DGAP-News: STADA: Strong result in AOK tenders in the

STADA Arzneimittel AG / Miscellaneous

05.12.2008 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Today, on December 5, 2008, STADA Arzneimittel AG has been informed to
nearly a full extent about the preliminary result of the tender by the
Allgemeine Ortskrankenkassen (AOK) for discount agreements pursuant to §
130a SGB V.

In the Executive Boards view, STADA Group achieved a strong result in this
process. According to this information, STADAs sales companies can expect
awards which account for a total of approx. 18% of the annual sales
potential so far intended for awarding; STADAs previous market share was
below 12% here.

If the decision announced by the AOK proves to be legally secure in the
further tender procedure, the STADA Group can expect, according to
currently available information, a total of 40 new discount agreements for
a total of 11 active ingredients in Germany. Of this number, 16 discount
agreements are accounted to the sales label ALUID PHARMA and 24 to the
sales label STADApharm. For one active ingredient, STADA has not yet
received information.

Of the total annual sales potential of approx. EUR 902 million so far
planned to be awarded by the AOK, STADA sales companies are to receive
awards in the amount of approx. EUR 159 million (respective estimates for
the current annual sales of all suppliers in the German market with AOK
patients for the respective active ingredients in the respective regions
based on current market data at ex-factory prices, i.e. list prices before
discounts). For this annual sales potential, the respective STADA sales
company would then be the only contract partner of the AOK. Products
prescribed by doctors without discount agreements must be replaced when
dispensed at the pharmacy by the competitive product which is covered by a
discount agreement and contains the same active ingredient (so-called
substitution) if doctors do not explicitly rule this out in each case by
marking it on the prescription. Therefore, the STADA sales companies can
presumably expect very significant increases in units sold and sales for
the affected products when concluding these discount agreements, but with
reduced margins. Additionally, for the remaining discount agreements
tendered out by the AOK where the Group will presumably not be awarded any
contracts, STADA has to expect, to a large extent, a decline in demand in
prescriptions for AOK-insured persons during the two-year contract term.
In the view of the Executive Board, it is to be expected over the further
course of the tender procedure, that legal objections will be made against
the planned contracts, as numerous irregularities regarding the method have
been objected to the AOK during the bidding process so far, which, from
STADAs perspective, have only partly been removed. Against this backdrop,
STADA reserves the right to take legal steps in due time pursuant to the
awarding regulations against contracts being planned. The STADA Executive
Board must assume that the contracts planned for STADA sales companies,
too, will be legally reviewed after objections; if and when individual or
all of the discount agreements now planned by the AOK will take effect can
therefore not with certainty be assessed from todays perspective. STADA is
preparing for various possible result scenarios in an operatively adequate
way.


Further information: 
STADA Arzneimittel AG / Corporate Communications / Stadastraße 218 /
D61118 Bad Vilbel /
Phone: +49(0) 6101 603-113 / Fax: +49(0) 6101 603-506 / E-Mail:
communications@stada.de
Or visit our website at www.stada.com
DGAP 05.12.2008 
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Language:     English
Issuer:       STADA Arzneimittel AG
              Stadastraße 2-18
              61118 Bad Vilbel
              Deutschland
Phone:        +49 (0)6101 603- 113
Fax:          +49 (0)6101 603- 506
E-mail:       communications@stada.de
Internet:     www.stada.de
ISIN:         DE0007251803, DE0007251845, 
WKN:          725180, 725184, 
Indices:      MDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard), Düsseldorf;
              Freiverkehr in Berlin, Hannover, Hamburg, München, Stuttgart
End of News                                     DGAP News-Service
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DGAP-News: STADA: Strong result in AOK tenders in the German generics market
