Navamedic — M&A Activity 2020

Aug 4, 2020

Navamedic ASA completed the acquisition of marketing authorisations for antibiotics in the Nordics

Navamedic ASA completed the acquisition of marketing authorisations for antibiotics in the Nordics

Oslo, 4 August 2020 - Navamedic ASA ("Navamedic", OSE: NAVA), today announces it

has completed the transaction with ACS Dobfar and InfoRLife for the acquisition

of marketing authorisations for a series of antibiotics for hospital use in the

Nordic region. Navamedic acquires the marketing authorisations for a total

consideration of up to NOK 38 million.

Reference is made to Navamedic's announcement on 7 February 2020 about the

acquisition of a series of antibiotics for hospital use in the Nordic region

from ACS Dobfar and its subsidiary InfoRLife. The transaction is now completed,

representing an important step in Navamedic's growth strategy.

"Navamedic is committed to increasing ownership to assets such as marketing

authorisations, and we are pleased to announce the completion of this

transaction and the beginning of a close collaboration with a solid European

supplier. Antibiotics is an important therapeutic area close to our core

competence. The acquisition is strengthening Navamedic's hospital offering with

important products and also positioning the company for the addition of more

prescription drugs as we will build systems relevant for a broader product

range," says Kathrine Gamborg Andreassen, CEO of Navamedic.

The transaction is made with ACS Dobfar S.p.a, an Italian chemical

-pharmaceutical company, and its Swiss subsidiary InfoRLife SA, a pharmaceutical

company developing, registrering and producing ready-to-use medicines. Navamedic

acquires the marketing authorisations for a total consideration of up to NOK 38

million in two tranches. The first tranche of NOK 19 million shall be settled by

issuance of 1,053,775 number of consideration shares in Navamedic at an agreed

subscription price of NOK 18.0304 per share. The subscription price corresponds

to the volume weighted average trading price of the Navamedic shares from 24

January to 6 February 2020, being the 10 last trading days prior to, but not

including, Navamedic's stock exchange announcement published on 7 February 2020.

The board of directors of Navamedic will issue the consideration shares as soon

as possible following Navamedic becoming registered as the holder of the

material marketing authorisations with the relevant governmental bodies in the

Nordics, which is expected to be completed no later than 31 December 2020,

pursuant to the authorization given to it by the extraordinary general meeting

of the company held on 11 March 2020. The second tranche of up to NOK 19 million

in cash or Navamedic shares upon fulfilment of certain sales volume milestones

for the acquired product portfolio, to be settled no later than 31 January 2024

or 2026.

The antibiotics in the portfolio are designed to be given intravenously to

patients and are currently in regular use in hospitals in all the Nordic

countries with an annual tender-based turnover of approximately NOK 25 million.

As part of the acquisition agreement, the parties have agreed to also enter into

a long-term supply and service agreement including launch of new products in the

future - potentially also outside the Nordic territory.

"Drug shortage is an important issue in the Nordics. By combining Navamedic's

local expertise with products from a reliable European manufacturer, the

transaction is also important to secure steady supply of key products to Nordic

hospitals. We are looking forward to a close and long-term collaboration with

ACS Dobfar and InfoRLife," says Gamborg Andreassen.

For further information, please contact:

Kathrine Gamborg Andreassen, CEO, Navamedic

Mobile: +47 951 78 680

E-mail: kathrine@navamedic.com

Lars Hjarrand, CFO, Navamedic

Mobile: +47 917 62 842

E-mail: lars.hjarrand@navamedic.com

About Navamedic

Navamedic ASA is a full-service provider of high-quality healthcare products to

hospitals and pharmacies. Navamedic meets the specific medical needs of patients

and consumers by leveraging its highly scalable market access platform, leading

category competence and local knowledge. Navamedic is present in all the Nordic

countries, the Baltics and Benelux, with sales representation in the UK and

Greece. Navamedic is headquartered in Oslo, Norway, and listed on the Oslo Stock

Exchange (ticker: NAVA). For more information, please visit www.navamedic.com

About ACS Dobfar

ACS Dobfar is an Italian, privately held, chemical-pharmaceutical company with

headquarters located outside Milano. In continuous growth, the company is

currently employing more than 3000 people at 23 different facilities in four

continents. Established in 1973, the company is today a fully-integrated

provider of high-quality pharmaceutical intermediates, active pharmaceutical

ingredients (APIs) and finished dosage forms (oral and injectables) and is a

global leader in the antibiotic classes called cephalosporins and carbapenems.

ACS Dobfar products are sold in over 100 countries around the world.

About InfoRLife

Being a subsidiary of ACS Dobfar, InfoRLife is a pharmaceutical company

developing, registering and producing ready-to-use medicines with main facility

in Brusio, Switzerland. The company also controls three subsidiaries located in

Romania, Tunisia and Brazil. InfoRLife is specialized in the manufacture of

medicines in plastic bags using sterile methods and technology with high-quality

content and develops all its new products in its own R&D laboratories. The

company is approved by the USA Food and Drug Administration (FDA) for sales in

the USA, which is its main market.