DGAP-News: Dermapharm continues expansion course

Dermapharm continues expansion course

• Acquisition of Spanish EUROMED S.A. completed
• Expansion of own packaging competence for granulates and liquids in portion packs

Grünwald, January 23, 2019 - Dermapharm Holding SE ("Dermapharm"), a leading manufacturer of patent-free branded pharmaceuticals for selected therapeutic areas in Germany with a growing international presence, is continuing its expansion course at the beginning of the year. The acquisition of the Spanish company EUROMED S.A. was completed at the beginning of January 2019. Dermapharm also acquired the German company CFP Packaging GmbH as part of an asset deal. In order to continue its profitable growth course in recent years, Dermapharm is not only developing new products in-house and expanding its international presence, but also acquiring companies that suitably complement its portfolio.

On January 3, 2019, the final closing of the acquisition of EUROMED S.A. took place in Madrid. The purchase agreement already concluded on November 18, 2018, had previously been subject to the approval of the antitrust authorities. EUROMED S.A. is a leading manufacturer of standardized herbal extracts and natural active ingredients for the pharmaceutical, nutraceutical and cosmetic industry. With the acquisition of EUROMED, Dermapharm is expanding its own value chain and strengthening its expertise in the growth market for herbal medicinal products. Dermapharm is also taking a further step in expanding its international presence with its own company in Spain and is considering using EUROMED's local industry know-how to launch its own products on the Spanish market. In 2019, EUROMED S.A. is expected to generate revenues of EUR 70 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 20 million.

In addition, Dermapharm took over the assets and 16 expert employees from CFP Packaging GmbH, based in Wiedemar near Leipzig, as of January 1, 2019. With this acquisition, Dermapharm has expanded its production capacity by approx. 40 million sticks p.a. and thus created the conditions to meet the growing demand for its successful food supplements, such as VITA aktiv B12 and silicea DIRECT. For Dermapharm, this is a logical step, as, in addition to the increasing demand in Germany, the growing Chinese market in particular requires an expansion of capacities. The company plans to relocate production and jobs to Dermapharm's nearby main plant in Brehna over the course of 2019.

Dr. Hans-Georg Feldmeier, CEO of Dermapharm Holding SE: "We want to continue growing profitably with Dermapharm this year too and consistently pursue our growth strategy accordingly. With the two acquisitions, we have once again improved our starting position for 2019 and gotten off to a lively start to the new year. We are looking optimistically to the current fiscal year and intend to drive our corporate development forward with great vigor."

Company profile:

Dermapharm - Pharmaceutical Excellence "Made in Germany"

Dermapharm is a leading manufacturer of patent-free branded pharmaceuticals for selected markets in Germany. Founded in 1991, the company is based in Grünwald near Munich and has its main manufacturing facility in Brehna near Leipzig. The company's integrated business model comprises in-house development, in-house production and distribution of pharmaceuticals and other healthcare products for specifically targeted markets by a medical and pharmaceutical sales force. Dermapharm holds approximately 950 marketing authorizations (Arzneimittelzulassungen) for more than 250 active pharmaceutical ingredients, which are marketed as pharmaceuticals, food supplements or supplemental balanced diets. This assortment makes the company unique. In addition to Germany, the company's core markets also include Austria and Switzerland. The company plans to further expand its international presence. Dermapharm's business model also includes a parallel import business, which operates under the "axicorp" brand. Based on revenues, Dermapharm was among the top five parallel import companies in Germany in the first half-year 2018.

With a consistent development strategy and numerous successful product and company acquisitions over the past 25 years, Dermapharm has continuously optimized its business and provided external growth impulses in addition to organic growth. Dermapharm intends to continue this profitable growth course in the future. The company is focusing on three strategic growth drivers: in-house development of new products, increase of its international footprint and further acquisitions. These include the acquisition of the pharmaceuticals manufacturer and distributor Trommsdorff in January 2018, whose portfolio includes the well-known brands Keltican^(R) forte and Tromcardin^(R) complex.

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