In STADA Arzneimittel’s first half of 2023 earnings report, the company disclosed double-digit growth, suggesting that it could see profits hit an all-time high by the end of the year.
STADA Arzneimittel experienced double-digit growth in the first 6 months of 2023 (H1), which the company says could mean for record-breaking profits by year-end.
Overall sales for STADA increased by 16% from the same period the year before, reaching €2.1 billion ($2.3 billion). Earnings increased by 30% to €509 million ($555 million). Additionally, STADA’s profits have nearly doubled in the past 5 years.
“STADA’s purpose, values and strategy are the base for our continued double-digit growth in sales and earnings. With this momentum, we are well on track to exceed over €4 billion sales and €1 billion [in earnings] this year,” Peter Goldschmidt, CEO of STADA, commented in a statement.
Business Development and Growth Drivers
STADA’s Specialty pharmaceutical division had a 24% sales increase reaching €432.1 million ($471.1 million) in H1 2023. Specialty drug sales represented 21% of total group sales. The company said that growth in the specialty division was mainly driven by increases in the biosimilars area.
In H1 2023, STADA launched Ximluci, a ranibizumab biosimilar referencing Lucentis, in several global markets, including the European Union and the United Kingdom. Ximluci was the first biosimilar to be developed as part of STADA’s strategic partnership with Xbrane Biopharma.
In addition to Ximluci, STADA has 5 other biosimilars, including Hukyndra, Silapo (epoetin), Cegfila (pegfilgrastim), Movymia (teriaparatide), and Oyavas (bevacizumab). Hukyndra, an adalimumab biosimilar referencing Humira, is available in some major markets and is expected to receive approval in the United States later this year.
The Consumer Healthcare sector of STADA attributed most of the growth to several product launches, line extensions, and the successful integration of recent acquisitions. The division experienced a 19% adjusted increase amounting to €870.6 million ($949.2 million) in sales.
The Generics sector of the company saw an 8% increase in sales to €756.2 million ($824.4 million). Generic drugs accounted for 37% of group sales and its investment in ensuring a healthy supply chain over H1 2023 allowed for the company to meet demands during ongoing drug shortages.
“STADA has a rich pipeline across Generics and Specialty/Biosimilars as well as Consumer Healthcare products that will contribute strongly to the net sales development until 2030. A constant flow of new products feeds the commercialization engine and ensures future growth,” the company wrote.
Investing in Drug Supply Chain Sustainability
During H1 2023, the FDA cleared exports of the biological drug substance epoetin to the United States from its Uetersen, Germany facility. Around the same time, authorities in the European Union cleared a new factory in Tuy Hòa, Vietnam, saying that it complied with strict European good manufacturing practice standards, opening up exports to Europe to ensure reliability of the drug supply chain. STADA is also constructing a supply-chain hub in Turda, Romania, investing over €50 million ($54.5 million) in the project.
STADA’s supply chain risk rating improved during H1 2023, shifting from 26.7 at the beginning of the year to 21.6 in June, as issued by an independent Sustainalytics agency. The company is also working on its second Global Sustainability Report, which will highlight the company’s global environmental, social, and governance initiatives.
In September, STADA will release the ninth edition of its Health Report, which features a survey of over 32,000 participants across 16 countries and provide insight into the physical and mental health and wellbeing of the countries’ populations.