12:00 AM
Oct 22, 2007
 |  BioCentury  |  Strategy

One deal at a time

Orexo AB is acquiring Biolipox AB to add critical mass and put the company in a better position for future M&A. Orexo hopes a future purchase of a sales and marketing company will enable it to integrate forward to become a specialty pharma.

Last Monday, Orexo (SSE:ORX, Uppsala, Sweden) said it would acquire Biolipox (Stockholm, Sweden) for 8.6 million shares of ORX stock, which values the inflammation, neurology and pulmonary company at SEK776.8 million ($120.9 million) based on ORX's close of SEK90.75 the prior Friday, before the deal was announced. Biolipox shareholders would own 38% of the combined company.

On a pro forma basis, the deal makes ORX the third largest Swedish biotech (see "Moving On Up").

ORX CEO Zsolt Lavotha told BioCentury that since going public in 2005, the company has been scanning Nordic and U.S. companies to identify and evaluate acquisition candidates to beef up its assets.

Read the full 744 word article

User Sign in

Trial Subscription

Get a 4-week free trial subscription to BioCentury

Article Purchase

$150 USD
More Info >