Stada - comment
Stada is worried about losing its licence in Ukraine. Stada generates 15% of its revenue in Russia and is concerned that Ukraine will remove its Ukrainian operations licence in retaliation. Russian business accounts for 15% of revenue and is also locally financed. Whilst Stada provides no breakdown of the sales in Ukraine, it has invested €60m in the country since 2019, and Ukraine is a manufacturing hub for other parts of the region. Stada is not accused of sanctions-busting as medicines are exempt, and we would not expect the Ukrainian government to pick this particular fight right now, but it is an eyebrow-raising moment.
Stada Pharmaceuticals (Aengus) – The final part of the amend and extend operation for the 2024 SSNs is coming into place. Stada’s negotiations with certain holders to extend €250m of the €400m remaining outstanding would leave €150m in cash to find this could be met from cash on hand the RCF. The extend option was always likely, but getting it out of the way early is a positive move for Stada. We do not expect the news regarding concerns over the Ukraine business to derail these negotiations.