Date: 27-Dec-2019

LEO Pharma Signs Agreement to Divest Emollients and Proctology Portfolio to Karo Pharma

LEO Pharma announced the sale of 10 products to Karo Pharma AB for 90 MEUR. The divested portfolio is non-core to LEO Pharma’s business, and was part of the portfolio acquired from Bayer in July 2019. “This divestment is an important step for LEO Pharma towards strategically aligning our portfolio and increasing focus on innovation and dermatology. This well-established portfolio will be better served by Karo Pharma and its team,” said Anders Kronborg, Chief Financial Officer, LEO Pharma. The product portfolio includes four anti-haemorrhoid products (Sheriproct®, Doloproct®, Neriproct® and Ultraproct®) and six dermatology, mainly over-the-counter products (Ultrabas®, Ultralip®, Ultraphil®, Ultrasicc®, Neribas® and Ultralan®). Karo Pharma is a fast-growing specialty pharma company that develops and markets products to physicians, pharmacies and directly to healthcare providers. The company is listed on the Swedish stock exchange, Nasdaq Stockholm Mid Cap. Following the closing, LEO Pharma and Karo Pharma will work closely together to ensure a smooth and effective transition of the business to Karo Pharma. The transaction is subject to customary competition authority approvals being received but is expected to be effective by the end of Q1, 2020.