Annual Report 2020

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Annual Report 2020 ANNUAL REPORT 2020 Caring for People’s Health as a Trusted Partner 2020 A Year like none before Peter Goldschmidt CEO Dear Investors, dear Partners, 2020 was for each of us a demanding year. Like all of you, we at STADA had to deal with new challenges and to adapt to a new situation in our jobs as well as at home with our family. I would like to express my gratitude to all employees worldwide. You have made an extraordinary contribution to our society through your tireless efforts. We can be proud of the strong crisis resilience STADA has shown despite challeng- ing market conditions during the pandemic. The company has proven itself to be a growth leader and go-to-partner in Consumer Healthcare and Generics, with a rapidly expanding Specialty Pharma presence in areas such as Parkinson’s and biosimilars. I’m particularly gratified by how our diverse global team has come through the crisis true to our Purpose of “Caring for People’s Health as a Trusted Partner”. Across the organization, people have pulled together, even if they have been physically distant; this close collaboration across continents truly embodies our value One STADA. Keep Supplying Medicines We care for people’s health as a trusted partner by being able to keep supplying medicines, even during lockdowns. Our 6,000 production staff did an outstanding job in these difficult times. STADA provides a broad portfolio from supplements that enable people to stay healthy and support their immune systems through to essential treatments for diseases in nearly every therapeutic area, such as cancer, heart, central nervous system, gastrointestinal and pain relief. I am fully confident that STADA’s growth journey will continue. our organization – even more important now that we need to find new ways of working and supplying during the crisis. STADA stepped up to the challenge of satisfying rising I am absolutely convinced that our culture, based on our demand for medicines and other healthcare products shared purpose and values, was the basis for our strong during the coronavirus response, in March 2020 setting performance, with double-digit sales and adjusted EBITDA a record in terms of the company’s production output growth in 2020. Alongside the acquisitions supporting and best ever supply reliability. Working as a trusted our sales growth last year, it is also very relevant to high- partner throughout the supply chain has been crucial: light that our organic growth of 6% in 2020 was an out- I want to thank our hundreds of external partners who standing achievement in a market that stagnated. This worked very closely by supporting our more than 20 own shows how we have lived our values of Agility and Entre- production sites. Here we have seen the importance of preneurship to seize on market opportunities, taking maintaining free movement of goods in international market share and stepping in when others could not supply chains. supply. I personally feel very blessed to be part of a company Brands Growing In Importance that is strong and resilient, and at the same time caring and empathetic. Nine out of ten STADA people stated Consumer Healthcare and Specialty brands now account in three employee surveys that they are “proud to work for around half of STADA’s sales. As these products are for STADA”. typically branded and promoted to consumers and health- care professionals respectively, they have the potential A Diverse and Unique Team through differentiation and branding to offer sustainable margins over many years. At STADA, we are building an international and diverse team of talents. Everyone is unique, and we recognize Evidence of STADA’s status as a partner of choice comes our differences as our strength. How do we connect the on top of the seven acquisitions completed during last uniqueness of each individual element of the STADA year, with over 80 licensing deals done during 2020. team? Our values of Entrepreneurship, Integrity, Agility These developments are important add-ons to our strong and One STADA are the glue and the guiding principles future launch pipeline. To be a trusted industry-leading of our organization. development partner is a competitive advantage. I have never seen so many employees than over the The acquisitions have brought a range of established last year stepping and speaking up and suggesting new brands such as Cardiomagnyl, Cetebe, Coldrex, FERN-C, business cases to support the sustainable growth of Mebucaïne, Proenzi, Venoruton and Walmark into the STADA has proven STADA organization, complementing the strength of itself to be a existing franchises such as Grippostad, Zoflora, Hedrin, growth leader and Magnetrans and Snup. go-to-partner. Consumer Healthcare Increasingly International The acquired brands also significantly strengthen our Consumer Healthcare position and portfolio in already strategically strong markets such as Germany, UK, Russia, the Czech Republic and many more, while pro- viding a platform from which to grow our Consumer Healthcare