Biovitrum to acquire Swedish Orphan

Biovitrum AB (SSE:BVT) will acquire Swedish Orphan International AB (Stockholm, Sweden) 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 in cash related to the company's Multiferon, which 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.

Biovitrum said it gains about 50 orphan drug and niche pharmaceuticals, including marketed Orfadin nitisinone to treat hereditary tyrosinemia type 1. The companies would have a combined 2009 revenue of SEK2 billion ($283.8 million). ...