BioTie reorganisation paves way for spins offs and MBOs with scope for equity investment in manufacturing.
The creation of BioTie Therapies Corp. that began with the merger of Contral Pharma Corporation, Biotie Therapies Corp., and Carbion Inc., first announced in April 2002, reached its conclusion with the release of 16 people in the company’s administration, research, process development and manufacturing departments.
BioTie Therapies will spin off its ContrAl Clinics operations and its Process Development and Manufacturing (PDM) Unit. ContrAl Clinics will be transferred to management and key personnel through a management buy-out (MBO).
The Process Development unit will also be transferred to the unit’s key personnel with financing for the PDM unit to be sought from private equity investors. BioTie would become a significant client of the company to be formed.
Four employees of ContrAl Clinics and 14 employees of the PDM unit will be transferred into the new companies. The operations of the new companies are expected to commence in January 2003.
By focusing the project portfolio and by rationalizing costs, BioTie expects to make cost savings of 35 per cent during 2003 as compared to the forecasted cost level in 2002.
In mid-November, Kauko Kurkela, President and CEO of Biotie Therapies, and Markku Jalkanen, Deputy CEO of Biotie Therapies, resigned and stepped down from the Board of Directors.
The merger of Contral Pharma Corporation, Biotie Therapies Corp., and Carbion Inc. formally completed on October 31, 2002 to create a biopharmaceutical company specialising in treatments for inflammatory diseases, cancer and thrombosis.
Keywords : BioTie Therapies Finland Manufacturing Process development MBO Biopharmaceuticals Inflammatory disease Cancer Thrombosis
