SCN ACQUIRES DANISH BIOTECH COMPANY FOR SEK 60 MILLION – STRENGTHENS PRODUCT PORTFOLIO WITHIN THE COMMON COLDS AND IMMUNE DEFENSE AREAS
(NGM:SCN)
Scandinavian Clinical Nutrition AB (SCN) has acquired the Danish research and exports company Nordic Phytopharma A/S (NPP). The acquisition brings SCN two new and internationally patented products, of which one has effect on common colds, and the other stimulates the immune defense system. The acquisition will also strengthen the company’s exports department for the markets in Europe, Asia and South America.
”We have been following NPP for a long time. It is a very interesting company, with a strong product portfolio and important research connections. The company is also showing revenue, has recently closed a number of international distribution agreements, and more are expected shortly. By acquiring NPP, SCN further strengthens the company’s position on the international health and nutrition market”, says Ulf Söderberg, CEO of SCN.
The acquisition gives SCN access to several products that can be launched shortly, something that generates great interest on the US market according to SCN’s own US marketing company and their business partners.
Another interesting possibility is vested in one of NPP’s established products, Immulina, today licensed to the American company PhytoLab Solutions Inc. PhytoLab Solutions has already paid USD 1.5 million for the license to sell Immulina, and has an option to take over all the rights to the product before the end of 2008, which, if executed, will give NPP/SCN a revenue of USD 13 million.
“SCN and NPP have a lot in common when it comes to history and image, and thus have a lot to gain by working as one organization. The owners of NPP see their engagement in the company in a long term perspective, and believe in the potential of a new and bigger SCN to consolidate a strong position on the world market”, says Carsten Waern, CEO of NPP.
On the R&D side, SCN has research collaboration with the Swedish Karolinska Institute, one of the world’s foremost medical universities, and the institution that awards the Nobel Laureate in Physiology or Medicine. With the acquisition of NPP, their American research contacts with the University of Mississippi and leading professors at the Johns Hopkins University in Baltimore are also added.
“NPP has more to offer than just exciting and patented products, not least the human capital that comes with the acquisition. The management of NPP has extensive experience from the international health market, with a well-known product as Imedeen as one example. Together with the benefits of NPP’s established sales organization, these management qualities are good prerequisites for our combined product portfolio”, says Ulf Söderberg.
Out of the total purchase price of SEK 60 million, SEK 40 million are shares in SCN that will be issued to the owners of NPP at a course of SEK 19. SEK 15 million will be paid in cash, and the last SEK 5 million is conditional to coming revenue.
Earlier this year, SCN strengthened the company’s position within treatment of common colds by signing a 20-year world-wide exclusivity agreement with the Norwegian Biotech company Life Capitol. The agreement, which was signed on May 24, gives SCN exclusive rights to a patent pending treatment for i.e. common colds and virus related obesity.
The agreement presupposes approval of a Shareholders’ Meeting in SCN, which will be held in August.
More information:
Ulf Söderberg, CEO SCN, ulf.soderberg@scnutrition.com, +46 708 13 22 81 or +46 761 058 099
Carsten Waern, CEO NPP, cw@npp.dk, +45 2090 8888
Scandinavian Clinical Nutrition AB (publ) works in R&D and sales of scientifically documented products within the field of nutrition (nutraceuticals). Established in 2006, SCN maintains a product portfolio with established trademarks, such as CUUR, Membraseven and Ledactin. Core competence and strategic alliances, within both R&D and sales, in combination with innovative and scientifically documented products, create the right conditions for profitable growth both in Sweden and in the company’s export markets. The SCN share is listed for trade on NGM Nordic MTF since December 6, 2006.