SOURCE: Biovitrum

December 16, 2008 02:38 ET

Biovitrum and Amgen Announce Close of Product Acquisition Deal

STOCKHOLM, SWEDEN--(Marketwire - December 16, 2008) -


Biovitrum to be Global Marketer for Kineret®, Kepivance® and Stemgen®

STOCKHOLM, Sweden- December 16, 2008. Biovitrum AB (publ) (STO: BVT) today announced the closing of an agreement, signed with Amgen on September 12, 2008, under which Biovitrum has obtained a worldwide exclusive license to Kineret® (anakinra) for its current approved indication, and has acquired from Amgen global rights to the marketed biologic therapeutic products Kepivance® (palifermin) and Stemgen® (ancestim). In 2007, the three products generated combined sales of nearly MUSD 70.

Biovitrum's payment to Amgen is MUSD 117 of which MUSD 13 was paid at signing on September 12. The remaining MUSD 104 has been paid in cash (MUSD 34 in cash, and MUSD 50 out of an external debt facility of in total MSEK 600), and MUSD 20 in new equity issued to Amgen (3,768,515 ordinary Biovitrum shares). In addition, after Kineret® and Kepivance® have reached certain cumulative net sales Biovitrum will pay one-time milestones to Amgen.

The agreement includes Biovitrum's acquisition of an inventory of the three products. Biovitrum will also assume responsibility for several ongoing Kepivance® clinical studies, the costs of which Biovitrum will absorb within its current R&D budget.

Biovitrum also has the right to develop a modified anakinra product for use in orphan indications as well as gout and pseudo gout. If Biovitrum develops and commercializes a modified version of anakinra, Amgen will receive single digit percentage royalties.

"By closing this exciting deal with Amgen, our long time partner, we have made a transformative move for Biovitrum. Our new products will add substantial value to our top line, and give rise to earnings contribution, as well as lead to additional cash flow," said Martin Nicklasson, CEO of Biovitrum. "In addition to three new products, we now have the necessary infrastructure in place to fully leverage the value of these biotechnology therapeutics. Beginning December 16th we will offer these unique products to patients in North America, Europe, Australia, and New Zealand." Nicklasson added.

About Kineret® (anakinra)
Information about Kineret® can be found at:
http://www.kineretrx.com/

Healthcare professionals should refer to and rely upon the PDR (Physician's Desk Reference) or the corresponding national labeling texts, and not the information above.

About Kepivance® (palifermin)
Information about Kepivance® can be found at:
http://www.kepivance.com/

Healthcare professionals should refer to and rely upon the PDR (Physician's Desk Reference) or the corresponding national labeling texts, and not the information above.

About Stemgen® (ancestim)

When treating patients for cancer with high doses of chemotherapy the different blood cells may be injured . The cells must then be effectively replaced inorder to rapidly restore the function of the blood. Before starting chemotherapy treatment, Stemgen is given in combination with an other pharmaceutical, Neupogen®, to the patient. After several days of this treatment the patient's progenitor cells from the blood are collected before the high doses of chemotherapy and then given back afterwards. The combined treatment with Stemgen and Neupogen, both blood cell growth factors, will stimmulate bone marow to produce extra progenitor cells for collection. Healthcare professionals should refer to national labeling texts, and not the information above.

About Biovitrum

Biovitrum is a pharmaceutical company with operations in Sweden and in the UK. The company markets a range of specialist pharmaceuticals primarily in the Nordic countries. Using its expertise and experience Biovitrum takes scientific innovation all the way to the market and to specialist indication patients with significant medical need. Research expertise and capabilities include development and production of biotechnology therapeutics, as well as small molecule discovery and development. With revenues of approximately SEK 1.3 billion and around 500 employees, Biovitrum is a significant European specialty pharmaceutical player. It is listed on the OMX Nordic Exchange in Stockholm. For more information go to www.biovitrum.com

Forward looking statement: Biovitrum

Statements included herein that are not historical facts are forward-looking statements. Such forward-looking statements involve a number of risks and uncertainties and are subject to change at any time. In the event such risks or uncertainties materialize, Biovitrum's results could be materially affected. The risks and uncertainties include, but are not limited to, risks associated with the inherent uncertainty of pharmaceutical research and product development, manufacturing and commercialization, the impact of competitive products, patents, legal challenges, government regulation and approval, Biovitrum's ability to secure new products for commercialization and/or development and other risks and uncertainties detailed from time to time in Biovitrum AB's interim or annual reports, prospectuses or press releases.

For more information please contact:
Biovitrum
Martin Nicklasson, CEO
Phone: +46 8 697 2545

Göran Arvidson, CFO
Cell phone: +46 70 633 30 42

Erik Kinnman, VP Investor Relations
Cell phone: +46 73 422 15 40
erik.kinnman@biovitrum.com

Biovitrum AB (publ) may be required to disclose the information provided herein pursuant to the Swedish Securities Markets Act. The information was provided for public release on December 16, 2008 at 08:30 a.m. CET.

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

Link to press release: http://hugin.info/134557/R/1277774/284915.pdf

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