SurModics to offload pharmaceuticals subsidiary to Evonik
SurModics, Inc. has announced the signing of a definitive agreement with Evonik Industries AG under which it will sell its SurModics Pharmaceuticals assets to Evonik for a total of $30 million in cash.
EDEN PRAIRIE, Minn.—SurModics, Inc. has announced thesigning of a definitive agreement with Evonik Industries AG under which it willsell its SurModics Pharmaceuticals assets to Evonik for a total of $30 millionin cash.
"Evonik's acquisition of SurModics' pharmaceuticals assetsdemonstrates our view of the pharmaceuticals market as a strategic corebusiness in which we intend to continue to invest and grow. In addition to itsparenteral products and biodegradable polymers, such as Lakeshore Biomaterials portfolioof polymers, its skilled employees and comprehensive services will add criticalvalue to Evonik's operations," Jean-Luc Herbeaux, head of Evonik's Health CareBusiness Line, said in a press release. "Together, we will operate as onestronger entity with the aligned strategy of becoming the leading globalsupplier of solutions for the parenteral and implant-based pharmaceuticalforms."
Per the terms of the agreement, SurModics Pharmaceutical'sentire portfolio of products and services, including the company's cGMPdevelopment and manufacturing facility in Birmingham, Ala., will be acquired byEvonik. Evonik will gain ownership of SurModics' parenteral dosage technologyplatforms and services and its bioresorbable lactide-glycolide polymers business.
"The sale of the Pharma assets is an important milestonetowards achieving our goal of returning SurModics to sustainable, long-termprofitability," Gary Maharaj, president and chief executive officer ofSurModics, said in a press release. "This transaction will allow us to focusour full resources to advancing our core Medical Device and IVD businesses.Furthermore, the proceeds from the sale significantly strengthen the Company'sfinancial profile."
SurModics is a provider of drug delivery and surfacemodification technologies for the healthcare industry, with key focus areassuch as pharmaceutical, in-vitrodiagnostics, cardiovascular disease, ophthalmology and other growing clinicalmarkets. its technologies, the company site notes, "are utilized by ourcustomers to either alter the characteristics of the surfaces of devices andbiological materials or to enable drug delivery from coatings, implants orinjected microparticles." The company's main offerings include drug deliverytechnologies and surface modification coating technologies (which impartlubricity, prohealing and biocompatibility capabilities), as well as componentsfor in-vitro diagnostic test kitsand specialized surfaces for cell culture and microarrays. Evonik, a specialtychemical manufacturer, is headquartered in Essen, Germany.
"After conducting an efficient and thorough review processof our strategic alternatives, we believe this sale creates compelling valuefor all of the Company's stakeholders, including the employees of the Pharmabusiness and the Birmingham community," said Maharaj. "SurModics is gratefulfor the hard work and accomplishments of the Pharma employees and is confidentin the opportunities created by the strong strategic fit with Evonik."
The sale is subject to customary closing conditions. Thetransaction is expected to close before the end of November 2011, and SurModicsexpects to report its Pharmaceuticals business as discontinued operations inits first quarter financial results.
SOURCE: SurModics press release