Stada Arzneimittel : Call risk in light of apparent IPO scenario; better switch into the floater
Stada Arzneimittel AG (Stada) owners Bain and Cinven are in the process of IPOing Stada instead of seeking a sale to Private Equity. The talks with US Private Equity firm GTCR became more difficult over the last months as the parties have reportedly different valuation targets. Since then, the owners have invited some investment banks to pursue an IPO plan in the dual track process. In January 2025 it was reported that former Bayer manager and current Novo Nordisk board member Andreas Fibig would become independent chairman of a board of nine members in an IPO scenario.While the IPO scenario, which will require an equity recapitalisation to create a solid balance sheet, is naturally positive for the credit profile, it bears in our view a call risk for the entire cap structure – sooner or later. This triggered a reassessment of our current Buy recommendation, which is applicable to all outstanding bonds.
Stada Arzneimittel is engaged in the development and marketing of products with off-patent active pharmaceutical ingredients in the health care and, in particular, in the pharmaceutical market. Generics is based on low pricing and/or a cross-product and cross-indication marketing concept while Branded Products focus on the specific product characteristics and, in particular, on the brand name of individual products. Co.'s business activities are divided into the four market regions of Germany, Central Europe, CIS / Eastern Europe and Asia & Pacific & Middle East / North Africa (MENA).
Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.
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