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A new pharmaceutical company with a focus on rare diseases has been formed in Sweden following the merger of the Swedish companies Biovitrum and Swedish Orphan.
A new pharmaceutical company with a focus on rare diseases has been formed in Sweden following the merger of the Swedish companies Biovitrum and Swedish Orphan. The combined company will be called Swedish Orphan Biovitrum, and will develop and market available orphan drugs and niche speciality pharmaceuticals for patients with rare diseases and diseases with high unmet clinical need.
"The two companies fit like a hand in a glove," Biovitrum's CEO, Martin Nicklasson, explained in a press statement. "In one giant leap, we form a company with a leading position within rare diseases and a solid platform for future growth and profitability."
Biovitrum will acquire 100% of the shares and warrants in Swedish Orphan, and will pay an upfront payment of approximately SEK 3.5 billion (337 million Euros). The transaction is expected to occur no later than 28 February 2010.
Information from Biovitrum explained that the company had been following the "impressive" development of Swedish Orphan's orphan and niche speciality pharmaceutical franchise for some time, and had identified that the two companies had many complementary organizations and capabilities.
"Swedish Orphan has undergone a tremendous development from a business primarily focused on the Nordic region to a broad pan-European business with both proprietary and in-licensed products," Bo Jesper Hansen, CEO of Swedish Orphan, explained in the press statement. He explained that the combination of Biovitrum and Swedish Orphan was a "truly complimentary and winning combination".
The press statement also added that the combination of the two companies is "expected to be instantly accretive to earnings per share for Biovitrum's shareholders". The combined group is expected to have revenues of approximately SEK 2 billion (192 million Euros) in 2009.