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Richter acquires Swiss-based PregLem

Hungarian pharmaceuticals company Richter Gedeon acquired 100% of Preglem, a private drug company based in Switzerland on the website of the Budapest Stock Exchange on Thursday.

The acquisition values PregLem at up to CHF 445 million (€337 million).

Richter has acquired the 100% of Preglem for an initial cash consideration of CHF 150 million (€114 million) and further milestone payments of up to CHF 295 million, assuming the achievement of all milestone targets.
Over the next three years, Richter is committed to investing CHF 100 million in PregLem to commercialize PregLem’s products, develop salesforce capability in the main European markets such as the UK, Germany, France, Italy and Spain, and progress the clinical development of PregLem’s early stage compounds.

PregLem is a specialty biopharmaceutical company focused on the development and commercialization of women’s reproductive medicine.

PregLem’s owners included founders, Sofinnova Partners (Seed and Lead investor), MVM International Life Sciences Partners, NeoMed Innovation, Sofinnova Ventures, Sutrepa and managers and employees of PregLem.

The existing PregLem executive team will continue to manage PregLem which will become a research and development centre of an enlarged and growing women’s health business for the Richter Group, with a core focus on the development of early stage compounds.

PregLem’s senior management team have extensive experience in women’s reproductive medicine from leading international pharmaceutical companies such as Serono (now Merck Serono), Ipsen and Warner Lambert (now Pfizer).

PregLem’s lead product, PGL4001 Esmya, completed Phase III clinical trials in June 2010 for the treatment of uterine myoma. PregLem currently has five products in clinical and preclinical development.

"PregLem represents an outstanding strategic opportunity for the Richter Group in a core therapeutic area. I look forward to working with the existing management team to develop the PregLem products in the European markets," Erik Bogsch, managing director of Richter, said.

"PregLem, in three years, has developed an innovative pipeline of drugs for the treatment of benign gynaecological conditions. This deal provides the opportunity to advance our portfolio of products, to register ESMYATM (PGL4001) in Europe and to build a commercial organisation in selected European countries, Ernest Loumaye, CEO and founder of PregLem, said, noting that Richter's existing portfolio and approach to specialty pharma is highly complementary.

Richter had unaudited consolidated IFRS net income of HUF HUF 38.0 billion in H1 this year, up 36.8%, and consolidated sales rose 2% to HUF 137.2 billion in the period. (MTI-Econews)