Material Fact – Contract expiration with Actelion
BIOTOSCANA INVESTMENTS S.A. (“Company” or “GBT”) (B3: GBIO33), a leading biopharmaceutical company in Latin America, announces to its shareholders and the market in general that its licensing agreement with Actelion will expire on May 28th , 2018. So far, this contract has not been renewed.
The original contract with Actelion (that was later acquired by Johnson & Johnson) was signed in 2007 and comprises the commercialization of four products: OPSUMIT, TRACLEER, ZAVESCA and VELETRI. Altogether, such products represented around (i) 15% of gross margin for the fiscal year ended in 2016, (ii) 15% of gross margin for the LTM 9M17; and (III) 13% of gross margin for the LTM 9M17 proforma (including Laboratorio Dosa, that was acquired in November 2017).
Expenses directly attributed to Actelion products are approximately 17% of GBT’s total sales and marketing expenses. Aside from these, which should become by and large direct savings, GBT also plans to reduce its indirect expenses to mitigate the impact of this contract expiration.
Unless the scenario changes before or on May 28th , Actelion will no longer be a partner of the company and its products will no longer be part of GBT’s portfolio. In that case, Actelion line would still represent approximately 5-7% of gross margin for 2018.
The Company will provide more information regarding this matter if the situation changes.
Montevideo, March 13, 2018
BIOTOSCANA INVESTMENTS S.A.
Legal representative in Brazil
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Updated on 01/02/2019 at 04:38 pm