BALLERUP, Denmark, 1 March 2018 – Today, LEO Pharma announced the sale of a product portfolio of 10 products to Swedish Karo Pharma for € 260 million. This is a result of the company’s 2025 strategy which increases the focus on new innovative solutions for medical dermatology and no longer pursue over-the-counter (OTC) in most markets. The transaction is expected to close on April 4, 2018.
“I am very pleased about the agreement with Karo Pharma. I feel confident that our ten products in this portfolio will have a great fit with Karo Pharma and will grow and help even more patients in the future. This divestment is an important step towards strategically aligning our portfolio and increase focus on innovation and medical dermatology as set out in our 2025 strategy,” said Gitte Aabo, CEO & President, LEO Pharma.
The product portfolio that is now divested includes ten established brands: Conotrane®, Fonx®, Condyline®, Synalar®, Mildison®, Locobase®, Centyl®, Kaleorid®, Burinex® and Selexid® – of which Selexid®, Burinex® and Locobase® constitute around 60% of the turnover of the product portfolio.
The annual turnover of the divested portfolio amounted to approximately € 70 million, half of the turnover coming from Nordic countries, approximately € 35 million.
Karo Pharma is a fast growing specialty pharma company that develops and markets products to physicians, pharmacies and directly to healthcare providers. The company is listed on the Swedish stock exchange, Nasdaq Stockholm.
“We follow our aggressive growth plan with this acquisition and will now take a very big and important step for the company,” said Anders Lönner, Chairman of the Board in Karo Pharma AB in an announcement to Nasdaq Stockholm earlier today.
LEO Pharma will continue to increase its efforts in developing innovative therapeutics, such as biologics, systemic treatments and new topical mechanisms of action. Just as the company will nurture and expand its existing pipeline through close partnerships with other pharmaceutical companies, biotech companies and academia, and reinvestments in R&D could increase to up to 25% of revenues.
Following the closing, LEO Pharma and Karo Pharma will work closely together to ensure a smooth and effective transition of the products and business to Karo Pharma. The transaction does not include any employees or manufacturing facilities.
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