Vistin Pharma ASA, a Norwegian pharmaceutical company, has entered a sales and purchase agreement with TPI Enterprises (TPE), an Australian narcotic raw-material manufacturer, for the sale of its opioids and contract tablet manufacturing business. TPE will pay a cash consideration of NOK 100 million ($12.37 million) as well as the value of inventory transferred at the date of closing. The inventory value in March 2017 was NOK 62 million ($7.67 million).

Vistin Pharma has two products, codeine phosphate, used in analgesics and cough syrup, and pholcodine, used in cough syrup. Its contract tablet manufacturing business produces finished products, with its main customer being Weifa, a Norway-based consumer health company. For 2016, total revenue from the opioids and contract business totaled NOK 221.5 million ($27.39 million).

Subject to the completion of a demerger of Vistin Pharma AS and the transfer of the production license from the Norwegian Medical Agency to the demerged entity, the transaction is expected to close early in the fourth quarter of 2017.

The sale has been discussed with key shareholders, representing more than 50% of the shares in Vistin Pharma, prior to signing of the sales and purchase agreement, and these have supported the transaction.

Source: Vistin Pharma