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Source: Company Data

The Business 

Dermapharm Holding SE is a Germany-based company engaged in manufacturing of patent-free branded pharmaceuticals. The Company operates through three segments: Branded pharmaceuticals and other healthcare products, which includes in-house development, in-house production and distribution of branded pharmaceuticals and other healthcare products, Parallel import business, which operates under the axicorp brand and since the beginning of 2019 under the third segment Herbal Extracts after the acquisition of Euromed. It holds around 950 marketing authorizations for more than 250 active pharmaceutical ingredients, which are marketed as pharmaceuticals, dietary supplements or supplemental balanced diets. The Company offers its products through a number of brands, including Dekristol, Ampho Moronal, Keltican, Tromcardin, among others. It is active primarily in Germany, Switzerland and Austria. Additionally, it operates production facility in Germany. Trommsdorff & GmbH Co KG is a subsidiary of the Company.        


The company classifies its business into three reporting segments: Branded pharmaceutical and other healthcare products, Parallel imports and Herbal extracts.



Branded pharmaceuticals and other healthcare products

The Branded pharmaceuticals and other healthcare products segment includes generic pharmaceutical products that deal with vitamins, minerals and enzymes, dermatologics, systemic corticoids, women’s healthcare, opthalmologics, pain management and OTC supplements and medical devices. This segment offers a broad assortment of products that are no longer patent protected. Dermapharm has around 950 marketing authorisations for more than 250 active pharmaceutical ingredients. This segment is the largest contributor to Dermapharm’s revenue and EBITDA.


This sub-segment includes drugs used to treat nutritional deficiencies and bone diseases. Dekristol 20,000 IE, a prescription vitamin D compound, is Dermapharm’s bestselling drug in this sub-segment. It also has a wide offering of OTC vitamin products under the Dekristol brand. In addition, the company sells various silica healthcare products under the Hübner brand. In 2017, the company successfully launched VITA aktiv B12 Direktsticks, a form of vitamin B12 with protein compounds. Dermapharm is the leader in this therapeutic category in Germany. The vitamins market grew at a CAGR of 9.5% over 2012-2018, while Dermapharm grew at an impressive CAGR of 24.3% during the same period. Dermapharm increased its
market share from a mere 6% in 2012 to 14% as of 6m 2019. The company has been able to leverage its strong Dekristol brand to drive growth through product extensions. The main competitors in this category are Merck Serono GmbH, Pfizer Deutschland GmbH, Protina Pharmazeutische GmbH and Verla-Pharm Arzneimittel GmbH & Co.KG.

Systemic corticoids

These are prescription pharmaceuticals that help treat allergic reactions, skin diseases and inflammation. Dermapharm’s product portfolio in systematic corticoids is the largest among all vendors in Germany. It includes the well-known drug Prednisolut, which is used for treating a wide range of side effects, ranging from seasonal allergic reactions to anaphylactic shock and other acute symptoms.

In the systemic corticoids category, the company has maintained its market leadership in Germany, but has conceded some market share to rivals. Its share declined from 31% in 2012 to 29% as of 6m 2019. The company, with an already broad portfolio of products in this category, grew slower than the market. The overall market grew at a CAGR of 2.9%, while for Dermapharm, it was 1.7% during 2012-2018. Dermapharm’s main competitors in this market are GALENpharma GmbH, Merck Serono GmbH and Zentiva Group.

Source: Company Data

Women’s healthcare

Under women’s healthcare, Dermapharm sells a broad range of contraceptives and other healthcare products. Dienovel, an oral contraceptive used to prevent pregnancy and treat acne, is a familiar brand. Another popular drug is Summavit materna, a dietary supplement designed to meet the specific nutritional needs of expectant mothers and their babies. While the overall women’s healthcare market witnessed a de-growth of 4.8% CAGR over 2012-2018, the company registered growth of 34.6% CAGR, driven by continued new product launches. The company’s market share increased from 1% in 2012 to 7% in 6M 2019. The key competitors are Aristo Pharma GmbH, Exeltis Germany GmbH, Gedeon Richter Pharma GmbH, Hexal AG and Jenapharm GmbH & Co. KG.

Source: Company Data


The ophthalmologics sub-segment consists of prescription and OTC pharmaceuticals and medical devices used to treat various irritations and eye diseases. The sub-segment includes brands, such as Panthenol Augensalbe (OTC eye ointment). Other prescription antibiotic or corticosteroid eye ointments and drops are the primary products in its ophthalmologics offering. The company is yet to capture a significant share in the opthalmologics market. This is evident from the fact that the overall market grew at a CAGR of 10.6%, while the company managed to deliver growth of just 4.3% over 2012-2018. Its share declined from 3% in 2012 to 2% as of 6M 2019. This is the only therapeutic area in which the company is not among the top five leading players in Germany. The key competitors are Bayer AG, MAAN Pharmaceuticals, Pfizer Deutschland GmbH, Pharm-Allergan GmbH and Thea Pharma GmbH.

Source: Company Data

Pain treatment

Dermapharm added a new therapeutic area of pain treatment through the acquisitions of Strathmann (Dec 2017) and Trommsdorff (Jan 2018). Key products include Keltican forte, a drug used to treat people suffering from spinal afflictions, neuralgia and polyneuropathy, and Myopridin, a muscle antispasmodic drug. In the pain treatment business, the company grew at a CAGR of 39.5% vs overall market growth of just 3.3% over 2012-2018. This substantial growth has enabled the company to increase its market share from 1% in 2012 to 8% as of 6M 2019. The company’s competitors in pain treatment are Grünenthal, Bayer AG and Ethypharm.

Source: Company Data

Other healthcare products

Dermapharm also offers a wide range of other pharmaceuticals and healthcare products. These include drugs used to treat bone loss and cardiovascular diseases, and pharmaceuticals, such as Simagel, used to treat stomach ailments. One of the popular medical devices in this segment is ‘bite away’ – used to treat insect stings and bites. In 2018, Insight Health, a market research institute, identified ‘bite away’ as one of the fastest growing OTC products in Germany. Bite away has also been successful in Europe and Australia, and in April 2020, the group launched it in the US. Herpotherm is another popular device in this segment, which is used to prevent the development of cold sore blisters. Bite away and Herpotherm are both patented products and will, therefore, earn higher margins.

Source: Company Data


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