Biovitrum AB and Swedish Orphan International AB will be combined forming Swedish Orphan Biovitrum.
Biovitrum and Swedish Orphan share the same mission and business philosophy of developing and making available orphan drugs and niche specialty pharmaceuticals for patients with rare diseases and patients with high unmet medical needs.
Complementary capabilities
Swedish Orphan brings recognised and successful business development capabilities, strong expertise in distribution, marketing, regulatory affairs, medical and customer support, along with its pan-European presence.
This is highly complementary to Biovitrum’s strong product development expertise and manufacturing skills. More specifically, Swedish Orphan brings two proprietary orphan and niche specialty drugs as well as a diverse in-licensing portfolio of approximately 50 orphan and niche specialty drugs with significant growth potential to the combined group.
Biovitrum contributes with its strong hemophilia franchise, manufacturing capability, several marketed niche specialty products, of which three are proprietary, as well as a late stage clinical development pipeline within rare diseases.
The combination of the two companies is expected to be instantly accretive to earnings per share for Biovitrum’s shareholders. The combined group will generate sales from approximately 60 orphan/niche specialty products plus a pipeline of two phase III and five phase II clinical product candidates to drive future growth. The combination will allow the new group to realise annual operating cost synergies and cost avoidance in excess of SEK 100 million with full effect from 2011.Inaddition, Swedish Orphan’s established European sales and marketing infrastructure is expected to accelerate the growth of Biovitrum’s current products as well as future pipeline products. The pro forma revenues for 2009 are estimated to reach SEK 2 billion with an EBITDA margin of about 15%. The new group has a target to reach sales exceeding SEK 5 billion with an EBIT margin exceeding 30% in 2015, based on its current product portfolio and pipeline.
