15 October 2007
Orexo AB (OMX Nordic List, Mid Cap: ORX) and the principal owners of Biolipox AB have reached an agreement under which Orexo will acquire Biolipox, an innovative Swedish research-based pharmaceutical company that develops new therapies for inflammatory diseases, including pain management and respiratory diseases such as asthma and chronic obstructive pulmonary disease (COPD).
The acquisition will create an innovative specialty pharma company with a broad product pipeline, global partnerships with major financial potential, and established sales channels. Substantial shareholder value will be created through operational synergies and by optimizing the potential of the combined product pipeline.
The transaction will take place through an issue in kind to Biolipox's shareholders. The deal values Biolipox at SEK 856 million, and payment will be made through an issue of a maximum of 8,560,000 Orexo shares. The final structure of the transaction is dependent on Orexo's completion of due diligence of Biolipox. The deal is also conditional upon approval of the issue in kind by an extraordinary general meeting of Orexo and customary regulatory approvals.
A press conference will be held jointly by Orexo and Biolipox at 10 a.m. today, Monday, 15 October 2007. Location: Summit, Grev Turegatan 30, Stockholm.