Biohit Oyj and Sartorius Lab Holding GmbH complete sale of liquid handling business, Biohit Oyj revises risk outlook
Biohit Oyj
Company Announcement
14.12.2011 05:18 pm
The prerequisites for the completion of the sale of Biohit Oyj's liquid handling business to Sartorius Lab Holding GmbH have been met; the companies completed the sale on 14 December 2011. Upon the sale's completion, Biohit's liquid handling business transferred to Sartorius. The parties signed the sales contract on the sale of the liquid handling business on 26 October 2011. The transaction was subject to approval by a Biohit’s shareholders' meeting and the authorities. Biohit's extraordinary shareholders' meeting approved the transaction on 23 November 2011. The parties have also received the required approvals from the authorities. Following the sale's completion, Biohit Oyj revises its outlook on short-term risks and uncertainty factors.
Upon the sale's completion, Biohit’s liquid handling business has been transferred to Sartorius, including the associated intellectual property rights, production facilities, subsidiaries, other property, agreements, and certain responsibilities.
The employees and management team of the liquid handling business transferred to the new owner on their existing terms of employment. Biohit’s current President and CEO, Jussi Heiniö, transferred to Sartorius as part of the transaction.
Semi Korpela, M.Sc. (Econ.), was appointed Biohit's new President and CEO as of 15 December 2011. The diagnostics employees and the diagnostics business management team will remain in the service of Biohit Oyj. The composition of the Biohit Board of Directors will remain unchanged.
Short-term risks and uncertainty factors
Following the sale of the liquid handling business, the company revised its outlook on short-term risks and uncertainty factors. As a result of the transaction, the company's financial position has materially strengthened, with no uncertainty factors corresponding to those of the former liquid handling business having emerged. However, other uncertainty factors continue to impact on the growth of the diagnostics business.
Growth in the diagnostics business is now all the more important for strengthening the entire Group's operating conditions. Long-term failure to meet these growth expectations may also result in a EUR 2.6 million impairment of goodwill associated with the diagnostics products. However, after the sale of the liquid handling business, the company is in a much better position to invest in the business prerequisites of its diagnostics business and to strengthen the sales channels and marketing of its products. In addition, the company clarified its product commercialisation plans and decided to prioritise certain market areas.
Previously, the company conducted a large part of its business in currencies other than the euro. However, since most trade in the diagnostics business is conducted in euro, exchange rate fluctuations do not have as great an impact on the company's result as before.
For more information, please contact:
Osmo Suovaniemi
MD, Ph.D, Professor
Chairman of the Board of Directors
Tel. +358 40 745 5605
osmo.suovaniemi@biohit.com
Distribution:
NASDAQ OMX Helsinki Oyj
Central Storage Facility (www.oam.fi)
Press
www.biohit.com
About Biohit
Biohit Oyj is a globally operating Finnish biotechnology company established in 1988. Biohit's mission crystallises in its motto “Innovating for Health”. The company assumes social responsibility by producing innovations, new technologies and analysis systems for use in medicine, research institutions and industry. These products help to promote research and diagnostics, while improving quality of life by preventing disease, human suffering and financial loss. Biohit also seeks to innovate and develop the marketing and availability of its products and services, in order to ensure its profitable growth and ability to pay dividends.
Biohit works with scientific communities to produce new technologies, products and services based on research results and innovations. These can be used to develop safe and cost-effective diagnostic tests for the early detection and prevention of diseases of the gastrointestinal tract.
Biohit's products include analysis systems for the prevention and early diagnosis of gastrointestinal diseases, such as the blood-sample based GastroPanel examinations for the diagnosis of stomach illnesses and associated risks, quick tests for the diagnosis of lactose intolerance and H. pylori infection in connection with gastroscopy, and the ColonView examination for the early detection of intestinal bleeding that indicates a risk of colorectal cancer. Acetium reduces the amount of carcinogenic acetaldehyde in an anacidic stomach.
Biohit employs around 35 people. The company is headquartered in Helsinki, Finland and has a subsidiary in the UK. Since 1999, Biohit's Series B share has been quoted on NASDAQ OMX Helsinki in the Small cap/Healthcare group and is traded under the code BIOBV (www.biohit.com/investors).
Read more at www.biohit.com.