Biotest successfully completes acquisition of Nabi Biologics assets
• Management team for US plasma protein business determined
• Sustainable structure for European pharmaceutical activities achieved
Biotest AG has successfully completed the first step in the acquisition of the plasma protein operations of Nabi Biopharmaceuticals Corp., Boca Raton (Florida, USA). Yesterday evening (EST), Biotest became the owner of various assets constituting the Biologics business unit formerly owned by Nabi. The acquisition comprised substantially all of the assets belonging to the unit, including nine plasmapheresis stations, a modern plasma proteins production plant and the head office in Boca Raton. The Nabi shareholders had already approved the sale by a large majority a few weeks ago. The US merger control also did not raise any objections concerning the transaction.
Biotest has submitted applications for manufacturing and sales and wholesale distribution with the U.S. Food and Drug Administration and the Florida Department of Health that, when issued, will enable Biotest to assume full manufacturing and sales operations in the United States. Management expects that such licences will be issued within the next six to eight weeks.
The acquisition will make Biotest one of the six plasma protein providers which operate at international level. It will facilitate the significant expansion of plasmapheresis and pharmaceutical production capacities and at the same time, extends the Group’s clinical development portfolio. The number of employees has increased by around 500 to total approximately 1,750. Almost all employees in the Biologics business unit have accepted the employment contract offered to them by Biotest.
The purchase price totalled USD 185 million (EUR 127 million). Due to developments in the exchange rate between the US dollar and the euro, the sum was around EUR 6 million less than the estimated original amount of EUR 133 million. Accordingly, there was a reduction in the net borrowings required to finance the acquisition.
“We expect that the new US activities will generate positive operating profit as early as the first financial year,” commented CFO Dr. Michael Ramroth. “Despite the rise in interest expense as a result of the acquisition, we are continuing to aim to achieve a further increase in the Group result for 2008.” From 2010 onwards, the US plasma protein business is set to markedly improve sales and the quality of margins due to the expected approval of the polyvalent immunoglobulin (IVIG) product.
The plasma protein business in the USA will be pooled in the new company trading under the name Biotest Pharmaceuticals Corp. in Boca Raton. Formerly Head of Biotest’s Pharmaceutical segment, Dr. Rainer Pabst has been appointed as Chief Executive Officer of the new company. Chief Financial Officer Jordan Siegel previously carried out a similar role in his former position at Nabi Biopharmaceuticals.
At the same time as the acquisition of the US plasma protein operations, Biotest AG arranged its European structures in line with the future global growth strategy. The former Pharmaceutical segment forms the nucleus of two divisions: Plasma Proteins and Biotherapeutics. In addition, the service division Medical/Regulatory Affairs is responsible for clinical development as well as regulatory approval across both divisions. The new structure will enable Biotest to pool its expertise and increase flexibility – also in terms of potential sales and development partners in the Biotherapeutical segment. An external candidate will be recruited to manage the Plasma Proteins segment in the near future.
Biotest, Dreieich, Germany, is a company that researches and manufactures pharmaceutical, biotherapeutic and diagnostic products and has specialised in immunology and haematology. In its Pharmaceutical segment, Biotest develops immunoglobulins, clotting factors and albumins based on human blood plasma. These are used for diseases of the immune system or haematopoietic system. In the Biotherapeutic segment, Biotest researches into the clinical development of monoclonal antibodies, including in the indications of rheumatoid arthritis and blood cancer. The Diagnostic segment spans reagents and microbiology systems which are predominantly used in hygiene control, as well as serology, used, for example, in blood transfusions. Biotest has around 1,750 employees worldwide and its shares are listed in the Frankfurt Stock Exchange's Prime Standard.
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