ARTICLE | Company News

Biovitrum, Swedish Orphan International deal

November 9, 2009 8:00 AM UTC

Biovitrum will acquire Swedish Orphan for SEK3.5 billion ($496.7 million), including SEK1.8 billion ($255.4 million) in cash and SEK1.7 billion ($241.2 million) in Biovitrum shares or convertible debt. Swedish Orphan shareholders also are eligible for up to SEK425 million ($60.3 million) in sales milestones related to the company's Multiferon. The purified multi-subtype natural interferon alpha is marketed for malignant melanoma.

Biovitrum will fund the cash portion of the deal through a seven-year, SEK800 million ($113.5 million) credit facility and a rights issue for up to SEK1.5 billion ($212.9 million). Swedish Orphan will have an estimated net cash position of SEK150 million ($21.3 million) at the deal's close. ...