Stada - comment
Stada’s Q422 results were strong, beating our top-line expectations. Gross margin was in line with our model, but higher operating costs in Q4 crimped EBITDA margins relative to our forecast. We will raise the reasons for the operating expense jump on the investor call. Having completed the amend and extend operation late last year, management can now focus on growing the existing business
Stada was recently linked with the €3bn acquisition of Viatris’ OTC business, but even with €270m of cash on hand this would be too much for the existing capital structure. If a deal was done it would need to be via a separate entity with the PE owners looking to effect a merger later. More after the call at 1 pm London time today.