Boehringer cancels deal with IdeaSphere

German drug major Boehringer Ingelheim has cancelled the sale of its Pharmaton SA division to IdeaSphere, a New York-based health care company specializing in vitamins, minerals, nutrition products and herbs.

Boehringer said that IdeaSphere has not fulfilled all its closing obligations in accordance with the contract, and so it used its right to cancel the transaction and is in the process of considering alternative options in the interests of both itself and Pharmaton, whose operations and business in Lugano, Switzerland, as well as product marketing and distribution, will continue to be Boehringer's responsibility.

The firms signed a share purchase agreement for an undisclosed amount on August 24, 2006, and had agreed to close the transaction on January 2, 2007, after fulfilling all contractual prerequisites (Marketletter September 4, 2006), but then postponed the closure until February 16 to enable a final clarification of some outstanding topics.