Stockholm, Sweden and Shanghai, China – November 3, 2010 – Swedish Orphan Biovitrum (STO: SOBI) and Dongbao Group today announced that Dongbao, through its subsidiary Rechon Life Science Group (Rechon), has granted Swedish Orphan Biovitrum (Sobi) the distribution rights to Iron Sucrose Rechon in geographical Europe.
Under the agreement, Sobi will pay to Rechon a regulatory approval milestone of 1,2 million Euro. In addition, Sobi will pay a transfer price and a royalty on net sales to Rechon Life Science Ltd.
Iron Sucrose Rechon is an intravenous formulation of iron, used for anemia treatment. It is in registrational phase with Sweden as rapporteur country. Approval is expected by year end or early 2011, and a mutual recognition process in Europe would be initiated immediately after an approval.
This agreement is the first manifestation of the strategic Commercial Alliance that the parties announced in July, 2010. In the alliance, Sobi will be the marketing and sales partner of choice for Dongbao’s pipeline of products in Europe, and Dongbao will be the marketing and sales partner for selected Sobi’s products in China.
Dr. Zhaoqi Li, Vice President of Dongbao Enterprise Group Co., Ltd. and the Chairman of Rechon Life Science Group expressed that “We are proud to have chosen Sobi as partner to promote and distribute Rechon’s product Iron Sucrose Rechon to the European market. We are also anxious to start the regulatory process for some of Sobi’s interesting and valuable products in China. With establishment of mutual relationship between Sobi and Dongbao, we are confident that our business goals will be achieved.”
“Iron Sucrose Rechon is a good fit with Sobi’s portfolio of hematology products. This is a first step towards a very exciting partnership, in which we will be able to provide Dongbao’s commercial portfolio and pipeline to patients with medical needs in Europe. We are proud and excited to work with Dongbao to provide our innovative and valuable proprietary products to patients who need them in China,” said Martin Nicklasson, CEO of Sobi.
About Iron Sucrose Rechon
Iron Sucrose Rechon is a form of iron sucrose. Iron Sucrose is an intravenous formulation of iron, used for the treatment of Iron Deficiency. The European market for intravenous iron is large and growing. It is currently estimated at over 100 million Euro in annual sales.
Dongbao is a conglomerate industrial group with more than 20 subsidiaries operating in China and several other countries. As one of the leading supplier of biopharmaceutical products in China, Dongbao is now working closely with partners to supply first class pharmaceutical products worldwide. With well established marketing network in China, Dongbao is also offering services to introduce and promote foreign pharmaceutical products to the Chinese market. No matter going out or coming into China, Dongbao is offering mutual beneficial solutions to business partners. The establishment of partnership between Sobi and Dongbao is a good example of such mutual beneficial partnership. Thus, international cooperation is playing very crucial rules in Dongbao’s development.
For more information please contact:
Dr. Zhaoqi Li
Vice President of Dongbao Enterprise Group Co., Ltd. &
Chairman of the Board of Rechon Life Science Group
+86 21 63910001
About Rechon Life Science Group
Rechon Life Science Ltd. is a pharmaceutical company developing and producing high value pharmaceutical products with manufacturing operation in Sweden. The company can offer customers the entire process of contract manufacturing of aseptic vials, ampoules and syringes as well as oral and nasal sprays from small scale batches for clinical trials up to full-scale commercial production and supply to markets worldwide including the US, Japan and Europe. Rechon Life Science AB is now providing various services to several US and European pharmaceutical, biotech and life science companies. Please visit www.rechon.com for more information.
For more information please contact:
Roland Holmqvist, Acting CEO
Rechon Life Science AB
Phone: +46 709 48 24 24
About Swedish Orphan Biovitrum
Swedish Orphan Biovitrum is a Swedish based niche specialty pharmaceutical company with an international market presence. The company is focused on providing and developing specialist pharmaceuticals for rare disease patients with high medical needs. The portfolio consists of about 60 marketed products and an emerging late stage clinical development pipe-line. Our focus areas are: hemophilia, inflammation/autoimmune diseases, fat malabsorption, cancer and inherited metabolic disorders. Swedish Orphan Biovitrum had pro-forma revenues 2009e of about 2 BSEK and approximately 500 employees. The head office is located in Sweden and the share (STO: SOBI) is listed on NASDAQ OMX Stockholm. For more information please visit www.sobi.com.
For more information please contact: Swedish Orphan Biovitrum AB (publ):
Erik Kinnman, VP Investor Relations
Phone:+46 73 422 15 40
Martin Nicklasson, CEO
Phone: +46 8 697 20 00