Sobi amends its agreement with sellers of Arexis AB
Sobi has amended its share purchase agreement regarding the acquisition in 2005 of the pharmaceutical company Arexis AB, which included a number of development programs.
According to the amended agreement, Sobi will not have any remaining development obligations towards the sellers. In addition, Sobi will make a payment to remove all future milestone obligations for the Kiobrina program.
Under the amended agreement, Sobi will pay the sellers a total of SEK 77 M, of which SEK 43 M relates to the future milestone obligations for the Kiobrina program. Sobi will pay SEK 36 M at signing of the amended agreement, SEK 20 M in 2013, and SEK 21 M in 2014.
The payment of SEK 43 M referring to the milestones for Kiobrina will be included in intangible assets in Sobi's balance sheet. An amount of SEK 34 M will be charged against operating income as a non-recurring item in the first quarter of 2012.
As stated in Sobi's annual and quarterly reports, the sellers of Arexis had initiated arbitration as well as an expert determination procedure regarding their claims, and both proceedings will now be withdrawn avoiding a prolonged and expensive legal process.
Kiobrina is a recombinant human bile salt stimulated lipase (rhBSSL) in phase III development as an enzyme replacement therapy to improve growth in preterm infants who receive pasteurized breast milk or infant formula.
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