FRANKFURT, March 27 Stada, a German
maker of generic and non-prescription drugs, said it would stick
to its strategy of growing in Russia and Eastern Europe, hoping
to soon overcome the effects of tension between Ukraine and
"We are convinced that the situation will stabilise, that
consumers will become more confident again... It won't take that
long," said Chief Executive Hartmut Retzlaff.
Stada this week scrapped its profit forecast for this year,
citing the effects of tension between the West and Russia, its
second-biggest market, and sending its shares to the lowest
level in almost a year.
With medical insurers playing a lesser role than in Western
Europe, business there is driven by consumers who pay for
pharmaceuticals and non-prescription drugs out of their own
"The general public in Russia has a different view of the
crisis than we might have here. People there are concerned that
the situation might escalate, if only via economic sanctions,"
As a result, drug distributors have cut their inventory
levels in the first quarter, he said.
(Reporting by Ludwig Burger; Editing by Maria Sheahan)