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Biotec Pharmacon ASA (OSL:BIOTEC) Oslo, 25 August, 2008: Biotec Pharmacon ASA has reached agreement on the sale of its wholly-owned Immunocorp Animal Health AS subsidiary to Brazil's Biorigin for NOK 37.5 million.
Immunocorp Animal Health has been part of Biotec Pharmacon's non-pharmaceutical business. Immunocorp Animal Health markets immune modulating products, with MacroGard® as the leading brand. Setting the standard for requirements on documenting efficacy, MacroGard® is an environmentally sensible alternative to preventive treatment with antibiotics and/or chemicals in aquaculture and livestock farming. The company has seven employees and reported sales of NOK 14.1 million for the first half of 2008.
Biotec Pharmacon develops new pharmaceutical product candidates for treatment of immune system related diseases. Its bioactive SBG substance strengthens the ability of the immune system to repair skin and mucous membranes, and to attack and destroy cancerous cells. The company has made considerable progress in its pharmaceutical development programmes and expects to have four phase III studies running in parallel within two targeted disease areas by the end of the year. The company's goal is to seek marketing authorization for SBG for the treatment of diabetic ulcers and oral mucositis by mid 2010.
The new owner of Immunocorp Animal Health is the Brazilian company Biorigin. The company was founded in 2003 and focus on the production of yeast cells derivatives and delivers ingredients for the human foods and animal nutrition industry. Biorigin is part of the Zilor Group, a leading Brazilian producer of sugar, ethanol, and clean energy based on biomass, founded in Brazil more than 60 years ago. The Zilor Group owns integrated production facilities in Brazil and has extensive activities within research and development.
"We believe this represents a good deal for everyone concerned," says Lars Viksmoen, CEO of Biotec Pharmacon. "It gives Immunocorp Animal Health an owner with strong interest in further investments within the animal health sector and opportunities for continued development of MacroGard® . "For its part, Biorigin secures access to a centre of excellence for immune modulating feed supplements and an increased presence in Europe. For Biotec Pharmacon the sale opens up for a stronger focus on our bio-pharmaceutical activities - in other words, a further strengthening of our core business, development of pharmaceuticals and marine bio-chemicals."
"This is the first step in internationalization for Biorigin", says General Manager Mario Steinmetz. "Our plan is to maintain Immunocorp Animal Health's existing organization and employees in Norway, while using its structure and technical knowledge to continue to support expansion of the position of Biorigin in Europe".
Plans call for the agreement between Biotec Pharmacon and Biorigin to be closed by the beginning of September.
The investment bank SEB Enskilda has been advisor to Biotec Pharmacon on this transaction.
Further information from Lars Viksmoen, CEO, Biotec Pharmacon ASA, mobile: +47 40 62 08 70
About Biotec Pharmacon ASA: Biotec Pharmacon develops pharmaceutical products for treatment of immune related diseases. The company has developed the bioactive compound SBG, which is in clinical phase III development within two therapeutic indications; treatment of diabetic ulcers and prevention and treatment of oral mucositis. The company's clinical development program also includes immunotherapy of cancer where combination treatment of SBG and monoclonal antibodies currently is in clinical phase I/II. Additionally, Biotec Pharmacon develops, produces and markets non-pharmaceutical health and diagnostic products. Biotec Pharmacon currently employs 56 people, and has offices in Tromsø, Oslo and Long Beach, California.