business in many other countries. Brands such as Zoflora, Oilatum and Walmark are gaining trac- tion in countries in Eastern Europe and in markets such as the Philippines, Vietnam and the UAE. Furthermore, we have taken initial steps into the US consumer health- care market by launching our Bio360 probiotics and Nuvia supplements range. At the same time, our Specialty Pharma pipeline of dif- ferentiated prescription products is coming to fruition, with several market entries planned for the near future. This includes further biosimilar launches, while our pat- ented infusion gel formulation, Lecigon, is bringing a new treatment option for late-stage Parkinson’s disease. With a growing presence in Specialty Pharma and our continued strong standard generics development pipe- line, we have a solid platform from which to keep grow- ing. I am fully confident that STADA’s growth journey will continue. Under our private-equity ownership, we have developed a strategy for long-term, sustainable growth that is driven by our vision and values. Good margins are allowing us to continue investing in our business. Underpinned by STADA’s unique growth culture, we will continue STADA’s growth and cultural journey with a focus on sustainability, both from an ESG perspective, but also in terms of investing in long-term growth op- portunities. Our purpose, vision and values will remain our guiding north star as we continue to grow as One STADA. A Challenge like never before For 125 years, STADA has been supplying high-quality While STADA has responded with agility to the pandemic, medicines, true to our Purpose of Caring for People’s we have continued to strengthen our supply-chain infra- Health as a Trusted Partner. The past year has brought structure for a sustainable future. With zero critical exceptional challenges to the whole pharmaceutical observations from regulatory inspections in 2020, we sector. But STADA has responded with dedication and reduced safety incident rates by a third and maintained resilience to keep supplying medicines. supply service levels above 97%. Across more than 20 facilities, in our laboratories, in Supply Chain our warehouses, our Technical Operations colleagues have worked tirelessly to ensure patients and health- STADA stepped up to the challenge of satisfying rising care professionals have reliable access to the treatment demand for medicines and other healthcare products options they need for a wide array of health conditions. during the coronavirus response, setting a record in terms They have drawn support not only from thousands of of the company’s production output. In March 2020, STADA employees working from home, but also from production volumes were more than 10% above histori- our hundreds of supply-chain partners around the cally typical levels. Through the concerted efforts of our world. global Tech Ops team, strong supply-chain supply and performance was maintained throughout 2020. Caring for our own people’s # # health During the Covid crisis, STADA’s STADA has strictly followed all utmost priority has been the health applicable national and regional rules and safety of our colleagues and and guidelines, and implemented their families. wide-ranging safety measures, such as temperature checks and free Covid tests. Caring for people’s health as a trusted partner means for me and my team to keep supplying medicines during difficult times. Miguel Pagan Chief Technical Officer While our Technical Operations team has striven tireless- ly to keep supplying medicines, working as a trusted partner throughout the supply chain has been crucial. We are grateful to our hundreds of external partners who have supported us in raw materials, manufacturing, packaging, logistics and other functions to keep supply- ing, without interruption, generic, consumer healthcare and specialty medicines that provide the foundation for pharmaceutical care around the world. Donations Thanking our Healthcare Professional Partners Recognising the differing needs of healthcare systems during the pandemic, STADA adopted a localised, tar- Throughout the pandemic, STADA has been keen to geted approach to supporting healthcare organizations support our healthcare professional partners around the around the world to combat Covid-19 infections by do- world. Beyond the numerous targeted donation and nating essential equipment and products, as well as pro- support initiatives we have instigated, STADA wanted to viding tailored services, through its national affiliates. personally say ‘thank you’ to all those working so hard on the front line to tackle and treat this terrible disease – Among the regional and national initiatives were: not just doctors and nurses, but caregivers and commu- responding to urgent need by donating 150 patient mon- nity pharmacists caring for people’s health every day. itors in Serbia, Bosnia and Herzegovina and Montenegro; We are touched and humbled by the positive response providing 23,600 first-aid packs that have been donated to our ‘thank-you’ videos.
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