EQL Pharma

The Product Portfolio consists of well-established products, limiting the need for additional promotional activities and complements EQL’s portfolio of niche generics. The products have a stable financial development and are expected to be accretive to EQL’s sales and margins, in addition to increasing the Company’s geographical presence. As of 31 October 2024, the Product Portfolio generates annual revenues of approximately SEK 51* million and gross profit of SEK 36* million, corresponding to a gross margin of 71% annually. If the Product Portfolio had been part of EQL during the twelve-month period that ended on 30 September 2024, EQL asses that the combined turnover and adjusted EBITDA would have amounted to approximately SEK 367 million and SEK 92 million, respectively.

CEO Axel Schörling:

“In addition to the direct financial effects, we see three fundamental advantages with the Acquisition of the Product Portfolio. The first is that we, by purchasing only the products and not the entire company, may realize significant synergy effects by leveraging our highly cost-efficient platform for managing generics and niche original products. This platform efficiently handles all phases, from regulatory affairs, quality assurance, and pharmacovigilance to strictly commercial activities such as sourcing, purchasing, logistics, and pricing.

Second, there is a significant potential to optimize the Product Portfolio, both on the manufacturing side, by reducing manufacturing costs, and on the commercial side by launching in new markets. These optimizations can be managed by existing staff, again emphasizing the scalability of our business model.

Third, several of the products are sold in new geographical markets, where the Acquisition gives us access to local distributors. By utilizing these new channels, new markets are opened up for us, where we can launch our existing products. In addition, the partner network can be used to develop products tailored to these markets, thereby adding growth potential.”

For the purpose of financing the Acquisition, the Company has mandated ABG Sundal Collier AB as financial advisor to evaluate alternatives for a new debt financing. Advokatfirman Vinge acts as legal advisor in relation to the contemplated debt financing. Westerberg & Partners Advokatbyrå AB acts as legal advisor in relation to the Acquisition and Viminaris has supported EQL from deal scouting perspective.