Reference is made to the stock exchange announcement made by Navamedic ASA (the "Company" or "Navamedic") on 21 December 2018 concerning the process of a potential acquisition of Novicus Pharma AS ("Novicus Pharma" or "Novicus").
Navamedic has today entered into a Share Purchase Agreement to acquire 100% of the shares in Novicus Pharma. The acquisition will strengthen Navamedic’s executive team, product pipeline and network in the pharma industry.
As part of the proposed transaction, the three founders of Novicus Pharma have agreed to become key members of the Navamedic management team incl Kathrine Gamborg Andreassen as CEO of Navamedic, Ole Henrik Eriksen as COO and Astrid T Bratvedt as Vice President of R&D.
Navamedic has a strong marketing and distribution platform to hospitals and pharmacies in the Nordic and Baltic region as well as an innovative Medtech division.
“The two companies complement each other very well. Together they will be a unique platform for further growth”, says Kathrine Gamborg Andreassen
“Navamedic has a solid foothold in pharmacy and health care industry in the Nordic region, while Novicus Pharma has in a short time established a pipeline of unique products targeting specific consumer needs in the same region. We believe that current trends in the population, specifically related to lifestyle diseases and other common ailments, represents significant growth opportunities for the combined company” Andreassen explains.
Terje Bakken, Chairman of Navamedic concludes;
“Our ambition is to complement the strong platform of Navamedic with the new opportunities from Novicus Pharma to create a new Nordic pharmaceutical entity with multiple growth opportunities. We see great opportunities within the current Pharma & Healthcare division and we’re very pleased to have Novicus onboard to enhance and execute the growth plan going forward. The transaction is done on fully aligned incentives with all parties encouraged for a positive journey going forward”
Novicus will be acquired from companies owned by the founders of Novicus as named above. The agreed consideration for 100% of the shares in Novicus is 11.67 MNOK, which will be settled on closing of the transaction by issuance of 1,000,000 new shares in Navamedic to the sellers (the "Consideration Shares"). The Consideration Shares will be issued by the Company's board of directors pursuant to a board authorization granted by the Company's 2018 annual general meeting to increase the share capital in the Company in connection with, inter alia, strategic acquisitions with settlement in new shares in Navamedic. The Consideration Shares will be subject to a lock up period of 24 months from closing, under which the sellers of Novicus cannot sell, pledge or otherwise transfer the Consideration Shares.
The transaction is expected to close during the course of next week.
For further information:
Toril Ås, CFO, Navamedic
Telephone: +47 957 01 071
About Novicus Pharma AS
Novicus Pharma is a pharmaceutical company focusing on OTC (non-prescription) and consumer health products for the Norwegian and Nordic market. The company was founded by the former management of Weifa ASA, and the founders have executive professional experience from the pharma-, OTC- and FMCG industries.
About Navamedic ASA
Navamedic ASA is a Norwegian medtech and pharmaceutical products company, delivering products to patients, hospitals and pharmacies in the Nordic and selected European markets. The Group has established a Medtech business unit which is currently introducing the next generation digital urine meter for use in intensive care, Sippi®. Navamedic's Pharma and Healthcare business is a distributor of products supplied by a number of pharmaceutical and medical device manufacturers. Navamedic is listed on the Oslo Stock Exchange (ticker: NAVA). www.navamedic.com This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.