German generics drugmaker Stada Arzneimittel has reported a 38% rise in net income for the first half of 2007 to 58.3 million euros, boosted by the contribution of its recently-acquired Serbian firm Hemofarm.

Sales grew 27% to 737.4 million euros, in line with analysts’ expectations and the company said that it is now expecting a "12th record year in a row". Germany continues to be the company’s biggest market and sales grew 16% to 291 million euros, helped by the contribution of Stada’s Aliud Pharma, which operates without a sales force and is based on “mailing concepts”. Given its low-price cost structures, Aliud is able to “pursue more price-aggressive sales strategies” Stada said and itself posted a 77% turnover rise to 56.6 million euros.

Hemofarm’s performance meant that sales in Serbia reached 65.7 million euros and Stada also enjoyed strong demand in Belgium, France and Spain, despite significant price reductions due to regulatory measures in the latter. As for Russia, revenues were up 36% to 49.3 million euros and this figure is set to grow even higher following Stada’s recent acquisition of Makiz in a deal that could be worth up to 135 million euros.