Schweizerhall expands pharma presence with acquisition of Novosis
Schweizerhall, the Basle-based group specialising in pharmaceuticals and chemicals, has acquired the German specialty pharmaceuticals company Novosis.
Schweizerhall, the Basle-based group specialising in pharmaceuticals and chemicals, has acquired the German specialty pharmaceuticals company Novosis.
The two companies are engaged in complementary business activities focused on dynamic segments of the pharmaceuticals industry. The acquisition gives Schweizerhall access to another attractive market segment within specialty pharma and value added generics. This offers better margins and higher barriers to entry than the classic generics business.
The purchase price partially dependent on the achievement of milestones. Initially, by the end of May 2006, Schweizerhall will pay Euro 26.6m in cash and €8.3m in newly issued Schweizerhall shares. Depending on the achievement of financial earnings and r&d milestones, a second payment of between €9.0m and €47.7m will be due in the first quarter of 2008.
Novosis is a privately owned pharmaceutical company specialised in the development and manufacturing of transdermal and biodegradable, subcutaneous drug delivery systems. It currently employs 62 people and expects a turnover of €16m in 2006.
The company possesses a full pipeline of new products scheduled to reach the market over the next few years. Transdermal systems for contraception, the treatment of central nervous system diseases, novel patches to relieve pain as well as biodegradable implants for the treatment of prostate cancer are some of the more advanced projects in the r&d pipeline.
Schweizerhall intends to expand its strategic positioning in generics through Novosis and to strengthen contract development services for research-driven pharmaceutical companies. In the longer term, Schweizerhall plans to push product development and to build a combined broadened product portfolio.
Dr Wilfried Fischer will continue to serve as ceo of Novosis within the Schweizerhall Group.
"The acquisition of Novosis represents an excellent strategic fit and complementary strengthening of our pharmaceutical activities," said Luzi A. von Bidder, president of the board of directors of Schweizerhall Holding. "It broadens our technology base for pharmaceuticals particularly in the area of advanced drug delivery, strengthens our offering for the generics industry and improves our access to research-driven pharmaceutical companies."