Press release - 20 December 2004
CapMan exits from Swedish NeoPharma
Solvay Pharmaceuticals, a division of Solvay S.A., will acquire 69.5% of the outstanding shares of NeoPharma AB (NeoPharma). Solvay Pharmaceuticals (Solvay) has negotiated with NeoPharma’s largest owners, including Swedestart Life Science fund managed by CapMan, and offered to acquire all NeoPharma shares owned by them. According to Solvay’s offer, the enterprise value of NeoPharma is approx. SEK 640 million i.e EUR 71 million.
According to the agreement with the Sellers, Solvay will direct a cash offer for all NeoPharma’s shareholders and holders of stock options with the intention to acquire all NeoPharma shares and options on equal terms.
NeoPharma has developed a medicine called Duodopa for the treatment of advanced Parkinson’s disease. The product has its origin in the work led by researchers and clinicians in Uppsala University and Uppsala University Hospital. The company has, with the help from venture capital companies, financed its operations from the initial product invention stage to stage where it has a recognised product. NeoPharma will show a positive result for the financial year 2004. The authorities have accepted Duodopa to be commercialised in Sweden and the so called procedure for mutual acceptance has been successfully finalised in Denmark, Norway, Finland, Germany, France, the Netherlands, Austria, Spain and Portugal.
Comment from Solvay: Solvay is a medium sized pharmaceuticals company, which aims at strengthening its position in the area of treating central nervous system diseases. Solvay Pharmaceuticals has judged that NeoPharma, with its commercialised product Duodopa, contributes to reaching this goal. Solvay Pharmaceuticals sees that Duodopa has a potential to act as complementary product for the current treatments of advanced Parkinson’s disease. Duodopa meets large medical needs as patients with advanced Parkinson’s disease currently have only a few possible treatment alternatives. Solvay Pharmaceuticals intends to continue the development and commercialisation of Duodopa on the basis of NeoPharma. By taking advantage of Solvay’s position in all major markets it is Solvay’s wish that Duodopa will be made available for so many patients as possible.
Comment from CapMan:Jan Lundahl, Senior Partner, CapMan: It is delighting that a larger pharmaceuticals company like Solvay showed interest in and respect to the great work achieved by NeoPharma and its employees. It also proofs that Sweden has a high competence in the field of life science, both in the research and commercialisation.
Comment from the Board of Directors of NeoPharma:Göran Pettersson, Chairman of the Board of Directors: We welcome the purchase offer from Solvay and see it as a natural step in NeoPharma’s and Duodopa’s development. With Solvay as the new owner the possibilities to offer Duodopa as an alternative treatment for a wider patient base increase dramatically. NeoPharma’s management has done a very good job in getting Duodopa accepted for commercialisation in the wider European markets. In addition it has been clinically documented that Duodopa is a very effective treatment alternative for patient with advanced Parkinson’s disease.
Comment from NeoPharma’s management:Ulf Rosén, Managing Director of NeoPharma: With the support from our owners we have succeeded in the commercialisation of Duodopa and in the creation of cash flow positive operations. A strong industrial owner means that in future NeoPharma can accelerate product development and internationalisation, which creates very good future prospects.
Swedestart Life Science fund, which is managed by CapMan, invested in NeoPharma in 1999. The value of the investment has four folded during the investment period. The exit will not have an effect on CapMan’s result for 2004 or significant effect for the CapMan’s result in the coming years.
Hjalmarsson & Gunterberg Corporate Finance AB has acted as financial advisors of the Sellers.
For additional information, please contact:Jan Lundahl, Senior Partner, Head of Life Science, CapMan, Tel: +46 8 545 85 475 or +46 708-56 19 53
Göran Pettersson, Chairman of the Board, NeoPharma AB, Tel: +46 704 45 03 01
Ulf Rosén, Managing Director, NeoPharma AB, Tel: +46 18 17 29 19 or +46 70 686 29 16
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