Degussa sells Zentaris

02-Jan-2003

As part of its consistent focus on specialty chemicals, Degussa AG of Düsseldorf has sold Frankfurt/Main-based biopharmaceutical company Zentaris AG to Æterna Laboratories Inc. of Québec, Canada, for approximately EUR 50 million. With the sale of Zentaris completed, Degussa has now divested the last of the activities of ASTA Medica. In June 2001, the Group sold on AWD.pharma to Pliva. Soon after in August 2001 the oncology business was sold to Baxter, followed in May 2002 by the sale of Viatris to Advent. Prof. Utz-Hellmuth Felcht, Management Board Chairman of Degussa: "Our restructuring strategy for ASTA Medica has again borne fruit. The sale of Zentaris brings successfully to an end another project of our ambitious divestment program. The transformation of Degussa into a pure specialty chemicals company is now virtually completed." Zentaris currently employs a workforce of around 70. The company expects to report sales in the order of EUR 21 million for the financial year 2002, along with a positive cash-flow. Zentaris was established at the beginning of 2001 as a carve out of ASTA Medica AG. The company is engaged in the research and development of innovative pharmaceutical products, specifically in the fields of tumor and hormone research. Founded in 1991 and quoted on the Toronto Stock Exchange as well as on the NASDAQ of the USA, Æterna Laboratories is a late-stage biopharmaceutical company with a primary emphasis on cancer. In fiscal year 2002, Æterna Laboratories employed some 200 staff including 60 people from its subsidiary Atrium Biotechnologies. Æterna Laboratories owns 61.8% of this subsidiary which expects to generate revenues of about Canadian-$ 95 million in 2002 (approximately EUR 58 million). New ownership structure offers Zentaris outstanding future opportunities The new ownership structure offers outstanding opportunities for Zentaris: the two companies complement each other ideally, as both Zentaris and Æterna Laboratories regard the field of tumor research as their primary area of strategic focus. Meanwhile, Æterna Laboratories will benefit from the additional potential offered by Zentaris' expertise in hormone research (endocrinology) and drug discovery. In order to strengthen its presence in Europe, Æterna Laboratories intends to retain the highly qualified workforce of Zentaris.

https://www.chemeurope.com/en/news/17646/degussa-sells-zentaris.html