What Xbrane’s deal with STADA tells us

“An important milestone and a major recognition for Xbrane as a biosimilar developer and for our products.”
On July 12, 2018, Xbrane announced a co-development deal with STADA for their biosimilar Xlucane.

What STADA will bring to Xbrane BioPharma

First of all, deals like this are a big deal in the pharma industry. Companies such as STADA have as business strategy to grow and generate revenue by entering into licensing agreements with or acquisitions of companies such as Xbrane, which do not have the resources or the objective of commercializing and selling parts of their product portfolio on its own.

STADA´s organization has been carefully built up for that purpose. STADA is actively monitoring the drug market and forecasts the biosimilar product be an important source of income. Since 2008, STADA has taken steps to make biosimilars from high-profile partners part of its product portfolio. The purpose is of course to continue to expand its income source and not to miss out.

Furthermore, one of STADA’s important business areas is the production and sales of inexpensive medicines, i.e generics and biosimilars. The Company has several production sites across the globe. Their track record is impressive in both commercializing and producing drugs. Part of STADA´s business strategy is to purchase the production and distribution rights for drugs, including biosimilars.

So to summarize, STADA is one of the five leading companies in the generics industry and is represented in more than 30 countries. The Company brings expertise in the development and production of drugs, as well as in sales and commercializing the drugs. For Xbrane BioPharma, a company which focus mainly on developing and producing their own drugs, the partnership with STADA will bring expertise in the areas of distribution, commercialization and sales of the biosimilar Xlucane in Europe, the US and a variety of MENA (Middle East and North Africa) and APAC (Asia-Pacific Economic Cooperation) countries through STADA´s well established international sales and distribution network. STADA will also assist and advice Xbrane in the development of Xlucane through the process of aquiring EMA and FDA authorizations. STADA will bring its excellent international sales structures and comprehensive experience in the above mentioned markets.

Worldwide, STADA is one of the five leading companies in the generics industry and is represented in more than 30 countries with approximately 50 subsidiaries. So, Xbrane’s deal with one of the five leading companies in the generics industry is a big deal

STADA´s stated business strategy
  • Comprehensive generics portfolio including selected biosimilars from high-profile partners
  • Attractive margin branded products
  • Strong product development and well-filled pipeline
  • International sales network

The following statement from STADA on its agreement with Apotex, the largest Canadian-owned pharmaceutical company, is illustrating the significance and purpose of Xbrane’s deal with STADA.

“With Grastofil, we are consequently following our strategy of selectively in-licensing biosimilars from high-profile partners,” says Dr. Michael Mack, Vice President of Biotechnology at STADA. “The agreement with Apotex puts us in the position to expand our portfolio with a high-quality biosimilar at very favorable conditions. STADA brings its excellent international sales structures and comprehensive experience in the European market to the cooperation, which both partners will benefit from.”

“The deal will contribute significant funding and expertise […] and will help to accelerate the development of our pipeline of biosimilars”

Anders Tullgren, Chairman of the Board of Directors at Xbrane
“The co-development deal with STADA is a significant achievement and opportunity for Xbrane which confirms Xbrane’s unique capabilities and competencies in biosimilar development. The deal will contribute significant funding and expertise for the development and commercialization of Xlucane and will help to accelerate the development of our pipeline of biosimilars as well as the transformation of Xbrane into a major player in the fast-growing global biosimilars market.”
STADA CEO Dr. Claudio Albrecht
“The collaboration with Xbrane, with its team of very experienced development experts, is a great opportunity for STADA to accelerate the expansion of our biosimilar portfolio and to strengthen our market position in this segment.”

Take note of these words by Anders Tullgren, Chairman of the Board of Directors at Xbrane, in the press release on the deal with STADA.

“The deal will contribute significant funding and expertise […] and will help to accelerate the development of our pipeline of biosimilars”

This is stated under the headline “The road ahead”. I believe this is a strong indication that STADA and Xbrane will not only work together on Xlucane, but also for developing other drug candidates in Xbrane´s portfolio. I can not see any other reason for Anders Tullgren to make such a statement. So, the deal with STADA is definitely a major step for Xbrane. It will be interesting to follow exactly how this partnership will develop and what it will mean for Xbrane´s other lead drug candidates.


STADA Arzneimittel AG is a publicly-listed company with headquarters in Bad Vilbel, Germany. STADA consistently focuses on a multi-pillar strategy of generics and branded products (OTC) with an increasingly international market orientation. The Group is the only independent generics producer in Germany. Worldwide, STADA is one of the five leading companies in the generics industry and is represented in more than 30 countries with approximately 50 subsidiaries. Branded products such as Mobilat, Grippostad and Ladival are among the highest selling in their product category in Germany. In financial year 2012, STADA achieved Group sales of Euro 1,837.5 million, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of Euro 367.5 million and adjusted net income of Euro 147.9 million. As of December 31, 2012, STADA employed 7,761 people worldwide.

