Norwegian pharmaceutical company Vistin Pharma ASA has entered a Sales and Purchase agreement with independently-owned Australian company TPI Enterprises Limited for its opioids and tablet manufacturing business.
TPI will pay a cash consideration of NOK 100 million (€10.5M), as well as the value of inventory transferred at the date of closing. The inventory value at 31 March 2017 was NOK 62 million (€6.52M). The transaction will have a positive net cash effect of NOK 140 – 150 million (€14.7M-€15.8M), before any transaction costs, Vistin said. The transaction is expected to be closed early in the fourth quarter of 2017.
“The sale of our opioids and CMO business allows the company to focus entirely on its core business, and strengthen our position as a leading global player in the growing metformin market. We are pleased with the agreed terms which put Vistin Pharma in a very strong financial position, with significant investment and dividend capacity,” says Chairman Ole Enger.
“TPI has thorough insight into Vistin Pharma, and I am confident that the company will become a good owner of our opioids and CMO business,” says CEO Kjell-Erik Nordby.
“Our decision to invest in a doubling of our metformin production capacity is a witness of our intentions within this market. Following the divestment of our opioids and CMO business we are in a better position than ever to successfully grow our core metformin business,” says Nordby.