Divestment of BioPhausia AB to Karo Pharma AB by Medivir AB

Medivir AB (publ) has agreed to divest BioPhausia AB to Karo Pharma AB (publ) for SEK 908 million on a cash and debt free basis, including normalised working capital.

As previously communicated through press releases in June and August 2016, the Board of Directors of Medivir tasked the management to investigate a separation of the group’s operations into two independent companies, with the aim of separately listing the commercial operations. In the meantime, BioPhausia has attracted significant interest from several prospective buyers. In a structured process of evaluating a sale versus a separate listing, the Board of Directors of Medivir has concluded that a divestment of BioPhausia to Karo Pharma is the best alternative for BioPhausia, Medivir and its shareholders.

BioPhausia consists of thirteen established pharmaceutical drugs with strong brand names and long prescription traditions in the Nordics. For the period of Q3-2015 to Q2-2016, BioPhausia generated revenues of SEK 189 million.

Closing of the transaction is expected to take place in December 2016, subject to customary provisions.

Carnegie is acting as financial adviser to Medivir in connection with the transaction.