Richter International, Inc. Buys Swiss PregLem SA for up to $461 Million
Published: Oct 08, 2010
BUDAPEST, Hungary, October 7, 2010 /PRNewswire/ -- Richter announces the Acquisition of PregLem for an initial cash consideration of CHF150 million (EUR114 million) and further milestone payments of up to CHF295 million (EUR223 million). The Acquisition values PregLem at up to CHF445 million (EUR337 million) - PregLem is a Swiss based, specialty biopharmaceutical company focused on the development and commercialisation of women's reproductive medicine - The Acquisition of PregLem: - Increases Richter's exposure to specialty pharma - Develops Richter Groups's presence in main European markets - Complements Richter's existing Women's Health franchise - Richter will invest at least CHF100 million in PregLem in 2011-2013 to assist the commercial development of PregLem's product portfolio Summary Gedeon Richter Plc ("Richter") today announces the Acquisition of PregLem Holding SA ("PregLem"), a privately held Swiss biopharmaceutical company focused on the treatment of gynaecological conditions and infertility. The Acquisition has completed and Richter now owns 100% of PregLem's equity. PregLem's owners included Founders, Sofinnova Partners (Seed and Lead investor), MVM International Life Sciences Partners, NeoMed Innovation, Sofinnova Ventures, Sutrepa and managers and employees of PregLem. The existing PregLem executive team will continue to manage PregLem which will become a research and development centre of an enlarged and growing Women's Health business for the Richter Group, with a core focus on the development of early stage compounds. PregLem's senior management team have extensive experience in women's reproductive medicine from leading international pharmaceutical companies such as Serono (now Merck Serono), Ipsen and Warner Lambert (now Pfizer). PregLem's lead product, PGL4001 Esmya(TM), completed Phase III clinical trials in June 2010 for the treatment of uterine myoma. PregLem currently has five products in clinical and pre-clinical development. PregLem will provide a further high added value pipeline to Richter's existing female healthcare product portfolio, which itself has been based on well established steroid chemistry knowledge. The transaction values PregLem at up to CHF445 million provided certain milestones are achieved, with the consideration to be settled in cash. PregLem shareholders will receive CHF150 million in cash upfront and further milestone payments of up to CHF295 million will be paid assuming achievement of all milestone targets.