Medivir divests pharmaceutical company Biophausia to Karo Pharma
Wednesday, November 02, 2016
Medivir divests its pharmaceutical company Biophausia (Nordic Brands) to Karo Pharma. Medivir says purchase price will be 908 million Swedish crowns ($100.51 million) on a cash and debt free basis.
Medivir says based on purchase price of sek 908 million, transaction will increase net result for consolidated medivir and parent company medivir ab with approx. SEK 530 million and approx. SEK 300 million respectively.
Medivir says transaction will strengthen cash position, after setting aside an escrow amount during warranty period of twelve months, with approx. SEK 780 million.
Medivir says board of director's intention is to recommend, following a review of capital need, that excess proceeds as a result of divestment should, to extent possible, be distributed to shareholders, by way of dividend or otherwise.
For the period of Q3-2015 to Q2-2016, BioPhausia generated revenues of SEK 189 million. Says transaction costs are estimated to approximately SEK 25 million
Says separation process and operational realignment as a consequence of the sale will result in additional one off costs of approximately SEK 15 million.
Source : reuters.com
