Siegfried Sells PulmoJet

October 01, 2010 -- The Siegfried Group (SIX: SFZN) announces the sale of its inhalation project, and therefore its PulmoJet® dry powder inhaler, to sanofi-aventis (where it will be part of Zentiva generics platform) with effect from 1 October 2010. The acquisition price includes a cash upfront-payment followed by royalty payments after market introduction of the products.

Siegfried CEO Rudolf Hanko: “We looked for a strong industrial partner following the completion of feasibility studies for the PulmoJet® dry powder inhaler developed by us. In Zentiva and Sanofi-Aventiswe have found excellent and experienced developer for PulmoJet’s upcoming clinical tests and a guarantor for its successful market introduction. This solution represents a technical and economic win-win situation for all participants and a good day for the PulmoJet® device”.

Strong performance of Siegfried’s development team

Siegfried acquired the rights to the PulmoJet® dry powder inhaler in 2007 and within three years continued to develop the device both technically and pharmaceutically. Currently, two pharmaceutical projects for asthma therapy based on the PulmoJet® platform are in the pipeline. A pharmaco-kinetic study was completed in the spring of 2010. Siegfried did not intend to carry out or finance the upcoming broad clinical tests itself.

Rob Koremans, the CEO of Zentiva, commenting on today’s news said “Today’s acquisition provides a real boost to our plans to extend the range of modern high quality affordable medicines to patients. By acquiring the Siegfried Inhaler Franchise we believe we will have a strong competitive position which will allow us to become a leader in affordable respiratory medicines in the future.”

Siegfried participates in market success

Following market introduction of the two development projects, Siegfried will benefit from related royalty payments. Furthermore, expenses for PulmoJet will cease to apply for Siegfried.

All employees to be retained

Together with the project, sanofi-aventis will acquire the connected Siegfried subsidiary company in Germany. Consequently, about 50 employees at the Munich (development) and Höchstädt (production) locations will change over to sanofi-aventis.