Biotest AG:Biotest AG acquires plasma protein business unit from Nabi Biopharmaceuticals Corp.
Biotest AG / Acquisition/Capital Increase
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Biotest AG acquires plasma protein business unit from Nabi
Biopharmaceuticals Corp.
· Acquisition of FDA-certified pharmaceutical production facilities and
nine plasmapheresis centres
· Immediate strong presence in the USA with hyperimmunoglobulins and plasma
raw material
· Strong sales and earnings growth expected in the medium term based on new
market approvals of immunoglobulins
· Financing through long-term bank loan - capital increase for part funding
of the purchase price planned
Dreieich, 11 September 2007. Biotest AG, Dreieich has acquired the
Biologics business unit ('Nabi Biologics') from Nabi Biopharmaceuticals
Corp., Boca Raton (Florida, USA) in which the company’s plasma protein
operations are pooled. The purchase price stands at USD 185 million
(approximately EUR 135 million). The transaction is still subject to merger
approval and must also be agreed by the shareholders of Nabi
Biopharmaceuticals.
The investment acquired under an asset deal comprises a state-of-the-art
plasma protein production plant certified by the US Food and Drug
Administration (FDA) as well as the unit’s headquarters in Boca Raton. The
transaction also includes the acquisition of nine plasmapheresis centres
certified by FDA and EMEA in six US states with a production volume of
around 400,000 litres per year. At more than USD 80 million in 2007, total
sales from the profitable business unit comprise plasma sales and Nabi-HB®
product sales. Nabi-HB® is a human polyclonal antibody product indicated
to prevent hepatitis B infection following accidental exposure to hepatitis
B virus and is also used to prevent reinfection after liver transplantions
The transaction not only places Biotest among the most important plasma
producers worldwide, but it also secures an outstanding global position in
the hyperimmunoglobulin market. In addition, Biotest has gained a presence
in the US immunoglobulin market considerably earlier than planned. With an
annual demand of more than 30 tons, this market represents around one third
of global demand. Moreover, Biotest is able to cover a major proportion of
its plasma requirements using its own plasma centres.
Professor Dr. Gregor Schulz, Chairman of the Management Board of Biotest AG
commented: 'With the acquisition of Nabi Biologics, we have found the ideal
complement for our European plasma protein business and have become a
global player in the industry. We have an immediate share in the highly
attractive and growing US plasma protein market and are substantially
expanding our capacities, extending our product range and consolidating our
clinical development portfolio.' Dr. Leslie Hudson, Interim President of
Nabi Biopharmaceuticals Corp., added: 'This agreement definitively puts us
on the final path to a successful outcome of our strategic alternatives
process and speaks to the attractiveness of the Nabi Biologics business.
We feel this transaction not only will realize value for our Nabi
shareholders but also will allow us to build on the promise of our
pharmaceutical pipeline. I am delighted that after the transaction closes
our Nabi Biologics and Corporate Shared Services employees will have the
prospect of a promising future with Biotest.'
In addition to the quality and capacity offered by the production
facilities and the proven expertise in the areas of production, quality
assurance and marketing, the determining factors for the acquisition also
included Nabi Biologics’ promising clinical development projects. A
polyvalent immunoglobulin, in particular, displays outstanding product
characteristics similar to those of Intratect® by Biotest and has recently
entered a Phase III registration trial. Tailored to the US market, this
product is to be launched here in the first half of 2010, which is
considerably earlier than the launch date previously planned for
Intratect®. Besides time advantages, Biotest will also benefit in terms of
cost, since the Group is no longer required to invest in the additional
expansion of the German production facilities which would otherwise have
been required.
Another product in clinical development (clinical Phase IIb) is Civacir®, a
polyvalent immunoglobulin containing antibodies that are neutralising the
hepatitis C virus (HCV). It could be used to prevent re-infection in HCV
positive liver transplant patients. According to the World Health
Organisation (WHO), 170 million people worldwide are chronically affected
with HVC because there is no vaccination available. In the USA,
approximately one third of liver transplants are carried out as a result of
this infection. Due to the high unmet medical need, in the US alone
Civacir® has a market potential of somewhere in the three figure million
dollar range. The drug candidate has been granted Orphan Drug Designation
in Europe and the USA which comprises accelerated approval.
Biotest aims to achieve consolidated sales of at least EUR 380 million for
2008. In the medium term, based on the expected product approval of IVIG in
the USA as well as the expanded capacities in Dreieich, sales for the Group
are set to exceed the EUR 500 million mark.
