Merger Beefs Up German CMO Haupt Pharma

Haupt Pharma has completed its merger with fellow German companies Amareg and Wülfing Pharma to create a major new force in the European contract development and manufacturing sector. The merger of these pharmaceutical contract manufacturers and developers will result in the most efficient company in its sector in Europe with around 1500 employees and a turnover of €180M.

The consolidation signifies an important step towards sustainable growth. In the medium term the new group has the potential to become one of the major players in the world market of pharmaceutical contract manufacturers. However, the merger will not only increase the growth rate, but will also help to secure jobs at the companies involved due to its improved market position. The aim is that by focusing on their own performance, all of the individual companies will contribute to the successful expansion of the overall group, which in future will operate under the internationally established brand of Haupt Pharma – with the Gronau firm of Wülfing Pharma using the name "Haupt Pharma Wülfing" and the Regensburg company Amareg being called "Haupt Pharma Amareg".

After the merger Haupt Pharma will have an even broader range of manufacturing technologies for its customers, with the result that Haupt Pharma will be able to expand the range of services in the fields of galenic and analytical development, clinical sample production and marketing authorisations, thereby strengthening its good competitive position. In the pharmaceutical industry the awarding of con-tracts to independent providers of special services for the development and production of drugs is becom-ing increasingly important: in order to limit the complexity of cooperations, customers are very interested in reducing the number of their service providers and by awarding all-inclusive contracts they will easier moni-tor their portfolio.

The investment company Invita AG was recently created from the splitting up of the firm MVB Beteiligungen AG. It concentrates its investment activities exclusively on the pharmaceutical sector, in par-ticular the field of pharmaceutical services. In this context it intends to acquire all of the outstanding shares in Haupt Pharma, Amareg and Wülfing Pharma. As soon as the company is the sole shareholder, Invita AG intends to consolidate the above companies.

The shareholders of Amareg and Wülfing Pharma see the merger as securing the long-term success of the companies. "This decision represents a win-win situation for everyone involved," according to Dr. Andreas Landau, Chief Executive Officer of Wülfing Pharma. "In future we will be able to play a more active role in Europe – a promising opportunity for all of our locations."

"We see new perspectives as a result of the merger," says Rolf H. Kusebauch, Amareg's Chief Executive Officer. "The companies involved complement one another excellently. Valuable synergies will be created and due to the possibility of accessing additional technologies we can offer our customers a much more diverse range of services in future."

This is confirmed by Hans-Christian Semmler, Chairman of Haupt Pharma: "The merger will not only promote the overall growth of the Haupt Pharma Group – the improved market position will also significantly strengthen the individual locations." Currently the companies serve different customers for the most part. In the future the opportunity will arise that a broader range of services can be offered to the customers by the group – especially if new customers are acquired.

Haupt Pharma is striving to improve its market position not only in Europe, but above all in the USA and Japan. Hans-Christian Semmler adds: "Initially we will make every effort to further expand our position on the European market. Our aim is to be among the top three in the long term. But in the future we also want to play a significant role in Japan and the USA."

About INVITA AG
INVITA AG is an investment company which invests in national and international pharmaceutical concerns with a me-dium-sized profile and a turnover of between 10 and 100 million euros. The main focus of its strategic investments is the field of pharmaceutical services. INVITA AG was created as of December 31, 2007 by the splitting up of MVB AG into a pharmaceuti-cal and non-pharmaceutical section, bundling the long-standing pharmaceutical expertise of MVB AG. On a partnership basis it raises the existing growth potential of its companies that has so far not been utilised to the full, actively contributing towards an increase in their value. In total the firms in which INVITA AG has invested employ around 1600 people. Further information is to be found on the Internet at www.invita-ag.de.

About AMAREG GmbH
AMAREG focuses mainly on the contract manufacturing of cytostatics in the form of film-coated tablets and capsules, as well as liquid and semisolid forms of conventional drugs. With 175 employees AMAREG generated a turnover of €22 million in 2007. Further information is to be found on the Internet at www.amareg-pharma.de.

About Haupt Pharma AG
Haupt Pharma is one of the world's largest pharmaceutical contract manufacturers and developers. The firm was founded in 1937 in Berlin, which is still the headquarters of the holding today. The group's services are also provided from the locations of Münster, Brackenheim, Wolfratshausen, Livron (France), Valletta (Malta) and Toride (Japan). Since the year 2000 the holding of Haupt Pharma has been a public limited company. In 2007 Haupt Pharma generated a worldwide turnover of €113 million with a workforce of 900. Further information is to be found on the Internet at www.haupt-pharma.de.

About Wülfing Pharma GmbH
Wülfing Pharma has many years' experience in the development and manufacture of pharmaceutical products. From Gronau/Leine the company supplies customers in more than 70 countries with a wide range of products from solid and par-enteral forms. Wülfing Pharma employs 300 workers and achieved a turnover of €33M in 2007. Further information is to be found on the Internet at www.wuelfing-pharma.de.

SOURCE: Haupt Pharma