Richter Acquires HELM’s Stakes in German Joint Ventures

Gedeon Richter Plc. has announced on the website of the Budapest Stock Exchange that it has signed an agreement with HELM AG, a Germany-based stock corporation (“HELM”) to buy 50% stake in Richter-Helm BioTec GmbH & Co. KG (“RHT”); and 30% stake in Richter-Helm BioLogics GmbH & Co. KG. (“RHB”) to become 100% owner of both companies.

Under the terms of the agreement Richter will pay EUR 40.6mn for HELM’s stake in RHB and EUR 71.8 mn for HELM’s stake in RHT. The purchase price both for RHT and RHB are due on the closure of the transaction pending the merger clearance by both the German and Hungarian competition authorities and other conditions set out in the agreement. On top of the EUR 71.8 mn Richter will pay for RHT a further earnout scheme in respect of 2025-2029, subject to the performance of RHT.

RHT is the owner of a teriparatide biosimilar asset with numerous license partners globally, including STADA, Daewon, Mochida and Richter itself. The Terrosa® brand is currently the key product within the Biotechnology Business Unit of Richter with a total of EUR 56.8mn booked sales in 2023. Total global teriparatide sales by all RHT licensees reached close to EUR 125mn in 2023.

RHB is a northern-Germany based leading microbial CDMO company with three sites, an experienced management, more than 300 employees and around EUR 60mn annual revenues. RHB is expected to complete in 2024 a major, close to EUR 100mn investment to significantly expand its manufacturing capacity enabling further growth and strengthening its service offering to its pharmaceutical clients.

The transaction will consolidate Richter’s ownership and control of the German biological assets and will further support the Biotechnology Business Unit’s revenues and profitability. Given, RHB is already majority owned by Richter, integration of RHB into the biotechnology business unit is expected to be smooth.

Dr. Erik Bogsch, Director of the Biotechnology Business Unit of Richter commented on the transaction by saying that ”the German assets together with Richter’s current biotechnology capability in Hungary will create a very strong biotechnology platform allowing even better service offerings in a cost-efficient way ensuring long-term value creation for Richter, and its clients and partners alike.”