Financing of the transaction, including repayment of all liabilities due to
banks owed by Biotest AG, is secured by a long-term loan issued by
Commerzbank AG. Deutsche Bank advised Biotest on matters relating to the
transaction. Biotest anticipates that the new US operations will generate
operating income in 2008, which almost matches the additional interest
expenses volume. We therefore aim to achieve a further increase in the
Group result before tax in 2008. For the current year, Biotest still
expects to record an increase in earnings within the previously announced
range. From 2010 onwards, the US plasma protein business is set to
significantly increase sales and margin quality following the expected
approval of IVIG, and thus contribute to a notably improved Group result.
Biotest AG plans to fund part of the purchase price financing through a
capital increase. Sufficient authorised capital has been made available for
this. The exact conditions of the capital increase will be announced at a
later date. Biotest will therefore continue to maintain its equity-based
financing practice in the accelerated growth stage which now lies ahead.
For additional information please visit our website www.biotest.de.
Disclaimer
This document contains forward-looking statements on overall economic
development as well as on the business, earnings, financial and asset
situation of Biotest AG and its subsidiaries. These statements are based on
current plans, estimates, forecasts and expectations of the company and are
thus subject to risks and elements of uncertainty that could result in
deviation of actual developments from expected developments. The
forward-looking statements are only valid at the time of publication.
Biotest does not intend to update the forward-looking statements and
assumes no obligation to do so. This press release may not be distributed
in or into the United States, Australia, Canada or Japan.
About Biotest
Biotest AG, Dreieich, Germany, is a company that researches and
manufactures pharmaceutical, biotherapeutic and diagnostic products and has
specialised in immunology and haematology. In its Pharmaceutical segment,
Biotest develops and markets immunoglobulins, clotting factors and albumins
based on human blood plasma. These are used for diseases of the immune
system or haematopoietic system. In the Biotherapeutic segment, Biotest
researches in the clinical development of monoclonal antibodies, including
in the indications of rheumatoid arthritis and blood cancer. The Diagnostic
segment spans reagents and serology and microbiology systems which are
used, for example, in blood transfusions. Biotest has around 1,200
employees worldwide and its shares are listed in the Frankfurt Stock
Exchange's Prime Standard.
About Nabi Biopharmaceuticals
Nabi Biopharmaceuticals leverages its experience and knowledge in powering
the immune system to develop and, in certain areas, market products that
target serious medical conditions in the areas of hepatitis and
transplants, gram positive bacterial infections and nicotine addiction. We
are a vertically integrated company with sales of antibodies and other
biologics, including Nabi-HB® [Hepatitis B Immune Globulin (Human)], a
pipeline of products in various stages of development, state-of-the-art
manufacturing capability and a cash position that will allow us to advance
our near-term pipeline products. The company operates through two strategic
business units: Nabi Biologics and Nabi Pharmaceuticals. Nabi Biologics has
responsibility for the company's protein and immunological products and
development pipeline, including Nabi-HB. Nabi Pharmaceuticals is
responsible for the NicVAX® (Nicotine Conjugate Vaccine) and StaphVAX®
(Staphylococcus aureus Polysaccharide Conjugate Vaccine) development
programs. For a complete list of pipeline products, please go to:
http://www.nabi.com/pipeline/index.php. The company is headquartered in
Boca Raton, Florida. For additional information about Nabi
Biopharmaceuticals, please visit our Web site:http://www.nabi.com.
Biotest AG:
Biotest AG, Landsteinerstr. 5, D-63303 Dreieich, www.biotest.de
Dr. Marion Wendorff, Tel: +49 (0) 6103 801-520, e-mail:
marion_wendorff@biotest.de
Fax: +49 (0) 6103 801-347
WKN, ISIN ordinary share: 522720, DE0005227201
WKN, ISIN preference share: 522723, DE0005227235
Listed: Prime Standard/official trading
Frankfurt, Berlin, Düsseldorf, Hamburg, Stuttgart
11.09.2007 Financial News transmitted by DGAP
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Language: English
Issuer: Biotest AG
Landsteinerstr. 5
63303 Dreieich
Deutschland
Phone: +49 - 6103 / 801 - 0
Fax: +49 - 6103 / 801 - 150
E-mail: mail@biotest.de
Internet: www.biotest.de
ISIN: DE0005227201, DE0005227235
WKN: 522720, 522723
Indices:
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in
Berlin, Düsseldorf, Hamburg, Stuttgart
End of News DGAP News-Service
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