Stada Raises Dividend as 2007 Profits Rise

FRANKFURT (Reuters) - A strong finish to 2007 helped Stada (STAGn.DE) boost full-year profits, the German generics drugmaker said on Thursday, and it proposed to raise its dividend 15 percent.

Sales rose by around a quarter to 1.57 billion euros ($2.41 billion) thanks to buoyant foreign markets, it added in a statement which forecast more growth despite intense competition putting pressure on margins.

Operating profit rose about 19 percent to 215.5 million euros ($330.3 million), while net profit rose 14 percent to 105.1 million euros.

"Higher special items are highly overcompensated by the good underlying operating result," said Peter Spengler, an analyst at DZ Bank, in a note, adding that the results were "excellent" and reiterated his buy rating.

Stada shares rose 0.8 percent to 46.08 euros by 1240 GMT, while the DJ Stoxx European health care index .SXDP slipped 0.5 percent.

Stada said it expected to generate "sustained operative growth in a challenging environment and thereby be able to continue the successful growth course of the group in the years to come."

The company, which makes copies of AstraZeneca's (AZN.L) Prilosec anti-ulcerant, Merck & Co's (MRK.N) Zocor cholesterol and Vasotec hypertension drugs, will publish its final 2007 results on March 27.

(Reporting by Michael Shields and Mantik Kusjanto; editing by Rory Channing)