Bioton bags EUR31m from deal with Bayer Schering
Warsaw – Polish insulin maker Bioton SA has bounced back. After incurring a $6m loss in the first quarter of this year the company announced yesterday that it has signed an exclusive supply and distribution agreement with German drugmaker Bayer Schering Pharma. For an advance payment of EUR31m, Bayer will acquire the exclusive rights for commercialisation and distribution of insulin under the trade name SciLin® in China, which will be produced by BIOTON’s subsidiary SciGen in Singapore. Under the terms of the agreement, BIOTON will deliver the recombinant insulin to Bayer in China and ensures the product supply for the next 15 years. With the deal, Bayer secures its leading position in the fast-growing diabetes market in China. After a series of bad news BIOTON seems now to recover from recent financial problems.
At the beginning of July, BIOTON had issued EUR11.5m in shares to its major shareholder, Polish businessman Ryszard Krauze. Three days later, Bioton also bagged financing worth EUR83.5m from the US-based GEM Global Yield Fund. The funding secures Bioton’s operations for the next three years. The company had carried out an emergency share issue in April to get access to cash, while at the same time promising a major restructure aimed at improving earnings.