YRK York Pharma

 

TIDMYRK 
 
RNS Number : 5839L 
York Pharma plc 
13 January 2009 
 

York Pharma plc 
("York Pharma" or "the Company") 
 
 
Update on Solvay Acquisition 
 
 
Milton Keynes, UK, 14 January 2009, York Pharma plc (YRK.L), the specialist 
dermatology company, provides the following update on the acquisition of the 
Flammazine and Flammacerium brands ('the Brands') from Solvay Pharmaceuticals 
('the Acquisition'). 
 
 
On 1 October 2008, the Company announced the completion of the Acquisition, the 
terms of which provided for an initial payment to Solvay of EUR17.0m, paid for in 
part through a term loan facility negotiated by the Company with Fortress Credit 
Corporation ('Fortress').  The terms of the Acquisition also required the 
Company to make a final payment of EUR11.5m to Solvay Pharmaceuticals on or before 
31 December 2008. Solvay and the Company had agreed an alternative arrangement 
in lieu of a cash settlement of this obligation.  However, this arrangement has 
now proved unacceptable to Fortress, as a result of which Fortress has triggered 
provisions within the agreements which have resulted in the repayment of the 
loan facility to Fortress and the release of all liens over the Company's 
assets. 
 
 
As a result, the Brands together with the associated revenues have been returned 
to Solvay. However, York Pharma remains in discussion with Solvay and is 
exploring alternative ways to finance the reacquisition of the Brands. 
 
 
Strategic Review 
In the meantime, the Company has initiated a strategic review to restructure the 
business. The results of this review will be announced in the near future. 
 
 
For more information please contact: 
 
 
+-----------------------------------------+------------------------------+ 
| York Pharma plc                         | Tel: +44 (0) 870 066 4453    | 
| Terry Sadler, Chief Executive Officer   |                              | 
+-----------------------------------------+------------------------------+ 
|                                         |                              | 
+-----------------------------------------+------------------------------+ 
| Collins Stewart                         | Tel: +44 (0) 207 523 8350    | 
| Hugh Field                              |                              | 
+-----------------------------------------+------------------------------+ 
|                                         |                              | 
+-----------------------------------------+------------------------------+ 
| FinnCap                                 | Tel: +44 (0) 207 600 1658    | 
| Geoff Nash                              |                              | 
+-----------------------------------------+------------------------------+ 
|                                         |                              | 
+-----------------------------------------+------------------------------+ 
| Financial Dynamics                      | Tel: +44 (0) 207 831 3113    | 
| Ben Brewerton / Emma Thompson           |                              | 
+-----------------------------------------+------------------------------+ 
 
 
 
 
About York Pharma PLC 
YORK PHARMA PLC is a pharmaceutical Group, established in 2003, which develops, 
markets and supplies branded dermatological products to pharmaceutical 
wholesalers, hospitals and general practitioners within the field of 
dermatology. 
 
 
The Group currently has at its disposal more than 20 patent families (with over 
100 individual patents/patent applications) and intellectual property in 
relation to its portfolio of novel dermatology products and technology platforms 
in the key therapeutic areas of fungal infection, eczema/dermatitis, psoriasis, 
vitiligo and acne that make up more than 87% of the global $10bn dermatology 
market. For more information, visit www.yorkpharma.com. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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