Medivir AB has entered into an agreement with Karo Pharma AB regarding the sale of Medivir’s subsidiary BioPhausia AB (Nordic Brands) to Karo Pharma. The purchase price will be $100.51 million on a cash and debt-free basis. The transaction is expected to close by mid-December 2016.
As previously communicated through press releases in June and August 2016, the Board of Directors of Medivir tasked the management to investigate a separation of the group’s operations into two independent companies, with the aim to separately list the commercial operations. In the meantime, the Nordic Brands portfolio (BioPhausia AB) has attracted significant interest from several prospective buyers. In a structured process of evaluating a sale versus a separate listing, the Board of Directors of Medivir has concluded that a divestment of BioPhausia AB to Karo Pharma is the best alternative for BioPhausia, Medivir and its shareholders.
The employees that today serve this operation are not part of the transaction, and about 10 employees will therefore have to leave Medivir after the transaction.
Niklas Prager, CEO of Medivir, said: “I am convinced that this sale of the Nordic Brands portfolio to Karo Pharma is the best way to maximize the value for our shareholders. The commercial portfolio can continue its positive development in an organization with a strong focus on specialty pharmaceuticals, while Medivir can focus fully on its transformation to an oncology focused and effective R&D company with an exciting portfolio of projects in different stages of development.”