15 June 2020 - Deborah Wilkes
Consumer healthcare company PharmaSGP is seeking to expand in key European markets through a combination of organic growth and selected acquisitions.
Chief executive officer Natalie Weigand told OTCToolbox that the German company’s strategy involved expanding its product portfolio and extending into other European countries.
Commenting on the expansion plans, chief financial officer Michael Rudolf said Germany, Austria and Italy – PharmaSGP’s largest markets – were top of the list but the company was also keen to expand its presence in a number of other countries including France, Spain and Belgium.
PharmaSGP was interested in acquiring companies, product portfolios and/or individual brands on an opportunistic basis, added Rudolf.
The company recently announced plans to run an Initial Public Offering (IPO) this year, as its founders seek to raise money for other projects (click here to read the News story). The company said its organic growth strategy was fully funded from its own cash generation.
“Chemical-free” OTC products
Weigand pointed out that PharmaSGP already had a “strong position for chemical-free OTC remedies and other healthcare products in Germany”. The trend for “natural chemical-free” healthcare products, she said, would enable PharmaSGP to “capture leading positions for other indications in Germany”.
“We aim to build the leading European company that offers the broadest portfolio in chemical-free OTC products with category leading brands,” commented Weigand.
PharmaSGP recorded sales of EUR16.7 million (USD18.5 million) in the first quarter of 2020, representing a rise of 11.3% compared to the same period a year earlier. Earnings Before Interest and Taxes (EBIT) rose by 13.2% to EUR4.3 million.
The company’s sales in 2019 were EUR62.6 million.
Pharma SGP’s portfolio of products in Germany includes RubaXX for rheumatic pain, Restaxil for nerve pain, Deseo and Neradin for sexual weakness, Taumea for vertigo and the Fulminan beauty drink.
Expanding outside Germany
The company has also launched products in a number of other European countries including Austria, Belgium, France, Italy and Spain.
Rudolf commented that PharmaSGP had “built a proven business model which allows for high scalability and profitability even in challenging times”.
Weigand said the company had already launched five new products in 2020 and was planning an additional six launches during the rest of the year including three of its top-selling OTC brands in France.
Plans for the IPO
PharmaSGP said the IPO could see at least 50% of its shares sold to investors. Shareholders are expected to sell pro rata and to use the proceeds to fund projects outside PharmaSGP.
The company’s shares are owned by its founders. Around 90% are held by Clemens Fischer through Futrue GmbH, with the remaining 10% owned by Madlena Hohlefelder through MVH Beteiligungs- und Beratungs- GmbH.
The offering is expected to consist of a public offering in Germany and international private placements. The company intends to list the shares on the Frankfurt Stock Exchange.