Novo A/S, the holding company of the Novo Group, has purchased all shares in pharmaceutical group Xellia Pharmaceuticals for approximately USD 700 million.
Xellia will now revert to Danish ownership with headquarters in Copenhagen, Denmark following the recent acquisition. Xellia Pharmaceuticals focuses on development, manufacturing and global commercialization of anti-infective therapies. Since its spin-out from Alpharma Inc. in 2008, the management and Xellia’s international investor 3i have transformed the company from an active pharmaceutical ingredient (API) manufacturer to a specialty pharmaceutical company focused on anti-infective products. Today, the company is a world leading supplier of Vancomycin and Colistimethate Sodium (CMS) and the products are all manufactured using fermentation-based biological processes at facilities located in Denmark, Norway, Hungary and China. According to a press release, Novo’s investment will allow Xellia to enhance its focus on R&D and expand its global manufacturing footprint to further scale its finished-dosage-form (FDF) business.
Novo, an international life science investor, is the major shareholder of Novo Nordisk A/S, Novozymes A/S and Chr. Hansen Holding A/S. These companies, which have similar technology and manufacturing approaches to Xellia, have experienced significant growth in recent years.
“Xellia strongly complements our portfolio of significant life science companies in which we have major investments. This acquisition is well aligned with our strategy, and is one of the largest investments made by Novo A/S to date. The products that Xellia supplies are critical life-saving treatments for many patients around the globe, and are manufactured by use of fermentation technologies, which is a manufacturing approach similar to that of Novo Nordisk, Novozymes and Chr. Hansen. Xellia is a leader in its business area, and a company with a long Scandinavian heritage, which we are proud to bring back into long-term Danish ownership. We look forward to establishing a strong relationship with Xellia’s experienced management team and invest together in the future success of the Company,” said Henrik Gürtler, CEO, Novo A/S, in a recent press release.
Closing of the transaction will be subject to relevant competition law approvals, and is expected to take place during the third quarter of 2013.
Photo: Henrik Gürtler, CEO, Novo A/S