“More focused and aggressive”

At a press conference on March 8, 2018 STADA CEO Dr. Claudio Albrecht presented his vision for STADA and the company’s new strategy. In this interview he discusses the three pillars of STADA’s business model, future markets and how STADA can become a learning company.


History of STADA – Highly attractive company

Acquisition by Bain Capital & Cinven

In late 2016 – through to 2017 – the company was approached by a number of potential acquiriers. In February 2017, Boston private equity outfit Advent International made the first public and binding bid for the drugmaker, with a €58 per share in cash ($3.7 billion in total), in addition to a 2016 dividend payment. In March 2017, it emerged that a number of other suitors had come to the fore; CVC Capital Partners – who helped the company dodge pressure from an activist investor in 2016 in tandem with either China’s Fosun Pharmaceuticals or Shanghai Pharmaceuticals Holding. It also emerged that Mylan and big pharma Merck & Co had been working with Credit Suisse on formulating a potential offer. In April 2017, it was reported that Bain Capital and Cinven tabled a bid valuing the company at about €5.3 billion (£4.5 billion). The private equity consortium offered €65.28 a share and a dividend of €0.72 per STADA share. On June 27, 2017, Reuters reported that the Bain-Cinven bid to acquire the company had failed after only gaining 65.52% of shares. This was below the 67.5% minimum threshold needed to secure the acquisition.

But in August 2017 Bain Capital and Cinven finally acquired Stada Arzneimittel. It was described as “Europe’s largest buyout in four years.”

STADA on the acquisition

On July 27, 2017 the board of German drug-maker Stada has recommended its shareholders accept a renewed takeover offer from Bain Capital and Cinven, paving the way for Europe’s largest private equity buyout in four years.

The executive board has reached the conclusion that the current offer appropriately reflects both the enterprise value and the growth potential of Stada.

Bain Capital and Cinven are two financially strong partners with extensive industry expertise who have committed themselves to our strategy and with whom the growth and profitability of Stada will be driven significantly forward in the coming years.

Bain Capital on the acqusition

Bain Capital said they will work on strengthening the company’s existing operations and its position as a global player. Stada is expected to grow organically but also through acquiring complementing business, they added.

Cinven on the acquisition

Supraj Rajagopalan and Bruno Schick, Partners at Cinven, said: “Following the successful closing of the transaction, we look forward to strengthening further STADA’s existing operations as well as growing the Company’s position as a global pharmaceutical business. Bain Capital and Cinven are committed to adding significant value to STADA including investment in organic growth and expansion through acquisitions. Building on STADA’s highly qualified employees, strong brands and market opportunities, we look forward to initiating the next phase of the Company’s development.”

Executive history

The acquisition by Bain Capital and Cinven has entailed an even more successful path for STADA. Among other things, a plan for the future leadership of STADA was early announced. Claudio Albrecht became CEO in September 2017, shortly after the company’s acquisition by Bain Capital and it was also announced that the head of Sandoz North America, Peter Goldschmidt, will succeed Albrecht as CEO in September 2018, while Albrecht will remain with the company in a non-executive position. This is a prestigious recruitment since Sandoz is a subsidiary of Novartis and specializing in generic and biosimilars. Novartis is one of the largest pharmaceutical companies by both market capitalization and sales. Novartis and Genentech has signed an agreement under which the former has gained an exclusive license to develop and commercialize Lucentis. Xlucane is a biosimilar to the Lucentis.

About Bain Capital

Bain Capital Private Equity’s primary objective is to be the partner of choice for great companies as they grow. Our team works with companies to achieve their full potential, and our track record has included many successful start-ups, turnarounds and carve-outs from larger corporate partners.

We help companies improve their competitive position by expanding into new products and markets, growing productivity and strengthening their operations. Ultimately, we believe our growth-oriented model results in stronger companies that employ the best people, are socially responsible, and deliver strong returns over the long-term.

Building and Growing Great Companies

Bain Capital Private Equity pioneered the value-added approach to private equity investing. We were among the first private equity firms to establish a dedicated global portfolio group staffed with operating and strategy professionals who partner with management teams. Our portfolio group, in conjunction with our investment professionals – most of whom come from strategic consulting backgrounds, form a collaborative team that enables us to create lasting impact for our portfolio companies and helps them reach their full potential.

Current and former portfolio companies managed by Bain Capital Private Equity.


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