Acquisition Update
14 January 2009 - 6:00PM
UK Regulatory
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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