Biovitrum and Swedish Orphan joining forces to develop drugs for rare diseases

Merger

Biovitrum AB and Swedish Orphan International AB are combining to form Swedish Orphan Biovitrum to specialise in the development of Orphan drugs.

Swedish Orphan brings two proprietary orphan and niche specialty drugs and a portfolio of approximately 50 orphan and niche specialty drugs to the combined group. To this Biovitrum will add its haemophilia franchise, manufacturing capabilities, several marketed niche specialty products and a late stage clinical development pipeline within rare diseases.

The combined group will generate sales from approximately 60 orphan/niche specialty products and has a development portfolio of two Phase III and five Phase II clinical product candidates to drive future growth. The merger will result in annual cost savings of SEK 100 million (€9.7 million) with effect from 2011. In addition, Swedish Orphan’s European sales and marketing infrastructure will, it is hoped, accelerate sales of Biovitrum’s products.

“The two companies fit like a hand in a glove. By joining forces with Swedish Orphan, Biovitrum takes another important step in the transformation set out in the strategy adopted two years ago. In one giant leap, we form a company with a leading position within rare diseases and a solid platform for future growth and profitability,” said Biovitrum's CEO Martin Nicklasson.