Moberg Pharma divests Fiber Choice for $6.7 million
STOCKHOLM, August 21th 2017, Moberg Pharma AB (OMX: MOB) has entered into an agreement with Caret Pharma LLC. to divest the brand Fiber Choice® for a total consideration of $6.7 million plus the inventory value at closing. The divestment is expected to result in a capital gain of circa $1.6 million. Divesting the brand enables Moberg Pharma to further focus resources on its core businesses.
Fiber Choice® is a well-established digestive health brand, with products for daily fiber supplementation. Moberg Pharma acquired Fiber Choice® together with PediaCare®, New Skin® and Dermoplast®, in 2016 from Prestige Brands, Inc. As communicated previously, the primary purpose of the acquisition was to add New Skin® and Dermoplast®, two strategic assets in specialty skin care, to the Moberg Pharma portfolio.
Divesting the brand enables Moberg Pharma to focus resources on its strategic brands. This transaction follows the December 2016 divestment of PediaCare® and results in a capital gain of circa $1.6 million. During the period of ownership (July 7, 2016 – June 30, 2017) Fiber Choice® contributed net sales of $7.1 million, however this figure also includes discontinued product items.
The transaction is expected to close within the next four weeks.
“We are pleased with the agreement with Caret Pharma LLC. which enables us to increase focus on the core Moberg Pharma portfolio. We have now successfully divested both non-core brands included in the acquisition from Prestige Brands, while the acquired strategic brands are developing well”, says Peter Wolpert, CEO Moberg Pharma.
About this information
This information is information that Moberg Pharma AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8.00 a.m. CET on August 21th 2017.
For additional information, please contact:
Peter Wolpert, CEO, telephone: +46 70 735 71 35, e-mail: peter.wolpert@mobergpharma.se
Anna Ljung, CFO, telephone: +46 707 66 60 30, E-mail: anna.ljung@mobergpharma.se
About Moberg Pharma, www.mobergpharma.com
Moberg Pharma AB (publ) is a rapidly growing Swedish pharmaceutical company with OTC sales operations in the U.S. and a distributor network in more than 40 countries. The company’s portfolio includes the OTC brands Kerasal®, Kerasal Nail®, Balmex®, New Skin®, Dermoplast®, Domeboro® and Fiber Choice®. Kerasal Nail® (Emtrix®, Zanmira® or Nalox™ in certain markets) is a leading OTC treatment of nail disorders in the U.S., Canada as well as in several markets in EU and Southeast Asia. The company is growing organically as well as through acquisitions. Internal development programs focus on innovative drug delivery of proven compounds and include two assets in late-stage clinical development, MOB-015 (onychomycosis) and BUPI (pain management in oral mucositis). Moberg Pharma has offices in Stockholm and New Jersey and the company’s shares are listed on the Small Cap list of the NASDAQ OMX Nordic Exchange Stockholm (OMX: MOB).
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