LinkMed AB, a leading listed private equity company in the life science sector, is acquiring 100 percent of the shares in Olerup SSP AB, a world leading company in the transplantation area and one of Sweden’s most profitable biotechnology companies.

The acquisition will further strengthen LinkMed’s position in the transplantation sector and is strategically important in that it complements LinkMed’s portfolio company AbSorber and its XM-ONE® product. In the long-term, LinkMed strives to build a larger company in the transplantation sector with a broad product portfolio. The value of the acquisition is SEK 216 million.

Olerup SSP AB is world leading in the development of reagents and kits for genomic HLA typing, which is a required step performed prior to a transplantation operation in order to match the donor and recipient. HLA typing is primarily carried out before bone marrow transplantations (hematopoietic stem cell transplantation) but is also carried out in conjunction with solid organ transplantations (kidneys, lungs, hearts, etc).

Olerup SSP’s products are primarily used prior to bone marrow transplantations, while Absorber’s product XM-ONE® is mainly used prior to organ transplantations, with kidney transplantations being the most common. Both companies offer tests that are required before a transplantation operation in order to match the donor with the recipient. A better match between the donor and the recipient increases the probability of a successful transplantation and lowers the risk of complications such as rejections.

The acquisition will be completed during July 2008. Subsequent to the acquisition, Olerup SPP AB will be a wholly owned subsidiary of LinkMed AB. Today, the company is owned by its founder Olle Olerup and is located outside Stockholm, Sweden.

  • From the date of acquisition LinkMed will report positive operating profit and cash flow from operations.
  • Olerup SSP AB reported sales of SEK 69.0 million and an EBIT of SEK 35.9 million in 2007. Comparable sales in 2006 were SEK 64.5 million. EBIT margins for the past five years have averaged 56 percent.
  • Olerup SPP AB is world leading in developing reagents and kits for low resolution and high resolution HLA (Human Leukocyte Antigen) typing. The company has a global sales agreement with the Germany company Qiagen, which is a leading distributer in the area of diagnostics.
  • Assistant Professor Olle Olerup will continue as CEO of Olerup SSP AB, after it becomes a wholly owned LinkMed subsidiary.
  • The maximum purchase price is set at SEK 216 million, with part of the payment being made in cash, part in convertibles and part as an additional purchase sum linked to future sales goals.

 

The transaction is conditional to approval by an extraordinary meeting of shareholders of LinkMed AB, at which a decision regarding the proposal of a non-cash issue in the form of a convertible loan at a value of SEK 31 million will be voted on.

”Olerup SSP AB is a well managed and very profitable company active in a growing market that is of great interest to LinkMed. Better matching between the donor and recipient increases the probability of a successful transplantation and is extremely important for different types of transplantations,” says LinkMed’s CEO and founder Ingemar Lagerlöf. “Through our portfolio company Absorber and the product XM-ONE® LinkMed is already establishing itself in this market and going forward we see potential in creating a unique and significantly larger transplantation company,” he continues.

There is a great shortage of donors and organs today at the same time as the need for donors and organs continues to increase, with waiting times becoming longer and longer – circumstances that are referred to as the “organ gap”. Today, approximately 25,000 bone marrow transplantations are carried out globally per year of which 40 percent are between non-related donors and patients.