HEIDELBERG, Germany--(BUSINESS WIRE)--April 4, 2006--LION bioscience AG has successfully completed the sale of its bioinformatics business to BioWisdom Ltd, UK. The consideration will be up to EUR 4 million and the deal is due to be completed by April 4, 2006. As a result of this transaction, the company has achieved a major milestone in its restructuring plans, which commenced over a year ago. "We have achieved a satisfactory result through this disposal. All obligations resulting from the bioinformatics business have been assigned to the buyer, therefore, we can now focus on the future business, based on a clean and strengthened position," said Peter Willinger, CFO of LION bioscience.
The bioinformatics unit, comprising the 100%-owned subsidiaries, LION Bioscience Ltd., Cambridge, UK and LBAV, Inc, Cambridge, MA, USA, will be taken over by BioWisdom Ltd., a company specializing in providing healthcare intelligence to business leaders in the pharmaceutical and biotechnical industry. The sales price consists of a fixed and variable payment. The latter is based on the business development over the next 12 months.
In connection with the sale of the bioinformatics business, the planned reduction of the Management Board, approved by the shareholders' meeting in March 2005, has taken place, with Dr. Thure Etzold resigning as CEO as of April 4, 2006. Peter Willinger will be the sole member of the Management Board.
"The disposal of the bioinformatics business was a primary precondition for the future strategy of LION and its position in the market," said Peter Willinger. "LION is currently reviewing potential promising options within the life science business. We are confident, that we will be able to provide more specific updates with this regards to our position shortly," added Willinger.
Except for the historical information contained herein, the matters set forth in this press release are forward looking. These forward-looking statements may include projections, assumptions, estimates, targets, and descriptions of future events. Such statements are based on currently available information and on LION's current expectations as to future events that may not prove to be accurate. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Many factors could cause the actual results, performance or achievements of LION to be materially different from those that may be projected, expected, targeted, expressed or implied by such statements. All roll-out plans and future dates with respect to completion of development and market release of LION products are target dates only based on the company's current planning and may change in the future. Any delays in the current product release schedule will have a materially adverse effect on the company's targets for fiscal year.
LION bioscience AG
Peter Willinger, +49 (0) 6221-4038 293
Chief Financial Officer
Gordon Smith Baxter, CEO
Susan Lowther, CFO
+44 (0) 1223 874800
BioWisdom media enquiries
Melanie Toyne-Sewell, +44 (0) 207 357 9477
Source: LION bioscience AG