STADA acquires Bayvit, Spain's second-largest generic-drug company
STADA Arzneimittel AG is to acquire 100% of Bayvit S.A., Barcelona, a Spanish pharmaceutical company specializing in the marketing of generic drugs. The sellers are the Leverkusen-based Bayer Group and the privately owned Vita S.A., Barcelona, which presently each hold 50% of Bayvit's capital stock.
Bayvit, which has been a market player since 1997, increased sales in 2001 by 50% to EUR 20 million, making it the second-largest supplier of generic drugs in Spain. STADA estimates that the Spanish generics market, which is still small by European standards, grew by more than 50% in 2001 to around EUR 200 million. Over the coming years, the market is expected to continue to grow at a substantial rate as generic drugs are assuming an increasingly important role in Spain, as elsewhere, in attempts to constrain costs in the healthcare sector.
The primary corporate focus of Bayvit is on marketing and distribution. It has no production or product development capabilities of its own. Of a total workforce of around 90, approximately 70 are employed in the sales force. Bayvit's product range encompasses 27 standard generic drugs from various therapeutical areas. The continuing production of these generic drugs after the acquisition is guaranteed through contract manufacturing agreements with the previous manufacturers. For new products in future, Bayvit can draw on both the development capacities of Vita as well as the STADA Group's Europe-wide
product development capabilities. Bayvit will continue to operate as an autonomous company in the Spanish market, working independently of the STADA distribution company Ciclum Farma, which also operates in Spain.
The acquisition of Bayvit has substantially strengthened STADA's position in the important Spanish growth market for generic drugs, reinforcing its status as a European supplier of generic drugs. STADA anticipates record sales of well above EUR 500 million for 2001. The final figures for 2001 will be published on April 22, 2002.
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