Navamedic — M&A Activity 2016

Jun 13, 2016

Navamedic: Enters into strategic partnership and 8-year distribution agreement with TopRidge Pharma Limited

Navamedic: Enters into strategic partnership and 8-year distribution agreement with TopRidge Pharma Limited

Oslo, 13. June 2016 - Navamedic ASA (OSE: NAVA), the Norwegian medtech and

pharmaceutical products company, has today entered into an 8-year agreement with

TopRidge Pharma Limited, a subsidiary of Shanghai-listed Tibet Rhodiola

Pharmaceutical Holding Co, for distribution of angina prevention medicine,

Imdur®, in European markets. The agreement represents expected annual revenues

of NOK 70-100 million. As a part of the strategic partnership, TopRidge Pharma

(Ireland) Limited, a wholly owned subsidiary of TopRidge Pharma Limited, will

acquire 1,417,522 new shares in Navamedic, and become a major shareholder in the

company. Furthermore, the parties have agreed to collaborate on the launch of

Sippi in the Chinese market.

"Navamedic is very pleased to announce this strategic partnership and long term

distribution agreement with TopRidge Pharma, which represent significant

opportunities for the company going forward. We are hitting the ground running

with an initial European distribution start of Imdur® scheduled for the late

summer, and will work at full pace to position the product in our Nordic,

Benelux and Baltic networks through 2016. We expect to see an effect on revenues

during the second half of 2016. Future products, planned for launch in Europe

from TopRidge Pharma and its parent company, will also be offered to Navamedic

on a first rights basis," says Tom Rönnlund, Chief Executive Officer of

Navamedic.

Imdur®, used for the prevention of angina in patients with heart disease, was

developed by AstraZeneca and first launched in Europe in 1985. In Q1 2016, Tibet

Rhodiola Pharmaceutical Holding Co (Tibet Pharma) acquired the global asset of

Imdur®, outside the U.S. Under the agreement with Navamedic, TopRidge Pharma

(Ireland) Limited is providing a line of credit totalling USD 1.6 million, to

support a potential future expansion of Navamedic's product distribution.

"With a significant annual revenue potential of NOK 70-100 million expected from

Imdur, Navamedic has started preparations for any potential changes to the

company's partnership and product mix. This includes an ongoing dialogue

regarding the distribution contract with Aspen Pharma, which currently has a

term into the first half of 2017 with low probability for renewal. The new

partnership with TopRidge Pharma  is different from our other distribution

agreements, and represents an exciting business model and opportunity for future

growth for Navamedic," says Rönnlund.

To further substantiate the strategic partnership, Navamedic and TopRidge Pharma

(Ireland) Limited have entered into an agreement, under which Navamedic will

issue 1,417,522 new shares to TopRidge Pharma (Ireland) Limited at NOK 8.00 per

share.

"The agreement lays the foundation for strong cooperation and a long-term

strategic partnership. In addition, we have entered a Letter of Intent with

TopRidge Pharma  for a collaboration to launch Sippi® in China. This partnership

can significantly accelerate Sippi's entry into the Chinese market.  Coupled

with the Imdur distribution agreement and potential inflow of additional

products and partnerships, Navamedic is creating a solid basis for our

operational performance going forward," says Rönnlund.

For further information, please contact:

Tom Rönnlund, CEO, Navamedic. Telephone +46 727 320 321.

About TopRidge Pharma (Ireland) Limited investment in Navamedic ASA

In addition to the strategic distribution agreement for Imdur® in the Nordic,

Baltic and Benelux regions the parties have entered into an investment

agreement, under which Navamedic will issue 1,417,522 new shares to TopRidge

Pharma (Ireland) Limited at NOK 8.00 per share, corresponding to approximately

13% of the company's issued share capital. The new shares will be subject to a

lock-up period of 12 months. The new shares issued to TopRidge Pharma (Ireland)

Limited will be issued on a separate ISIN and not be tradable on the Oslo Stock

Exchange until the company has prepared and published a listing prospectus to be

approved by the Financial Supervisory Authority of Norway (Finanstilsynet),

expected by beginning of August 2016. A representative of TopRidge Pharma

(Ireland) Limited, will be proposed elected as a new member of the company's

board of directors at the company's ordinary general meeting to be held on 20

June 2016.

About Navamedic

Navamedic ASA is a Norwegian medtech and pharmaceutical products company,

delivering products to patients, hospitals and pharmacies in Northern European

markets. Navamedic is listed on the Oslo Stock Exchange (ticker: NAVA).

www.navamedic.com

About Tibet Rhodiola Pharmaceutical Holding Co

Tibet Rhodiola Pharmaceutical is a joint stock company established in the PRC

with limited liability. It was established in 1999 and its shares are listed on

the Shanghai Stock Exchange (Stock Name: Tibet Pharmaceutical, Stock Code:

600211). It is the first high-tech pharmaceutical company in Tibet and also a

modern company which combines the research and development, production and sales

of Tibetan medicine, herbal, chemical as well as biological products. Its

product portfolio covers biologicals, Tibetan medicines, Traditional Chinese

Medicines and chemical drugs, mainly including XinHuoSu, Nuodikang, Shiwei Dida

capsule, etc. China Medical System Holdings Ltd (listed on Hong Kong stock

exchange, Stock Code: 867) is the largest shareholder of Tibet Pharmaceutical.

About Imdur®

Imdur® is a mature medicine for the prevention of angina in patients with heart

disease, based on an oral extended-release formulation of isosorbide mononitrate

(ISMN), indicated for the prevention of angina pectoris due to coronary artery

disease. ISMN is an organic nitrate and the major biologically active metabolite

of isosorbide dinitrate (ISDN). It is a vasodilator with effects on both

arteries and veins. Imdur® was developed by AstraZeneca and first launched in

Europe in 1985.

[HUG#2020063]