Hungarian drugmaker Gedeon Richter has announced a capital raise in U.S.-based peer Evestra that will make it the biggest stakeholder in the company, according to a bulletin published on the Budapest Stock Exchange (BÉT).
Richter said it has subscribed for USD 15 million of newly issued shares in Evestra, and will convert a USD 1.5 mln loan it made to the company in 2017 into equity. Once the transactions are completed, Richter will hold 30.44%, making it the biggest stakeholder.
Under an agreement with Evestra, Richter reserves future option rights for stakes in the company based on R&D milestones.
“Richter and Evestra intend to deepen and to expand the scope of their collaboration in the field of womenʼs healthcare research and development in order to bring novel products to this niche market standing in the strategic focus of both companies,” Richter said.
“We are excited about the opportunity of taking the relationship between our companies to a new level,” commented Richter CEO Gábor Orbán. “We look at Evestra as an outsourced research facility which is a perfect fit to Richter’s well-established development and manufacturing capacities in the increasingly competitive women’s healthcare segment.”