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. --------------------------------------------------------------------------- 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 --------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------
DGAP-News: STADA: Strong result in AOK tenders in the German generics market
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