Stada 1st-qtr provides base for acquisitions

German medium-sized generics drugmaker Stada Arzneimittel says that sharply rising sales and earnings in the first quarter of 2006 provide the basis for larger acquisitions. Profits rose 30% to 22.1 million euros ($28.1 million) on sales up 22% at 299.6 million euros. Operating profits climbed 32% to 38.2 million euros. The sales are the highest per quarter in the firm's history. Foreign business went up 29% to account for 57.5% of total revenue. Hartmut Retzlaff, board chairman, said the high level of sales could not be sustained over the whole year but, despite strong competition and regulatory changes, the company was confident of continued growth.

Mr Retzlaff added that he expected profits to continue to expand faster than sales and would help towards further acquisitions as well as protect against possible takeover. Stada remains the focus of bid speculation but maintains that it is well equipped for an "offensive acquisitions policy." The rule is being run over a number of potential projects of a larger size than Stada has traditionally felt able to consider. Its biggest buy to date has been the Russian enterprise Nizpharm for 82.0 million euros.