the clutch of over-the-counter Orifarm products.
The generics maker plans to make further investments behind the “strong heritage and consumer appeal of these leading brands” by adding line extensions, for example, Goldschmidt added. Through the deal, Stada will also integrate a “small number” of Orifarm employees into its international consumer healthcare team, it said.
The brands’ prominent positioning in the Nordics region fits with Stada’s May move to take on commercial rights to Karo Healthcare’s Locobase skincare range in Denmark, Sweden, Norway, Finland and Iceland, which includes over-the-counter meds, medical devices and cosmetics for dry and sensitive skin.
Stada is striking the deal under new ownership as of last September, when Stada dropped plans for a German IPO in favor of a buyout by CapVest.
The acquistion saw CapVest grabbing a stake of about 70% in Stada and transferring ownership from former private equity owners Bain Capital and Cinven, who now retain a minority stake. Upon inking the deal, which wrapped in March, CapVest pledged to “leverage our significant healthcare and consumer expertise to accelerate the development of the company in Germany and internationally,” CapVest’s Matthew Fargie explained at the time.
Last year, Stada, leveraging its three-segment strategy of operating in consumer healthcare, generics and specialty pharmaceuticals, increased its annual revenue haul by 6% to €4.3 billion ($4.8 billion), with its specialty sector in particular exceeding €1 billion in sales for the first time. Over the last year alone, the company in-licensed 110 products, Goldschmidt pointed out, noting at the time that Stada is “actively evaluating acquisition targets around the world” to drive consumer healthcare growth.
Stada’s consumer health product portfolio has been bolstered by many a Big Pharma deal in the past, with a 2023 deal giving it ownership of a range of Sanofi consumer health brands across Europe, which followed a similar arrangement for 16 Sanofi products in 2021. Before that, Stada in 2020 took on 15 GSK consumer drugs ahead of the latter company’s consumer health spinoff.