Sweden's Scandinavian Clinical Nutrition (SCN) has acquired the Danish nutraceutical company Nordic Phytopharma (NPP) for SEK 60 m (USD 9 m). NPP has developed two health self-care products, one for symptom relief of the common cold, and one for strengthening the immune system.
The latter, called Immulina, has been licensed to US firm PhytoLab Solutions Inc., which has an option to take over all the rights to the product before the end of 2008. If this comes to pass, NPP/SCN will be paid USD 13 m.
Carsten Waern, CEO of NPP, comments that the two companies have similar profiles and can gain a lot by working as one entity. On the research side it will bring together SCN's collaboration with Sweden's world renowned Karolinska Institute, and NPP's American research contacts with the University of Mississippi and Johns Hopkins University in Baltimore. NPP lists its focus areas as immune system health, colds, joint care and skin care.
Out of the total purchase price of SEK 60 m (USD 9 m), SEK 40 m is in SCN shares, SEK 15 m in cash, and the last SEK 5 m is conditional on future revenue.
Earlier this year, SCN strengthened its position in common cold treatments with a 20 year worldwide exclusivity agreement with Norwegian biotech company Life Capitol. The deal gives SCN exclusive rights to a patent pending treatment for common colds and virus related obesity. The news was reported by financial daily newspaper Børsen and on SCN's website.