Provalis sells drug assets to Kogen for $18.4M

Subject to share holder approval, UK firm Provalis has agreed to sell certain assets of Provalis Healthcare, its pharmaceutical division, to Kogen, an independently-managed drugmaker affiliated to Galen of Northern Ireland, for approximately L10.5 million ($18.6 million). The assets comprise certain contracts, goodwill and intellectual property of Provalis Healthcare as well as its stocks. A total consideration of L9.5 million, plus approximately L1.0 million for the stock of the products, will be payable in cash on completion, before transaction costs of approximately L500,000. Provalis says that the net L10.0 million cash will mainly be used to repay the group's borrowings which are currently L5.2 million. The UK firm will retain the infrastructure, employees and certain other working capital balances of its health care division and hopes that the balance of L3.8 million will allow it to continue the resolution of the technical issues associated with its diabetes test, in2it.