Starpharma Sells Agrochemicals Business to Agrium for $35M
13 Junho 2017 - 9:08PM
Business Wire
Starpharma Holdings Ltd (ASX: SPL, OTCQX: SPHRY) today announced
that it has completed a transaction to sell its agrochemicals and
Priostar® business (Starpharma Agrochemicals) to Agrium,
Inc., (Agrium) (NYSE: AGU, TSE: AGU) for A$35 million
in cash consideration. The Starpharma Agrochemical business will be
operated by Agrium’s wholly-owned subsidiary, Loveland Products,
Inc.
Starpharma Agrochemicals is comprised of key patents and
technical know-how as well as a small number of staff dedicated
solely to Priostar® dendrimers and agrochemicals operations. This
business is independent of Starpharma’s DEP® and VivaGel® products
and related intellectual property portfolios.
The cash proceeds from the sale of Starpharma Agrochemicals have
further strengthened Starpharma’s balance sheet and will allow
Starpharma to focus its resources and activities on its core
pharmaceutical development portfolios, including DEP® drug
delivery. Starpharma intends to use the funds to accelerate the
development and commercialisation of its higher-value
pharmaceutical dendrimer-based products and to explore other
opportunities in this area of the business. With the net proceeds
from the transaction, Starpharma estimates a cash balance of
greater than $60 million at 30 June 2017.
Commenting on the transaction, Starpharma Chief Executive
Officer, Dr Jackie Fairley said: “The sale of Starpharma
Agrochemicals is an exciting milestone for the company and the
culmination of our strategy to maximise the value of the Priostar®
technology. We achieved this outcome through the development of a
range of value-added formulations utilising Priostar® to a stage
where those products had high attraction value as differentiated
products for a market-facing third party such as Agrium. It’s a
very pleasing outcome, Agrium is an ideal buyer to realise the full
potential of Priostar®.”
“The proceeds from the sale of Starpharma Agrochemicals places
Starpharma in an excellent financial position to expand and
accelerate the development of its internal DEP® programs, and
increase shareholder value through its pharmaceutical
portfolio.”
The transaction involves the sale of Starpharma’s wholly-owned
US subsidiary, Dendritic Nanotechnologies, Inc., and a newly
created Australian subsidiary containing all Priostar® and
agrochemical intellectual property and business assets.
The sale of Starpharma’s Agrochemicals business to Agrium
follows a global process conducted by Starpharma and its financial
adviser, Macquarie Capital (Australia) Limited.
A copy of Agrium’s news release is available at:
www.agrium.com/en/investors/news-releases.
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version on businesswire.com: http://www.businesswire.com/news/home/20170613006588/en/
WE Buchan ConsultingRebecca Wilson, +61 417 382 391
(mobile)rwilson@buchanwe.com.auArthur Chan, +61 2 9237
2805achan@buchanwe.com.auorStarpharma:Dr Jackie Fairley, +61
3 8532 2704Chief Executive OfficerNigel Baade, +61 3 8532 2704CFO
and Company
Secretaryinvestor.relations@starpharma.comwww.starpharma.com
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