Dava will pay around $40 million for the German firm’s entire stake in Stada Inc. This will comprise of approximately $5 million on the closing date, a further $15 million after 18 months and $20 million after 36 months.
Stada, which has itself been the subject of takeover talk recently, said the sale represents a complete withdrawal from the US market. Indeed, all necessary drug approvals, approval applications, brand names, development projects and existing inventories were transferred to Stada Inc from various other Stada subsidiaries and have thus also been sold.
The unit’s sale resulted from what Stada perceived to be limited possibilities and high price and margin pressures in the US generics market. The company said it will, however, continue to check whether other profitable opportunities for a successful US business of its own arise.
According to the terms of the contract, the sale is expected to close within Q3 2006.