Oasmia Pharmaceutical, a company develops a new generation of drugs within human and veterinary oncology, and Karo Pharma have entered into an agreement under which Oasmia to acquire Karo Pharma's cancer project KB9520, which has shown promising results in pre-clinical models for a number of different types of cancer.
Oasmia has made an offset issue of 3,080,000 new shares in order to pay a purchase price of SEK 25 million pursuant to an agreement on the acquisition of a cancer project from Karo Pharma. Oasmia acquires the project and strengthens its oncology project portfolio. Karo Pharma receives 3,080,000 newly issued shares as a down payment corresponding to a value of MSEK 25. Additionally, Oasmia will pay Karo Pharma 20% of all future revenues generated by the project for Oasmia.
Oasmia will continue the development process and will be responsible for all project expenses.
"This is a solid industrial solution where the companies can focus within their respective areas. Oasmia, which has several cancer projects in both early and late developmental phase, strengthens its already unique product portfolio. The collaboration is based on a separation of focus that will work well and I am personally committed to making this a successful collaboration for both companies," says Anders Lönner, executive chairman in Karo Pharma.
"This is a very exciting acquisition for Oasmia as the project will complement the company's current product portfolio with novel innovative candidates within our focus area. A prerequisite in this transaction from our side has been to get access to Anders Lönner's unique track record in developing companies and his international business experience. Since we are looking forward to several registrations of new pharmaceutical products, his expertise will be very valuable. Anders Lönner is proposed to be part of Oasmia's Board of Directors and will also be proposed as chairman at an extraordinary shareholders meeting," says Julian Aleksov, largest shareholder in Oasmia Pharmaceutical.
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