EQL Pharma AB completes the asset purchase of a product portfolio from Medilink A/S

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR TO ANY PERSON LOCATED OR RESIDENT IN ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL OR WOULD REQUIRE REGISTRATION OR OTHER MEASURES TO DISTRIBUTE THIS ANNOUNCEMENT. EQL Pharma AB (publ) (the “Company” or “EQL”) has today completed the previously announced acquisition of a product portfolio (the “Product portfolio”) from Medilink A/S, through its wholly owned subsidiary EQL Pharma Int AB. All conditions for the completion of the transaction have been satisfied. 

As per previous press release the acquisition price amounts to DKK 120 million (corresponding to approximately SEK 185* million). The Product portfolio consists of Buronil (melperone), Folimet (folic acid/B-vitamin), Hydromed (hydrochlorothiazide) and Marplan (isocarboxazid).

The Product Portfolio consists of well-established products, limiting the need for additional promotional activities. From a strategic perspective the products fit very well with EQL’s existing portfolio of niche generics. The products have a stable financial development and are expected to be accretive to EQL’s sales and margins, in addition to increasing the Company’s geographical presence. As of 31 October 2024, the Product Portfolio generates annual revenues of approximately SEK 51* million and gross profit of SEK 36* million, corresponding to a gross margin of 71% annually. If the Product Portfolio had been part of EQL during the twelve-month period that ended on 31st of December 2024, EQL asses that the combined turnover and adjusted EBITDA would have amounted to approximately SEK 389 million and SEK 94 million, respectively.

CEO Axel Schörling:

“We are very happy for having completed the portfolio acquisition from Medilink and are looking forward to integrating the products to our portfolio in collaboration with the sellers, our new suppliers and distributors. In parallel with the integration of the portfolio the EQL team will start working with the different upsides and synergies that have been identified during the due diligence process. The full integration of the portfolio is expected to take approximately one year but the sales will be included in EQLs accounts already from 1st of February, from when we also will start receiving the cash flow from the acquisition”

*Calculated based on an exchange rate of 1 SEK = 0.65 DKK as of 5 December 2024

This disclosure contains information that EQL Pharma is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 31-01-2025 12:35 CET.