Biotest AG
Biotest AG: Biotest to sell US therapy business to ADMA Biologics, Inc., and will receive approximately 50% of the shares of ADMA Biologics, Inc. at closing, which is anticipated to occur in the first half of 2017.
DGAP-News: Biotest AG / Key word(s): Disposal
– Earnings before interest and taxes of Continued Operations in 2016 increases by approx. EUR30 million – Biotest secures participation in future success of ADMA Biologics, Inc. – Biotest receives distribution rights of specified current product and a right of first offer for the distribution of future products of ADMA for Europe, Near and Middle East and selected Asian countries – Including one-time expenses Biotest will report a loss of EUR 80 million as Discontinued Operations
Upon closing of this transaction, Biotest will receive equity interest in ADMA’s issued and outstanding capital stock in the form of 50% minus one share representing 25% of the voting rights. In addition, Biotest will: – Receive two ADMA plasma centers in the USA on January 1, 2019 – Obtain distribution rights for ADMA’s innovative product (RI-002) and a right of first offer for the distribution of future ADMA developed plasma-based products in Europe, Near and Middle East and selected Asian countries – Participate from the future development of products in the USA As part of the transaction, Biotest will contribute EUR11.5 million in cash as well as a EUR14 million loan. The loan bears 6% interest and has a term of 5 years. In addition, Biotest will contribute up to EUR11.5 million towards a future capital increase of ADMA on equal terms as third party investors. BPC will maintain its focus on its plasma operations business which includes 22 plasma centers located across the USA. Due to an unforeseeable delay in the contractually required ramp up of the manufacturing of Bivigam(R) at the Boca Raton production site of BPC, Biotest and Kedrion Biopharma Inc., Fort Lee, New Jersey, USA (Kedrion Biopharma) mutually terminated the contract of the Bivigam(R) distribution agreement in the USA effective immediately. Effective immediately, Biotest will report the US therapy business of BPC as Discontinued Operations. For the fiscal year 2016, Biotest expects this business unit to report a loss of approximately EUR80 million. This includes the loss of the therapy business, the depreciation of inventory and the impairment of the remaining goodwill, the expected expenses for the termination of the Kedrion Biopharma distribution agreement as well as re-structuring expenses. The EBIT of the Continued Operations is expected to improve by approx. EUR30 million in the fiscal year 2016. “Biotest and ADMA look forward to the closing of this promising transaction, which is anticipated to occur during the first half of 2017,” said Dr. Bernhard Ehmer, Chief Executive Officer and Chairman of the Board of Management of Biotest AG. “Given the Company’s significant experience in the plasma products industry, we are confident that ADMA is ideally suited to maximize the commercial potential of the acquired assets.” This transaction is part of the Biotest Group strategy to limit risks, utilize competencies by developing partnerships and creating new options for future strategic development. After the closing of this transaction, Biotest will continue to have an equity ratio of almost 40%, will focus its resources on “Biotest Next Level”, the on-going manufacturing expansion project at Biotest’s headquarters located in Dreieich, Germany, and the successful expansion of its plasma center network. The transaction, subject to customary closing conditions, including approval of ADMA’s shareholders, is expected to close during the first half of 2017. Conference Call: Dr. Bernhard Ehmer (CEO) and Dr. Michael Ramroth (CFO) will explain the transaction and answer your questions in a conference call today at 02:00 pm CET. Germany: +49-69 2475 0189 5 The call will available for download on our webpage: www.biotest.com after the conference call. About ADMA Biologics, Inc. About Bivigam
About Biotest IR contact Ordinary shares: securities’ ID No. 522720; ISIN DE0005227201 Disclaimer
23.01.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | Biotest AG |
Landsteinerstraße 5 | |
63303 Dreieich | |
Germany | |
Phone: | 0 61 03 – 8 01-0 |
Fax: | 0 61 03 – 8 01-150 |
E-mail: | investor_relations@biotest.de |
Internet: | http://www.biotest.de |
ISIN: | DE0005227235, DE0005227201 |
WKN: | 522723, 522720 |
Indices: | SDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
End of News | DGAP News Service |