Richter Becomes Strategic Investor in Formycon
Image by gedeonrichter.com
Hungarian pharmaceutical company Gedeon Richter on Monday announced the acquisition of a 9.08% stake in German biosimilar maker Formycon, according to a report by state news wire MTI.
Richter acquired the newly issued shares in a private placement for EUR 82.84 mln, paying the weighted average share price over the past 30 trading days. The lock-up period for the shares is 180 days.
The fresh capital will be used for the further development of biosimilars in the pipeline.
Richter CEO Gábor Orbán said the capital raise served to reinforce Richter's strategic partnership with Formycon.
"Joining forces in this way will provide scale benefits and new business opportunities for both parties, while ensuring mission critical knowledge and experience transfer in a fast-evolving industry," he added.
Formycon CEO Stefan Glombitza acknowledged Formycon's "very trustful and successful" operational cooperation with Richter over the past few years, using the company's manufacturing capacities.
"This transaction has the potential to generate strong momentum as it enables both parties to jointly leverage strategic long-term opportunities," he said.
Richter noted that global sales of biosimilars -- follow-on versions of biopharmaceuticals, for which exclusivity has expired -- could rise from more than USD 15 bln at present to over USD 74 bln by 2030.
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