Drug manufacturer: Pharmaceutical company Stada before a billion-dollar IPO

The Hessian drug manufacturer Stada is aiming for a billion-dollar IPO in Frankfurt around Easter. The company, known for the cold medicine Grippostad and the cough syrup Silomat, is reorganizing its management to make appropriate plans, as Stada announced in Bad Vilbel.

In the event of an IPO, former Bayer manager Andreas Fibig will become independent chairman of Stada’s board of directors, it was said. The 62-year-old is currently a board member at the Danish pharmaceutical company Novo Nordisk. He was previously head of the American fragrance and aroma manufacturer International Flavors & Fragrances and Bayer Health Care Pharmaceuticals. Acting manager Peter Goldschmidt will remain the global CEO of Stada.

However, no decisions have yet been made about the further course, it said. “Various options are being considered, including an IPO.”

The company headquarters in Bad Vilbel should remain

According to Stada’s announcement, the board will be set up at the “future listed group holding company”, which will be founded under Dutch law but will have its headquarters in Germany.

It is not yet known how many shares the previous owners, financial investors Bain Capital and Cinven, want to sell. They bought Stada, which recently had around 11,500 employees, in 2017 for 5.3 billion euros and later took it off the stock exchange.

The German Press Agency learned from company circles that April is a realistic target for a return to the trading floor. The headquarters in Bad Vilbel near Frankfurt should be retained.

The Stada owners had been in talks for a long time about a sale with other financial investors, but the process dragged on. Apparently there was no buyer who offered enough money. Bain Capital and Cinven always kept the option of an IPO open.

The “Handelsblatt” had previously reported on Stada’s stock market plans. Stada wants to earn between one and two billion euros, the newspaper wrote. The goal is then to be promoted to the MDax.

Expansion among financial investors

Stada has grown strongly under financial investors and Goldschmidt. A series of takeovers for which Stada took on high debts helped. In addition to copycat medications, the company expanded its portfolio of over-the-counter branded products and created a third pillar with specialty pharmaceuticals.

In 2023, Stada increased sales by 14 percent to 3.7 billion euros. Earnings before interest, taxes, depreciation and amortization (Ebitda) grew by 19 percent to 802 million euros.

The figures are adjusted for the Russian business, which recently contributed more than 15 percent to sales. The financial investors had spun it off because it was seen as a burden on the sales plans. Despite the war in Ukraine, Stada did not withdraw from Russia and referred to the medical care of the people there.