Moberg Pharma AB, a rapidly growing Swedish pharmaceutical company, has entered into an agreement with Randob Labs to divest the brand Balmex for a total consideration of $4.25 million (34.6 million SEK) plus the inventory value at closing. The divestment is expected to result in a capital gain of circa $0.5 million (4.4 million SEK), enabling Moberg Pharma to further focus resources on its larger brands.
The brand Balmex, with a number of products for treating and preventing diaper rash, was acquired from Chattem Inc. in April, 2015. The role of Balmex in the product portfolio has reduced after the 2016 acquisitions. Divesting the brand, enables Moberg Pharma to focus resources on its larger and more profitable brands. The brand generated net sales of $3.8 million (32.8 million SEK) in 2017.
The transaction is expected to close in April.
“We are pleased with the divestment. We have now successfully divested most of our minor brands, enabling us to focus our resources on growing our larger brands”, says Peter Wolpert, chief executive officer, Moberg Pharma.