Dermapharm Holding SE - subsidiary axicorp GmbH breaks ground for a new building near Frankfurt/Main

Grünwald, September 30, 2020 - Dermapharm Holding SE ("Dermapharm"), a leading manufacturer of patent-free branded pharmaceuticals for selected therapeutic areas, is beginning with construction of a state-of-the-art production, storage and administration building at the Friedrichsdorf site of its subsidiary axicorp GmbH.

Dr. Hans-Georg Feldmeier, CEO of Dermapharm Holding SE and Managing Director of axicorp, and Anna-Karina Gerner, Managing Director of axicorp, will commence with the official construction work by holding the symbolic ground-breaking ceremony together with the mayor of the municipality, Horst Burghardt. The new building with approximately 10,000 m² of space will replace the previously rented floor space on 17,488 m² of commercial property. In addition to the associated optimization of the cost structure, Dermapharm intends to achieve a significant improvement in processes with the new building. The company is planning an investment volume of around EUR 13 million for the new building that is scheduled to be completed by December 2021.

"We consider the construction of this ultra-modern building complex to be a major milestone in our company history that is of importance to the further positive development at the Friedrichsdorf site," said Managing Director Anna-Karina Gerner. "Besides the opportunity for further growth, the expansion of the production and storage capacities will mainly serve to optimize processes. All processes - from incoming goods to packaging and dispatch - can be linked even more efficiently with one another and be ideally aligned with the production flow thanks to the new spatial conditions," emphasized Gerner. "The optimized infrastructure of the premises as well as larger narcotics safes allow us to meet the increasing demand for increasingly relevant drugs such as medical cannabis. This will enable us to make an even greater contribution to German healthcare in the long term," Gerner added.

Health is a matter of trust - the architecture of the building complex was also designed in line with this guiding principle that reflects axicorp's corporate culture. The light-flooded and spacious new building will offer the approximately 300 employees a modern working environment with ergonomic workplaces.

axicorp has been based in Friedrichsdorf near Frankfurt/Main for 14 years and has since developed into one of Germany's leading suppliers in the field of parallel and re-importation of EU pharmaceuticals. The company is also showing dynamic growth as a manufacturer of OTC products from German production and has been successfully operating as a distributor of medical cannabis since 2019. Dermapharm achieved sales of EUR 244 million in 2019 with its parallel import business segment that includes axicorp's business.

Company profile:

Dermapharm - Pharmaceutical Excellence "Made in Germany"

Dermapharm is a leading manufacturer of patent-free branded pharmaceuticals for selected markets in Germany. Founded in 1991, the company is based in Grünwald near Munich and has its main manufacturing facility in Brehna near Leipzig. The company's integrated business model comprises in-house development, in-house production and distribution of pharmaceuticals and other healthcare products for specifically targeted markets by a trained medical and pharmaceutical sales force. Dermapharm has more than 380 active pharmaceutical ingredients for more than 1,300 marketing authorisations (Arzneimittelzulassungen), which are marketed as pharmaceuticals, dietary supplements or supplemental balanced diets. This range makes the company unique. Besides Germany, the company's core markets also include Austria and Switzerland. The company plans to further expand its international presence. Dermapharm's business model also includes a parallel import business that operates under the "axicorp" brand. Based on revenues, Dermapharm was among the top five parallel import companies in Germany in 2019. In the "Herbal extracts" segment, Dermapharm has access to the growth market for herbal pharmaceuticals through the Spanish company Euromed S.A., one of the leading manufacturers of herbal extracts and natural active ingredients.

With a consistent R&D strategy and numerous successful product and company acquisitions over the past 25 years, Dermapharm has continuously optimized its business and provided external growth impulses in addition to organic growth. Dermapharm intends to continue on this profitable growth course in the future. The company is focusing on a three-pillar strategy: in-house development of new products, increase of its international footprint and further acquisitions.

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