SCN Agrees to Buy-out of Non-core Distribution Agreement for MSEK 2

Scandinavian Clinical Nutrition (SCN) will receive SEK 2 million in cash by the end of May 2009 from its client Hirapharm S.A.R.L. to mutually terminate the distribution of third party products in France, Belgium and Luxembourg.

The buy-out by Hirapharm relates to an exclusive distribution agreement for third party products (Femal and Poltit) from the Swedish company Natumin Pharma AB. Prior to the buy-out, SCN and Natumin had been working jointly on marketing and distributing some of Natumin’s products in the French-speaking region of Europe and this deal now leaves the door open for Natumin and Hirapharm to directly conduct business on Natumin’s products between each other.

“Given that SCN has no ownership in the products in question, we have agreed for Hirapharm to buy us out of this agreement, which we consider non-core business. This way SCN is in a better position to focus on developing its own opportunities and we wish Natumin and Hirapharm well in their direct collaboration going forward,” says Danilo Copiz, VP of Sales at SCN, who initially set-up the agreement and negotiated the deal for SCN.