STOCKHOLM, SWEDEN--(Marketwire - July 26, 2007) - Scandinavian Clinical Nutrition AB (SCN MTF) has acquired the Danish research and exports company Nordic Phytopharma A/S (NPP). The acquisition brings SCN two new and internationally patented products: one designed to reduce symptoms of the common colds, and the other is formulated to support optimal immune health. The acquisition will also strengthen SCN's international exports in the European, Asian and South American markets.
"SCN and NPP have much to gain by working as one organization. The owners of NPP see the potential of a larger SCN to maintain a strong, steadfast position on the world market," says Carsten Waern, CEO of NPP.
Another established product from NPP, Immulina, is licensed to an American company, PhytoLab Solutions, Inc. PhytoLab Solutions has paid $1.5 million dollars for the license to market Immulina, with the option to acquire full rights to the product by the end of 2008. If Phytolab solutions exercise this option, it would give NPP/SCN an additional revenue of $13 million dollars.
From the total purchase price of $9 million dollars, $7 million dollars are shares in SCN that will be issued to the owners of NPP. $1.25 million dollars will be paid in cash, and the remaining $750,000 dollars is conditional on future revenue. The agreement is contingent upon approval from a SCN Shareholders Meeting, which will be held in August 2007.
"The management of NPP has extensive experience from the international health market, with well-known products, such as Imedeen, for example. Together with the benefits of NPP's established sales organization, these management qualities are good prerequisites for our combined product portfolio," says Ulf Söderberg, CEO of SCN.
SCN maintains its R & D focus though their 10 year, $10 million dollars research agreement with the Swedish Karolinska Institute. The Karolinska Institute is one of the world's most respected medical universities, and the institution that awards the Nobel Laureate in Physiology and Medicine. With the acquisition of NPP, SCN will expand their American research contacts at the University of Mississippi and give SCN access to leading professors at the Johns Hopkins University in Baltimore.
About Scandinavian Clinical Nutrition
Scandinavian Clinical Nutrition AB (SCN MTF) acts as a holding company and marketing arm in the development and distribution of clinically tested, scientifically documented products within the field of nutrition (nutraceuticals). Established in 2006, SCN maintains a product portfolio with established trademarks, such as CUUR, Membraseven, and Ledactin. Core competence and strategic alliances, within both R&D and sales, in combination with innovative and clinically proven products, create the ideal conditions for profitable growth both in Sweden and internationally. The SCN share is listed for trade on NGM Nordic MTF since December 6, 2006. For more information, please visit www.scnutrition.com.