Specialized Pharmaceutical Company Grünenthal With Continued Growth in First Half of 2012
AACHEN, Germany, September 12, 2012 /PRNewswire/ –
In the first half of 2012 Gruenenthal Group, an international pain therapy expert,
reached revenues of EUR473 mn (vs. EUR 483 mn in H1 2011). Corrected by divested
businesses, core business grew by 9 per cent in the first half of 2012. Growth was driven
by the continued success of Gruenenthal’s global pain brands, in particular the strategic
growth drivers Palexia(R) (+EUR19 mn) and Versatis(R) (+EUR16 mn) in Europe and Australia
as well as increased royalty income for Tapentadol, which Johnson & Johnson sells on the
North American market under the trade name Nucynta(R) (+ EUR10 mn). The growth of the
innovative products more than compensated for the expected revenue decreases for mature
and local products. Additionally, development of the business in Brazil and other
countries as well as favorable exchange rate developments in the Latin American business
also contributed to revenue growth in the first half of 2012.
Significant increase of operational EBITA (Earnings before Interest, Taxes and
Amortization) clearly shows the effect of the implementation of focusing strategy in 2011.
Group operating EBITA rose to EUR 41 mn for the first half of 2012, an increase of 147%
versus H1 2011. Main drivers of this significant profitability increase are accelerated
revenue growth of the core business which more than compensated for the loss of profit
contribution of the divested businesses. In addition, after several market launches of
Palexia(R) in 2011, marketing and sales cost decreased in the first half of 2012. Savings
in administration cost of about 14 per cent in first half of 2012 further drove
Harald F. Stock, PhD., CEO of Gruenenthal Group, commented on the results: “We are
pleased to see that our focus on the core business is showing the expected results. We
remain on track in implementing our VISION 2020 long-term strategy. The measures we have
taken provide us with the necessary resources to invest in future growth and maintain our
independence as a family-owned innovative company. With our pipeline of innovative
projects in pain therapy we reached further milestones in the first half of 2012.”
Continued above-industry-average investment in research and development
Tapentadol received FDA approval for label extension in diabetic polyneuropathy.
Gruenenthal also completed the Phase III study for Tapentadol with cancer patients in
Europe. GRT6005, a compound with an innovative mechanism of action is moving to Phase IIb.
“Together with our strategic development partner Forest, we see great potential for
GRT6005 to provide a significant enhancement in the therapy of chronic pain,” added Stock.
Gruenenthal Group continues to invest in research and development about 25 percent of
revenues which is well above the industry average of approximately 16 per cent. Global
pain products that are in the market for less than five years generate more than 32
percent of global pain revenues for Gruenenthal (compared with an industry average of
about 9 percent). This illustrates the successful track record of R&D investment for the
company which aims to launch one innovative product every five years.
Strategic licensing deal for Latin American pain market
In Latin America, Gruenenthal is further strengthening the business in these
fast-growth emerging markets with selected acquisitions and licensing deals. Following the
successful acquisition and integration of the Brazilian company Selfarma in 2011,
Gruenenthal announced in June 2012 an exclusive agreement with US-based Horizon Pharma for
the commercialization of DUEXIS(R) (proprietary combination of ibuprofen and famotidine)
in Latin America. The complete coverage of the Latin American market with a pain portfolio
represents an important strategic step and again demonstrates that Gruenenthal is an
attractive partner for other pharmaceutical companies in the Latin American market. The
company’s current leading market position in the pain segment in Latin America is mainly
based on centrally acting analgesics and this licensing agreement provides the entry in
the larger and even more attractive non-steroidal anti-inflammatory drugs (NSAIDs) market.
The Gruenenthal Group is an independent, family-owned, international research-based
pharmaceutical company headquartered in Aachen, Germany. Building on its unique position
in pain treatment, its objective is to become the most patient-centric company and thus to
be a leader in therapy innovation. Gruenenthal is one of the last remaining five
research-oriented pharmaceutical companies with headquarters in Germany which sustainably
invests in research and development. These investments amounted to about 25 percent of
revenues in 2011. Gruenenthal’s research and development strategy concentrates on selected
fields of therapy and state-of-the-art technologies. We are intensely focused on
discovering new ways to treat pain better and more effectively, with fewer side-effects
than current therapies. Altogether, the Gruenenthal Group has affiliates in 26 countries
worldwide. Gruenenthal products are sold in more than 155 countries and today approx.
4,200 employees are working for the Gruenenthal Group worldwide. In 2011, Gruenenthal
achieved revenues of EUR 947 mn. More information: http://www.grunenthal.com.
Contact: Frank Schonrock, Vice President Corporate Communications
Tel.: +49-241-569-1568, Fax: +49-241-569-3539, email@example.com
Gruenenthal GmbH, 52099 Aachen, Germany, http://www.grunenthal.com
SOURCE Grunenthal GmbH