Acquistion of Softhale
Recently, Sino Biopharm announced that on 22 March 2021, C-Lab International Limited, a wholly-owned subsidiary of the Company, entered into an agreement in relation to a 100% acquisition of SOFTHALE NV for US$110 million and additional payments related to regulatory and commercial milestones. Softhale is a privately owned Belgian company focused on the development of products for the treatment of respiratory diseases. Its next generation Soft Mist Inhalation (“SMI”) device is based upon differentiated technology and allows for more efficient drug deposition into the lungs. The Acquisition will be funded by internal resources of the Group.
The Board considers that the Acquisition is in the interests of the Company and its shareholders for the following strategic significance:
1. Solidifies Sino Biopharm’s leading position in the respiratory therapeutic area by offering next generation inhaler technology that provides chronic obstructive pulmonary diseases (“COPD”) and asthma patients with a more effective product which is complementary to the Group’s existing inhaler product portfolio by covering different COPD patient groups.
2. Enhances Sino Biopharm’s transformation from generics to innovation player by acquiring and fully controlling its own respiratory research and development capability. Softhale has its own intellectual property and patents to support the development of SMI technology with the potential to enable new compounds/drugs and expand into other non-respiratory therapeutic areas.
3. Accelerates Sino Biopharm’s internationalization strategy by establishing a local hub in Europe as well as developing products with significant global market potential.
Sino Biopharm was advised by Results Healthcare (Merger and Acquisition), Bakers McKenzie (Legal), Ernst & Young (Financial and Tax), Theraproval (Regulatory) and Carpmaels & Ransford (Intellectual Property) on the Acquisition.
The Board believes that Softhale will provide a key strategic hub in Europe to the Group and expects that the company will become an important developer of innovative respiratory products for China and the global market.