EQL Pharma AB — M&A Activity 2025

Jan 31, 2025

Press release

Lund, 31 January, 2025 EQL Pharma AB (publ) 556713-3425

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EQL Pharma AB completes the asset purchase of a product portfolio from Medilink A/S

EQL Pharma AB (publ) (the "Company" or "EQL") has today completed the previously announced acquisition of a product portfolio (the "Product portfolio") from Medilink A/S, through its wholly owned subsidiary EQL Pharma Int AB. All conditions for the completion of the transaction have been satisfied.

As per previous press release the acquisition price amounts to DKK 120 million (corresponding to approximately SEK 185* million). The Product portfolio consists of Buronil (melperone), Folimet (folic acid/B-vitamin), Hydromed (hydrochlorothiazide) and Marplan (isocarboxazid).

The Product Portfolio consists of well-established products, limiting the need for additional promotional activities. From a strategic perspective the products fit very well with EQL's existing portfolio of niche generics. The products have a stable financial development and are expected to be accretive to EQL's sales and margins, in addition to increasing the Company's geographical presence. As of 31 October 2024, the Product Portfolio generates annual revenues of approximately SEK 51* million and gross profit of SEK 36* million, corresponding to a gross margin of 71% annually. If the Product Portfolio had been part of EQL during the twelve-month period that ended on 31st of December 2024, EQL asses that the combined turnover and adjusted EBITDA would have amounted to approximately SEK 389 million and SEK 94 million, respectively.

CEO Axel Schörling:

"We are very happy for having completed the portfolio acquisition from Medilink and are looking forward to integrating the products to our portfolio in collaboration with the sellers, our new suppliers and distributors. In parallel with the integration of the portfolio the EQL team will start working with the different upsides and synergies that have been identified during the due diligence process. The full integration of the portfolio is expected to take approximately one year but the sales will be included in EQLs accounts already from 1 st of February, from when we also will start receiving the cash flow from the acquisition"

This disclosure contains information that EQL Pharma AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact persons, 2025-01-31 12:35 CET.

For further information, please contact:

Axel Schörling CEO, EQL Pharma AB (publ) Phone: +46 (0) 76 317 90 60 E-mail: axel.schorling@eqlpharma.com Website: www.eqlpharma.com

Carl Lindgren Chief Business Dev. Officer, EQL Pharma AB (publ) Phone: +46 (0) 76 010 50 60 E-mail: carl.lindgren@eqlpharma.com Website: www.eqlpharma.com

EQL Pharma AB (publ) briefly

EQL Pharma AB specializes in developing and selling generics, i.e., drugs that are medically equivalent to original drugs. The company currently has more than 40 niche generics (i.e., generics with limited competition apart from the original drug) launched in the Nordic markets. In addition to these, there is a significant pipeline of additional niche generics for launch in 2025 and beyond. The business is currently focused entirely on prescription drugs, including hospital products, in the Nordics and selected European markets. EQL Pharma AB has its operations in Lund and is listed on Nasdaq Stockholm. EQL Pharma AB carries out extensive development work in collaboration with leading contract manufacturers and major pharmaceutical companies in the EU and Asia, among others.