Meda and Cross Pharma to merge

Meda and Cross Pharma to merge Meda AB and Cross Pharma AB have reached a principle agreement on a merger. Meda will acquire all Cross Pharma shares via a directed issue of new shares, giving the owners of Cross Pharma 51 per cent of the shares in Meda. Meda's sales in 1998 were SEK M 554 and sales for Cross Pharma for the same year were SEK M 614. Meda's operating profit in 1998 were SEK M 2 and Cross Pharma's SEK M 53. - The merger is industrially valuable for both companies, says Per Carendi, chairman of the board of directors at Meda. "It agrees well with Meda's new strategy based on increasing volume and marketing pressure and supplementing agency activities with operations in which we have better control of products' life cycles and a sharper focus on Meda's marketing coverage in the Nordic and the Baltic areas. Efforts in generic and parallel imports are also a part of this strategy. The merger with Cross Pharma will make Meda the leading company on the parallel import market in Sweden. Cross Pharma provides high business volume and profits and a strong cash flow. In the space of only a few years, Cross Pharma has established itself as the leading parallel importer of pharmaceutical products in Sweden, with a market share in the segment of parallel imports of about 50 per cent. The management of Cross Pharma has had plans to broaden their activities with sales of pharmaceuticals that have gained licensing here and agency operations and will now acquire access to Meda's marketing organisation. Cross Pharma's profits will show a further improvement during the year as a result of changes made in purchasing routines. The merger is intended to be complete by July 1, 1999. Before the transaction, Cross Pharma will distribute unrestricted funds to the present owners of the company. The acquisition of Cross Pharma is conditional pending customary due diligence and approval at a annual general meeting. It will take place as a directed issue of new shares in the amount of 2 515 963 to the owners of Cross Pharma, who will control 51 per cent of the capital and votes in Meda when the emission has been completed. Meda's present principle owners, Stena Sessan Rederi AB and the Sixth Fund Board, have announced their satisfaction with the merger. An extra annual general meeting at Meda is preliminarily set for June 30, 1999 to give approval for the issue. For further information, please contact Per Carendi Chairman of the board Phone +46 36-10 07 00 or +46 70-811 21 11 Annette Johansson Public Relations Manager Phone +46 31-701 29 04 or +46 70-445 03 00 Meda develops profitable partnerships in the Nordic and Baltic areas in collaboration with international producers of pharmaceuticals, nutrition and medical device products. With our thorough knowledge and our expertise in marketing and sales, we offer benefits to the health and medical care sector at the same time as we promote our own and our partner's growth and development. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/05/27/19990527BIT00190/bit0001.doc http://www.bit.se/bitonline/1999/05/27/19990527BIT00190/bit0002.pdf